NASDAQ: PFG · Life & Health Insurance
Principal Financial Group
Principal Financial Group, based in Des Moines, Iowa, provides retirement, asset management, and workplace benefits and protection products to businesses, individuals and institutions. It had $1,814.6 billion of assets under administration, including $781.0 billion of assets under management, at December 31, 2025. Its segments are Retirement and Income Solutions (defined contribution recordkeeping, pension risk transfer and annuities), Principal Asset Management (including International Pension operations in Latin America and Asia), and Benefits and Protection (specialty benefits such as group dental — it was the third-largest group dental insurer by contracts in 2024 per LIMRA — and life insurance). 2025 total revenues were $15,626 million and net income attributable to PFG $1,185 million; nine-month 2026 net income attributable rose to $1,460 million from $668 million. It returns capital through dividends ($3.08 per share in 2025) and buybacks, cutting shares from 273 million (2020) to 217 million (2025).
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 31, 2026 02:19 (SEC EDGAR) · Source 10-K filed: February 18, 2026
Built on10-K FY2025 · filed 2026-02-1810-Q (quarter ended 2026-09-30) · filed 2026-10-29Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 1.2%
- Net marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 7.6%
- Return on equityROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- 10.3%
- Equity ratioEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 3.5%
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 3.83x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 3 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 12.6x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.94
Higher than 5% of 44 financial companies
Average yearly growth over the years shown
Higher than 13% of 45 financial companies
Latest fiscal year (FY2025)
Higher than 29% of 45 financial companies
Latest fiscal year (FY2025)
Higher than 4% of 45 financial companies
Equity ÷ total assets
Higher than 89% of 44 financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$114.19close on 2026-11-04
Market cap$24.82B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 12.6x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 2.1x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- —
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- —
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 2.7%
At FY2025 year-end: 16.8x
Earnings: trailing 12 months to 2026-09-30
At FY2025 year-end: 1.6x
Book value at FY2025 year-end
At FY2025 year-end: —
EBITDA for FY2025
At FY2025 year-end: 0.0%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$3.68B → $4.62B (vs. a year earlier)↑ +25.4%$3.68B → $4.62B (vs. a year earlier)
- Net income$214M → $632M (vs. a year earlier)↑ +195.6%$214M → $632M (vs. a year earlier)
- Diluted EPS$0.95 → $2.91 (vs. a year earlier)↑ +206.3%$0.95 → $2.91 (vs. a year earlier)
- Cash$5.26B → $4.45B (vs. previous quarter-end)↓ −15.4%$5.26B → $4.45B (vs. previous quarter-end)
- Long-term debt$4.32B → $4.33B (vs. previous quarter-end)→ +0.0%$4.32B → $4.33B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Oct 26, 2026.
Key changes
Returned $429M to shareholders, including $250M of repurchases. Source sentence
Returned $429 million of capital to shareholders, including $250 million of share repurchases and $179 million of common stock dividends
Dividend up $0.01 to $0.85 per share. Source sentence
Announced common stock dividend increase of $0.01 to $0.85 per share in the fourth quarter 2026; representing an 8% increase over the
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- PRINCIPAL FINANCIAL GROUP INC
- Headquarters
- DES MOINES, IA
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NASDAQ: PFG
- Industry
- Life & Health Insurance
- CIK
- 1126328
- Website
- https://www.principal.com/ ↗
Workforce (as of FY2025 year-end)
Employees
19,700
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 37–43 days after quarter end (Feb 9, 2026; Feb 6, 2025; Feb 12, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 23–43 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Oct 26, 2026 (+26 days) | Oct 29, 2026 10-Q (+29 days) |
| Q2 FY2026 | Jun 30, 2026 | Jul 27, 2026 (+27 days) | Jul 29, 2026 10-Q (+29 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 23, 2026 (+23 days) | Apr 29, 2026 10-Q (+29 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 9, 2026 (+40 days) | Feb 18, 2026 10-K (+49 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 27, 2025 (+27 days) | Oct 29, 2025 10-Q (+29 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 28, 2025 (+28 days) | Jul 30, 2025 10-Q (+30 days) |
| Q1 FY2025 | Mar 31, 2025 | Apr 24, 2025 (+24 days) | Apr 30, 2025 10-Q (+30 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 6, 2025 (+37 days) | Feb 19, 2025 10-K (+50 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 24, 2024 (+24 days) | Oct 30, 2024 10-Q (+30 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 25, 2024 (+25 days) | Jul 31, 2024 10-Q (+31 days) |
| Q1 FY2024 | Mar 31, 2024 | Apr 25, 2024 (+25 days) | May 1, 2024 10-Q (+31 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 12, 2024 (+43 days) | Feb 20, 2024 10-K (+51 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Retirement and Income Solutions
Workplace retirement
Defined contribution, defined benefit, nonqualified and ESOP plans and recordkeeping.
