| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 79 | 16.5x | 17.8x | Top tier | |
Growth | 50 | 3.7% | 7.1% | Around median | |
Quality | 75 | — | — | Top tier | |
Safety | 8 | — | — | Bottom tier | |
Capital Return | 52 | 2.65% | 2.12% | Around median | |
Momentum | 96 | 42.8% | 2.9% | Top tier | |
Sentiment | 63 | 9 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Principal Financial Group operates through a diversified financial model that combines retirement solutions, asset management, group benefits, life insurance, and international pensions. It generates revenue from retirement plan recordkeeping, investment management, advisory services, and retirement income solutions, as well as from premiums and fees from benefits and protection products and underwriting results. In Q2 fiscal 2026, assets under management reached $808 billion, including a record $169 billion in international pensions.
In Q2 fiscal 2026, the company reported non-GAAP operating earnings of $547 million, up 12% year over year, and operating earnings per share of $2.50, up 16%. After excluding significant variances of $18 million, operating earnings reached $529 million and earnings per share reached $2.42, growing 13% and 17%, respectively. Net revenue grew 6% and the company margin expanded 200 basis points to 32%, while net income excluding exited businesses reached $535 million, up 24%.
The earnings mix was supported by an 8% increase in RIS pretax earnings with a 41% margin, 6% growth in Principal Asset Management earnings, and an 11% increase in international pensions earnings. Benefits and Protection was the strongest driver, generating $191 million in pretax operating earnings, up 29%, including a record $162 million in specialty benefits and $29 million in life insurance. EDGAR data for fiscal 2025 shows revenue of $15.6 billion and net income of $1.2 billion, compared with revenue of $15.5 billion and net income of $1.6 billion on a trailing-twelve-month basis ending in fiscal 2026.
The analyst consensus on PFG is neutral, with an average target of $105.78 and a wide range between $92 and $125; the average is below the 52-week range high of $116.61, while the highest target exceeds that high. No displayed price-to-earnings ratio is available that can be relied upon for comparison, so the valuation assessment is based on the divergence in targets and the 52-week range of $77.90 to $116.61, weighed against 16% operating earnings-per-share growth in Q2 fiscal 2026 and investment management flow risks.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Non-GAAP operating earnings reached approximately $547 million, up 12%, while earnings per share reached $2.50, up 16%. Net revenue grew 6% and the company margin expanded 200 basis points to 32%. The greatest support came from specialty benefits underwriting results, improved mortality in life insurance, RIS growth, and positive markets for fee-based businesses.
Net outflows reached approximately $11 billion in Q2 fiscal 2026 and were concentrated in a small number of active U.S. equity strategies. The affected strategies represent slightly more than 5% of the company's assets under management, so the weakness was not broad-based across the entire platform. Meanwhile, the committed but unfunded pipeline reached approximately $10 billion, but management expects net flow challenges to continue throughout the rest of fiscal 2026 and does not expect a rapid reversal.
In July 2026, Principal announced an agreement to acquire Beam Benefits, a digital benefits company serving more than 25,000 employers and 400,000 members in the United States. Beam generated $175 million in premiums in fiscal 2025, and the transaction aims to expand Principal's presence among small and midsized businesses. The company expects savings from eliminating dental network rental costs and expanding Beam's pricing and underwriting technologies, but the transaction had not closed as of the July 28, 2026 call.
Automated analysis for informational purposes only — not investment advice.
Transfer deposits increased 30% and recurring deposits rose 6% in Q2 fiscal 2026, while transfers onto the platform reached $1.7 billion during the quarter and more than $7 billion during the trailing twelve months. DCIO sales reached $2 billion in the quarter and approximately $8 billion during the trailing twelve months, in addition to $500 million in PRT sales. The company's plans serve 14 million Americans, with growth in participants and contribution rates and high client retention, despite the number of plans remaining stable or declining slightly because of reduced focus on the micro market.
Benefits and Protection generated $191 million in pretax operating earnings in Q2 fiscal 2026, up 29%. The specialty benefits loss ratio declined to 57.4%, an improvement of 280 basis points, while its margin increased to 19%. Management expects the loss ratio to end fiscal 2026 below the low end of the previous 60% to 64% range, driven by dental network improvements, pricing actions, and lower claim frequency.
Net insider sales during the three months ending with the latest transaction on May 21, 2026, reached approximately $1.1 million, with two sales and no purchases recorded. This remains a weak standalone signal because insider sales may be prearranged unless the available information proves otherwise. At the same time, the analyst consensus rates the stock neutral, with an average target of $105.78, a low of $92, and a high of $125, reflecting clear divergence in expectations.
