Financial Performance - The company's Non-GAAP operating earnings were $474 million, a 15% increase compared to Q3 2024[9] - Non-GAAP EPS, excluding significant variances, was $2.32, up 13% from Q3 2024[9] - The company returned $398 million of excess capital to shareholders in Q3 2025, including $225 million in share repurchases and $173 million in common stock dividends[2] - The company's total AUM reached $784 billion, a 4% increase compared to Q2 2025[10] Segment Performance - Retirement and Income Solutions pre-tax operating earnings increased 8% due to 4% higher net revenue[4, 14] - Investment Management pre-tax operating earnings increased 9% due to 5% higher management fees[4] - Specialty Benefits record pre-tax operating earnings increased 28% due to strong underwriting results[4] Growth & Sales - Investment Management's private net cash flow was +$1.7 billion[6] - Investment Management's active ETF net cash flow was +$0.5 billion[6] - International Pension's record reported AUM was $151 billion, a 9% increase from the year-ago quarter[20] - Sales of Retirement and Income Solutions increased 8% to $7 billion[14] Capital Management - The company's excess and available capital position was $1.6 billion[4, 9] - The company's debt to capital ratio was 22%[4, 9]

Core Viewpoint - Shares of Principal Financial Group (NASDAQ: PFG) have underperformed over the past year, with a 6% decline in value, despite the company's efforts to return capital to investors [1] Group 1: Company Performance - The operating performance of Principal Financial Group has been mixed, particularly in certain segments [1] Group 2: Capital Return - The company has been aggressively returning capital to investors, but much of this has already been priced into the stock [1]

Core Insights - Principal Financial (PFG) reported revenue of $3.9 billion for the quarter ended September 2025, reflecting a year-over-year increase of 6.2% but falling short of the Zacks Consensus Estimate by 4.15% [1] - Earnings per share (EPS) for the quarter was $2.10, an increase from $1.76 in the same quarter last year, but also below the consensus estimate of $2.18, resulting in an EPS surprise of -3.67% [1] Financial Performance Metrics - Assets under management (AUM) for International Pension reached $150.70 billion, exceeding the average estimate of $143.58 billion [4] - AUM for Investment Management was reported at $601.60 billion, slightly below the average estimate of $604.19 billion [4] - Net investment income revenue was $1.2 billion, compared to the average estimate of $1.26 billion, marking a year-over-year increase of 2.8% [4] - Revenue from premiums and other considerations was $1.53 billion, below the average estimate of $1.74 billion, with a year-over-year change of +8.5% [4] - Fees and other revenues generated $1.13 billion, slightly below the average estimate of $1.14 billion, reflecting a year-over-year increase of 3.5% [4] Segment Performance - In the Principal Asset Management Segment, net investment income was $179.5 million, below the estimate of $188.31 million, representing a year-over-year decline of 13.5% [4] - In the Benefits and Protection Segment, Specialty Benefits fees and other revenues were $8.4 million, below the average estimate of $8.85 million, with a year-over-year change of +2.4% [4] - Specialty Benefits premiums and other considerations totaled $836.8 million, below the average estimate of $850 million, reflecting a year-over-year increase of 3.2% [4] - Life Insurance fees and other revenues were reported at $112.8 million, below the average estimate of $129.74 million, with a year-over-year change of +2.9% [4] - Life Insurance premiums and other considerations reached $136.1 million, exceeding the average estimate of $127.22 million, marking a year-over-year increase of 3.5% [4]

