Principal Financial (PFG)
NASDAQ:PFG
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Principal Financial
(NASDAQ:PFG)
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Rating:72Outperform
Price Target:
$112.00
▲(16.46% Upside)
Action:Reiterated
Date:05/21/26
The score is driven primarily by solid (but not consistently growing) fundamentals—improving margins/ROE, conservative leverage, and strong cash generation—tempered by weak revenue momentum and volatility in cash flow/earnings. Supportive earnings-call tone and guidance execution, plus a favorable valuation (P/E ~12 and ~3.1% yield), add to the outlook, while technicals indicate a constructive uptrend.
Positive Factors
Cash generation
High absolute free cash flow that closely tracks earnings indicates durable earnings quality and internal funding capacity. Sustained FCF (~$3.6B) supports dividends, buybacks, reinvestment in products/distribution and cushions the business versus cyclical revenue swings.
Negative Factors
Weak revenue momentum
Top-line declines reduce the base for fee and spread revenue, constraining durable earnings growth even as margins improve. Persistent revenue weakness forces reliance on cost and capital management to sustain earnings and could limit long‑term margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
High absolute free cash flow that closely tracks earnings indicates durable earnings quality and internal funding capacity. Sustained FCF (~$3.6B) supports dividends, buybacks, reinvestment in products/distribution and cushions the business versus cyclical revenue swings.
Read all positive factors
Principal Financial Key Performance Indicators (KPIs)
Any
Operating Revenue by Segment
Data provided by:
The Fly
The FlyPrincipal Financial (PFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.43B
Dividend Yield3.44%
Average Volume (3M)1.26M
Price to Earnings (P/E)12.0
Beta (1Y)0.99
Revenue Growth-1.98%
EPS Growth48.93%
CountryUS
Employees19,700
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)7.01
Shares Outstanding216,012,390
10 Day Avg. Volume1,118,105
30 Day Avg. Volume1,264,446
Financial Highlights & Ratios
PEG Ratio-0.78
Price to Book (P/B)1.68
Price to Sales (P/S)1.27
P/FCF Ratio4.49
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue1.44
Enterprise Value/Gross Profit2.97
Enterprise Value/Ebitda11.69
Forecast
1Y Price Target
$99.90Price Target Upside3.88% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)9.33
Revenue Forecast (FY)$16.36B
Principal Financial Business Overview & Revenue Model
Company Description
Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates through Retirement and Income Solutions, Principal Glo...
How the Company Makes Money
PFG generates earnings primarily through fees, premiums, and investment income tied to its retirement, asset management, and insurance/benefits businesses. In Retirement and Income Solutions, it earns recurring administrative and service fees for ...
Principal Financial Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call highlighted broad, measurable momentum across the company: strong adjusted EPS growth, margin and ROE expansion, record gross sales in asset management, robust retirement and SMB flows, sizable capital returns and a raised dividend. Management acknowledged some short-term headwinds — negative total net cash flow for the company, redemptions in select active U.S. equity funds, timing-driven reductions in variable investment income, and lumpiness in PRT transactions — but positioned these as largely manageable, transitory, or offset by diversification and capital strength. On balance, highlights materially outweigh the lowlights and management expressed confidence in delivering 2026 targets.Positive Updates
Adjusted EPS and Operating Earnings Growth
13% adjusted non-GAAP EPS growth in Q1 (above high end of target). Non-GAAP operating earnings of $456M (+10% YoY) or $2.07/share (+14% YoY). Excluding significant variances, adjusted operating earnings $479M (+9% YoY) or $2.17/share (+13% YoY).
Negative Updates
Negative Total Company Net Cash Flow
Total company net cash flow was negative $1.5B in Q1 (though improved sequentially and YoY), contributing to modest sequential AUM decline despite YoY AUM growth.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EPS and Operating Earnings Growth
13% adjusted non-GAAP EPS growth in Q1 (above high end of target). Non-GAAP operating earnings of $456M (+10% YoY) or $2.07/share (+14% YoY). Excluding significant variances, adjusted operating earnings $479M (+9% YoY) or $2.17/share (+13% YoY).
