operating margin
30–34 pct
FY 2024
official guidance
PRINCIPAL FINANCIAL GROUP, INC.
Last · NASDAQ$107.26-0.38 (-0.35%)close · yahoo · 15h ago
Market cap$22.96B214.1M sh
P/E · TTM15.3fwd 10.5 · eps 7.02
Beta0.87vs S&P 500
Div yield3.12%annual · TTM
52w range
$77.90$121.18
Volume1.3Msession
| Revenue | $7.4B |
|---|---|
| Net income | $828.0M |
| Net margin | 11.1% |
| Return on equity | 6.8% |
| Period | 2026 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong operating execution and capital returns outweigh manageable asset-management and underwriting pressures.
Buy: Principal delivered a solid quarter, with adjusted EPS of $2.05, up 12% year over year, 5% net-revenue growth, $741 billion of company-managed AUM, and reaffirmed 2024 EPS growth guidance of 9%-12%. Retirement remains the strongest earnings engine, while $1.2 billion of year-to-date capital returns and a 9% dividend increase support the equity case; however, PGI still has net outflows, Specialty Benefits faces dental competition, and variable investment income may remain pressured for several quarters.
Themes
- Retirement Solutions
- Principal Asset Management
- Principal International
- Specialty Benefits
- Pension Risk Transfer
- Capital Return
Near term
Retirement should remain above the high end of its revenue-growth guidance, supported by 10% recurring-deposit growth, strong retention, and a materially higher sales pipeline entering 2025.
Principal expects to complete approximately $3 billion of pension-risk-transfer sales in 2024, with robust fourth-quarter activity and disciplined pricing.
Fourth-quarter earnings face normal seasonal expense increases, while management expects Specialty Benefits underwriting and dental loss ratios to improve.
PGI performance fees are likely to remain below normal levels; only $7 million was recognized year to date versus a historical normal of $30 million-$35 million.
Longer term
Retirement's integrated recordkeeping, asset-management, and income capabilities are producing profitable growth even as participant withdrawals rise with account values.
Principal International is gaining traction in Latin America and Asia, with $2.3 billion of quarterly net flows and nearly 34% margin, but currency and macroeconomic conditions remain important variables.
Private credit is a potentially attractive longer-term growth and fee opportunity, with approximately $2.5 billion deployed and $400 million of positive net cash flow this year.
Capital flexibility remains strong: approximately $1.6 billion of excess and available capital, a 375%-400% RBC target, and planned 2024 capital deployments of $1.5 billion-$1.8 billion.
Improving real-estate sentiment could eventually revive transactions and performance fees, but core and construction deal flow remains below historical norms and the recovery is taking longer than expected.
Red flags
PGI continues to experience net outflows, particularly from public institutional clients; management cited improved trends and pipeline activity but did not provide a clear timeline for sustained positive flows.
Specialty Benefits growth slowed to 6.2% in the quarter, dental remains competitive and inflationary, and pricing actions work with a lag despite more than 90% of the dental block being repricable annually.
Variable investment income was pressured by negative private-equity returns and minimal prepayments; management expects pressure to persist into late 2024 and 2025.
The $82 million actuarial-review impact was noncash and largely economic-neutral, but LDTI now leaves $35 billion of balances subject to review, creating recurring earnings volatility.
Management emphasized profitable flows rather than solving the net-flow issue at any price, which protects margins but may limit asset growth if PGI's competitive position does not improve.
Forward outlook
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
9:00 PM UTC+1
Period
Sep 2026
Est. EPS
$2.44
Est. revenue
4.3B
Earnings transcripts
- Issuer IR
H1 2026 earnings call transcript
VANQUIS BANKING GROUP PLC
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Add calendar event
VANQUIS BANKING GROUP PLC
- Issuer IR
Vanquis Banking Group FY25 Results Presentation Transcript
VANQUIS BANKING GROUP PLC
- Issuer IR
H1 2025 earnings call transcript
VANQUIS BANKING GROUP PLC
- Issuer IR
corrected_transcript_principal_financial_group_inc.pfg-us_q2_2025_earnings_call_29-july-2025_10_00_am_et.pdf
PRINCIPAL FINANCIAL GROUP, INC.
- Issuer IR
Vanquis Banking Group Q3 Results Transcript
VANQUIS BANKING GROUP PLC