Core Viewpoint - Principal Financial (PFG) reported quarterly earnings of $2.1 per share, missing the Zacks Consensus Estimate of $2.18 per share, but showing an increase from $1.76 per share a year ago, indicating a -3.67% earnings surprise [1][2] Financial Performance - The company posted revenues of $3.9 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 4.15%, compared to $3.67 billion in the same quarter last year [2] - Over the last four quarters, Principal Financial has surpassed consensus EPS estimates only once and topped consensus revenue estimates two times [2] Stock Performance - Principal Financial shares have increased by approximately 2.9% since the beginning of the year, while the S&P 500 has gained 15.5% [3] - The current Zacks Rank for Principal Financial is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.21 on revenues of $4.15 billion, and for the current fiscal year, it is $8.33 on revenues of $15.93 billion [7] - The trend of estimate revisions for Principal Financial was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Insurance - Multi line industry, to which Principal Financial belongs, is currently in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Performance - Diluted earnings per share for Q3 2025 were $0.95, with net income attributable to PFG at $214 million, a significant recovery from a loss of $220 million in Q3 2024[2][7] - Non-GAAP operating earnings per diluted share increased 19% year-over-year to $2.10, while non-GAAP net income attributable to PFG, excluding exited business, rose 16% to $2.06 per share[6][7] - Net income attributable to Principal Financial Group (PFG) for 3Q25 was $213.8 million, compared to a loss of $220.0 million in 3Q24, marking a significant improvement[36] - Non-GAAP net income attributable to PFG, excluding exited business, increased to $465.6 million in 3Q25 from $419.1 million in 3Q24, reflecting a growth of 11.2%[36] - Non-GAAP operating earnings for 3Q25 were $473.7 million, up from $412.0 million in 3Q24, representing a year-over-year increase of 14.9%[36] Shareholder Returns - The company returned $398 million to shareholders, including $225 million in share repurchases and $173 million in common stock dividends[6] - The fourth quarter 2025 common stock dividend was raised to $0.79 per share, reflecting an 8% increase compared to Q4 2024[6][26] Segment Performance - Retirement and Income Solutions segment reported pre-tax operating earnings of $310.3 million, a 26% increase from Q3 2024, driven by 11% net revenue growth[12][13] - Investment Management segment's pre-tax operating earnings increased 9% to $173.5 million, supported by a 5% rise in management fees[12][14] - Specialty Benefits segment achieved record pre-tax operating earnings of $155.5 million, a 53% increase year-over-year, with an incurred loss ratio of 56.4%[20][23] - International Pension segment's pre-tax operating earnings decreased 8% to $101.2 million, with net revenue declining 4%[19][22] - Corporate segment reported pre-tax operating losses of $91.6 million, an increase of 15% compared to Q3 2024, primarily due to lower interest income and higher operating expenses[25][27] - The Benefits and Protection segment saw pre-tax operating earnings rise to $86.5 million in 3Q25 from $64.4 million in 3Q24, a growth of 34.6%[36] - Principal Asset Management's pre-tax operating earnings were $274.7 million in 3Q25, slightly up from $268.7 million in 3Q24[36] Assets and Equity - Assets under management (AUM) reached $784 billion, with a net cash flow of $0.4 billion, while assets under administration (AUA) totaled $1.8 trillion[6][7] - Total assets increased to $334.5 billion in 3Q25 from $313.7 billion in 4Q24, representing a growth of approximately 6.0%[41] - Stockholders' equity available to common stockholders rose to $11,665.5 million in 3Q25, up from $11,086.4 million in 4Q24, an increase of about 5.2%[43] - Book value per common share increased to $52.90 in 3Q25 from $49.01 in 4Q24, reflecting a growth of approximately 5.9%[43] - Total common equity excluding certain adjustments was $12,333.3 million in 3Q25, compared to $12,144.0 million in 4Q24, reflecting an increase of about 1.6%[43] Revenue and Expenses - Operating revenues for investment management reached $483.9 million in 3Q25, compared to $466.4 million in 3Q24, marking an increase of about 3.2%[47] - Operating revenues less pass-through expenses amounted to $444.0 million in 3Q25, up from $427.8 million in 3Q24, indicating a growth of approximately 3.0%[47] - Total GAAP income taxes for 3Q25 were reported at $14.5 million, a significant recovery from a tax benefit of $(100.4) million in 3Q24[45] - Significant variances in 3Q25 included lower than expected variable investment income across several segments, partially offset by higher income in Corporate[29] Share Count and Capital Gains - The weighted average diluted common shares outstanding decreased to 225.2 million in 3Q25 from 233.8 million in 3Q24[37] - The number of common shares outstanding decreased to 220.5 million in 3Q25 from 226.2 million in 4Q24, a decline of approximately 2.6%[41] - Net realized capital gains (losses) as adjusted were $(8.1) million in 3Q25, compared to $7.1 million in 3Q24, indicating a significant decline[45] Fair Value Changes - The cumulative change in fair value of funds withheld embedded derivative decreased to $(2,021.6) million in 3Q25 from $(2,381.3) million in 4Q24, showing an improvement of approximately 15.1%[43]

Core Insights - Principal Financial Group, Inc. is set to report earnings per share (EPS) of $2.18, reflecting a 23.8% increase year-over-year, with projected revenues of approximately $4.14 billion, marking a 7.8% growth [1][2][5] Financial Performance - The anticipated EPS increase is attributed to enhanced premiums and fee income, contributing significantly to the company's financial standing [2] - Projected revenues are driven by an increase in average assets under management (AUM) and improved investment yields [2][5] Market Sentiment - The Zacks Consensus Estimate for PFG's earnings has seen a slight upward adjustment of 0.4%, indicating positive market sentiment [3] - The company's price-to-earnings (P/E) ratio is 15.62, and the price-to-sales ratio is 1.17, reflecting the market's assessment of its earnings and sales potential [3] Financial Health - PFG maintains a solid financial position with a debt-to-equity ratio of 0.35, indicating a balanced approach to leveraging [4][5] - The durability of stock price adjustments post-earnings announcement will depend on management's commentary regarding business conditions during the earnings call [4]

