10-Q · April 29, 2026
Principal Financial Group's Q1 2026 results showed a diluted EPS of $2.07, exceeding expectations slightly, but revenue fell short at $3.515 billion. While non-GAAP metrics indicated strong growth year-over-year,…
Earnings analysis · 10-Q
PFG earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
PFG delivered 2Q26 revenue of $3.9058 billion, up 6.4% year over year and 10.7% sequentially, while GAAP EPS of $1.84 rose 2.8% year over year but fell 4.7% from 1Q26. Segment operating earnings improved across…
Read full summary
PFG delivered 2Q26 revenue of $3.9058 billion, up 6.4% year over year and 10.7% sequentially, while GAAP EPS of $1.84 rose 2.8% year over year but fell 4.7% from 1Q26. Segment operating earnings improved across Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection, led by $36.5 million growth in Benefits and Protection earnings. Liquidity strengthened with $2.2645 billion of six-month operating cash flow, but net AUM outflows, higher investment credit losses, rising debt, and derivative-related exited-business losses temper the outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.84
- Operating margin
- 12.7%
What stood out
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Revenue increased YoY and sequentially
Second-quarter revenue was $3.9058 billion, up $234.5 million (6.4%) from $3.6713 billion a year earlier and up $376.7 million (10.7%) from implied first-quarter revenue of $3.5291 billion.
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EPS grew YoY but margin compressed
GAAP diluted EPS was $1.84, up $0.05 from $1.79 in 2Q25, though down $0.09 from $1.93 in 1Q26. Pre-tax income margin was 12.7%, versus 13.7% in 2Q25 and roughly 13.7% in 1Q26.
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Retirement earnings benefited from markets
Retirement and Income Solutions pre-tax operating earnings increased $31.2 million to $323.3 million. Net revenue rose $65.1 million to $779.0 million as average monthly account values increased $97.7 billion to $669.2 billion.
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Benefits claims experience improved
Benefits and Protection was the strongest earnings contributor: pre-tax operating earnings rose $36.5 million to $184.1 million, driven primarily by favorable claims experience. Specialty Benefits premium and fees grew $33.1 million to $873.3 million.
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AUM and asset-management earnings rose
Principal Asset Management AUM ended at $770.4 billion, up $47.4 billion from $723.0 billion a year ago, supported by $43.6 billion of quarterly market performance. Segment pre-tax operating earnings rose $20.0 million to $256.4 million.
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Operating cash flow and liquidity increased
Six-month operating cash flow increased $475.3 million to $2.2645 billion. Cash and cash equivalents increased $828.5 million to $5.2595 billion from $4.4310 billion at December 31, 2025.
What to watch
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Exited-business volatility offset operating gains
Net income attributable to PFG slipped $2.8 million to $403.4 million despite higher segment earnings, as after-tax exited-business losses increased $105.5 million, primarily from the funds-withheld embedded derivative.
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Asset-management client outflows accelerated
Principal Asset Management recorded quarterly net client outflows of $12.2 billion, versus outflows of $2.8 billion in 2Q25. Market appreciation of $43.6 billion more than offset flows, but persistent withdrawals could pressure fee revenue.
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Investment credit and rate pressure increased
Fixed-maturity credit losses were $41.3 million for the first six months of 2026, up from $10.0 million in the prior-year period. Net unrealized losses on available-for-sale fixed maturities increased $312.0 million to $2.7600 billion as of June 30, 2026.
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Leverage increased ahead of a 2026 maturity
Long-term debt rose $398.1 million to $4.3244 billion from $3.9263 billion at year-end, while total debt increased $386.6 million to $4.3406 billion. The next debt maturity is in November 2026.
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Problem commercial mortgages increased
Five delinquent problem commercial mortgage loans had a $218.7 million carrying amount and a $74.1 million valuation allowance at June 30, 2026, compared with three loans carrying $123.7 million and a $62.1 million allowance at year-end.
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No formal risk-factor update; rate sensitivity remains
Item 1A states there were no material changes to risk factors from the 2025 Form 10-K. The filing nevertheless quantifies that a 100-basis-point rate increase could reduce net reported fair value of financial assets and derivatives by $2.7591 billion.
Management's outlook
The 10-Q provides no numeric revenue or EPS guidance. Management expects the Beam Benefits acquisition, which generated approximately $175.0 million of 2025 premiums, to close later in 2026 subject to regulatory approval.
Earlier filings 4
10-K · February 18, 2026
Principal Financial Group (PFG) emphasizes scale in retirement and asset management with $1,814.6 billion in assets under administration and $781.0 billion in assets under management as of December 31, 2025. Q4 2025…
10-Q · July 30, 2025
Principal Financial Group's 10-Q for the quarter ended June 30, 2025 shows total revenues of $3,671.3 million (Q2 2024: $4,310.8 million) with diluted EPS of $1.79 (Q2 2024: $1.49). Revenue declined materially…
10-Q · April 30, 2025
Principal Financial Group reported total revenues of $3,695.9 million and GAAP diluted EPS of $0.21 for the quarter ended March 31, 2025. Results were pressured by $117.1 million of net realized capital losses and a…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.