Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. It operates through three segments: Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection. The company was founded in 1879 and is based in Des Moines, Iowa.
US Annuity Sales Hit Record $228.7 Billion in First Half
US annuity sales set a first-half record of $228.7 billion, up 1% from the prior-year period, according to LIMRA. Total second-quarter annuity sales reached $121.2 billion, up 2% year over year, the 11th consecutive quarter above $100 billion. Within that total, registered index-linked annuity sales rose 22% to $23.3 billion, traditional variable annuity sales jumped 24% to $17.7 billion, and single-premium immediate annuity sales hit a record $4.1 billion. The broader life market showed similar momentum, with S&P Global Market Intelligence reporting US life premiums up 7.7% year over year in the second quarter and individual life premiums up 4.1%, while LIMRA said the individual life policy count rose 8%. Against that backdrop, Zacks named Prudential Financial, Principal Financial Group and MetLife as three life insurers to watch, each carrying a Zacks Rank #3 (Hold); Prudential posted $3.6 billion in retail annuity sales in the second quarter, Principal reported transfer deposits of $9 billion, up 30%, and MetLife's Retirement and Income Solutions segment generated $377 million in adjusted earnings.
SS&C Selected by Principal Financial Group to Support Retirement Income Suite
SS&C Technologies Holdings announced that Principal Financial Group has selected SS&C Retirement Solutions to support connectivity and administration for its growing retirement income suite. Principal will use SS&C's Retirement Income Clearing & Calculation platform, known as RICC, to help support distribution across a growing line of proprietary and curated third-party retirement income products. Brett Fisher, assistant vice president of investment product strategy at Principal Financial Group, said greater standardization and connectivity across providers can help facilitate portability and support broader access to retirement income options for plan sponsors and participants. Michael Rogalski, Head of SS&C Retirement Solutions, said the engagement extends a valued long-term relationship with Principal, which already includes fund services provided by SS&C Global Investor & Distribution Solutions. The RICC platform is on track to connect seven major recordkeepers representing $6.6 trillion in assets under administration and 70 million participants by the end of the year.
Principal Financial Completes Beam Benefits Acquisition
Principal Financial Group has completed its acquisition of Beam Benefits, effective September 1, 2026, to accelerate growth in its Specialty Benefits business. Beam, a digitally native provider of dental, vision, life, disability, and supplemental health coverage, generated approximately $175 million in premiums in 2025 and serves over 25,000 small-business customers. The deal is expected to boost Specialty Benefits premium and fee growth above the high end of its 5-9% medium-term target range in 2027, while PFG's 2026 capital-deployment and EPS-growth targets remain unchanged. In comparison, Aon agreed to acquire USI for $17 billion in August 2026, and Arthur J. Gallagher's Risk Placement Services acquired Med James in July 2026. PFG shares have gained 36.9% in the past year, and the stock carries a Zacks Rank #3 (Hold).
Principal Financial Expands Private-Market Retirement Program
Principal Financial Group has expanded its Featured Partner Program to make private-market investments more accessible within defined-contribution retirement plans, a move that should strengthen its Retirement and Income Solutions business. The program brings together asset managers, trust companies, and fiduciaries to develop collective investment trust (CIT)-based solutions that combine public and private assets, including for target-date funds, target-risk funds, and managed accounts. The expansion includes major private-market managers such as AllianceBernstein, Apollo, Ares, Blackstone, Blue Owl, Carlyle, KKR, Morgan Stanley Investment Management, and Partners Group. This initiative could drive asset and fee growth by attracting more retirement assets into CITs and other professionally managed solutions, while deepening relationships with plan sponsors. Principal Financial shares have gained 39.9% in the past year, outperforming the industry's 7.4% growth, and the company currently holds a Zacks Rank #3 (Hold).
Principal Financial Shares Dip 2.2% Post-Earnings, Analysts Upbeat
Principal Financial Group's shares have fallen 2.2% since its second-quarter earnings report, underperforming the S&P 500, but the company posted strong results and raised its dividend. Operating earnings of $2.50 per share beat estimates by 7.3%, while revenues rose 6.4% to $3.99 billion, slightly missing consensus. The company agreed to acquire Beam Benefits, a provider of dental and vision insurance for small businesses, and maintained its 2026 earnings and capital targets. The board increased the quarterly dividend by 2 cents to 84 cents per share. Analysts have broadly revised estimates upward, and the stock holds a Zacks Rank #3 (Hold).
