Track market-moving stories before they get noisy

Key Takeaways PFG's revenues rise on higher premiums and fees across retirement, asset management and benefits businesses.
Higher average AUM, positive market performance and net cash flows could support investment management.
Improved mortality and international earnings aid results, while higher claims expenses could offset gains.

Principal Financial Group, Inc. (PFG - Free Report) is expected to register an improvement in its top and bottom lines when it reports third-quarter 2026 results on Oct. 26, after the closing bell.

The Zacks Consensus Estimate for PFG’s third-quarter revenues is pegged at $4.31 billion, indicating an increase of 10.6% from the year-ago reported figure.

The consensus estimate for earnings is pegged at $2.46 per share. The Zacks Consensus Estimate for PFG’s third-quarter earnings has moved down 2.8% in the past 30 days. The estimate suggests a year-over-year increase of 17.4%.

What Our Quantitative Model PredictsOur proven model does not conclusively predict an earnings beat for Principal Financial this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case, as you can see below.

Earnings ESP: Principal Financial has an Earnings ESP of 0.00% at present. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.46 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Principal Financial currently carries a Zacks Rank #3.

Factors at PlayPrincipal Financial’s third-quarter results are likely to reflect favorable underwriting results and improved mortality within the Benefits and Protection business, strong RIS fundamentals, and positive market conditions for fee-based businesses.

Operating revenues are likely to have increased owing to higher premiums & other considerations, as well as higher fees & other revenues in Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection.

Higher management fee revenues as a result of increased average AUM net of associated fee compression are likely to have benefited Investment Management. Lower performance fee revenues are likely to have offset the upside.

Higher earnings from equity method investments in Brazil and foreign currency tailwinds are expected to have benefited International Pension operations.

Investment income is expected to have benefited from higher average invested assets in fixed maturities and residential mortgages, derivatives in fair value hedges for U.S. operations, and higher inflation-based returns on average invested assets and cash in Latin America. The lower yields in fixed maturities and decreases in federal funds rates tied to short-term investments are likely to have offset the upside.

Assets under management are likely to have benefited from positive market performance and net cash flow, as well as foreign currency tailwinds.

Expenses are likely to have increased due to higher benefits, claims and settlement expenses.

Stocks to ConsiderHere are three insurance stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:

RenaissanceRe Holdings Ltd. (RNR - Free Report) has an Earnings ESP of +9.02% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $9.28, indicating a year-over-year decrease of 40.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.

RNR’s earnings beat estimates in each of the last four reported quarters.

Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +2.51% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $1.99, indicating a year-over-year decrease of 30.2%.

CINF’s earnings beat estimates in three of the last four reported quarters and missed in one.

Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +11.70% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $2.05, indicating a year-over-year decrease of 25.9%.

ACGL’s earnings beat estimates in each of the last four reported quarters.

Principal Financial (PFG - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on October 26, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis financial services company is expected to post quarterly earnings of $2.49 per share in its upcoming report, which represents a year-over-year change of +18.6%.

Revenues are expected to be $4.33 billion, up 11.1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.8% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Principal Financial?For Principal Financial, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Principal Financial will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Principal Financial would post earnings of $2.33 per share when it actually produced earnings of $2.50, delivering a surprise of +7.30%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Principal Financial doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways PFG benefits from diversified earnings, rising AUM and recurring fee opportunities across its businesses. Retirement roll-ins exceeded $7 billion, while defined contribution investment-only sales were $2.1 billion. Beam Benefits expands workplace benefits, while portfolio actions sharpen focus on core growth areas. Shares of Principal Financial Group, Inc. (PFG - Free Report) have gained 32.8% in the past year, outperforming its industry, the Finance sector and the Zacks S&P 500 composite’s growth of 2.5%, 6.5% and 18%, respectively.

Principal Financial has outperformed its peers, including Assurant, Inc. (AIZ - Free Report) , MGIC Investment Corporation (MTG - Free Report) and Radian Group Inc. (RDN - Free Report) . Shares of AIZ, MTG and RDN have gained 25%, 3.7% and 1.1%, respectively, in the past year.

Image Source: Zacks Investment Research

Principal Financial shares are trading well above the 200-day moving average, indicating a bullish trend.

With a market capitalization of $23.5 billion, the average number of shares traded in the last three months was 1.4 million.

Image Source: Zacks Investment Research

PFG Shares are AffordablePrincipal Financial shares are trading at a price-to-book value of 1.93X, lower than the industry average of 2.64X, the Finance sector’s 4.34X and the Zacks S&P 500 Composite’s 7.37X. Its pricing, at a discount to the industry average, gives a better entry point for investors. The stock has a Value Score of A. This style score helps find the most attractive value stocks.

Image Source: Zacks Investment Research

PFG’s Encouraging Growth ProjectionThe Zacks Consensus Estimate for Principal Financial’s 2026 earnings per share indicates a year-over-year increase of 16.7%. The consensus estimate for revenues is pegged at $16.36 billion, implying a year-over-year improvement of 1.9%.

The consensus estimate for 2027 earnings per share and revenues indicates an increase of 8.2% and 8.3%, respectively, from the corresponding 2026 estimates.

