Principal Financial Group Reports Strong 2025 Results with Dividend Increase
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 09 2026
0mins
Should l Buy PFG?
Source: Newsfilter
- 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.
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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: 90.610
Low
74.00
Averages
91.33
High
103.00
Current: 90.610
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.
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- Legislative Change Needed: To address the issue of Roth IRAs not being transferable to 401(k)s, Congress has introduced the Retirement Rollover Flexibility Act, which, if passed, would allow up to $7,000 of Roth IRA funds to be rolled into 401(k)s, providing greater flexibility and clarity for retirement savers.
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- Establishment of Auto-Transfer Network: Since late 2023, the Portability Services Network has collaborated with major 401(k) administrators to utilize technology that periodically checks if IRA owners are now in a retirement plan at a new employer, successfully transferring 31,216 IRA accounts into new 401(k) plans.
- Legislative Change Needed: To address the issue of Roth IRAs not being transferable to 401(k)s, Congress has introduced the Retirement Rollover Flexibility Act, which, if passed, would allow up to $7,000 of Roth IRA funds to be rolled into 401(k)s, providing greater flexibility and clarity for retirement savers.
- Market Participation Status: Currently, about 21,400 401(k) plans are enrolled in the network, representing 6.5 million participants, and once all participants fully implement auto-portability, it will account for 63% of the market, aiding in the simplification of retirement savings management.
See More
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- Confidence Rebound: The latest Principal Financial Well-Being Index shows a slight increase in business leaders' sentiment to 6.65 in January 2026 from 6.5 in October 2025, with larger firms (56%) more optimistic about the economic outlook than small to midsized businesses (44%), which may drive future investment decisions.
- Hiring and Retention Focus: With 92% of employers either maintaining or increasing staffing between October and December 2025, including 47% who are hiring more, businesses are in a 'low-hire, low-fire' equilibrium, emphasizing the retention of specialized talent to meet future market demands.
- Technology Modernization Priority: A significant 81% of businesses plan technology upgrades in 2026, with 54% focusing on software and 45% on AI, while 42% of employers expect to borrow funds to support these investments, indicating a strong urgency to enhance operational efficiency.
- Realistic Borrowing Environment: While interest rates remain a concern, businesses show a willingness to invest in key initiatives even at rates as high as 12%, suggesting that urgency in growth strategies outweighs the cost of borrowing, reflecting a proactive approach to future development.
See More
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- 401(k) Growth: In his State of the Union address, Trump highlighted that the typical 401(k) balance has increased by at least $30,000 since he took office, with the average balance rising 11% to $146,400 in 2025, indicating a positive impact of market performance on retirement savings.
- IRA Performance: The average individual retirement account balance also saw a gain of $9,561, reaching $137,095 in 2025, reflecting a 7% year-over-year increase, which suggests that more low- and middle-income Americans are investing, signaling a recovery in the economy.
- Withdrawal Trends: Despite the increase in account balances, hardship withdrawals from 401(k) plans reached a record high, with about 6% of workers taking such withdrawals in 2025, indicating financial strain on households and raising concerns about long-term retirement security.
- Market Performance Impact: The S&P 500 index achieved significant gains for the third consecutive year in 2025, rising 24%, 23%, and 16%, respectively, providing strong market support for the growth of 401(k) accounts and reflecting investor confidence in the market.
See More
Principal Financial Group Acquires DentaNet in Alabama
- Acquisition Deal: Principal Financial Group (PFG) has agreed to acquire DentaNet, a single-state dental network in Alabama with approximately 1,500 dental providers, significantly enhancing PFG's dental business in the small and midsized enterprise market.
- Renewal Rights: The agreement also includes PFG obtaining renewal rights for a block of group insurance contracts through Canopy Insurance, indicating the company's strategic intent to expand its group benefits business.
- Market Commitment: PFG executives stated that expanding the dental network and group benefits presence in Alabama demonstrates the company's commitment to continued above-market growth in the small and midsized business sector, which is expected to drive future business growth.
- Market Reaction: Despite the acquisition announcement, PFG's stock slipped 2.1% in Tuesday afternoon trading, reflecting the broader market decline's short-term impact on the company's stock price.
See More
Principal Acquires DentaNet to Expand Dental Network
- Acquisition Agreement: Principal Financial Group® has announced a definitive agreement to acquire DentaNet, Alabama's largest dental network, from Southland Benefit Solutions, which is expected to enhance its competitiveness in the small and midsized business market, driving business growth.
- Network Expansion: With approximately 1,500 dental providers, the acquisition of DentaNet will increase the number of Principal's wholly owned networks, further solidifying its market position in the Southeast and enhancing service capabilities.
- Strategic Investment: By obtaining renewal rights for group insurance contracts through Canopy Insurance, Principal demonstrates its ongoing commitment to investing in its dental business, aiming to strengthen customer relationships through a localized service model.
- Market Impact: As of December 31, 2025, Principal serves over 60,000 employer dental plans, providing coverage to nearly 2.8 million participants, and this acquisition is set to further expand its market share and enhance brand influence.
See More
The Importance of Financial Coordination for Couples
- Retirement Savings Optimization: Research indicates that couples who switch retirement savings to accounts with higher match rates could see an increase of approximately $750 annually for about 20% of couples, significantly enhancing their retirement wealth.
- Wealth Loss Risk: Couples who fail to focus on the highest match rates may sacrifice an average of $14,000 in retirement wealth over their lifetimes, with 10% potentially losing as much as $40,000, highlighting the costly consequences of lack of coordination.
- Current Financial Coordination: The study reveals that couples managing finances independently may operate like roommates, missing out on collaborative decision-making opportunities that could lead to financial losses, underscoring the importance of joint management.
- Regular Financial Meetings: Couples who hold regular financial meetings are better positioned to identify coordination opportunities, particularly when applying for workplace benefits and increasing retirement plan contributions, ensuring alignment on financial goals.
See More