Retirement and Income Solutions
Pension risk transfer and annuities
Single premium group annuities and individual annuities.
Principal Asset Management
Asset management and international pensions
Investment management for institutions and retail; International Pension operations in Latin America and Asia (e.g., Chile, Mexico, Hong Kong).
Benefits and Protection
Specialty benefits and life insurance
Group dental, vision, disability and life coverage; individual life for business owners.
From the Form 10-K, FY2025.
U.S., worldwide and country/regional share of flagship products/services
Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.
Group dental insurance
U.S.
U.S. share
3rd largest
Company-disclosedBy number of contracts and employer groups in force, 2024, per LIMRA
Worldwide share
—
Not disclosed
07
Recent strategic focusSite analysis
Recent developments.
Third quarter 2026
Total revenues $4,616M versus $3,682M; net income attributable $631.9M versus $213.8M; basic EPS $2.95.
Source: Form 10-Q (quarter ended 2026-09-30)
Nine months 2026
Net income attributable $1,459.9M versus $668.1M.
Source: Form 10-Q (quarter ended 2026-09-30)
Dividend capacity
Principal Life’s ordinary dividend limit to the parent is about $1,234M in 2026.
Source: Form 10-K (FY2025)
M&A spend (6-year total)
$27M
Latest year: $0
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-18
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Total revenue (FY2025)
$15.63B
As reported in the 10-K
Revenue CAGR (5 years)
+1.2%
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($15,626M ÷ $14,742M) ^ (1÷5) − 1 = 1.2%
termsCAGR · ^ (exponent) · Revenue (net sales)
ROE (FY2025)
10.3%▲favorable
6-year average: 14.2%
As reported in the 10-K
- ―
Revenue grew +1.2% a year over 5 years (modest growth)
From $14.74B in FY2020 to $15.63B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
ROE averaged 14.2% over 6 years (latest: 10.3%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
- Retirement plan recordkeeping and annuities
- Asset management and international pensions
- Specialty benefits and life insurance
06 · what it draws on
Key resources
- About 19,700 employees (Dec 31, 2025)
- $781.0B of assets under management
- General account investment portfolio
02 · why customers buy
Value propositions
- Retirement, asset management and benefits and protection products in markets where it has competitive advantages.
04 · how it keeps them
Customer relationships
- Retirement plan relationships and recurring fees on balances.
03 · how it reaches them
Channels
- Employers directly; independent brokers and advisors supported by wholesale distributors.
01 · who it serves
Customer segments
- About 103,000 employer groups (specialty benefits)
- Retirement plan sponsors and participants
- Institutional and retail investors
09 · where money goes
Cost structure
FY2025, share of revenue ($15.63B)
- Operating expenses (as reported)90.9%
Depreciation & amortization (inside the costs above): $251M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Fees and other revenues
- Premiums
- Net investment income
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Earns fees on retirement plan and asset management balances, spread on annuities and investments, and premiums on group benefits and life insurance; results depend on markets, interest rates and employment.
01 what it draws on
Inputs & resources
- About 19,700 employees (Dec 31, 2025)
- $781.0B of assets under management
- General account investment portfolio
02 what it does
Activities
- Retirement plan recordkeeping and annuities
- Asset management and international pensions
- Specialty benefits and life insurance
03 who it serves
Customers
- About 103,000 employer groups (specialty benefits)
- Retirement plan sponsors and participants
- Institutional and retail investors
04 how money comes in
How it earns
- Fees and other revenues
- Premiums
- Net investment income
How the business makes money
- $1,814.6B assets under administration.
- Third-largest U.S. group dental insurer by contracts (LIMRA, 2024).
- Shares outstanding down about 20% since 2020.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Principal’s insurers are licensed and examined by state insurance departments.
Approvals & licenses
State insurance regulation
State insurance departments license and examine insurers and agents and set reserve and solvency rules.