Target Price Reflects PFG’s Potential UpsideBased on short-term price targets offered by 12 analysts, the Zacks average price target is $111.58 per share. The average indicates a potential 2.6% upside from the last closing price.

Image Source: Zacks Investment Research

Optimistic Analyst Sentiment on PFGOver the past 30 days, two of the six analysts covering the stock have raised estimates for 2026, and one analyst has raised estimates for 2027. As a result, the Zacks Consensus Estimate for 2026 and 2027 moved up 0.3% and 0.3%, respectively, in the last 30 days.

PFG’s Key TailwindsPrincipal Financial is positioned to sustain earnings growth through its diversified business model, rising assets under management (AUM), favorable retirement savings trends and disciplined capital allocation. Its focus on retirement solutions, asset management and workplace benefits provides multiple revenue streams, helping offset uneven performance across individual businesses.

Cross-selling opportunities and international operations further strengthen the insurer's earnings base.

Principal Financial's expanding asset base provides opportunities for recurring fee growth. Sustained inflows and investment performance should continue to maximize fee revenues and operating leverage.

Principal Financial is benefiting from demand for workplace savings, retirement income and pension solutions. Roll-ins exceeded $7 billion over the trailing 12 months, reflecting increased retirement asset consolidation. These trends, along with lifetime income offerings and defined contribution investment-only sales of $2.1 billion, support long-term asset accumulation and recurring revenues.

PFG's September 2026 acquisition of Beam Benefits expands its workplace benefits offerings and digital distribution capabilities in the small and mid-sized business market. Portfolio actions, including the planned sale of its Chile annuity business, also reflect a focus on core growth areas.

Final Take on PFGOverall, diversified earnings, retirement demand, AUM growth and disciplined capital deployment position Principal Financial for continued growth, although asset outflows and market volatility remain key risks.

Coupled with the attractive valuations, solid growth projections and optimistic analyst sentiment, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Principal Financial also has a VGM Score of B. Stocks with a favorable VGM Score are those with the most attractive value, best growth and most promising momentum compared with peers. Its impressive dividend history, as well as attractive valuations, are other positives. Back-tested results show that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Headquartered in Des Moines, Principal Financial (PFG - Free Report) is a Finance stock that has seen a price change of 29.2% so far this year. The financial services company is currently shelling out a dividend of $0.84 per share, with a dividend yield of 2.95%. This compares to the Insurance - Multi line industry's yield of 1.77% and the S&P 500's yield of 1.42%.

Looking at dividend growth, the company's current annualized dividend of $3.36 is up 9.1% from last year. Over the last 5 years, Principal Financial has increased its dividend 4 times on a year-over-year basis for an average annual increase of 5.97%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Principal Financial's current payout ratio is 37%, meaning it paid out 37% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for PFG for this fiscal year. The Zacks Consensus Estimate for 2026 is $9.64 per share, representing a year-over-year earnings growth rate of 16.57%.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, PFG presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).

Investors in Principal Financial Group, Inc. (PFG - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct. 16, 2026 $50  Puthad some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for Principal Financial shares, but what is the fundamental picture for the company? Currently, Principal Financial is a Zacks Rank #3 (Hold) in the Insurance - Multi line industry that ranks in the Top 30% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased the earnings estimates for the to-be-reported quarter, while three have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the to-be-reported quarter from $2.54 per share to $2.50 in that period.

Given the way analysts feel about Principal Financial right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

American Integrity Insurance Group (NYSE:AII – Get Free Report) and Principal Financial Group (NASDAQ:PFG – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Volatility & Risk American Integrity Insurance Group has a beta of -0.08, meaning that its share price is 108% less volatile than the S&P 500. Comparatively, Principal Financial Group has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Insider and Institutional Ownership 75.1% of Principal Financial Group shares are held by institutional investors. 16.4% of American Integrity Insurance Group shares are held by company insiders. Comparatively, 1.1% of Principal Financial Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability This table compares American Integrity Insurance Group and Principal Financial Group’s net margins, return on equity and return on assets. Net Margins Return on Equity Return on Assets American Integrity Insurance Group 26.20% 26.74% 6.67% Principal Financial Group 9.93% 16.49% 0.58% Earnings and Valuation This table compares American Integrity Insurance Group and Principal Financial Group”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio American Integrity Insurance Group $276.48 million 1.76 $99.62 million $4.50 5.53 Principal Financial Group $15.63 billion 1.56 $1.19 billion $7.04 16.18 Principal Financial Group has higher revenue and earnings than American Integrity Insurance Group. American Integrity Insurance Group is trading at a lower price-to-earnings ratio than Principal Financial Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings This is a breakdown of recent ratings and price targets for American Integrity Insurance Group and Principal Financial Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score American Integrity Insurance Group 1 0 4 1 2.83 Principal Financial Group 3 7 3 0 2.00 American Integrity Insurance Group currently has a consensus target price of $26.50, indicating a potential upside of 6.53%. Principal Financial Group has a consensus target price of $108.83, indicating a potential downside of 4.47%. Given American Integrity Insurance Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe American Integrity Insurance Group is more favorable than Principal Financial Group.

Summary American Integrity Insurance Group beats Principal Financial Group on 9 of the 15 factors compared between the two stocks.

