Principal Financial Group Reports Q3 2026 Results, Increases Dividend to $0.85

Executive Summary

On October 26, 2026, Principal Financial Group, Inc. (NASDAQ: PFG) filed Form 8-K under Item 2.02 reporting financial results for the third quarter ended September 30, 2026, alongside an increase in its quarterly common stock dividend.

Key Financial Metrics (Q3 2026)

• Net Income Attributable to PFG: $631.9 million ($2.91 per diluted share), compared to $213.8 million ($0.95 per share) in Q3 2025.
• Non-GAAP Operating Earnings: $481.8 million ($2.22 per diluted share), up 6% from $2.10 per share in Q3 2025.
• Non-GAAP Operating Earnings (ex. significant variances): $540.6 million ($2.49 per diluted share), an increase of 7% compared to $2.32 per share in the prior-year period.
• Assets Under Management (AUM): $785.0 billion, essentially flat year-over-year ($784.3 billion in Q3 2025).
• Assets Under Administration (AUA): $1.84 trillion, up 3% year-over-year.
• AUM Net Cash Flows: $(10.7) billion for the quarter compared to $0.4 billion in Q3 2025.

Capital Return & Dividend Increase

• Shareholder Capital Returns: Returned $429 million in Q3 2026, consisting of $250 million in common stock repurchases and $179 million in dividends.
• Dividend Increase: Board announced an increase of $0.01 per share to $0.85 per share for the fourth quarter of 2026, representing an 8% increase over Q4 2025.
• Capital Position: PFG maintains approximately $1.5 billion of excess and available capital.

Segment Performance Highlights

1. Retirement and Income Solutions:
   • Pre-tax operating earnings of $297.8 million, down 4% YoY.
   • Net revenue of $757.3 million, up 1% YoY.
   • Recurring deposits reached $13 billion (+8% YoY); PRT sales stood at $0.9 billion.
2. Principal Asset Management - Investment Management:
   • Pre-tax operating earnings of $168.1 million, down 3% YoY.
   • Operating revenues less pass-through expenses of $436.1 million (-2% YoY).
   • Private markets AUM increased 6%, aided by $0.8 billion of institutional inflows; active ETF inflows of $0.5 billion.
3. Principal Asset Management - International Pension:
   • Pre-tax operating earnings of $62.4 million (-38% YoY).
   • Total AUM rose 10% YoY to $166.2 billion.
4. Benefits and Protection:
   • Specialty Benefits premiums & fees increased 6% with sales up 10%; loss ratio remained favorable at 59% (targeted range 60–64%).
   • Life Insurance achieved an operating margin of 13.6% driven by favorable mortality.