EarningsQ1 2026 Earnings Report

Principal Financial (PG4) Q1 2026 Earnings Report

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Previous Report: Q4 2025

Next Report: Q2 2026

CH:PG4 Q1 2026 EPS Results

Actual EPSCHF1.72

Consensus EPSCHF1.68

Beat/MissBeat by +CHF0.05

One Year Ago EPSCHF1.51

CH:PG4 Q1 2026 Revenue Results

Actual RevenueCHF2.94B

Expected RevenueCHF3.43B

Beat/MissMissed by -CHF494.03M

YoY Revenue Growth-4.51%

Earnings Announcement Details

QuarterQ1 2026

Date04/23/2026

TimeAfter Close

Conference CallThursday, April 23, 2026

CH:PG4 Upcoming Earnings

Principal Financial's next earnings date is estimated for October 26, 2026, based on past reporting schedules.

Q1 2026 Earnings Call Audio

CH:PG4 Q1 2026 Earnings Call

0:00 / 0:00

Q1 2026 Earnings Slide Deck

Q1 2026 Earnings Call Summary

Q1 2026

Earnings Call Date:Apr 23, 2026|

% Change Since:

Earnings Call Sentiment|Positive

The call highlighted broad, measurable momentum across the company: strong adjusted EPS growth, margin and ROE expansion, record gross sales in asset management, robust retirement and SMB flows, sizable capital returns and a raised dividend. Management acknowledged some short-term headwinds — negative total net cash flow for the company, redemptions in select active U.S. equity funds, timing-driven reductions in variable investment income, and lumpiness in PRT transactions — but positioned these as largely manageable, transitory, or offset by diversification and capital strength. On balance, highlights materially outweigh the lowlights and management expressed confidence in delivering 2026 targets.

Company Guidance

Management reiterated confidence in delivering on its 2026 financial targets, calling for year‑over‑year improvement in variable investment income and real‑estate monetization and noting several Q1 metrics that underpin that guidance: adjusted non‑GAAP EPS rose 13% (above the high end of the target range); non‑GAAP operating earnings were $456M ($479M ex‑significant variances) or $2.07/share ($2.17 ex‑variances); non‑GAAP operating ROE was 16.1% (up 140 bps, at the midpoint of the 15–17% target); margin expanded 190 bps to 30% on 6% net revenue growth; total AUM was $770B (+7% YoY) with total company net cash flow −$1.5B (improved sequentially); retirement transfer deposits were $12B (+35% YoY) with recurring deposits +7% and participant deferrals and average deferrals both up ~3% (roll‑ins $1.7B; RIS account‑value NCF ≈ $1.8B); Principal Asset Mgmt gross sales were a record $37B (+21% YoY) with private markets net inflows $400M qtr/$3B TTM and private AUM +11% YoY; International Pension AUM hit $160B (+20% YoY) with +$500M NCF; Benefits & Protection pretax earnings were $177M (+41% YoY) with total loss ratio improving 220 bps and Specialty Benefits record sales +24% (business market life premium & fees +15%); capital returned was ~$374M (including $200M buybacks), excess/available capital >$1.4B (including $800M at the holding co, $300M in subsidiaries and ~$350M excess above a ~375% RBC target; RBC ≈400%); and the Q2 dividend was raised to $0.82 (+$0.02 QoQ, +8% YoY) consistent with a ~40% payout target—management cautioned that performance fees, real‑estate gains and flow patterns will be lumpy by quarter.

Adjusted EPS and Operating Earnings Growth

13% adjusted non-GAAP EPS growth in Q1 (above high end of target). Non-GAAP operating earnings of $456M (+10% YoY) or $2.07/share (+14% YoY). Excluding significant variances, adjusted operating earnings $479M (+9% YoY) or $2.17/share (+13% YoY).

Margin and Return on Equity Expansion

Company margin expanded 190 basis points to 30% in Q1. Non-GAAP operating ROE improved 140 basis points to 16.1% (midpoint of 15%–17% target range).

Capital Returns and Dividend Increase

Returned ~$374M to shareholders in the quarter (including $200M share repurchases). Announced $0.82 common dividend for Q2 (+$0.02 qtr; +8% YoY) and maintained targeted ~40% dividend payout ratio. Holding-company and subsidiary liquidity: >$1.4B excess/available capital with ~400% risk-based capital ratio.

Retirement Ecosystem Momentum

Total retirement transfer deposits of $12B (+35% YoY); recurring deposits +7% YoY. Participant metrics improved: 3% increase in number deferring and average deferrals up >3%. Participant roll-ins $1.7B in the quarter; DCIO sales $1B in Q1 (~$8B TTM).

SMB and Benefits Growth

SMB recurring deposits +6% YoY (7% on TTM). Positive account-value net cash flow of $600M in the quarter. Specialty Benefits delivered record sales (+24% YoY); business-market life premium and fees +15% YoY. Well-being index: 90% of SMB owners maintaining or increasing staff.

Global Asset Management Strength

Record gross sales in Investment Management of $37B (+21% YoY). Private markets net inflows $400M in Q1 and $3B TTM; Private Markets AUM +11% YoY. Active ETF net inflows $400M in Q1 and $1.8B TTM. Strong international net cash flow of $1.5B in the quarter.

Business Segment Performance Highlights

RIS pretax operating earnings $318M (+4% YoY) with operating margin 41.5% (+60 bps). Principal Asset Management earnings +10% YoY on 5% revenue growth. Benefits & Protection pretax operating earnings $177M (+41% YoY); total loss ratio improved ~220 bps YoY; segment margin improvements (e.g., Benefits margin 16.2%, +290 bps YoY).

International Pension Momentum

International pension AUM $160B (+20% YoY, +4% sequentially) — record level. Net cash flow +$500M in the quarter (including +$700M in Brazil); pretax operating earnings +14% YoY supported by performance fees and FX tailwinds.

Product & Distribution Wins / Pipeline

Strong product traction and distribution expansion: Investment Management commitment pipeline >$9B (mandates won, not yet funded). Record gross sales and diversified inflows across public/private markets and regions, with Asia/international clients delivering notable flows.

Risk Management and Long-Term Positions

Management reiterated conservative private-credit posture (majority investment grade, minimal direct lending exposure) and confidence in diversified, liability-aligned investment portfolio. Reclassification of core real estate depreciation to realized gains/losses to better reflect total returns.

CH:PG4 Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Oct 26, 2026	2026 (Q3)	2.04 / -	1.75	―
Jul 27, 2026	2026 (Q2)	1.95 / 2.08	1.8	15.74% (+0.28)
Apr 23, 2026	2026 (Q1)	1.68 / 1.72	1.508	14.36% (+0.22)
Feb 09, 2026	2025 (Q4)	1.86 / 1.82	1.617	12.89% (+0.21)
Oct 29, 2025	2025 (Q3)	1.84 / 1.75	1.467	19.32% (+0.28)
Jul 28, 2025	2025 (Q2)	1.64 / 1.80	1.358	32.52% (+0.44)
Apr 24, 2025	2025 (Q1)	1.51 / 1.51	1.375	9.70% (+0.13)
Feb 06, 2025	2024 (Q4)	1.60 / 1.62	1.525	6.01% (+0.09)
Oct 24, 2024	2024 (Q3)	1.66 / 1.47	1.433	2.33% (+0.03)
Jul 25, 2024	2024 (Q2)	1.53 / 1.36	1.275	6.54% (+0.08)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed