Principal Financial Group (PFG) investor relations material

Executive summary

• Adjusted non-GAAP EPS rose 17% year-over-year and 15% year-to-date, exceeding targets, driven by strong enterprise earnings growth, margin expansion, and favorable underwriting in Benefits and Protection.

• Returned $427 million to shareholders in Q2 2026 through $250 million in share repurchases and $177 million in dividends; dividend increased 8% year-over-year to $0.84 per share.

• Announced acquisition of Beam Benefits, strengthening the SMB benefits platform and adding digital-first distribution capabilities, expected to close in 2026.

• Assets under management reached $808 billion, up 7% year-over-year; assets under administration at $1.9 trillion.

• Strategic priorities advanced, including leadership in retirement, SMB segment growth, and global Asset Management expansion.

Financial highlights

• Non-GAAP operating earnings were $547 million, up 12% year-over-year; EPS was $2.50, up 16%; excluding significant variances, operating earnings were $529 million, up 13%, and EPS was $2.42, up 17%.

• Net income attributable to shareholders was $403 million, nearly flat year-over-year; non-GAAP net income excluding exited business rose 24% to $535 million.

• Total company margin expanded 200 basis points to 32% on 6% net revenue growth.

• Managed AUM reached $808 billion, up 5% sequentially and 7% year-over-year.

• Book value per common share rose to $56.58, or $58.40 excluding certain adjustments.

Outlook and guidance

• Full-year capital deployment target of $1.5–$1.8 billion reaffirmed; 2026 EPS and capital targets remain unchanged following the Beam Benefits acquisition.

• Performance fees in investment management expected to be in line with 2025; Specialty Benefits growth expected at or above the high end of the 5-9% target range in 2027.

• Benefits and Protection loss ratios expected to emerge below the low end of the 60%-64% guidance range for the full year.

• Management expects continued growth in fee revenue and net investment income, supported by favorable financial markets and higher average account values.