Constrains the businessTouches: Activities · How it earnsSource: Form 10-K (FY2025)
Revenue by segment (2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Retirement and Income Solutions
8,181.9 (51%)Benefits and Protection
4,965.1 (31%)Principal Asset Management
2,810.9 (18%)Corporate
101.2 (1%)
Source: Form 10-K (FY2025) Segment total operating revenues (before eliminations and realized gains/losses); consolidated total revenues $15,625.5M.
10
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
11
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Employers, plan participants, institutions and individuals.
Named by the company
No single customer is material.
Suppliers
Distribution partners, advisors and third-party administrators.
Named by the company
No supplier is named.
12
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
The 10-K says Principal competes with banks, mutual funds, institutional trust companies, broker-dealers, insurers, recordkeepers, asset managers and wealth managers, without naming them.
Competitors named in the 10-K
Peer group the company chose
2025 compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Financial service and insurance companies and asset managers (2026 proxy).
- Ameriprise Financialsite ↗
- Equitable Holdingssite ↗
- Lincoln Nationalsite ↗
- MetLifesite ↗
- Prudential Financialsite ↗
- Unum Groupsite ↗
- Voya Financialsite ↗
- Affiliated Managers Groupsite ↗
- BNY (Bank of New York Mellon)site ↗
- Franklin Templeton (formerly Franklin Resources)site ↗
- Invescosite ↗
- State Streetsite ↗
- T. Rowe Pricesite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
13
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Total revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-18
Profit over time (operating → net)
Unit: $M
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-18
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-18
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-18
| Line item | FY2020In next year’s 10-K | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 14,742 | 14,428 | 17,536 | 13,666 | 16,128 | 15,626 |
| Pretax income | 1,694 | 1,911 | 5,987 | 739 | 1,890 | 1,416 |
| Net income (attributable) | 1,396 | 1,580 | 4,757 | 623 | 1,571 | 1,185 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | -2.1% | 21.5% | -22.1% | 18.0% | -3.1% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 9.5% | 11.0% | 27.1% | 4.6% | 9.7% | 7.6% |
| Balance sheet ($M) | ||||||
| Total assets | 296,628 | 304,657 | 290,867 | 305,047 | 313,664 | 341,377 |
| Total equity | 16,617 | 16,069 | 10,018 | 10,962 | 11,131 | 11,917 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 4,364 | 4,360 | 4,078 | 3,992 | 4,108 | 3,954 |
| Equity ratio | 5.6% | 5.3% | 3.4% | 3.6% | 3.5% | 3.5% |
| ROE | 8.4% | 9.7% | 36.5% | 6.0% | 14.3% | 10.3% |
| Cash flow ($M) | ||||||
| Operating CF | 3,709 | 3,254 | 3,173 | 3,792 | 4,603 | 4,537 |
| Investing CF | -4,996 | -5,694 | 1,059 | -1,347 | -5,399 | -4,136 |
| Financing CF | 1,621 | 1,922 | -1,715 | -2,586 | 300 | -182 |
| Cash and equivalents | 2,850 | 2,332 | 4,848 | 4,708 | 4,212 | 4,431 |
| Per share & other | ||||||
| EPS ($) | 5.05 | 5.79 | 18.63 | 2.55 | 6.68 | 5.25 |
| BVPS ($) | 60.59 | 61.40 | 40.96 | 46.17 | 49.01 | 54.67 |
| Dividend per share ($) | — | — | 2.56 | 2.60 | 2.85 | 3.08 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | — | — | 13.7% | 102.0% | 42.7% | 58.7% |
| P/E (x) | 9.8 | 12.5 | 4.5 | 30.9 | 11.6 | 16.8 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 0.82 | 1.18 | 2.05 | 1.70 | 1.58 | 1.61 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Periods below 1x are shown in red. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Net income | Diluted EPS |
|---|---|---|---|
| 2026-09-30 | $4.62B+25.4% | $632M+195.6% | $2.91 |
| 2026-06-30 | $3.91B+6.4% | $403M-0.7% | $1.84 |
| 2026-03-31 | $3.53B-4.5% | $425M+782.7% | $1.93 |
| 2025-12-31 † | $4.58B-3.7% | $517M-42.9% | — |
| 2025-09-30 | $3.68B | $214M | $0.95 |
| 2025-06-30 | $3.67B | $406M | $1.79 |
| 2025-03-31 | $3.7B | $48M | $0.21 |
| 2024-12-31 † | $4.75B | $905M | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
14
Measures that fit this businessFrom SEC data
ROIC and free cash flow don’t suit an insurer, so these are the usual yardsticks instead.