(Get Free Report)

We are a profitable and growing insurance group headquartered in Tampa, Florida. Through our insurance carrier subsidiary, American Integrity Insurance Company of Florida, Inc. (“AIICFL”), we provide personal residential property insurance for single-family homeowners and condominium owners as well as coverage for vacant dwellings and investment properties, predominantly in Florida. 98.6% of our direct premiums written (“DPW”) for the year ended December 31, 2024 and 97.6% of our policies in-force as of December 31, 2024 were in Florida. We are the seventh largest writer of residential property insurance in Florida based on DPW for policies in-force as of December 31, 2024 according to data compiled by the Florida Office of Insurance Regulation (“FLOIR”), making us a leading specialty residential property insurer in the state. We have been a stable, disciplined provider of residential insurance coverage in Florida for more than 19 years. Our management team founded our company in 2006 to capitalize on dislocation in the Florida residential property insurance market following the 2004 and 2005 hurricane seasons, in which a number of severe hurricanes resulted in record insured property losses and caused a number of national insurance companies to retreat from writing residential property insurance in the state. — Florida has a large and growing population with a growing residential property insurance market. According to the U.S. Census Bureau, Florida was the third most populous state in the United States with 23.4 million residents as of July 1, 2024, and recorded the second fastest population growth rate and second greatest nominal increase in population of all states in the U.S. from 2023 to 2024. Population growth supports growth in the property insurance market, which creates opportunity for insurance carriers with the specialized expertise to profitably underwrite property insurance in the Florida market. Florida is a complex property insurance market with a distinct regulatory environment and risk profile due to its geographic location, population centers concentrated along the coast, and elevated threat of property damage from catastrophic weather events including hurricanes, requiring a tailored approach to providing insurance coverage. We believe that consistently delivering underwriting profits in this market requires a high level of focus and specialization, including localized knowledge, market-specific expertise, granular and analytical underwriting and claims management, extensive historical data, effective use of technology, and a deep understanding of Florida’s regulatory environment – all of which we believe we have developed over our 19-year history writing residential property insurance in Florida. We believe this expertise is transferable and repeatable in other Southeastern coastal states. Through active monitoring of local market conditions and prudent risk selection and capital allocation, we seek to be a stable and reliable insurance market for our policyholders and distribution partners, and to consistently deliver best-in-class profitability and value creation for our stockholders. — Our history of profitability and prudent exposure management is matched by our commitment to innovation. We have built a technology-forward platform that we believe augments the expertise of our underwriting and claims teams, enhances our access to risk and claims data, accelerates and improves our underwriting and claims decision making, and improves our distribution partner and policyholder interface. Our use of advanced technology solutions covers the insurance process end-to-end, from risk selection and underwriting to streamlined quoting, policy management and claims handling. Our technology and data capture are critical to our ability to monitor our underwriting results at a granular level, timely modify our underwriting criteria and pricing to respond to changing market conditions, and effectively navigate Florida’s historically volatile property insurance market cycles. We believe the current Florida residential property insurance market presents substantial attractive opportunities for carriers with specialized underwriting and claims expertise, established distribution relationships, advanced technology, and entrepreneurial leadership. Despite historical market-related disruptions and challenges caused by increasing hurricane catastrophe activity and other severe weather events, a general tort environment related to property insurance that led to increased litigation, and reduced insurance capacity as a result of multiple large national insurance carrier exits, we believe the legislative reforms in Florida enacted in late 2022, in addition to Assignment of Benefits (“AOB”) reform, which began in 2019, are proving effective at combating historically rampant property insurance legal system abuse and claims fraud, paving the way for a more stable and resilient property insurance market and greater opportunities for us to profitably underwrite residential property insurance in Florida. Our principal executive offices are located in Tampa, FL.

About Principal Financial Group (Get Free Report)

Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates through Retirement and Income Solutions, Principal Global Investors, Principal International, and U.S. Insurance Solutions segments. The Retirement and Income Solutions segment provides a portfolio of asset accumulation products and services for retirement savings and income. It offers products and services for defined contribution plans, including 401(k) and 403(b) plans, defined benefit pension plans, nonqualified executive benefit plans, employee stock ownership plans, equity compensation, and pension risk transfer services; individual retirement accounts; investment only products; and mutual funds, individual variable annuities, and bank products. The Principal Global Investors segment provides equity, fixed income, real estate, and other alternative investments, as well as asset allocation, stable value management, and other structured investment strategies. The Principal International segment offers pension accumulation products and services, mutual funds, asset management, income annuities, and life insurance accumulation products, as well as voluntary savings plans in Brazil, Chile, Mexico, China, Hong Kong Special Administrative Region, India, and Southeast Asia. The U.S. Insurance Solutions segment provides specialty benefits, such as group dental and vision insurance, group life insurance, and group and individual disability insurance, as well as administers group dental, disability, and vision benefits; and individual life insurance products comprising universal, variable universal, indexed universal, and term life insurance products in the United States. It also offers insurance solutions for small and medium-sized businesses and their owners, as well as executives. Principal Financial Group, Inc. was founded in 1879 and is based in Des Moines, Iowa.

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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Based in Des Moines, Principal Financial (PFG - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 31.69%. The financial services company is paying out a dividend of $0.84 per share at the moment, with a dividend yield of 2.89% compared to the Insurance - Multi line industry's yield of 1.95% and the S&P 500's yield of 1.41%.

Looking at dividend growth, the company's current annualized dividend of $3.36 is up 9.1% from last year. Over the last 5 years, Principal Financial has increased its dividend 4 times on a year-over-year basis for an average annual increase of 5.97%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Principal Financial's current payout ratio is 37%, meaning it paid out 37% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for PFG for this fiscal year. The Zacks Consensus Estimate for 2026 is $9.62 per share, representing a year-over-year earnings growth rate of 16.32%.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, PFG is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Shares of Principal Financial Group, Inc. (NASDAQ:PFG – Get Free Report) have received an average recommendation of “Hold” from the thirteen ratings firms that are covering the firm, MarketBeat.com reports. Three equities research analysts have rated the stock with a sell rating, seven have given a hold rating and three have assigned a buy rating to the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $106.6667.

PFG has been the topic of several analyst reports. Barclays increased their price objective on Principal Financial Group from $87.00 to $92.00 and gave the company an “underweight” rating in a research note on Tuesday, July 7th. Citigroup downgraded Principal Financial Group from a “sell” rating to an “underperform” rating in a report on Wednesday, June 24th. Wells Fargo & Company reduced their price target on Principal Financial Group from $114.00 to $113.00 and set an “equal weight” rating on the stock in a research report on Wednesday, July 22nd. Jefferies Financial Group lifted their price objective on Principal Financial Group from $91.00 to $98.00 and gave the company a “hold” rating in a research note on Friday, July 10th. Finally, Atlantic Securities set a $94.00 price objective on Principal Financial Group in a research report on Wednesday, July 15th.

Read Our Latest Analysis on PFG

Principal Financial Group Trading Down 0.9% Shares of PFG stock opened at $114.02 on Thursday. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.28 and a current ratio of 0.28. The stock has a market capitalization of $24.41 billion, a P/E ratio of 16.20, a price-to-earnings-growth ratio of 1.04 and a beta of 0.86. The company has a 50 day moving average price of $112.70 and a 200 day moving average price of $103.32. Principal Financial Group has a fifty-two week low of $77.90 and a fifty-two week high of $121.18. Principal Financial Group (NASDAQ:PFG – Get Free Report) last released its earnings results on Monday, July 27th. The company reported $2.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.33 by $0.17. The company had revenue of $3.99 billion for the quarter, compared to analyst estimates 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 in the prior year, the business earned $2.16 EPS. Equities research analysts predict that Principal Financial Group will post 9.62 EPS for the current fiscal year.

Principal Financial Group Increases Dividend The company also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Thursday, September 3rd will be paid a $0.84 dividend. This is an increase from Principal Financial Group’s previous quarterly dividend of $0.82. This represents a $3.36 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Thursday, September 3rd. Principal Financial Group’s payout ratio is presently 47.73%.

Institutional Investors Weigh In On Principal Financial Group Large investors have recently modified their holdings of the company. California State Teachers Retirement System lifted its position in shares of Principal Financial Group by 9,526.5% during the 2nd quarter. California State Teachers Retirement System now owns 38,301,347 shares of the company’s stock worth $4,128,119,000 after purchasing an additional 37,903,473 shares during the last quarter. BlackRock Inc. purchased a new position in Principal Financial Group in the second quarter valued at $2,157,181,000. Bank of America Corp DE raised its stake in Principal Financial Group by 9.6% in the second quarter. Bank of America Corp DE now owns 12,370,852 shares of the company’s stock valued at $982,617,000 after buying an additional 1,083,991 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in Principal Financial Group by 3.2% in the first quarter. Dimensional Fund Advisors LP now owns 3,886,509 shares of the company’s stock valued at $350,187,000 after buying an additional 119,327 shares in the last quarter. Finally, Invesco Ltd. lifted its holdings in Principal Financial Group by 23.2% during the 3rd quarter. Invesco Ltd. now owns 3,376,797 shares of the company’s stock worth $279,970,000 after buying an additional 636,334 shares during the last quarter. 75.08% of the stock is owned by hedge funds and other institutional investors.

Principal Financial Group Company Profile (Get Free Report)

Principal Financial Group, Inc is a global financial services company headquartered in Des Moines, Iowa. Founded in 1879, the company provides investment management, retirement, insurance and financial wellness solutions to businesses, individuals and institutional investors.

Principal offers employer-sponsored retirement plans, including defined contribution and defined benefit programs, as well as pension risk transfer solutions. Its insurance products and services include group benefits, individual life insurance and disability insurance.

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Principal Financial (PFG) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.

Key Takeaways Principal completed its acquisition of Beam Benefits, strengthening its employee benefits business. Beam brings 25,000 small-business customers and about $175 million in 2025 premiums. The deal combines Beam's digital platform with Principal's scale to drive growth and cross-selling. Principal Financial Group, Inc. (PFG - Free Report) has completed its acquisition of Beam Benefits, effective Sept. 1, 2026, strengthening its employee benefits business and expanding its reach among small and mid-sized businesses (SMBs).

Beam is a digitally native employee ancillary benefits provider offering dental, vision, life, disability and supplemental health coverage. Its cloud-native platform, self-service capabilities and AI-powered underwriting complement Principal Financial's existing benefits operations and help improve the customer and broker experience.

The acquisition adds an established business to Principal Financial's Specialty Benefits franchise. Beam generated approximately $175 million in premiums in 2025 and serves more than 25,000 small-business customers, allowing Principal Financial to leverage its broader distribution network to expand Beam's customer relationships and cross-sell additional products.

The transaction could also provide a meaningful organic growth catalyst. Principal Financial previously indicated that the acquisition could push Specialty Benefits premium and fee growth above the high end of its 5-9% medium-term target range in 2027. The combination of Beam's digital platform with Principal Financial's scale and distribution should support customer acquisition, retention, cross-selling and operating efficiencies.

Importantly, PFG's 2026 capital-deployment and EPS-growth targets remain unchanged, suggesting the transaction is not expected to disrupt its near-term financial objectives. Principal Financial expects greater integration of the two businesses in 2027, including a more streamlined experience from quoting through renewal and greater flexibility in benefits offerings.

The Beam acquisition is strategically positive for PFG because it provides more than incremental premium. It adds SMB distribution, digital capabilities and cross-selling opportunities while potentially accelerating Specialty Benefits growth.

What About Its Peers?Aon plc (AON - Free Report) agreed to acquire USI from KKR and other shareholders in August 2026 for a total purchase price of $17 billion to expand U.S. middle-market and E&S capabilities. USI has approximately $3 billion in revenues and 10,500+ employees. Aon expects the transaction to generate $395 million of annual run-rate adjusted EBITDA from revenue and cost synergies and become adjusted-EPS accretive in 2028.

Arthur J. Gallagher & Co.’s (AJG - Free Report) U.S. wholesale brokerage, binding authority and programs division, Risk Placement Services, Inc., has acquired Kansas-based Med James, Inc. in July 2026. The deal is expected to strengthen specialty distribution and retail-agent relationships of Risk Placement Services.

PFG’s Price PerformanceShares of PFG have gained 36.9% in the past year, outperforming the industry.

Image Source: Zacks Investment Research

PFG’s UndervaluationThe stock is undervalued compared with its industry. Its forward price-to-book value of 1.96X is lower than the industry average of 2.63X. It carries a Value Score of A.

Image Source: Zacks Investment Research

Estimate Movement for PFGThe Zacks Consensus Estimate for PFG’s third-quarter 2026 EPS has moved up 3.2%, while the same for fourth-quarter 2026 has moved down 0.3%, respectively, in the past 60 days. The same for full-year 2026 and 2027 EPS has moved up 2.5% and 1.8%, respectively, in the past 60 days.

The consensus estimate for PFG’s 2026 and 2027 EPS and revenues indicates a year-over-year increase.

Image Source: Zacks Investment Research

PFG stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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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.

Insurance products issued by Principal Life Insurance Company®, a member of the Principal Financial Group®, Des Moines, IA 50392. ©2026 Principal Financial Services, Inc.

1 As of June 30, 2026

1 As of June 30, 2026

2 Ethisphere, 2026

3 Pensions & Investments, 2025

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.

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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Principal Financial (PFG - Free Report) Founded in 1879 and headquartered in Des Moines, Principal Financial Group is a global financial services company that provides retirement solutions, asset management, insurance and employee benefits to businesses, individuals and institutional clients. The company had $1.9 trillion in assets under administration, including $808 billion in assets under management, as of June 30, 2026. Its global asset management businesses serve institutional, retirement, high-net-worth and retail investors. Its focused investment teams provide long-term investment capabilities and fund offerings. Its international businesses address demand for retirement accumulation, asset management and income solutions. Principal Financial reports in four segments.

PFG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.59; value investors should take notice.

Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.24 to $9.62 per share. PFG boasts an average earnings surprise of +1.2%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, PFG should be on investors' short list.

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Principal Financial (PFG - Free Report) is headquartered in Des Moines, and is in the Finance sector. The stock has seen a price change of 27.21% since the start of the year. The financial services company is paying out a dividend of $0.82 per share at the moment, with a dividend yield of 2.92% compared to the Insurance - Multi line industry's yield of 1.77% and the S&P 500's yield of 1.34%.

Looking at dividend growth, the company's current annualized dividend of $3.28 is up 6.5% from last year. Over the last 5 years, Principal Financial has increased its dividend 4 times on a year-over-year basis for an average annual increase of 5.97%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Principal Financial's current payout ratio is 37%, meaning it paid out 37% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for PFG for this fiscal year. The Zacks Consensus Estimate for 2026 is $9.62 per share, with earnings expected to increase 16.32% from the year ago period.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, PFG is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Hidden Tax Cost Most Investors Miss At the 24% federal ordinary-income bracket for 2026, every $10,000 of dividends collected in a taxable brokerage account can hand up to $2,400 back to the IRS. Inside a Roth IRA, that same $10,000 stays with you, every year, permanently. The math below runs a four-stock, $500,000 income sleeve through both accounts to show what the placement decision is actually worth in real dollars, before any reinvestment.

Four Dividend Payers Built for Roth Placement Each name below is a US-listed C-corporation paying a scheduled quarterly cash distribution. None carries REIT, BDC, or MLP structure. Inside a Roth, that distinction stops mattering because qualified withdrawals leave the account fully tax-free.

Kraft Heinz (NASDAQ:KHC | KHC Price Prediction): ultra-high-yield packaged food payer at a 6.23% yield on a $1.60 annualized payout. The most tax-inefficient position of the four in a taxable account, which makes it the priority Roth candidate. Kimberly-Clark (NASDAQ:KMB): consumer staples Dividend King yielding 4.67% on a $5.12 annualized distribution, with 54 consecutive years of dividend increases. Slow, dependable growth that compounds cleanly when shielded. Exelon (NASDAQ:EXC): regulated utility yielding 3.64% on a $1.68 annualized payout, with a stated 5% dividend growth target. Data-center load growth is the forward story. Principal Financial Group (NASDAQ:PFG): asset manager and insurer yielding 2.89% on a $3.36 annualized distribution. The most recent quarterly went from $0.82 to $0.84, an 8% raise. Roth Versus Taxable: The Annual Delta on $500,000 Equal-weight $125,000 into each name and the sleeve throws off approximately $21,800 in gross annual income at the yields cited above. Applied at the 24% ordinary bracket (the ceiling scenario if the distributions are taxed as ordinary income), the two accounts look like this:

Metric Taxable Account Roth IRA Gross annual dividend income ~$21,800 ~$21,800 Federal tax at 24% ~$5,230 $0 Net annual income kept ~$16,570 ~$21,800 10-year cumulative tax cost ~$52,300 $0 That is roughly ~$5,230 per year the Roth version keeps, before any assumption about dividend growth, price appreciation, or reinvestment. Every KMB, EXC, or PFG hike widens the delta.

How the Delta Scales by Bracket Higher marginal bracket, more urgent decision. Same $21,800 sleeve, four 2026 federal brackets:

Bracket Annual Tax in Taxable Net After Tax Roth Advantage 22% ~$4,796 ~$17,004 ~$4,796 24% ~$5,232 ~$16,568 ~$5,232 32% ~$6,976 ~$14,824 ~$6,976 37% ~$8,066 ~$13,734 ~$8,066 A top-bracket investor holding this exact sleeve outside a Roth gives up more federal tax each year than KHC alone pays out on its $125,000 slice.

What Most Readers Miss on Compounding The real Roth advantage goes beyond the single-year tax bill: it is the annual delta reinvested at the portfolio yield for as many years as the account keeps compounding. Feed the ~$5,230 annual tax savings back in at a conservative 4% blended yield and this is the trajectory:

[compound-interest principal=”0″ rate=”4″ time=”20″ compound_frequency=”1″ contribution=”5230″ contribution_frequency=”annually”]

Treat that figure as the permanent cost of leaving this specific sleeve in a taxable account for two decades. It is a tax bill already owed, compounded forward at the same yield the portfolio produces. The low-tax years between a final paycheck and the start of required withdrawals are when conversions on names like these cost the least (we sized up that window in a free guide here: The Roth Window).

Three Actions Worth Running Before Year-End Pull last year’s 1099-DIV. Any position paying non-qualified distributions, and the highest-yield names in particular, is the first Roth conversion candidate on the list. Run the conversion math on KHC specifically. At 6.23%, it generates the largest annual federal tax drag per dollar invested of the four names here. Confirm your Roth account meets the qualified-distribution rules (five-year holding and age 59½ generally) before drawing on it. Roth withdrawals are only fully tax-free when those conditions are met. Contact [email protected] for any questions or corrections.

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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Assenagon Asset Management S.A. trimmed its position in Principal Financial Group, Inc. (NASDAQ: PFG) by 94.2% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 6,152 shares of the company's stock after selling 99,225 shares during the period.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Principal Financial (PFG - Free Report) Founded in 1879 and headquartered in Des Moines, Principal Financial Group is a global financial services company that provides retirement solutions, asset management, insurance and employee benefits to businesses, individuals and institutional clients. The company had $1.9 trillion in assets under administration, including $808 billion in assets under management, as of June 30, 2026. Its global asset management businesses serve institutional, retirement, high-net-worth and retail investors. Its focused investment teams provide long-term investment capabilities and fund offerings. Its international businesses address demand for retirement accumulation, asset management and income solutions. Principal Financial reports in four segments.

PFG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Finance stock. PFG has a Momentum Style Score of A, and shares are up 0.2% over the past four weeks.

For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.19 to $9.56 per share. PFG boasts an average earnings surprise of +1.2%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PFG should be on investors' short list.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Principal Financial (PFG - Free Report) Founded in 1879 and headquartered in Des Moines, Principal Financial Group is a global financial services company that provides retirement solutions, asset management, insurance and employee benefits to businesses, individuals and institutional clients. The company had $1.9 trillion in assets under administration, including $808 billion in assets under management, as of June 30, 2026. Its global asset management businesses serve institutional, retirement, high-net-worth and retail investors. Its focused investment teams provide long-term investment capabilities and fund offerings. Its international businesses address demand for retirement accumulation, asset management and income solutions. Principal Financial reports in four segments.

PFG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 12.1; value investors should take notice.

Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.16 to $9.53 per share. PFG also boasts an average earnings surprise of +1.2%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, PFG should be on investors' short list.

Principal Financial Group, Inc. (PFG) Q2 2026 Earnings Call July 28, 2026 10:00 AM EDT

Company Participants

Humphrey Lee - VP & Head of Investor Relations
Deanna Strable - President, CEO & Chair of the Board
Joel Pitz - Executive VP & CFO
Amy Friedrich - President of Benefits & Protection
Kamal Bhatia - President & CEO of Principal Asset Management
Christopher Littlefield - President of Retirement & Income Solutions

Conference Call Participants

Wesley Carmichael - Wells Fargo Securities, LLC, Research Division
Ryan Krueger - Keefe, Bruyette, & Woods, Inc., Research Division
Wilma Jackson Burdis - Raymond James & Associates, Inc., Research Division
Joel Hurwitz - Dowling & Partners Securities, LLC
Pablo Singzon - JPMorgan Chase & Co, Research Division
Suneet Kamath - Jefferies LLC, Research Division
Joshua Shanker - BofA Securities, Research Division
Michael Ward - UBS Investment Bank, Research Division
Taylor Scott - Barclays Bank PLC, Research Division

Presentation

Operator

Good morning. Welcome to Principal Financial Group's second quarter 2026 financial results conference call. [Operator Instructions] I would now like to turn the conference call over to Humphrey Lee, Vice President of Investor Relations and FP&A.

Humphrey Lee
VP & Head of Investor Relations

Thank you, and good morning. Welcome to Principal Financial Group's Second Quarter 2026 earnings conference call. As always, materials related to today's call are available on our website at investors.principal.com. Following a reading of the safe harbor provision, CEO, Deanna Strable; and CFO, Joel Pitz, will deliver prepared remarks. We will then open the call for questions. Members of senior management are also available for Q&A. Some of the comments made during this conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act. The company does not revise or update them to reflect new information, subsequent events or changes in strategy.

Risks and uncertainties that could cause actual results

Key Takeaways PFG beat Q2 earnings estimates on underwriting strength, revenue growth and expanding margins. PFG posted growth in Retirement, International Pension and Specialty Benefits. Principal Financial raised its quarterly dividend, repurchased shares and agreed to acquire Beam Benefits. Principal Financial Group, Inc.’s (PFG - Free Report) 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.

Zacks RankPrincipal Financial currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other InsurersSelective Insurance Group, Inc. (SIGI - Free Report) reported second-quarter 2026 operating earnings of $1.95 per share, which beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 48.9% year over year. Revenues of $1.37 billion rose 4.5% from the year-ago quarter and topped the consensus estimate by 0.7%.

Net premiums written declined 5% year over year to $1.22 billion due to a 6% decrease in Standard Commercial Lines, an 8% fall in Standard Personal Lines, and a 2% decline in Excess and Surplus Lines. Our estimate was $1.33 billion. Net premiums earned increased 2.3%. Direct new business fell to $206.1 million from $248.1 million. Renewal pure price increases averaged 6.5%, down from 9.9% in the prior-year quarter.

Chubb Limited (CB - Free Report) reported second-quarter 2026 core operating earnings of $7.26 per share, which beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. Stronger P&C underwriting, record investment income, and higher life insurance income supported results.

Net premiums earned increased 5.8% to $13.89 billion. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%, reflecting a lower share of premiums consumed by claims and expenses. Our estimate was $1.15 billion.

The Travelers Companies, Inc. (TRV - Free Report) reported second-quarter 2026 core income of $10.04 per share, which beat the Zacks Consensus Estimate of $5.21 by 92.7%. The bottom line climbed 54% year over year. Revenues of $12.09 billion missed the Zacks Consensus Estimate of $12.27 billion by 1.5%.

Net investment income rose 14% year over year to $1.07 billion pre-tax ($883 million after tax). The combined ratio improved 670 basis points year over year to 83.6%, reflecting lower catastrophe losses, stronger reserve development and a better underlying combined ratio.

For the quarter ended June 2026, Principal Financial (PFG - Free Report) reported revenue of $3.99 billion, up 8.3% over the same period last year. EPS came in at $2.50, compared to $2.16 in the year-ago quarter.

The reported revenue represents a surprise of -2.89% over the Zacks Consensus Estimate of $4.11 billion. With the consensus EPS estimate being $2.33, the EPS surprise was +7.3%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Principal Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Assets under management (AUM) - International Pension: $168.50 billion compared to the $167.53 billion average estimate based on three analysts.Assets under management (AUM) - Investment Management: $601.90 billion versus the three-analyst average estimate of $597.10 billion.Total revenues- Fees and other revenues: $1.15 billion versus $1.11 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +5.9% change.Total revenues- Net investment income: $1.3 billion versus the four-analyst average estimate of $1.3 billion. The reported number represents a year-over-year change of +12%.Total revenues- Premiums and other considerations: $1.46 billion compared to the $1.65 billion average estimate based on four analysts. The reported number represents a change of +4.6% year over year.Total operating revenues- Principal Asset Management Segment- Fees and other revenues: $540.7 million compared to the $555.65 million average estimate based on three analysts. The reported number represents a change of +1.8% year over year.Total operating revenues- Principal Asset Management Segment- Net investment income: $250.9 million versus $167.04 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +49.1% change.Total operating revenues- Benefits and Protection Segment-Specialty Benefits- Fees and other revenues: $7.9 million compared to the $8.06 million average estimate based on three analysts. The reported number represents a change of -2.5% year over year.Total operating revenues- Benefits and Protection Segment-Specialty Benefits- Premiums and other considerations: $865.4 million versus $867.95 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +4% change.Total operating revenues- Benefits and Protection Segment-Specialty Benefits- Net Investment Income: $55.6 million versus the three-analyst average estimate of $56.63 million. The reported number represents a year-over-year change of +6.9%.Total operating revenues- Benefits and Protection Segment-Specialty Benefits: $928.9 million compared to the $932.64 million average estimate based on three analysts. The reported number represents a change of +4.1% year over year.Total operating revenues- Benefits and Protection Segment-Life Insurance- Fees and other revenues: $107 million versus $113.43 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -6.6% change.View all Key Company Metrics for Principal Financial here>>>

