Principal Financial Group Q4 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy PFG?
Source: seekingalpha
- Earnings Beat: Principal Financial Group reported a Q4 non-GAAP EPS of $2.24, surpassing expectations by $0.02, indicating strong profitability that boosts investor confidence.
- Positive Outlook: The company anticipates a 9-12% annual growth in non-GAAP operating earnings per diluted share for 2026, reflecting management's optimistic view on future performance, which may attract more investor interest.
- Capital Deployment Plans: Principal plans to achieve a 15-17% non-GAAP return on equity and deploy $1.5-$1.8 billion in capital, including $0.8-$1.1 billion for share repurchases, demonstrating a commitment to shareholder returns.
- Strong Cash Flow Conversion: The expected free capital flow conversion rate of 375-85% will provide robust support for ongoing investments and shareholder returns, further solidifying the company's market position.
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Analyst Views on PFG
Wall Street analysts forecast PFG stock price to rise
9 Analyst Rating
1 Buy
6 Hold
2 Sell
Hold
Current: 90.510
Low
74.00
Averages
91.33
High
103.00
Current: 90.510
Low
74.00
Averages
91.33
High
103.00
About PFG
Principal Financial Group, Inc. is a global financial company. The Company offers businesses, individuals, and institutional clients a range of financial products and services, including retirement, asset management and insurance, through its diverse family of financial services companies. The Company's segments include Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection. The Retirement and Income Solutions segment offers workplace savings and retirement solutions, banking, trust and custodial services, individual variable annuities, and pension risk transfer, among others. The Principal Asset Management segment provides global investment solutions to institutional, retirement, retail, and high-net worth investors. The Benefits and Protection segment is organized into Specialty Benefits, which provides group dental, group life insurance, group disability insurance, supplemental health products, and individual disability and life insurance.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Principal Financial Group Q4 2025 Earnings Call Highlights
- Significant Earnings Growth: Principal Financial Group reported a 12% increase in adjusted non-GAAP EPS and nearly 20% in reported EPS for 2025, indicating strong profitability, with expectations to maintain performance within target ranges for EPS growth, free capital flow conversion, and ROE in 2026.
- Strong Retirement Business: Total retirement transfer deposits reached $35 billion, up 9% year-over-year, while recurring deposits in workplace savings and retirement solutions grew by 5%, reflecting the company's increasing competitiveness in the retirement market and its ability to attract more client funds.
- Outstanding Asset Management Performance: Global asset management gross sales hit $127 billion, a 16% increase, with private markets sales soaring by 50%, which not only enhances the company's market position but also lays the groundwork for future capital appreciation.
- Capital Deployment Plans: The company plans to deploy $1.5 billion to $1.8 billion in capital in 2026, including $800 million to $1.1 billion in share repurchases and increasing common stock dividends, demonstrating management's confidence in future growth and commitment to shareholder returns.
See More
Principal Financial Group Announces Quarterly Dividend Increase
- Quarterly Dividend Increase: Principal Financial Group has declared a quarterly dividend of $0.80 per share, representing a 1.3% increase from the previous dividend of $0.79, indicating the company's ongoing growth in cash flow and profitability.
- Dividend Yield: The forward yield of 3.34% not only attracts income-seeking investors but also reflects the company's confidence in its future financial health and stability.
- Dividend Payment Schedule: The dividend will be payable on March 27, with a record date of March 11 and an ex-dividend date also set for March 11, ensuring shareholders receive timely returns and bolstering investor confidence.
- Impact of Buyback Program: The company's share buyback program drives shareholder value growth, further solidifying its competitive position in the market while laying the groundwork for future dividend increases.
See More
Principal Financial Group Q4 Earnings Exceed Expectations
- Earnings Beat: Principal Financial Group reported a Q4 non-GAAP EPS of $2.24, surpassing expectations by $0.02, indicating strong profitability that boosts investor confidence.
- Positive Outlook: The company anticipates a 9-12% annual growth in non-GAAP operating earnings per diluted share for 2026, reflecting management's optimistic view on future performance, which may attract more investor interest.
- Capital Deployment Plans: Principal plans to achieve a 15-17% non-GAAP return on equity and deploy $1.5-$1.8 billion in capital, including $0.8-$1.1 billion for share repurchases, demonstrating a commitment to shareholder returns.
- Strong Cash Flow Conversion: The expected free capital flow conversion rate of 375-85% will provide robust support for ongoing investments and shareholder returns, further solidifying the company's market position.
See More
Principal Financial Group Reports Strong 2025 Results with Dividend Increase
- Dividend Increase: Principal Financial Group announced an increase in its common stock dividend to $0.80 per share for Q1 2026, representing a 7% rise over Q1 2025, reflecting the company's strong profitability and commitment to shareholder returns.
- Earnings Performance: The full-year non-GAAP operating earnings per share for 2025 reached $8.55, a 12% increase that met the high end of the company's 9-12% target, indicating sustained growth and execution strength across its diversified businesses.
- Capital Return: In 2025, the company returned over $1.5 billion to shareholders, including $900 million in share repurchases and $700 million in dividends, demonstrating its disciplined capital deployment strategy and focus on enhancing shareholder value.
- Assets Under Management: As of 2025, Principal's assets under management totaled $781 billion, showcasing the company's strong market position and growth potential, particularly in the retirement and income solutions sector driven by ongoing demand.