- Assets under management
- $781.0 billion
December 31, 2025
As stated by the company: Form 10-K (FY2025)
| Measure | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|
| Return on equityNet income ÷ stockholders’ equity. | 8.4% | 9.7% | 36.5% | 6.0% | 14.3% | 10.3% |
| Premiums earned growthChange from the prior year. | — | -19.8% | 10.3% | 21.2% | 5.9% | -1.0% |
| Claims and benefits ÷ premiums earnedNot a combined ratio: underwriting expenses are excluded, and life insurers’ benefits run higher by design. | 137.2% | 149.9% | 124.2% | 120.4% | 117.8% | 126.3% |
| Equity ÷ total assetsThe accounting cushion. Regulatory capital ratios are listed separately above when the filing states them. | 5.6% | 5.3% | 3.4% | 3.6% | 3.5% | 3.5% |
Computed from SEC XBRL figures. A dash means the company doesn’t tag that figure or the result fell outside a plausible range. Tagging differs between filers, so check the filing before comparing two companies closely.
15
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
Banks, insurers, and similar financial companies aren’t compared this way, since deposits/policies are the business itself and debt can’t be cleanly separated from operating capital.
16
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Not applied to banks, insurers, and similar financial companies: their operating cash flow includes deposits or premiums held for customers, so it isn’t free cash flow available to investors.
17
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
Financial companies’ operating cash flow behaves differently from an operating company’s, so this analysis doesn’t apply.
18
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 79.8%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 20.2%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 308 of 416
- Beta (adjusted)
- 0.94
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 74% of covered companies have more
above 1 = swings more than the market
- 170.8M shares reported by 955 13F filers ÷ 214.1M shares outstanding on 2026-07-22. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-04-06 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-22)
19
Strengths & weaknessesSite analysis
Strengths
1. Scale in retirement
A leading provider of defined contribution, nonqualified and defined benefit plans and pension risk transfer.
Evidence: Form 10-K (FY2025)
2. Large fee base
$1,814.6B AUA and $781.0B AUM at end-2025.
Evidence: Form 10-K (FY2025)
3. Capital return
Shares outstanding fell from 273M (2020) to 217M (2025).
Evidence: Form 10-K (FY2025)
Weaknesses
1. Volatile GAAP earnings
Net income ranged from $623M (2023) to $4,757M (2022).
Evidence: Form 10-K (FY2025)
2. Market sensitivity
Fees depend on equity and bond market levels.
Evidence: Form 10-K (FY2025)
3. Long-term care exposure
The Corporate segment holds legacy long-term care insurance reserves.
Evidence: Form 10-K (FY2025)
20
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
16.8x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
3.49%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
59%
Dividends per share ÷ diluted EPS
1. Shareholder returns
Dividends per share rose from $2.56 (2022) to $3.08 (2025) with ongoing buybacks.
- What has to hold
- Fee businesses generate capital.
- The other side
- Market-driven earnings.
Evidence: Form 10-K (FY2025)
2. Retirement demand
Leading position in small and mid-sized retirement plans.
- What has to hold
- Workplace savings keep growing.
- The other side
- Fee pressure.
Evidence: Form 10-K (FY2025)
Insurance-style financials: ROIC/WACC and FCF yield are not meaningful. Dividends per share for 2020–2021 are left blank because the filings used do not tag them.
21
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
For an insurer or bank, debt-coverage ratios like these don’t describe its ability to absorb losses — that depends on its capital, reserves, and investment portfolio, which are covered in part 3 below.
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -22.1% in FY2023 ($17.54B → $13.67B) | Not yet, as of FY2025 |
| Net income | -86.9% in FY2023 ($4.76B → $623M) | Not yet, as of FY2025 |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Profitable every year
Net income attributable positive every year 2020–2025; low $623M in 2023.
Source: Form 10-K (FY2025)
22
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Principal is regularly involved in litigation arising from its operations, some of it class actions; it says any accrued liability is insignificant.
Company statement:
Based on Form 10-K (FY2025) — Note 16, Litigation and Regulatory Contingencies, reviewed 2026-10-31. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
23
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Demand & macro
Market levels
- Company disclosure (summarized from the 10-K)
- Equity market declines reduce fee revenue and AUM.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood High
- 2FX & interest rates
Interest rates and FX
- Company disclosure (summarized from the 10-K)
- Rates affect spreads and reserves; international pensions face currency risk.
