Principal Financial (PG4) Q3 2026 Earnings Report
CH:PG4 Q3 2026 EPS Results
- Actual EPS
- CHF 1.83
- Consensus EPS
- CHF 2.00
- Beat/Miss
- Missed by -CHF 0.17
- One Year Ago EPS
- CHF 1.73
CH:PG4 Q3 2026 Revenue Results
- Actual Revenue
- CHF 3.80B
- Expected Revenue
- CHF 3.52B
- Beat/Miss
- Beat by +CHF 281.95M
- YoY Revenue Growth
- +25.39%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/26/2026
- Time
- After Close
- Conference Call
- Monday, October 26, 2026
CH:PG4 Upcoming Earnings
Principal Financial's next earnings date is estimated for February 10, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
CH:PG4 Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. Principal reported 12% year-to-date EPS growth at the high end of its target, strong capital generation and shareholder returns, growth across retirement, SMB, international pension, life, private markets, and ETFs, and a healthy capital position. The main challenges were negative company net cash flow driven by active equity outflows, investment management earnings pressure, a modest Beam earnings drag, claims volatility in individual disability, and increased caution among small and mid-sized businesses.
Company Guidance
Management reaffirmed 2026 earnings per share growth guidance of 9% to 12%, at the high end of the target, and expects full-year capital deployment of $1.5 billion to $1.8 billion, with full-year share buybacks towards the low end of the target range; free capital flow conversion guidance is 75 to 85%, international pension operating margin is targeted at 46% to 50%, specialty benefits loss ratio is targeted at 60 to 64%, and fourth-quarter expenses are expected to show a maybe low single digit increase relative to average of the 3 quarters. Management expects near term pressure to continue in active equity flows, expects repapering to markedly decrease Beam’s earnings drag in the first half of 2027, and expects to provide more detail on how the integration work will impact full year 2027 results at the next earnings and outlook call.
- Year-to-Date Earnings Growth at High End of TargetAdjusted non-GAAP earnings per share increased 12% year to date, at the high end of the company's 9% to 12% target range, including 7% growth in the third quarter.
- Operating Earnings and Margin ExpansionThird-quarter adjusted non-GAAP pre-tax operating earnings increased 3% on 4% net revenue growth, driven primarily by higher revenue and disciplined expense management in RIS, improved mortality experience in life, and growth in international pension. Year-to-date pre-tax operating earnings increased 10%, supported by 5% net revenue growth and 120 basis points of margin expansion.
- Strong Return on Equity and Capital GenerationReturn on equity was above 16%, while trailing 12-month free capital flow conversion was 77%, both within targeted ranges. The company ended the quarter with more than $1.5 billion of excess and available capital, including approximately $1.15 billion at the holding company and $300 million in subsidiaries.
- Significant Shareholder Capital ReturnsPrincipal returned nearly $430 million to shareholders in the third quarter, consisting of $250 million of share repurchases and $179 million of dividends. Year-to-date capital deployment exceeded $1.2 billion, and the company remains on track to deliver its full-year target of $1.5 billion to $1.8 billion.
- Dividend IncreaseThe company announced a fourth-quarter dividend of $0.85 per share, representing a $0.01 increase from the prior quarter and an 8% increase from a year ago, in line with its commitment to a 40% dividend payout ratio.
- Retirement Ecosystem GrowthRecurring retirement deposits increased 8% year over year, while both the number of participants contributing to retirement plans and average deferrals per participant increased 4%. Retirement roll-ins were $1.8 billion in the quarter and $7.4 billion over the trailing 12 months, up 9% and 15%, respectively.
- Strong Retirement Sales and Participant EngagementThe company generated $1.5 billion of DCIO sales and $900 million of PRT sales during the quarter. RIS recurring deposits reached nearly $13 billion, and the business reported record client retention, stable withdrawal rates, and a growing pipeline of PRT sales.
- Retirement Platform ExpansionPrincipal continued expanding investment management offerings across its retirement platform through its featured partner program, which now supports private-market strategies in retirement plans. The company was named a top retirement service provider across all market segments in the 2026 NAPA Advisers Choice Awards for participant experience capabilities and plan sponsor and advisor support.
