Wells Fargo cuts Principal Financial stock price target on earnings outlook

Wells Fargo reduced its price target for Principal Financial Group (PFG) to $109 from $112, citing lower earnings estimates for 2026 and 2027. The firm maintained its 2028 EPS estimate at $10.90. PFG's Q3 2026 earnings missed expectations, with adjusted EPS of $2.22 vs. $2.45 estimate, and revenue of $4.27B vs. $4.30B estimate. The company attributed the shortfall to lower variable investment income.

Principal Financial Group reported Q3 earnings with recurring retirement deposits up 8% to $13B and record client retention. Net cash flow was negative $11B due to active equity outflows, but private markets and ETFs saw positive flows. The company completed the Beam Benefits acquisition and sold its Chile annuity business, focusing on long-term growth.

Principal Financial (PFG) reported Q3 2026 adjusted non-GAAP pre-tax operating earnings up 3% on 4% net revenue growth. Key drivers included higher revenue, disciplined expense management, and growth in international pension. Year-to-date pre-tax operating earnings rose 10% with 5% net revenue growth and 120 basis points of margin expansion. The company returned $430 million in capital to shareholders in Q3, bringing the year-to-date total to over $1.2 billion.

Principal Financial Group (PFG) reported Q3 2026 earnings of $2.22 per share, missing estimates of $2.45 due to lower variable investment income. Despite this, the company showed strong fundamentals with 12% year-to-date adjusted EPS growth and a 16.6% return on equity. Shares traded at $110.24 post-report. The company highlighted progress in retirement services, SMB segment, and global asset management, with strong capital position and shareholder returns.

Principal Financial Group's specialty benefits segment reported a 10% sales growth in Q3 2026, with premiums and fees up 6% to $895 million. Pre-tax earnings fell 12% but were impacted by a strong prior-year period. The Beam Benefits acquisition contributed modestly, adding 25,000 small business customers. Principal expects the deal to boost premium growth in 2027. Transfer deposits in SMB retirement grew 21%, indicating client wins.

Principal Financial (PFG) reported Q3 EPS of $2.22, missing estimates by $0.23, with revenue at $4.27B, below the $4.3B consensus. The stock is down 3.35% over 3 months but up 33.98% over 12 months. Analysts revised EPS estimates 3 times positively and 6 times negatively in the last 90 days. InvestingPro rates the company's financial health as 'good performance'.