Principal Financial Group Reports 17% Rise in Adjusted Earnings Per Share
Principal Financial Group Inc reported a 17% year-over-year increase in adjusted non-GAAP earnings per share for the second quarter of 2026. Enterprise earnings grew 13%, net revenue rose 6%, and total company margin expanded 200 basis points to 32%. The company returned nearly $430 million to shareholders in the quarter, including $250 million in share repurchases and almost $180 million in common stock dividends, bringing year-to-date capital returns to $800 million. Non-GAAP operating earnings reached $547 million, a 12% increase, while net income excluding exited business climbed 24% to $535 million. Total company-managed assets under management stood at $808 billion, up 5% from the prior quarter, though the company experienced approximately $11 billion in net outflows concentrated in a small number of US active equity strategies.
Principal Financial Group raises dividend by 2% to $0.84
Principal Financial Group declared a quarterly dividend of $0.84 per share, a 2.4% increase from the prior dividend of $0.82. The forward yield is 3.02%. The dividend is payable on September 25 to shareholders of record as of September 3, with the ex-dividend date also on September 3.
Cadence Design, Rambus, Welltower lead after-hours stock moves on earnings beats and guidance raises
Several companies made notable after-hours moves following their latest earnings reports. Cadence Design Systems rose more than 4% after posting second-quarter adjusted earnings of $2.11 per share, beating the LSEG consensus of $2.05, while revenue of $1.58 billion met expectations. Rambus edged higher after reporting adjusted earnings of 77 cents per share on revenue of $207 million, exceeding analyst estimates of 72 cents and $198 million. Welltower jumped 4% after the senior housing real estate investment trust raised its full-year normalized funds from operations guidance to a range of $6.36 to $6.44 per share, above the FactSet consensus of $6.30. Universal Health Services dropped more than 4% after lowering its full-year adjusted earnings guidance to between $22.28 and $23.65 per share, down from a prior range of $22.64 to $24.52. Happen, the bank formerly known as LendingClub, advanced 4% after issuing full-year earnings guidance of $1.80 to $1.90 per share, surpassing the FactSet consensus of $1.74, and projecting loan originations of $12.2 billion to $12.6 billion. F5 gained nearly 2% after third-quarter adjusted earnings of $4.73 per share on revenue of $865 million topped the LSEG consensus of $4 per share and $388 million. Cincinnati Financial lost almost 4% after operating earnings of $1.43 per share missed the FactSet consensus of $1.84, and net premiums of $2.64 billion came in slightly below the expected $2.66 billion. Nucor dipped 1% despite beating second-quarter earnings and revenue expectations, with the stock already up more than 50% year to date. Principal Financial Group fell 3% even though operating earnings of $2.42 per share exceeded the FactSet consensus of $2.34, as the stock had already risen more than 25% this year.
Welltower, Cadence, Nucor Among 12 Companies Set to Report After-Hours Earnings on July 27
Twelve companies are scheduled to report quarterly earnings after the market closes on July 27, 2026. Welltower Inc. is expected to post earnings per share of $1.55, a 21.09% increase from the prior year, while Cadence Design Systems has a consensus forecast of $1.62, up 32.79%. Nucor Corporation is projected to report $4.57 per share, a 75.77% jump, and Celestica Inc. is seen earning $2.12, a 68.25% rise. Other notable reports include Cincinnati Financial with a forecast of $1.82, down 7.61%, and Amkor Technology at $0.47, more than doubling from last year. The full list also features Principal Financial Group, Brown & Brown, F5 Inc., Sun Communities, UDR Inc., and TFI International.
