third quarter 2026
Filed Oct 26, 2026Principal Financial Group Announces Third Quarter 2026 Results Raises fourth quarter 2026 common stock dividend
Non-GAAP operating earnings excluding significant variances increased 3% to $540.6 million and related diluted EPS increased 7% to $2.49, while enterprise AUM net cash flow was $(10.7) billion and operating results declined in Retirement and Income Solutions, Investment Management, International Pension, Specialty Benefits, and Corporate.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income attributable to PFG, three months ended 3Q26GAAP | $631.9 | – | N/M |
| Non-GAAP net income attributable to PFG, excluding exited business, three months ended 3Q26non-GAAP | $354.8M | – | (24)% |
| Non-GAAP operating earnings, three months ended 3Q26non-GAAP | $481.8M | – | 2% |
| Non-GAAP operating earnings, excluding significant variances, three months ended 3Q26non-GAAP | $540.6M | – | 3% |
| Diluted earnings per common share, net income attributable to PFG, three months ended 3Q26GAAP | $2.91 | – | N/M |
| Diluted earnings per common share, non-GAAP net income attributable to PFG excluding exited business, three months ended 3Q26non-GAAP | $1.64 | – | (20)% |
| Diluted earnings per common share, non-GAAP operating earnings, three months ended 3Q26non-GAAP | $2.22 | – | 6% |
| Diluted earnings per common share, non-GAAP operating earnings excluding significant variances, three months ended 3Q26non-GAAP | $2.49 | – | 7% |
| Net income attributable to PFG, trailing twelve months 3Q26GAAP | $1,976.9 | – | 26% |
| Non-GAAP net income attributable to PFG, excluding exited business, trailing twelve months 3Q26non-GAAP | $1,700.2 | – | 10% |
| Non-GAAP operating earnings, trailing twelve months 3Q26non-GAAP | $1,972.9 | – | 8% |
| Non-GAAP operating earnings, excluding significant variances, trailing twelve months 3Q26non-GAAP | $2,046.7 | – | 7% |
| Assets under administration, 3Q26other | $1,840.3 | – | 3% |
| Assets under management, 3Q26other | $785B | – | 0% |
| AUM net cash flow, three months ended 3Q26other | $(10.7) | – | $(11.1) |
| AUM net cash flow, trailing twelve months 3Q26other | $(25.5) | – | $(17.7) |
| Net income attributable to PFG per diluted share, nine months ended 3Q26GAAP | $6.68 | – | – |
| Non-GAAP operating earnings per diluted share, nine months ended 3Q26non-GAAP | $6.79 | – | – |
| Non-GAAP operating earnings per diluted share excluding significant variances, nine months ended 3Q26non-GAAP | $7.08 | – | – |
| Total assets, 3Q26GAAP | $338.7 | – | – |
| Stockholders’ equity, 3Q26GAAP | $11,850.3 | – | – |
| Stockholders’ equity available to common stockholders, 3Q26GAAP | $11,816.3 | – | – |
| Non-GAAP stockholders’ equity available to common stockholders, 3Q26non-GAAP | $12,264.1 | – | – |
| End of period common shares outstanding, 3Q26other | 212.8 | – | – |
| Book value per common share, 3Q26GAAP | $55.53 | – | – |
| Non-GAAP book value per common share excluding cumulative change in fair value of funds withheld embedded derivative and AOCI other than foreign currency translation adjustment, 3Q26non-GAAP | $57.63 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Retirement and Income SolutionsNet revenue increased $5.6 million as favorable market performance and growth in the business was partially offset by lower variable investment income and the impacts of the 3Q25 actuarial assumption review. | $757.3 | – | 1% |
| Principal Asset Management - Investment ManagementOperating revenues less pass-through expenses decreased $7.9 million primarily due to lower management fees. | $436.1 | – | (2)% |
| Principal Asset Management - International PensionNet revenue decreased $43.8 million primarily due to unfavorable encaje returns. | $144.1 | – | (23)% |
| Benefits and Protection - Specialty BenefitsPremium and fees increased $50.2 million driven primarily from growth in the business, with a modest contribution from the 9/1 Beam Benefits acquisition. | $895.4 | – | 6% |
| Benefits and Protection - Life InsurancePremium and fees decreased $10.3 million driven from the movement of a subsidiary supporting enterprise distribution to Corporate. | $238.6 | – | (4)% |
Capital returns
- Returned $429 million of capital to shareholders, including $250 million of share repurchases and $179 million of common stock dividends.
- Announced a fourth quarter cash dividend of $0.85 per share to holders of common shares.
- The fourth quarter dividend will be payable on December 18, 2026, to shareholders of record as of December 2, 2026.
What drove it
- Retirement and Income Solutions recurring deposits were $13 billion, up 8%; PRT sales were $0.9 billion.
- SMB transfer deposits were up 21% and recurring deposits were up 7%.
- Investment Management private markets AUM was up 6%, supported by $0.8 billion private institutional inflows in the quarter; active ETF net inflows were $0.5 billion.
- International Pension AUM was $166 billion, increased 10%.
