Principal Financial Group (PFG) Q1 2026 earnings summary

Executive summary

• Achieved 13% adjusted non-GAAP EPS growth and 13% enterprise pre-tax operating earnings growth in Q1 2026, exceeding targets, driven by favorable underwriting, improved mortality, and positive market conditions for fee-based businesses.

• Net income attributable to shareholders rose to $425 million, up 783% year-over-year, with diluted EPS at $1.93, up from $0.21 in Q1 2025, primarily due to favorable derivative valuations and improved claims experience.

• All business segments delivered earnings growth, with notable strength in Benefits and Protection (up 41%) and Asset Management (up 10%).

• Returned $375 million to shareholders, including $200 million in share repurchases and raised the dividend by 8% for the twelfth consecutive quarter.

• Recognized as one of the world's most ethical companies for the 15th time and received industry awards for asset management excellence.

Financial highlights

• Non-GAAP operating earnings were $456 million, up 10% year-over-year; EPS rose 14% to $2.07; excluding significant variances, operating earnings were $479 million, up 9%, and EPS at $2.17, up 13%.

• Net income: $425 million for Q1 2026, up from $48.1 million in Q1 2025; diluted EPS: $1.93.

• Managed AUM ended at $770 billion, up 7% year-over-year; assets under administration at $1.8 trillion; net cash flow was negative $1.5 billion, a sequential and year-over-year improvement.

• Non-GAAP operating ROE reached 16.1%, up 140 basis points year-over-year and within the 15-17% target range.

• Margin expanded by 190 basis points to 30% on 6% net revenue growth and disciplined expense management.

Outlook and guidance

• Confident in delivering 2026 financial targets, with expectations for variable investment income to improve over 2025.

• Full-year specialty benefits loss ratios expected at or below the low end of the communicated range.

• Management reaffirmed long-term guidance and strategic focus on growth in retirement, asset management, and benefits.

• Management expects continued growth in fee-based revenues and stable investment income, with ongoing monitoring of interest rate and credit spread impacts.

• No material changes to risk factors or forward-looking statements since the last annual report.