Read all positive updates
Company Guidance
Management reiterated confidence in delivering on its 2026 financial targets, calling for year‑over‑year improvement in variable investment income and real‑estate monetization and noting several Q1 metrics that underpin that guidance: adjusted non‑GAAP EPS rose 13% (above the high end of the target range); non‑GAAP operating earnings were $456M ($479M ex‑significant variances) or $2.07/share ($2.17 ex‑variances); non‑GAAP operating ROE was 16.1% (up 140 bps, at the midpoint of the 15–17% target); margin expanded 190 bps to 30% on 6% net revenue growth; total AUM was $770B (+7% YoY) with total company net cash flow −$1.5B (improved sequentially); retirement transfer deposits were $12B (+35% YoY) with recurring deposits +7% and participant deferrals and average deferrals both up ~3% (roll‑ins $1.7B; RIS account‑value NCF ≈ $1.8B); Principal Asset Mgmt gross sales were a record $37B (+21% YoY) with private markets net inflows $400M qtr/$3B TTM and private AUM +11% YoY; International Pension AUM hit $160B (+20% YoY) with +$500M NCF; Benefits & Protection pretax earnings were $177M (+41% YoY) with total loss ratio improving 220 bps and Specialty Benefits record sales +24% (business market life premium & fees +15%); capital returned was ~$374M (including $200M buybacks), excess/available capital >$1.4B (including $800M at the holding co, $300M in subsidiaries and ~$350M excess above a ~375% RBC target; RBC ≈400%); and the Q2 dividend was raised to $0.82 (+$0.02 QoQ, +8% YoY) consistent with a ~40% payout target—management cautioned that performance fees, real‑estate gains and flow patterns will be lumpy by quarter.Principal Financial Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.46B | 15.63B | 16.13B | 13.67B | 17.54B | 14.43B |
| Gross Profit | 7.52B | 7.06B | 7.35B | 5.90B | 11.04B | 7.08B |
| EBITDA | 1.91B | 1.67B | 2.15B | 1.01B | 6.28B | 2.19B |
| Net Income | 1.55B | 1.19B | 1.57B | 623.20M | 4.76B | 1.58B |
Balance Sheet | ||||||
| Total Assets | 332.70B | 341.38B | 313.66B | 305.05B | 303.00B | 304.66B |
| Cash, Cash Equivalents and Short-Term Investments | 4.05B | 33.49B | 73.49B | 71.22B | 67.74B | 80.91B |
| Total Debt | 3.95B | 3.95B | 4.11B | 3.99B | 4.08B | 4.69B |
| Total Liabilities | 320.31B | 328.99B | 302.19B | 293.84B | 292.70B | 288.20B |
| Stockholders Equity | 11.82B | 11.88B | 11.09B | 10.92B | 10.00B | 16.07B |
Cash Flow | ||||||
| Free Cash Flow | 3.63B | 4.44B | 4.53B | 3.69B | 3.06B | 3.09B |
| Operating Cash Flow | 3.75B | 4.54B | 4.60B | 3.79B | 3.17B | 3.22B |
| Investing Cash Flow | -4.15B | -4.14B | -5.40B | -1.35B | 1.06B | -5.66B |
| Financing Cash Flow | 578.00M | -181.80M | 300.30M | -2.59B | -1.72B | 1.92B |
Principal Financial Technical Analysis
Positive
96.17
Price Trends
95.09
Positive
93.33
Positive
87.27
Positive
Market Momentum
2.02
Negative
68.03
Neutral
91.99
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFG, the sentiment is Positive. The current price of 96.17 is below the 20-day moving average (MA) of 101.04, above the 50-day MA of 95.09, and above the 200-day MA of 87.27, indicating a bullish trend. The MACD of 2.02 indicates Negative momentum. The RSI at 68.03 is Neutral, neither overbought nor oversold. The STOCH value of 91.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PFG.
Principal Financial Risk Analysis
Principal Financial disclosed 62 risk factors in its most recent earnings report. Principal Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Principal Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $33.65B | 8.24 | 20.48% | ― | 8.66% | 32.96% | |
77 Outperform | $37.29B | 10.99 | 22.01% | 1.55% | 6.90% | 41.67% | |
72 Outperform | $22.43B | 12.02 | 13.25% | 3.44% | -1.98% | 48.93% | |
70 Outperform | $40.85B | 13.27 | 7.70% | 2.02% | -2.31% | 26.43% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $12.96B | 6.38 | 11.63% | 5.77% | 33.06% | 50.47% | |
65 Neutral | $11.99B | 4.20 | -219.79% | 2.15% | -19.35% | -175.55% |
* Financial Sector Average
PFG
Principal Financial
103.85
29.71
40.07%
AEG
Aegon
8.61
2.01
30.43%
AIG
American International Group
77.05
-2.78
-3.48%
ACGL
Arch Capital Group
96.30
4.23
4.59%
HIG
Hartford Insurance
136.02
9.22
7.27%
EQH
Equitable Holdings
42.58
-8.02
-15.86%
Principal Financial Corporate Events
Executive/Board ChangesShareholder Meetings
Principal Financial shareholders back directors, pay and incentives
Positive
May 20, 2026
Principal Financial Group, Inc. reported the outcomes of its May 19, 2026 annual shareholders meeting, where investors elected Class I directors Jonathan S. Auerbach, Mary E. “Maliz” Beams, Jocelyn Carter-Miller, Scott M. Mills, and Cl...
Business Operations and StrategyFinancial Disclosures
Principal Financial Updates Q1 2026 Assets Under Management
Neutral
Apr 20, 2026
As of March 31, 2026, Principal Financial Group reported total assets under management of $770.2 billion, with $578.0 billion overseen by Principal Asset Management – Investment Management and $159.6 billion managed by Principal Asset Manage...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.