- Small and Mid-Sized Business MomentumSpecialty Benefits employment grew nearly 2% over the trailing 12 months. SMB transfer deposits increased 21% and recurring deposits increased 7% year over year. Specialty Benefits sales grew 10% from the prior-year quarter and 15% over the trailing 12 months, contributing to a third consecutive quarter of sequential premium growth improvement.
- Beam Benefits Acquisition CompletedPrincipal completed its acquisition of Beam Benefits on September 1, adding more than 26,000 small-business customers and a digital-first, cloud-native platform. Management described Beam as a capability and growth acquisition that expands service to the small and mid-sized business market.
- International Pension GrowthInternational pension adjusted pre-tax operating earnings increased 11% year over year, driven by continued growth in Latin America. Operating margin expanded 42 basis points to the high end of the 46% to 50% target range, while assets under management increased 10% year over year to $166 billion and net cash flow was positive in all locations.
- Private Markets and ETF Flow MomentumPrivate markets generated $800 million of positive net cash flow during the quarter, while active ETFs generated $500 million of positive net cash flow. Over the trailing 12 months, each generated approximately $2 billion of positive flows. ETF assets under management reached $14 billion, up 84% year over year.
- International Distribution and Product ExpansionPrincipal launched the Principal Equity Premium Income ETF and partnered with ASB Capital in the Middle East to launch a multi-asset fund spanning equities, fixed income, and private markets. Broadridge named Principal a best-in-class top-five provider for international fund distribution in Latin America.
- Life Business ImprovementLife adjusted pre-tax operating earnings increased 29% year over year to $39 million, driven by improved mortality experience from lower frequency and severity. Operating margin increased 24 basis points to 16.4%, exceeding the top end of the targeted range.
- Specialty Benefits Underwriting PerformanceSpecialty Benefits premiums and fees increased 6% year over year, driven by core business momentum and a one-month contribution from Beam. The overall loss ratio was 59%, below the targeted 60% to 64% range, with dental recording its sixth consecutive quarter of year-over-year improvement and group life also contributing to the result.
- Private Infrastructure Debt DemandPrincipal reported growing client demand for private infrastructure debt and floating-rate strategies. During the quarter, the company won its first large institutional mandate in the organically built private infrastructure debt business.
- Portfolio Repositioning and Strategic FocusThe company completed the sale of its Chile annuity business, transitioned its Hong Kong business to asset management, and completed the Beam acquisition. Management said these actions further optimized the portfolio and sharpened focus on retirement, small and mid-sized businesses, and global asset management.
- Strong General Account Risk PositionManagement said AI exposure in the general account is manageable. Direct exposure to data centers is in the very low single digits and is diversified across geographies, structure types, tenants, and maturities, with continued focus on diversification, quality, and liquidity.
- 25 Years as a Public CompanyPrincipal marked its 25th anniversary as a public company. Management stated that the company had generated strong annualized shareholder returns of 10% since its initial public offering at an initial stock price of $18.50.
CH:PG4 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 10, 2027 | 2026 (Q4) | 1.99- | 1.8 | ― | ― |
| Oct 26, 2026 | 2026 (Q3) | 2.001.83 | 1.73 | 5.71% (+0.10) | |
| Jul 27, 2026 | 2026 (Q2) | 1.932.06 | 1.78 | 15.74% (+0.28) | |
| Apr 23, 2026 | 2026 (Q1) | 1.661.71 | 1.49 | 14.36% (+0.21) | |
| Feb 09, 2026 | 2025 (Q4) | 1.831.80 | 1.6 | 12.89% (+0.21) | |
| Oct 29, 2025 | 2025 (Q3) | 1.821.73 | 1.45 | 19.32% (+0.28) | |
| Jul 28, 2025 | 2025 (Q2) | 1.621.78 | 1.34 | 32.52% (+0.44) | |
| Apr 24, 2025 | 2025 (Q1) | 1.501.49 | 1.36 | 9.70% (+0.13) | |
| Feb 06, 2025 | 2024 (Q4) | 1.591.60 | 1.51 | 6.01% (+0.09) | |
| Oct 24, 2024 | 2024 (Q3) | 1.641.45 | 1.42 | 2.33% (+0.03) |
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