Beam brings more than 25,000 small business customers to the Principal Benefits and Protection business along with its strong digital quoting and onboarding capabilities
DES MOINES, Iowa--(BUSINESS WIRE)--Principal Financial Group® (Nasdaq: PFG) completed its acquisition of Beam Benefits effective today, September 1. As an employee benefits company serving more than 25,000 small businesses, Beam’s scalable, digital-first capabilities complement the Principal Benefits and Protection business and will further enhance the customer and broker experience.
“Our combined organizations are in a strong position to serve the benefit and protection needs of more small businesses,” said Amy Friedrich, president of Benefits and Protection at Principal. “This acquisition marks an important milestone in our strategy to accelerate growth in this important market.”
Beam’s executive leadership team and over 200 employees transitioned to Principal immediately upon close. More than 25,000 Beam customers and their brokers will continue to receive the same level of care and service they expect without disruption as the companies work toward a more unified offering over time. Both organizations remain focused on serving customers and bringing together their complementary strengths to better serve small businesses.
“Beam has built its business around simplifying employee benefits for small businesses through faster quoting, streamlined onboarding, and an easier experience for employers and brokers,” said Tolithia Kornweibel, CEO of Beam Benefits. “Together with Principal, we can accelerate our mission to help more businesses offer benefits to support their employees and their growth.”
Principal previously announced its intention to acquire Beam Benefits in July of this year. 2026 capital deployment and earnings per share growth targets remain unchanged following the acquisition.
Perella Weinberg Partners served as financial advisor to Principal, with Skadden, Arps, Slate, Meagher & Flom LLP acting as legal counsel. Ardea Partners LP served as financial advisor to Beam Benefits, with Wilson Sonsini Goodrich & Rosati, P.C. acting as legal counsel.
About Principal Financial Group®
Principal Financial Group® (Nasdaq: PFG) is a global financial company with approximately 19,000 employees1 passionate about improving the wealth and well-being of people and businesses. In business for 146 years, we’re helping over 82 million customers2 plan, insure, invest, and retire, while working to support the communities where we do business, and building an inclusive workforce. Principal® is proud to be recognized as one of the 2026 World’s Most Ethical Companies3 and named as a “Best Places to Work in Money Management4.” Learn more about Principal and our commitment to building a better future at principal.com.
About Beam Benefits
Beam Benefits is a digitally-native employee ancillary benefits company that offers dental, vision, life, disability, and supplemental health coverage for employers. The company simplifies and modernizes ancillary benefits through its intuitive online platform, self-service tools, AI-powered underwriting, and thoughtful coverage for improved overall wellness. Beam is available in 46 states and the District of Columbia. Learn more at beambenefits.com.
This news release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “expect,” “continue,” “plan,” “will,” “strategy,” “target,” and similar expressions, among others, generally identify forward-looking statements, which speak only as of the date the statements were made. Forward-looking statements are made based upon management’s current expectations and beliefs concerning future developments and their potential effects on us. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from those included in the forward-looking statements as a result of risks and uncertainties. Those risks and uncertainties include, but are not limited to, the risk factors listed in Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and the other filings we make with the U.S. Securities and Exchange Commission (the “SEC”). We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Principal Financial vykázala ve 2. čtvrtletí upravený zisk 2,50 USD na akcii, nad odhady, zatímco tržby meziročně vzrostly o 6,4 % na 3,99 miliardy USD. Akcie jsou za měsíc zhruba o 2,2 % níže.
A month has gone by since the last earnings report for Principal Financial (PFG - Free Report) . Shares have lost about 2.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Principal Financial due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Principal Financial Group, Inc. before we dive into how investors and analysts have reacted as of late.
PFG Q2 Earnings Beat on Solid Underwriting, Revenues Rise Y/Y
Principal Financial Group, Inc.’s second-quarter 2026 operating earnings of $2.50 per share beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 16% year over year. Revenues rose 6.4% year over year to $3.99 billion, which missed the consensus mark of $4.09 billion by 2.4%. Strong underwriting, higher net revenues and margin expansion supported earnings.
PFG's Costs Rise With Benefit OutlaysTotal expenses increased 7.6% year over year to $3.41 billion. Benefits, claims and settlement expenses rose 8.3% to $1.99 billion, while operating expenses increased 8.1% to $1.40 billion. Non-GAAP operating earnings climbed 12% to $547 million. Excluding significant variances, operating earnings advanced 13% to $528.7 million, reflecting growth across the operating segments. Net income attributable to PFG declined 1% to $403.4 million.
Principal's Retirement Business Gains GroundRetirement and Income Solutions’ net revenues increased 9% year over year to $779 million. Favorable market performance and business growth supported the increase. Pre-tax operating earnings rose 11% to $323.3 million, while the operating margin expanded 60 basis points to 41.5%. Transfer deposits increased 30% to $9 billion, and recurring deposits advanced 6% to $13 billion. Participant roll-ins totaled $1.7 billion in the quarter.
PFG's Asset Management Results Stay MixedInvestment Management’s operating revenues less pass-through expenses increased 1% to $431.6 million. Pre-tax operating earnings edged up 1% to $159.4 million, while the operating margin remained stable at 37.5%. International Pension delivered stronger growth. Net revenues increased 16% to $184.8 million, and pre-tax operating earnings rose 24% to $97 million. Assets under management reached a record $168.5 billion, up 18%, aided by more favorable encaje returns and foreign-currency tailwinds.
PFG's Benefits Unit Drives Profit GrowthSpecialty Benefits’ premiums and fees increased 4% to $873.3 million. Pre-tax operating earnings rose 25% to $158.9 million, driven by premium growth and more favorable underwriting. Specialty Benefits’ loss ratio improved 280 bps to 57.4%. This was driven by improvements across all products. The unit’s operating margin improved 300 basis points to 18.2%, while the incurred loss ratio declined 280 basis points. Life Insurance revenues fell 6% to $224.1 million, but pre-tax operating earnings increased 26% to $25.2 million on improved mortality experience. Its operating margin expanded 280 basis points to 11.2%.
PFG's AUM Rises Despite Net OutflowsPrincipal Financial’s assets under management increased 7% year over year to $808 billion. The total was included within assets under administration of $1.89 trillion. AUM net cash outflows were $11.1 billion compared with $2.6 billion a year earlier. Investment Management recorded $12 billion of net outflows, concentrated in a small number of U.S. active equity strategies. Market performance added $47.5 billion to AUM during the quarter.
Principal Financial's Capital Returns Remain StrongThe company returned $426.7 million to shareholders during the quarter. This included $250.2 million of share repurchases and $176.5 million of dividends.
Principal Financial ended the quarter with $1.6 billion of excess and available capital, an estimated 400% risk-based capital ratio and a 23.6% debt-to-capital ratio. Book value per share, excluding certain fair-value and accumulated other comprehensive income effects, was $58.40.
PFG's SMB Strategy Adds ScalePrincipal Financial agreed to acquire Beam Benefits, a provider of dental, vision, life, disability and supplemental health products for small and midsized businesses. Beam serves more than 25,000 employer customers and generated $175 million in premiums during 2025. The transaction is expected to close in the second half of 2026. Principal Financial maintained its 2026 earnings-per-share and capital targets and expects Specialty Benefits growth to be at or above the high end of its 5-9% target range in 2027. The board also raised the third-quarter dividend by 2 cents to 84 cents per share.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates revision.
VGM ScoresAt this time, Principal Financial has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Principal Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
BlackRock Inc. bought a new stake in shares of Principal Financial Group, Inc. (NASDAQ:PFG – Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund bought 20,014,673 shares of the company’s stock, valued at approximately $2,157,181,000. BlackRock Inc. owned approximately 9.35% of Principal Financial Group as of its most recent filing with the Securities and Exchange Commission.
Other hedge funds also recently bought and sold shares of the company. Eurizon Capital SGR S.p.A. purchased a new stake in Principal Financial Group during the 4th quarter valued at approximately $32,473,000. MUFG Securities EMEA plc raised its position in shares of Principal Financial Group by 1,219.5% during the fourth quarter. MUFG Securities EMEA plc now owns 51,196 shares of the company’s stock valued at $4,516,000 after buying an additional 47,316 shares during the last quarter. Commerzbank Aktiengesellschaft FI purchased a new position in shares of Principal Financial Group in the fourth quarter worth $1,277,000. Legal & General Group Plc lifted its holdings in shares of Principal Financial Group by 1.5% in the fourth quarter. Legal & General Group Plc now owns 1,639,302 shares of the company’s stock worth $144,603,000 after buying an additional 23,686 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Principal Financial Group during the fourth quarter worth $273,276,000. Institutional investors own 75.08% of the company’s stock.
Wall Street Analyst Weigh In Several research firms recently weighed in on PFG. Citigroup cut shares of Principal Financial Group from a “sell” rating to an “underperform” rating in a research note on Wednesday, June 24th. Morgan Stanley increased their price objective on shares of Principal Financial Group from $107.00 to $112.00 and gave the company an “equal weight” rating in a report on Monday, July 6th. Atlantic Securities set a $94.00 price objective on Principal Financial Group in a research report on Wednesday, July 15th. Barclays lifted their target price on Principal Financial Group from $87.00 to $92.00 and gave the stock an “underweight” rating in a report on Tuesday, July 7th. Finally, Jefferies Financial Group boosted their target price on Principal Financial Group from $91.00 to $98.00 and gave the stock a “hold” rating in a research report on Friday, July 10th. Three investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $106.67.
View Our Latest Stock Analysis on Principal Financial Group Principal Financial Group Price Performance Principal Financial Group stock opened at $111.64 on Thursday. Principal Financial Group, Inc. has a 52-week low of $77.34 and a 52-week high of $116.61. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 0.36. The firm’s fifty day moving average is $111.66 and its 200 day moving average is $101.30. The company has a market cap of $23.90 billion, a price-to-earnings ratio of 15.86, a PEG ratio of 1.03 and a beta of 0.88.
Principal Financial Group (NASDAQ:PFG – Get Free Report) last issued its quarterly earnings data on Monday, July 27th. The company reported $2.50 EPS for the quarter, topping analysts’ consensus estimates of $2.33 by $0.17. The business had revenue of $3.99 billion during the quarter, compared to analysts’ expectations of $4.11 billion. Principal Financial Group had a net margin of 9.93% and a return on equity of 16.49%. During the same period last year, the company posted $2.16 EPS. Sell-side analysts forecast that Principal Financial Group, Inc. will post 9.57 EPS for the current fiscal year.
Principal Financial Group Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Thursday, September 3rd will be given a dividend of $0.84 per share. This represents a $3.36 dividend on an annualized basis and a yield of 3.0%. This is a boost from Principal Financial Group’s previous quarterly dividend of $0.82. The ex-dividend date is Thursday, September 3rd. Principal Financial Group’s dividend payout ratio (DPR) is currently 46.59%.
Principal Financial Group Company Profile (Free Report)
Principal Financial Group (NASDAQ: PFG) is a global financial services company headquartered in Des Moines, Iowa, that provides a range of retirement, investment and insurance solutions to individuals, employers and institutional clients. The firm’s business is organized around retirement services, asset management, and insurance products designed to help clients plan, invest for, and protect income over the long term.
Principal’s product and service offerings include retirement plan recordkeeping and administration for employer-sponsored plans, individual and group retirement annuities, life and disability insurance, employee benefits solutions, and wealth management services.
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Principal Financial Group po zvýšení cílové ceny od Bank of America na 104 USD dosáhla nového 52týdenního maxima 114,95 USD. Bank of America ale ponechala doporučení underperform.
Principal Financial Group, Inc. (NASDAQ:PFG – Get Free Report)’s stock price hit a new 52-week high on Wednesday after Bank of America raised their price target on the stock from $94.00 to $104.00. Bank of America currently has an underperform rating on the stock. Principal Financial Group traded as high as $114.95 and last traded at $114.35, with a volume of 76030 shares changing hands. The stock had previously closed at $114.09.
PFG has been the topic of a number of other research reports. JPMorgan Chase & Co. upped their price target on shares of Principal Financial Group from $101.00 to $106.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 21st. Barclays raised their price objective on shares of Principal Financial Group from $87.00 to $92.00 and gave the company an “underweight” rating in a research note on Tuesday, July 7th. Evercore set a $108.00 target price on shares of Principal Financial Group in a report on Monday, April 27th. UBS Group upped their target price on shares of Principal Financial Group from $92.00 to $94.00 and gave the stock a “neutral” rating in a research note on Thursday, April 9th. Finally, Atlantic Securities set a $94.00 price target on shares of Principal Financial Group in a report on Wednesday, July 15th. Three analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, Principal Financial Group currently has an average rating of “Hold” and a consensus target price of $105.75.
Get Our Latest Research Report on PFG
Insider Activity at Principal Financial Group In related news, insider Wee Yee Cheong sold 7,534 shares of the stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $103.16, for a total transaction of $777,207.44. Following the sale, the insider directly owned 66,443 shares of the company’s stock, valued at $6,854,259.88. This trade represents a 10.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Insiders sold 19,928 shares of company stock worth $2,038,004 over the last 90 days. Company insiders own 1.13% of the company’s stock.
Trending Headlines about Principal Financial Group Here are the key news stories impacting Principal Financial Group this week:
Positive Sentiment: Q2 earnings beat expectations. Principal Financial reported adjusted earnings of $2.50 per share, above the $2.33 consensus estimate and up from $2.16 a year earlier. Stronger underwriting revenue, higher total revenue and margin expansion supported the results, although revenue of $3.99 billion was below the $4.11 billion estimate. PFG Q2 Earnings Beat on Solid Underwriting, Revenues Rise Year Over Year Positive Sentiment: Management highlighted strong earnings growth. The Q2 earnings call and presentation emphasized operating momentum and solid underwriting performance, which may reinforce confidence in PFG’s earnings outlook. Principal Financial Group Q2 2026 Earnings Call Highlights Principal Financial Group 2026 Q2 Results Earnings Call Presentation Positive Sentiment: Quarterly dividend increased. PFG declared a quarterly dividend of $0.84 per share, up 2.4% from $0.82, with an indicated yield of approximately 2.9%. The dividend is payable September 25 to shareholders of record September 3. Principal Financial Group Dividend Announcement Neutral Sentiment: The earnings-call transcript provides additional details on management’s outlook, operating results and capital priorities, but does not introduce a separate major catalyst beyond the reported quarterly results. Principal Financial Group Q2 2026 Earnings Call Transcript Negative Sentiment: Bank of America remains bearish. The firm raised its price target from $94 to $104 but retained an “underperform” rating, leaving its target below PFG’s recent trading level. This signals concern that the stock’s strong run has outpaced its expected upside. Institutional Trading of Principal Financial Group A number of institutional investors have recently made changes to their positions in PFG. DV Equities LLC purchased a new position in shares of Principal Financial Group during the fourth quarter valued at approximately $25,000. Thurston Springer Miller Herd & Titak Inc. bought a new position in Principal Financial Group during the fourth quarter valued at approximately $26,000. Hilton Head Capital Partners LLC purchased a new stake in Principal Financial Group in the fourth quarter worth approximately $26,000. Valley Wealth Managers Inc. purchased a new stake in Principal Financial Group in the first quarter worth approximately $27,000. Finally, MBM Wealth Consultants LLC bought a new stake in Principal Financial Group in the 1st quarter worth approximately $28,000. Hedge funds and other institutional investors own 75.08% of the company’s stock.
Principal Financial Group Stock Performance The firm has a market cap of $24.45 billion, a P/E ratio of 16.08, a P/E/G ratio of 1.09 and a beta of 0.88. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.27 and a current ratio of 0.24. The business’s 50-day simple moving average is $108.78 and its 200 day simple moving average is $98.88.
Principal Financial Group (NASDAQ:PFG – Get Free Report) last released its quarterly earnings results on Monday, July 27th. The company reported $2.50 earnings per share for the quarter, beating the consensus estimate of $2.33 by $0.17. The firm had revenue of $3.99 billion for the quarter, compared to analysts’ expectations of $4.11 billion. Principal Financial Group had a return on equity of 16.49% and a net margin of 9.93%.During the same period in the prior year, the firm earned $2.16 EPS. As a group, equities analysts predict that Principal Financial Group, Inc. will post 9.49 earnings per share for the current year.
Principal Financial Group Increases Dividend The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Thursday, September 3rd will be given a dividend of $0.84 per share. This represents a $3.36 dividend on an annualized basis and a yield of 3.0%. This is a boost from Principal Financial Group’s previous quarterly dividend of $0.82. The ex-dividend date is Thursday, September 3rd. Principal Financial Group’s dividend payout ratio (DPR) is currently 46.92%.
About Principal Financial Group (Get Free Report)
Principal Financial Group (NASDAQ: PFG) is a global financial services company headquartered in Des Moines, Iowa, that provides a range of retirement, investment and insurance solutions to individuals, employers and institutional clients. The firm’s business is organized around retirement services, asset management, and insurance products designed to help clients plan, invest for, and protect income over the long term.
Principal’s product and service offerings include retirement plan recordkeeping and administration for employer-sponsored plans, individual and group retirement annuities, life and disability insurance, employee benefits solutions, and wealth management services.
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Principal Financial Group NASDAQ: PFG reported second-quarter 2026 results marked by double-digit earnings growth, margin expansion and continued capital returns, while executives also addressed concentrated investment-management outflows and an agreement to acquire employee benefits provider Beam Benefits.
Chair, President and CEO Deanna Strable said adjusted non-GAAP earnings per share increased 17% from a year earlier and 15% year to date, exceeding the high end of the company’s target range. Enterprise earnings grew 13%, supported by 6% net revenue growth and 200 basis points of margin expansion.
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Strable said favorable underwriting and improved mortality in the Benefits and Protection segment, strong Retirement and Income Solutions fundamentals, and positive market conditions for fee-based businesses more than offset the effect of investment-management net cash outflows.
Second-Quarter Financial Results and Capital Position CFO Joel Pitz said non-GAAP operating earnings totaled $547 million in the quarter, up 12% year over year, while earnings per share rose 16% to $2.50. Excluding significant variances, operating earnings were $529 million, up 13%, and earnings per share were $2.42, up 17% from a year earlier.
Total company operating margin reached 32%, expanding 200 basis points from the prior-year period. Non-GAAP operating return on equity, excluding significant variances, was 16.4%, up 120 basis points year over year and above the midpoint of Principal’s 15% to 17% target range. Net income excluding exit business was $535 million, a 24% increase from the year-ago quarter, with minimal credit losses, Pitz said.
Managed assets under management ended the quarter at $808 billion, up 5% from the first quarter and 7% from the second quarter of 2025.
Principal returned $427 million to shareholders during the quarter, comprising $250 million in share repurchases and $177 million in dividends. Year-to-date shareholder returns totaled $800 million. The company said it remains on track for full-year capital deployment of $1.5 billion to $1.8 billion.
The company also raised its common-stock dividend for the 13th consecutive quarter. It announced a third-quarter dividend of $0.84 per share, up $0.02 sequentially and 8% from a year earlier.
Pitz said Principal ended the quarter with more than $1.6 billion in excess and available capital, including $950 million at the holding company, $300 million at subsidiaries and $350 million above its targeted risk-based capital ratio. Its risk-based capital ratio was approximately 400% at quarter-end.
Retirement, Benefits Results Drive Growth In Retirement and Income Solutions, pre-tax operating earnings increased 8% from a year earlier, supported by 5% net revenue growth and expense discipline. Operating margin expanded 120 basis points to 41%.
Strable said retirement transfer deposits rose 30% year over year and recurring deposits increased 6%. Roll-ins reached $1.7 billion during the quarter and more than $7 billion over the trailing 12 months, with both measures up nearly 20%. The company also reported $2 billion in defined-contribution investment-only sales and $500 million of pension risk transfer sales during the quarter.
Chris Littlefield, president of Retirement and Income Solutions, said the company continued to see growth in participants with account balances, higher deferrals and strong retention. Plan counts were flat to slightly down as Principal de-emphasized the micro-plan market in favor of plans with greater assets and investment-mandate opportunities, he said.
Benefits and Protection generated pre-tax operating earnings of $191 million, up 29% year over year. Specialty Benefits earnings rose 29% to a record $162 million, while the loss ratio improved 280 basis points to 57.4%. Specialty Benefits operating margin increased 360 basis points to 19%.
Amy Friedrich, president of Benefits and Protection, attributed the improvement to favorable results across product lines, including dental-network optimization, past pricing actions, lower disability incidence and lower group life frequency. She said Principal now expects full-year Specialty Benefits underwriting results to emerge below the low end of its previously communicated 60% to 64% loss-ratio range.
Asset Management Outflows Remain a Headwind Principal Asset Management’s earnings increased 6% year over year, aided by assets under management growth and margin expansion. Investment-management earnings rose 4%, as slightly higher revenue and expense discipline offset elevated severance costs. The company said severance expenses across investment management and international pension were about $7 million during the quarter.
However, the company recorded approximately $11 billion in total-company net outflows, concentrated in a small number of U.S. active equity strategies. Kamal Bhatia, president and CEO of Principal Asset Management, said those strategies represent slightly more than 5% of firm assets under management and have faced an “acute and unusual” market environment that has not rewarded quality-oriented, valuation-aware stock selection.
Bhatia said management expects net flows to remain somewhat challenged in the second half, though the committed but unfunded pipeline increased to roughly $10 billion from the first quarter. He also cited growth in other areas, including private markets, international pension assets and active ETFs.
Private markets assets under management increased 10% year over year, while international pension assets under management climbed 18% to a record $169 billion. Active ETFs generated $500 million in quarterly net inflows and $2 billion over the trailing 12 months.
Beam Benefits Acquisition and Portfolio Actions Principal announced earlier in July that it agreed to acquire Beam Benefits, a digital-first employee benefits company serving small and midsize businesses. Beam has more than 25,000 employer customers, about 400,000 members and generated $175 million of premium in 2025, according to Friedrich.
Management said the transaction would expand Principal’s SMB reach and add digital quoting, underwriting and distribution capabilities. Friedrich said potential benefits include eliminating certain leased dental-network costs and extending Beam’s technology across Principal’s broader small-case business.
Pitz said the acquisition is not expected to change the company’s 2026 capital-deployment plan, earnings outlook, free-cash-flow outlook or return-on-equity outlook. Strable said Principal views acquisitions as opportunistic accelerators rather than a replacement for organic growth and will continue to apply financial, strategic and cultural criteria to potential deals.
The company also completed the transition of its Hong Kong pension business to BCT and said its pending sale of the Chile annuity business remains part of efforts to optimize its portfolio.
About Principal Financial Group (NASDAQ:PFG)Principal Financial Group NASDAQ: PFG is a global financial services company headquartered in Des Moines, Iowa, that provides a range of retirement, investment and insurance solutions to individuals, employers and institutional clients. The firm's business is organized around retirement services, asset management, and insurance products designed to help clients plan, invest for, and protect income over the long term.
Principal's product and service offerings include retirement plan recordkeeping and administration for employer-sponsored plans, individual and group retirement annuities, life and disability insurance, employee benefits solutions, and wealth management services.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Principal Financial (PFG - Free Report) came out with quarterly earnings of $2.5 per share, beating the Zacks Consensus Estimate of $2.33 per share. This compares to earnings of $2.16 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +7.30%. A quarter ago, it was expected that this financial services company would post earnings of $2.01 per share when it actually produced earnings of $2.07, delivering a surprise of +2.99%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Principal Financial, which belongs to the Zacks Insurance - Multi line industry, posted revenues of $3.99 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.89%. This compares to year-ago revenues of $3.69 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Principal Financial shares have added about 24% since the beginning of the year versus the S&P 500's gain of 8.3%.
What's Next for Principal Financial?While Principal Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Principal Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.49 on $4.22 billion in revenues for the coming quarter and $9.45 on $16.3 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Multi line is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Equitable Holdings, Inc. (EQH - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4.
This company is expected to post quarterly earnings of $1.66 per share in its upcoming report, which represents a year-over-year change of +50.9%. The consensus EPS estimate for the quarter has been revised 2.2% higher over the last 30 days to the current level.
Equitable Holdings, Inc.'s revenues are expected to be $3.8 billion, down 0% from the year-ago quarter.
Principal Financial Group se dohodla na akvizici Beam Benefits, poskytovatele zaměstnaneckých benefitů pro více než 25 000 malých firem. Uzavření se čeká v druhé polovině roku 2026.
DES MOINES, Iowa--(BUSINESS WIRE)--Principal Financial Group® (Nasdaq: PFG) announced today an agreement to acquire Beam Benefits, an employee benefits company serving over 25,000 small businesses.
“Beam Benefits’ focus on serving the small business market aligns directly with our commitment to helping small and midsized businesses (SMBs) protect their businesses and their employees,” said Amy Friedrich, president of Benefits and Protection at Principal. “This acquisition strengthens our momentum and delivery of above-market growth in that segment.” Principal currently serves 180,000 employers providing comprehensive retirement, benefits, and business owner solutions.1
Beam offers dental, vision, and ancillary benefits supported by a cloud-native technology stack with AI at its core. The business has scaled rapidly in the small business segment, generating approximately $175 million in premiums in 2025.
“Beam Benefits is purpose-built to transform the employee benefits experience by combining intuitive, cloud-native technology with an unwavering focus on expanding access to vital employee benefits for small business employers, employees, and their families. Joining forces with Principal is the natural next step in our journey,” said Tolithia Kornweibel, CEO of Beam Benefits.
“Beam has built a meaningful customer base that generates strong premium volume,” said Friedrich. “Its digital-first model brings scalable capabilities that can complement our platform, support continued growth, and enhance the customer experience. Beam’s talent and deep expertise in the small business marketplace will be additive to our SMB strategy.”
The acquisition is expected to close in the latter half of 2026, subject to the completion of customary closing conditions and regulatory approvals. Capital deployment and earnings per share growth targets remain unchanged for 2026. Principal expects this acquisition to accelerate premium and fee growth for Specialty Benefits to at or above the high-end of the 5 – 9% medium-term target range in 2027.
Perella Weinberg Partners served as financial advisor to Principal, with Skadden, Arps, Slate, Meagher & Flom LLP acting as legal counsel. Ardea Partners LP served as financial advisor to Beam Benefits, with Wilson Sonsini Goodrich & Rosati, P.C. acting as legal counsel.
About Principal Financial Group®
Principal Financial Group® (Nasdaq: PFG) is a global financial company with approximately 19,000 employees1 passionate about improving the wealth and well-being of people and businesses. In business for 146 years, we’re helping over 82 million customers1 plan, insure, invest, and retire, while working to support the communities where we do business, and building an inclusive workforce. Principal® is proud to be recognized as one of the 2026 World’s Most Ethical Companies2 and named as a “Best Places to Work in Money Management3.” Learn more about Principal and our commitment to building a better future at principal.com.
About Beam Benefits
Beam Benefits is a digitally-native employee ancillary benefits company that offers dental, vision, life, disability, and supplemental health coverage for employers. The company simplifies and modernizes ancillary benefits through its intuitive online platform, self-service tools, AI-powered underwriting, and thoughtful coverage for improved overall wellness. Beam is available in 46 states and the District of Columbia. Learn more at beambenefits.com.
This news release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “expect,” “continue,” “plan,” “will,” “strategy,” “target,” and similar expressions, among others, generally identify forward-looking statements, which speak only as of the date the statements were made. Forward-looking statements are made based upon management’s current expectations and beliefs concerning future developments and their potential effects on us. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from those included in the forward-looking statements as a result of risks and uncertainties. Those risks and uncertainties include, but are not limited to, the risk factors listed in Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and the other filings we make with the U.S. Securities and Exchange Commission (the “SEC”). We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
PFG těží ze síly penzijního byznysu a správy aktiv; spravovaná aktiva vzrostla o 7 % na 770 miliard USD. Akcie se obchodují blízko 52týdenního maxima 112,45 USD.
Key Takeaways PFG benefits from strength in retirement, asset management and group benefits businesses.Assets under management rose 7% to $770 billion, supported by strong investment sales and inflowsPrincipal Financial supports growth through acquisitions, while returning capital via buybacks and dividends. Shares of Principal Financial Group, Inc. (PFG - Free Report) have gained 36.6% in the past year compared with the industry’s growth of 1.3%. Its share closed at $108.51 on Monday, near its 52-week high of $112.45, reflecting strong investor confidence.
Continued growth in its retirement business, expanding assets under management and a robust capital position should drive further price appreciation.
Shares of some of its peers include CNO Financial Group, Inc. (CNO - Free Report) , Radian Group Inc. (RDN - Free Report) , and MetLife, Inc. (MET - Free Report) , have gained 35.1%, 5% and 6.9%, respectively, in the past year.
1-Year Price Performance: PFG, CNO, MET, RDN & Industry
Image Source: Zacks Investment Research
PFG’s ValuationPrincipal Financial shares are trading at a forward 12-month price-to-earnings of 11.08X, higher than the industry average of 9.12X, reflecting investor confidence. However, it currently carries a Value Score of A.
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Shares of CNO Financial, MetLife and Radian Group are currently trading at a price-to-earnings value of 11.15X, 8.19 and 7.21X, respectively, in the past year.
PFG’s Encouraging Growth ProjectionThe Zacks Consensus Estimate for Principal Financial’s 2026 earnings per share (EPS) indicates a year-over-year increase of 13.3%. The consensus estimate for revenues is pegged at $16.38 billion, implying a year-over-year improvement of 2%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 9.1% and 7.3%, respectively, from the corresponding 2026 estimates.
The expected long-term earnings growth is pegged at 10.7%.
Optimistic Analyst Sentiment on PFGFour analysts covering the stock have raised estimates for 2026, with no downward revisions, while three out of four analysts have increased estimates for 2027 over the past 60 days. The Zacks Consensus Estimate for 2026 and 2027 has moved 0.6% and 0.5% north, respectively, over the same time period.
PFG’s Key TailwindsPrincipal Financial continues to benefit from its strength and leadership in retirement and long-term savings, group benefits and protection in the United States and retirement and long-term savings in Latin America and Asia. Continued growth in fee, spread, and risk businesses boosts the company’s long-term prospects. The company leverages a favorable market position in the retirement industry and remains optimistic about the momentum across retirement platforms. PFG estimates solid revenue growth and margin expansion across all its segments over the long term.
Principal Financial’s assets under management (AUM) are driven by solid results across its three asset management and asset accumulation segments. Total company-managed AUM was $770 billion at the end of the first quarter of 2026, increasing 7% year over year. Principal Financial’s record investment sales, strong international net inflows, expanding private market strategies, extensive distribution footprint and active ETFs continue to support AUM growth.
The Specialty Benefits Insurance business should continue to gain from record sales, strong retention, improved dental pricing, solid disability performance and better group life results. Lower loss ratios and expanding margins are expected to support underwriting profitability through 2026.
Management utilizes a significant portion of its operating earnings for mergers and acquisitions and intends to continue doing so. Acquisitions, such as MetLife's Afore business, Internos and RobustWealth, have helped the company expand its fee-based businesses and global footprint. Integration of the Wells Fargo Institutional Retirement and Trust business, along with strategic investment and initiatives, has expanded Principal Financial’s retirement offerings. Principal Financial looks forward to further leveraging the relationship to capitalize on its global retirement and asset management expertise through the partnership.
PFG boasts a strong capital position, supported by sufficient cash generation and liquidity. The company ended the first quarter of 2026 with $1.45 billion of excess and available capital. For 2026, PFG remains well-positioned to deliver on its enterprise long-term financial targets, with 9-12% growth in EPS and 75-85% free capital flow conversion. The robust capital position also supports disciplined capital deployment. The company returned $375 million to shareholders in the first quarter, including $200 million through share repurchases.
Risks for PFGPFG’s expenses have been increasing due to a rise in benefits, claims and settlement expenses, as well as operating expenses, weighing on margin expansion.
Principal Financial has been growing inorganically through acquisitions, increasing its debt obligation risks associated with successful integration.
Final Take on PFGPrincipal Financial should benefit from robust retirement business growth, fee-based revenue sources, growth in specialty benefits, strategic buyouts, and a strong capital position. However, escalating costs and dilution from acquisitions are concerns.
The board raised the second-quarter dividend by 8% to 82 cents per share, and the stock offers a dividend yield of 3%, above the industry average of 2.5%.
Coupled with the AUM growth, impressive dividend history, optimistic analyst sentiment, and favorable growth projections, PFG should continue to benefit over the long term. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