See More
Principal Financial Group to Announce Q4 Earnings on February 9
- Earnings Announcement Date: Principal Financial Group is set to release its Q4 2023 earnings on February 9 after market close, with a consensus EPS estimate of $2.22, reflecting a 5.7% year-over-year growth, which could positively influence the stock price.
- Performance Expectations: Over the past two years, PFG has beaten EPS estimates 50% of the time but has never exceeded revenue expectations, indicating a level of uncertainty in profitability that may affect investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen six upward revisions and two downward adjustments, while revenue estimates experienced one upward and one downward revision, reflecting mixed market sentiments regarding the company's future performance that could impact shareholder decisions.
- Buyback Program Impact: Principal Financial Group's share buyback initiatives are driving shareholder value growth; although the company has not met revenue expectations, these buybacks may enhance EPS, thereby bolstering market confidence in the firm.
See More
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
Principal Financial Group Q4 2025 Earnings Call Highlights
- Significant Earnings Growth: Principal Financial Group reported a 12% increase in adjusted non-GAAP EPS and nearly 20% in reported EPS for 2025, indicating strong profitability, with expectations to maintain performance within target ranges for EPS growth, free capital flow conversion, and ROE in 2026.
- Strong Retirement Business: Total retirement transfer deposits reached $35 billion, up 9% year-over-year, while recurring deposits in workplace savings and retirement solutions grew by 5%, reflecting the company's increasing competitiveness in the retirement market and its ability to attract more client funds.
- Outstanding Asset Management Performance: Global asset management gross sales hit $127 billion, a 16% increase, with private markets sales soaring by 50%, which not only enhances the company's market position but also lays the groundwork for future capital appreciation.
- Capital Deployment Plans: The company plans to deploy $1.5 billion to $1.8 billion in capital in 2026, including $800 million to $1.1 billion in share repurchases and increasing common stock dividends, demonstrating management's confidence in future growth and commitment to shareholder returns.
See More
Principal Financial Group Announces Quarterly Dividend Increase
- Quarterly Dividend Increase: Principal Financial Group has declared a quarterly dividend of $0.80 per share, representing a 1.3% increase from the previous dividend of $0.79, indicating the company's ongoing growth in cash flow and profitability.
- Dividend Yield: The forward yield of 3.34% not only attracts income-seeking investors but also reflects the company's confidence in its future financial health and stability.
- Dividend Payment Schedule: The dividend will be payable on March 27, with a record date of March 11 and an ex-dividend date also set for March 11, ensuring shareholders receive timely returns and bolstering investor confidence.
- Impact of Buyback Program: The company's share buyback program drives shareholder value growth, further solidifying its competitive position in the market while laying the groundwork for future dividend increases.
See More
Principal Financial Group Q4 Earnings Exceed Expectations
- Earnings Beat: Principal Financial Group reported a Q4 non-GAAP EPS of $2.24, surpassing expectations by $0.02, indicating strong profitability that boosts investor confidence.
- Positive Outlook: The company anticipates a 9-12% annual growth in non-GAAP operating earnings per diluted share for 2026, reflecting management's optimistic view on future performance, which may attract more investor interest.
- Capital Deployment Plans: Principal plans to achieve a 15-17% non-GAAP return on equity and deploy $1.5-$1.8 billion in capital, including $0.8-$1.1 billion for share repurchases, demonstrating a commitment to shareholder returns.
- Strong Cash Flow Conversion: The expected free capital flow conversion rate of 375-85% will provide robust support for ongoing investments and shareholder returns, further solidifying the company's market position.
See More
Principal Financial Group Reports Strong 2025 Results with Dividend Increase
- Dividend Increase: Principal Financial Group announced an increase in its common stock dividend to $0.80 per share for Q1 2026, representing a 7% rise over Q1 2025, reflecting the company's strong profitability and commitment to shareholder returns.
- Earnings Performance: The full-year non-GAAP operating earnings per share for 2025 reached $8.55, a 12% increase that met the high end of the company's 9-12% target, indicating sustained growth and execution strength across its diversified businesses.
- Capital Return: In 2025, the company returned over $1.5 billion to shareholders, including $900 million in share repurchases and $700 million in dividends, demonstrating its disciplined capital deployment strategy and focus on enhancing shareholder value.
- Assets Under Management: As of 2025, Principal's assets under management totaled $781 billion, showcasing the company's strong market position and growth potential, particularly in the retirement and income solutions sector driven by ongoing demand.
See More
Principal Financial Group to Announce Q4 Earnings on February 9
- Earnings Announcement Date: Principal Financial Group is set to release its Q4 2023 earnings on February 9 after market close, with a consensus EPS estimate of $2.22, reflecting a 5.7% year-over-year growth, which could positively influence the stock price.
- Performance Expectations: Over the past two years, PFG has beaten EPS estimates 50% of the time but has never exceeded revenue expectations, indicating a level of uncertainty in profitability that may affect investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen six upward revisions and two downward adjustments, while revenue estimates experienced one upward and one downward revision, reflecting mixed market sentiments regarding the company's future performance that could impact shareholder decisions.
- Buyback Program Impact: Principal Financial Group's share buyback initiatives are driving shareholder value growth; although the company has not met revenue expectations, these buybacks may enhance EPS, thereby bolstering market confidence in the firm.
See More
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