- Specialty Benefits premium & fees increased 6% and sales were up 10 %; its loss ratio was 59%, below the targeted range of 60-64%.
- Life Insurance operating margin was 13.6%, driven by favorable mortality experience.
- Beginning 3Q 2026, impacts of the actuarial assumption review are excluded from non-GAAP operating earnings.
Concerns
- Non-GAAP net income attributable to PFG, excluding exited business, decreased (24)% to $354.8 million.
- AUM net cash flow was $(10.7) billion for the quarter, compared with $0.4 billion in 3Q25.
- International Pension pre-tax operating earnings decreased (38)% to $62.4 million and net revenue decreased (23)% to $144.1 million, primarily due to unfavorable encaje returns.
- Investment Management operating revenues less pass-through expenses decreased (2)% to $436.1 million, primarily due to lower management fees.
- Corporate pre-tax operating losses were $(110.5) million, compared with $(91.6) million, primarily due to lower variable investment income.
- Significant variances in 3Q26 included lower than expected variable investment income, lower than expected encaje performance partially offset by higher than expected Latin American inflation in International Pension, and integration costs in Specialty Benefits and Corporate.
What to watch
- Variable investment income across Retirement and Income Solutions, International Pension, Specialty Benefits, Life Insurance, and Corporate.
- International Pension encaje performance and Latin American inflation.
- AUM net cash flow, including private institutional inflows and active ETF net inflows.
- Specialty Benefits integration costs and the contribution from the 9/1 Beam Benefits acquisition.
- The fourth quarter 2026 common stock dividend of $0.85 per share and future share repurchases.
Balance sheet and cash flow
- Assets under management (AUM) of $785 billion, which is included in assets under administration (AUA) of $1.8 trillion.
- Strong financial position with $1.5 billion of excess and available capital.
- Total assets were $338.7 billion at 3Q26, compared with $341.4 billion at 4Q25.
- AUM net cash flow was $(10.7) billion for three months ended 3Q26 and $(25.5) billion for trailing twelve months 3Q26.
Analysis
Principal reported $481.8 million of non-GAAP operating earnings, up 2%, and $540.6 million excluding significant variances, up 3%. Non-GAAP operating earnings per diluted share were $2.22, up 6%, while the measure excluding significant variances was $2.49, up 7%. GAAP net income attributable to PFG was $631.9 million, compared with $213.8 million, while non-GAAP net income attributable to PFG excluding exited business declined (24)% to $354.8 million. The release identifies a $276.7 million pre-tax loss associated with the disposition of the Chilean annuities business within exited-business impacts.
Retirement and Income Solutions generated $757.3 million of net revenue, up 1%, but pre-tax operating earnings declined (4)% to $297.8 million, principally from lower variable investment income and the impacts of the 3Q25 actuarial assumption review. Investment Management operating revenues less pass-through expenses declined (2)% to $436.1 million due to lower management fees, and its pre-tax operating earnings fell (3)% to $168.1 million. International Pension was the largest pressure point, with net revenue down (23)% to $144.1 million and pre-tax operating earnings down (38)% to $62.4 million, primarily because of unfavorable encaje returns.
Benefits and Protection results were uneven. Specialty Benefits premium and fees increased 6% to $895.4 million, supported by business growth and a modest contribution from the 9/1 Beam Benefits acquisition, but pre-tax operating earnings declined (12)% to $137.3 million due primarily to the 3Q25 actuarial assumption review. Its 59.0% incurred loss ratio remained below the 60%-64% targeted range. Life Insurance pre-tax operating earnings improved to $32.4 million from $(69.0) million, reflecting the 3Q25 actuarial assumption review impacts and improved mortality experience, although premium and fees declined (4)% to $238.6 million.
Assets under administration were $1,840.3 billion, up 3%, and AUM was $785.0 billion, up 0%. AUM net cash flow was $(10.7) billion in the quarter versus $0.4 billion in 3Q25. Principal returned $429 million to shareholders, comprising $250 million of repurchases and $179 million of common stock dividends, and raised the fourth-quarter common dividend to $0.85 per share. The filing contains no quantitative 2026 operating outlook, but management stated it is confident in delivering on its 2026 outlook.
Management, verbatim
Our third-quarter results demonstrate the strength of our diversified business and the progress we’re making against our strategic priorities. We grew earnings per share, continued to build momentum in the markets where we’re focused, and returned $429 million to shareholders. We’re seeing the benefits of our focus on areas where our expertise, differentiated solutions, and strong customer relationships position us to win. As the environment evolves, our priorities remain clear. We’re confident in delivering on our 2026 outlook and continuing to create long-term value for our customers, employees, and shareholders.
Deanna Strable, Chair, President and CEO of Principal
Not in the filing
stated, not guessed- Total revenue
- Gross margin
- GAAP operating income
- GAAP and non-GAAP operating expenses
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Quantitative forward revenue guidance
- Quantitative forward gross-margin guidance
- Quantitative forward operating-expense guidance
- Quantitative forward tax-rate guidance
- Previous-release outlook for comparison
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.