Principal Financial Q2 Earnings Preview: Analysts Raise EPS Estimate to $2.32
Wall Street analysts expect Principal Financial to report second-quarter earnings of $2.32 per share, a 7.4% increase from a year ago, on revenues of $4.11 billion, up 11.4%. The consensus EPS estimate has been revised upward by 1% over the past 30 days. Among key metrics, analysts project fees and other revenues of $1.11 billion, net investment income of $1.30 billion, and premiums and other considerations of $1.65 billion. Within the Principal Asset Management segment, fees and other revenues are seen at $554.61 million and net investment income at $168.47 million. For the Benefits and Protection segment's Specialty Benefits unit, premiums and other considerations are forecast at $867.95 million, contributing to a total segment revenue estimate of $932.64 million. Assets under management in International Pension are expected to reach $161.70 billion, while Investment Management AUM is projected at $595.94 billion. Shares of Principal Financial have declined 2.5% over the past month, and the stock carries a Zacks Rank #3, or Hold.
Voya Financial rises on report of informal takeover interest
Voya Financial edged higher by 2.3% after a report of informal takeover interest. The outreach is said to be informal, and there are no ongoing talks, according to a Semafor report that cited people familiar with the matter. Neither management nor the company's board is looking to do a deal. Principal Financial was one of the parties that expressed interest earlier this year, but nothing came of the approach. Principal did not return Semafor's request for comment, and Voya declined to comment.
Principal Financial Dividend Yield Reaches 2.91% with 6.5% Annualized Increase
Principal Financial Group has seen its stock price rise 27.97% year-to-date while paying a quarterly dividend of $0.82 per share, yielding 2.91%. The company's annualized dividend of $3.28 represents a 6.5% increase from the prior year, and over the past five years it has raised its dividend four times for an average annual increase of 5.97%. Its payout ratio stands at 38% of trailing twelve-month earnings per share. The Zacks Consensus Estimate for fiscal 2026 earnings is $9.37 per share, implying 13.30% growth from the year-ago period. The stock currently carries a Zacks Rank of #3 (Hold).
Principal Financial Group Expands Lifetime Income Suite with New CIT Target Date Funds
Principal Financial Group expanded its Principal income suite, adding LifeTime Income Builder Index collective investment trust target date funds and new third-party retirement income options to help workers convert defined contribution savings into lifetime income. A distinctive feature is that these target date funds begin allocating to fixed indexed annuities around age 47 and aim to automatically activate a target 6% income stream in retirement with minimal participant decisions. The expansion aligns with Principal's push to deepen its role in defined contribution retirement plans, especially for workers lacking traditional pensions. By offering QDIA-eligible lifetime income options and partnering with third-party managers like TIAA/Nuveen, Principal could reinforce its retirement positioning at a time when fee income and asset flows are under scrutiny. The company's narrative projects $19.5 billion revenue and $2.3 billion earnings by 2029, requiring 8.1% yearly revenue growth and about a $0.7 billion earnings increase from $1.6 billion today.
Principal Financial Group Outperforms Industry, Trades Near 52-Week High
Principal Financial Group shares have gained 36.6% over the past year, far outpacing the industry's 1.3% growth, and closed Monday at $108.51, near its 52-week high of $112.45. The Zacks Consensus Estimate projects 2026 earnings per share to rise 13.3% year-over-year on revenues of $16.38 billion, with long-term earnings growth pegged at 10.7%. Total company-managed assets under management reached $770 billion at the end of the first quarter of 2026, up 7% from a year earlier, supported by record investment sales and strong international net inflows. The company ended the first quarter with $1.45 billion in excess and available capital and returned $375 million to shareholders, including $200 million in share repurchases. The board raised the second-quarter dividend by 8% to 82 cents per share, yielding 3%, above the industry average of 2.5%.
Principal Financial Shares Rise 24% This Year With 2.99% Dividend Yield
Principal Financial Group shares have gained 24.22% so far this year, while the company pays a quarterly dividend of $0.82 per share for a yield of 2.99%. That yield exceeds the Insurance - Multi line industry average of 1.65% and the S&P 500's 1.43%. The annualized dividend of $3.28 represents a 6.5% increase from last year, and the company has raised its dividend four times over the past five years for an average annual increase of 5.97%. The current payout ratio stands at 38% of trailing 12-month earnings per share, and the Zacks Consensus Estimate for fiscal 2026 earnings is $9.36 per share, implying 13.18% growth from the prior year. The stock carries a Zacks Rank of 3, or Hold.
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