Shares of Principal Financial have returned +1.5% over the past month versus the Zacks S&P 500 composite's +0.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Principal Financial Group Inc (PFG) released its 8-K filing for the second quarter of 2026 on July 27, 2026. The company demonstrated strong financial results,

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Based in Des Moines, Principal Financial (PFG - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 21.66%. The financial services company is paying out a dividend of $0.82 per share at the moment, with a dividend yield of 3.06% compared to the Insurance - Multi line industry's yield of 1.79% and the S&P 500's yield of 1.33%.

Looking at dividend growth, the company's current annualized dividend of $3.28 is up 6.5% from last year. Over the last 5 years, Principal Financial has increased its dividend 4 times on a year-over-year basis for an average annual increase of 5.97%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Principal Financial's current payout ratio is 38%, meaning it paid out 38% of its trailing 12-month EPS as dividend.

PFG is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $9.45 per share, representing a year-over-year earnings growth rate of 14.27%.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, PFG is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Analysts on Wall Street project that Principal Financial (PFG - Free Report) will announce quarterly earnings of $2.32 per share in its forthcoming report, representing an increase of 7.4% year over year. Revenues are projected to reach $4.11 billion, increasing 11.4% from the same quarter last year.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

Given this perspective, it's time to examine the average forecasts of specific Principal Financial metrics that are routinely monitored and predicted by Wall Street analysts.

The consensus among analysts is that 'Revenue- Fees and other revenues' will reach $1.11 billion. The estimate indicates a change of +2.2% from the prior-year quarter.

It is projected by analysts that the 'Revenue- Net investment income' will reach $1.30 billion. The estimate indicates a change of +11.9% from the prior-year quarter.

According to the collective judgment of analysts, 'Revenue- Premiums and other considerations' should come in at $1.65 billion. The estimate indicates a year-over-year change of +17.9%.

Analysts' assessment points toward 'Revenue- Principal Asset Management Segment- Fees and other revenues' reaching $554.61 million. The estimate indicates a year-over-year change of +4.4%.

The average prediction of analysts places 'Revenue- Principal Asset Management Segment- Net investment income' at $168.47 million. The estimate indicates a year-over-year change of +0.1%.

The combined assessment of analysts suggests that 'Revenue- Benefits and Protection Segment- Specialty Benefits- Fees and other revenues' will likely reach $8.06 million. The estimate points to a change of -0.5% from the year-ago quarter.

Analysts expect 'Revenue- Benefits and Protection Segment- Specialty Benefits- Premiums and other considerations' to come in at $867.95 million. The estimate indicates a year-over-year change of +4.3%.

The collective assessment of analysts points to an estimated 'Revenue- Benefits and Protection Segment- Specialty Benefits- Net Investment Income' of $56.63 million. The estimate points to a change of +8.9% from the year-ago quarter.

Analysts forecast 'Revenue- Benefits and Protection Segment- Specialty Benefits- Total' to reach $932.64 million. The estimate suggests a change of +4.5% year over year.

The consensus estimate for 'Revenue- Benefits and Protection Segment- Life Insurance- Fees and other revenues' stands at $113.43 million. The estimate suggests a change of -0.9% year over year.

Based on the collective assessment of analysts, 'Assets under management (AUM) - International Pension' should arrive at $161.70 billion. The estimate is in contrast to the year-ago figure of $143.40 billion.

Analysts predict that the 'Assets under management (AUM) - Investment Management' will reach $595.94 billion. The estimate is in contrast to the year-ago figure of $579.60 billion.

View all Key Company Metrics for Principal Financial here>>>

Over the past month, shares of Principal Financial have returned -2.5% versus the Zacks S&P 500 composite's +0.3% change. Currently, PFG carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

The market expects Principal Financial (PFG - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 27. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis financial services company is expected to post quarterly earnings of $2.32 per share in its upcoming report, which represents a year-over-year change of +7.4%.

Revenues are expected to be $4.11 billion, up 11.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.88% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Principal Financial?For Principal Financial, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.29%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Principal Financial will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Principal Financial 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 beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Principal Financial appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAnother stock from the Zacks Insurance - Multi line industry, Goosehead Insurance (GSHD - Free Report) , is soon expected to post earnings of $0.52 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +6.1%. Revenues for the quarter are expected to be $103.36 million, up 9.9% from the year-ago quarter.

The consensus EPS estimate for Goosehead has been revised 1.3% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.96%.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Goosehead will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.