- Company’s stated mitigation
- We purchase equity call spreads (“option collars”) to hedge the equity participation rates promised to contractholders in conjunction with our fixed deferred annuity and universal life products that credit interest based on changes in an external equity index.
- This site’s assessment
- Impact Med / Likelihood High
- 3Competition & technology shift
Competition
- Company disclosure (summarized from the 10-K)
- Competes with banks, mutual funds, trust companies, broker-dealers, insurers, recordkeepers and asset managers.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 4Law & regulation
Regulation
- Company disclosure (summarized from the 10-K)
- Insurance, securities and retirement regulation.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 5Information security
Cybersecurity
- Company disclosure (summarized from the 10-K)
- Holds large amounts of participant data.
- Company’s stated mitigation
- We also undergo a third party maturity assessment of our information security program every two years and a third party enterprise penetration test annually.
- This site’s assessment
- Impact Med / Likelihood Med
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What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (8)
In the discussion below, we exclude investments held under coinsurance with funds withheld reinsurance agreements when providing details related to our investment portfolio, as these assets support related obligations and are less relevant to investor risk assessment.
Our investment portfolio’s risks may reduce asset values, credited returns and overall financial performance.
In a time of market illiquidity, we may be forced to sell assets at unfavorable prices as reported asset values may not reflect potential sale prices in stressed markets.
Deferred tax assets and liabilities reflect differences between financial and tax bases, using enacted future tax rates. Read more
We assess deferred tax asset recoverability quarterly and establish valuation allowances as needed. We consider reversals of existing taxable temporary differences, future income, carrybacks and tax planning strategies when evaluating the need for valuation allowances.
We provide products and services to certain employee benefit plans that are subject to ERISA or the Internal Revenue Code of 1986, as amended and regulated by various federal agencies, including the DOL. Read more
The laws governing employee benefit plans are complex. Failure to comply can result in civil penalties, excise taxes, litigation, and reputational harm. At times, we contract with customers to provide services as an ERISA fiduciary. In this case, ERISA imposes high standards of conduct on our activities, including managing conflicts of interest and complying with prohibited transaction exemptions. Changes to fiduciary rules, including regulations for fiduciary investment advice, may require modifications to our business practices, compensation structures, systems, and compliance programs. These changes could increase operational costs and limit certain sales practices.
Our risk management framework may not identify or mitigate all risks, potentially leading to unexpected losses.
We face competition from financial services firms with potential advantages in key areas described in Item 1. Read more
“Business — Competition.”
Our operations increasingly depend on a network of third party vendors, many of whom rely on additional subcontractors or fourth party providers. Read more
This extended dependency can lead to a rise in service disruptions and performance failures, particularly in areas critical to financial services such as technology infrastructure, data processing and customer support. These incidents may result in operational delays and reputational risk and may adversely affect our ability to meet regulatory obligations and client expectations.
No longer in the text (4)
This section provides a summary of the risks that may impact our performance in the future. Read more
For details of our various risk factors and their impacts, see “Risk Factors Discussion.”
Our risk factors are organized into the following categories: Read more
1) Risks relating to economic conditions, market conditions and investments, 2) Risks relating to estimates, assumptions and valuations, 3) Risks relating to laws, regulations and taxation, 4) Risks relating to our business and 5) General risks.
In general, economic and market conditions can cause variability in the following factors: Read more
demand for our products and services, short-term and long-term interest rates, inflation and deflation, equity returns, credit spreads, liquidity of investments, level of premiums and deposits, level of delinquencies and defaults, level of claims, level of surrenders and withdrawals and foreign exchange rates. The net effect of this variability can include reductions in business volumes or AUM, reductions in revenues, additional operating expenses, reductions or volatility in net income, inability to meet liquidity needs, inability to access capital and increased cost of capital.
We use financial models to price our products, calculate reserves and other actuarial balances, value our investments and determine the amount of allowances or impairments taken on our investments. Read more
These models include the use of methodologies, assumptions and estimates. If actual experience is different than our models, our financial results could be impacted. This could impact the timing of our net income or adversely affect our results of operations and financial condition.
22 more paragraphs differ; the filings below have the full text.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 18, 2026 ↗ with the 10-K filed Feb 19, 2025 ↗.
25
What to watch going forwardSite analysis
- Retirement net cash flows.
- AUM and fee rates.
- Pension risk transfer sales.
- Buybacks.
26
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 31, 2026 02:19 (SEC EDGAR) · Source 10-K filed: February 18, 2026
Built on10-K FY2025 · filed 2026-02-18Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Principal Financial Group’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.