Core Insights - Principal Financial Group, Inc. (PFG) is anticipated to show improvements in both revenue and earnings for Q3 2025, with results expected to be reported on October 27 [1][9] - The Zacks Consensus Estimate for PFG's Q3 revenues is $4.07 billion, reflecting a 7.8% increase year-over-year [1][9] - The consensus estimate for earnings is $2.18 per share, indicating a year-over-year increase of 23.8% [2][9] Revenue and Earnings Estimates - The revenue estimate of $4.07 billion represents a 7.8% growth compared to the previous year [1][9] - The earnings estimate of $2.18 per share has increased by 0.4% over the past 30 days [2][9] - The expected net investment income for Q3 2025 is projected to be $1.2 billion [7] Factors Influencing Performance - Strong PRT sales, favorable underwriting experiences, and overall business growth are expected to positively impact PFG's Q3 results [5] - Increased management fee revenues from higher average assets under management (AUM) and performance fees, particularly in real estate, are likely to benefit the Investment Management segment [6] - Positive market performance and beneficial exchange rate impacts are expected to enhance assets under management [8] Expense Projections - Total expenses are anticipated to rise to $3.6 billion due to higher benefits, claims, and settlement expenses [8]

Core Viewpoint - Principal Financial Group's stock rating was upgraded from Underweight to Equal-weight, with a new price target set at $81.00, reflecting the current valuation [2] Group 1: Stock Performance - The stock price increased by 0.34% to $79.41 during Thursday morning trading [2] - The stock's valuation multiple has compressed, indicating a potential for recovery [2] Group 2: Analyst Insights - The upgrade in rating is based on the assessment of mitigated downside risks associated with the stock [2]

Core Viewpoint - Analysts expect Principal Financial (PFG) to report quarterly earnings of $2.18 per share, reflecting a year-over-year increase of 23.9%, with revenues projected at $4.07 billion, up 10.8% from the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised 0.5% higher over the last 30 days, indicating a collective reevaluation by analysts [1][2] Revenue Projections - Analysts predict 'Revenue- Net investment income' will reach $1.26 billion, an increase of 8.3% year-over-year [4] - The estimate for 'Revenue- Premiums and other considerations' is $1.74 billion, indicating a change of +23.5% from the prior-year quarter [4] - 'Revenue- Fees and other revenues' is expected to be $1.14 billion, reflecting a year-over-year change of +4.8% [5] - The estimate for 'Revenue- Principal Asset Management Segment- Net investment income' stands at $188.31 million, showing a decrease of 9.2% from the previous year [5] Segment-Specific Revenue Estimates - 'Revenue- Benefits and Protection Segment- Specialty Benefits- Fees and other revenues' is projected at $8.85 million, indicating a change of +7.9% year-over-year [6] - 'Revenue- Benefits and Protection Segment- Specialty Benefits- Premiums and other considerations' is expected to reach $850.00 million, reflecting a +4.9% change [6] - 'Revenue- Benefits and Protection Segment- Life Insurance- Fees and other revenues' is forecasted at $129.74 million, suggesting a change of +18.4% year-over-year [8] - 'Revenue- Benefits and Protection Segment- Life Insurance- Premiums and other considerations' is estimated at $127.22 million, indicating a decrease of 3.3% from the prior year [8] - 'Revenue- Benefits and Protection Segment- Life Insurance- Net Investment Income' is projected to be $119.70 million, reflecting a +15.4% change [9] Stock Performance - Shares of Principal Financial have decreased by 3.7% in the past month, contrasting with a +1.1% increase in the Zacks S&P 500 composite [10]

Core Insights - The primary focus for income investors is generating consistent cash flow from liquid investments, including stocks, bonds, and dividends [1][2] Company Overview - Principal Financial (PFG) is based in Des Moines and operates in the Finance sector, with a year-to-date stock price change of 2.92% [3] - The company currently pays a dividend of $0.78 per share, resulting in a dividend yield of 3.92%, which is significantly higher than the Insurance - Multi line industry's yield of 1.71% and the S&P 500's yield of 1.51% [3] Dividend Performance - Principal Financial's annualized dividend of $3.12 has increased by 9.5% from the previous year, with an average annual increase of 5.97% over the last five years [4] - The current payout ratio is 40%, indicating that the company distributes 40% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate predicts earnings of $8.36 per share, reflecting a year-over-year growth rate of 19.94% [5] Investment Considerations - Principal Financial is positioned as an attractive investment opportunity due to its strong dividend yield and a favorable Zacks Rank of 2 (Buy) [6]