For more than a century, Principal Financial Group, Inc. (PFG) has built its business around something most investors rarely think about until later in life – retirement, protection, and long-term wealth planning. Founded in 1879 and based in Des Moines, Iowa, the company today operates across retirement solutions, asset management, and insurance services for businesses, individuals, and institutional clients worldwide.
With a market cap of roughly $22.4 billion, Principal Financial has become one of the bigger names in the financial services space, managing retirement plans, pension solutions, mutual funds, life insurance products, and alternative investments through its diversified business model.
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That steady business setup has also translated into strong stock performance lately. Shares of the financial services company have gained 34.3% over the past 52 weeks, outperforming the S&P 500 Index’s ($SPX) 28% returns. PFG stock rose 17.7% on a year-to-date (YTD) basis, exceeding SPX’s gains of 9.2% in 2026.
Narrowing the focus, PFG has outperformed many of its own financial-sector peers, too. The stock has surged past the returns of the State Street Financial Select Sector SPDR ETF (XLF), which gained just 3.4% over the past year and has slipped 5.2% so far in 2026.
www.barchart.com What's behind that momentum is the company’s improving fundamentals and consistent shareholder returns. Investor confidence strengthened this year after Principal Financial reported its Q1 2026 earnings on April 23. Shares rose 2.4% following the release as the company delivered stronger-than-expected profit growth. Adjusted EPS climbed 13% year over year (YOY) to $2.17, beating Wall Street’s estimates.
Even though total revenue dipped slightly to $3.5 billion, the market focused on improving profitability instead. Lower expenses, margin expansion, stronger fee income, and better underwriting trends helped lift earnings meaningfully.
The company’s asset management engine also continued growing. As of March 31, 2026, Principal Financial managed $770.2 billion in assets under management, included within a massive $1.8 trillion in assets under administration. Management also pointed toward continued momentum in several key growth drivers, especially retirement solutions, small and medium-sized business offerings, and global asset management. Meanwhile, underwriting and mortality trends improved, giving another boost to profitability in its insurance operations.
Then there’s the dividend story – one of the major reasons many long-term investors continue sticking with the stock. Principal recently raised its Q2 dividend by 8% to $0.82 per share. The company has now paid dividends consistently for 23 consecutive years, reinforcing its reputation as a reliable income-generating financial stock.
Looking ahead, Wall Street anticipates bottom-line growth to remain solid. For fiscal 2026, adjusted EPS is anticipated to grow 13.2% YOY to $9.36, and then rise by another 9.4% annually to $10.24 in fiscal 2027. The company’s earnings surprise history is mixed. It beat consensus estimates in two of the last four quarters while missing on two other occasions.
The overall consensus rating on PFG currently sits at “Hold.” Among 14 analysts covering the stock, one recommends a “Strong Buy,” one has a “Moderate Buy,” 11 suggest a “Hold,” and one is outright skeptical, giving a “Strong Sell” rating.
www.barchart.com The configuration has actually turned slightly less bullish compared to a month ago, with one fewer “Strong Buy” rating now attached to the stock.
That said, some analysts still see steady momentum ahead. For instance, Morgan Stanley raised PFG’s price target to $107 from $95 and kept an “Equal Weight” rating. The brokerage firm noted that life insurers broadly delivered strong first-quarter results, supported by improving mortality trends and healthy business momentum.
As of writing, PFG stock trades above the average analyst price target of $101.50. The Street-high price target of $113 implies the stock could rise as much as 8.8% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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