Annaly Q4 EAD Beats Estimates, NII Misses by 21.8% as Shares Fall
Annaly reported Q4 2025 earnings available for distribution per share of $0.74, beating estimates by $0.02 and lifting book value per share to $20.21, up 5.6% year-over-year. However, net interest income of $366.6 million missed projections by 21.8%, while estimates have trended downward and shares have slid 3% since earnings.
1. Earnings Beats and Book Value Growth
Annaly's Q4 2025 earnings available for distribution per share reached $0.74, surpassing consensus by $0.02 and rising from $0.72 a year earlier. Book value per share climbed to $20.21 at quarter-end, marking a 5.6% year-over-year increase driven by higher asset yields and retained earnings.
2. Net Interest Income Shortfall
Net interest income totaled $366.6 million in the quarter, missing estimates by 21.8% despite a 7.7% sequential asset increase to $135.6 billion. The average yield on interest-earning assets rose to 5.44%, but funding costs jumped to 3.95%, narrowing the net interest margin to 1.69%.
3. Outlook and Investor Sentiment
Analyst estimates for 2026 distributions have been revised downward as investors weigh margin compression risks against stable yields. Annaly’s aggregate VGM Score stands at B, yet the stock has slid 3% since the report, reflecting cautious sentiment ahead of the next distribution announcement.