Principal Financial Group (PFG) Q3 2026 earnings summary

Executive summary

• Adjusted non-GAAP EPS excluding significant variances rose 7% YoY to $2.49 in Q3 and 12% YTD, at the high end of the 9%-12% 2026 target.

• Q3 adjusted pre-tax operating earnings increased 3% on 4% revenue growth; YTD earnings rose 10% on 5% revenue growth and 120 bps of margin expansion.

• Retirement, Benefits and International delivered solid results, while active-equity outflows and unfavorable investment and encaje performance weighed on results.

Financial highlights

• Non-GAAP operating earnings were $481.8M, up 2% YoY, and EPS was $2.22, up 6%; excluding significant variances, earnings were $540.6M, up 3%, and EPS was $2.49, up 7%.

• Significant variances reduced Q3 pre-tax operating earnings by $72.6M, after-tax earnings by $58.8M and EPS by $0.27; drivers included lower variable investment income, Latin American encaje/inflation impacts and integration costs.

• GAAP net income attributable to shareholders was $631.9M vs. $213.8M; the increase was primarily driven by exited-business items, including the funds-withheld embedded derivative and Chilean annuity sale.

• Q3 diluted EPS was $2.91 vs. $0.95; 9M diluted EPS was $6.68 vs. $2.95.

• Total AUM was $785B and quarterly net cash flows were $(10.7)B.

Outlook and guidance

• 2026 EPS growth target remained 9%-12%; YTD adjusted EPS growth was 12%, at the high end of the range.

• Full-year capital deployment target remained $1.5B-$1.8B; share repurchases were expected toward the low end after the Beam acquisition.

• Q4 expenses expected to increase by a low-single-digit percentage versus the average of the first three quarters, consistent with historical seasonality.

• Corporate losses were within target; YTD results indicated full-year results at or above the high end of the range.

• Beam repapering expected to reduce its earnings drag markedly in H1 2027; further integration guidance expected at the next earnings and outlook call.