Principal Financial Group, Inc. PFG is expected to register an improvement in its top and bottom lines when it reports second-quarter 2026 results on July 27, after the closing bell.
The Zacks Consensus Estimate for PFG’s second-quarter revenues is pegged at $4.11 billion, indicating an increase of 11.4% from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.32 per share. The Zacks Consensus Estimate for PFG’s second-quarter earnings has moved down 0.8% in the past 30 days. The estimate suggests a year-over-year increase of 7.4%.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Principal Financial this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.
Earnings ESP: Principal Financial has an Earnings ESP of +0.29% at present. This is because the Most Accurate Estimate of $2.33 is pegged higher than the Zacks Consensus Estimate of $2.32. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Principal Financial Group, Inc. Price and EPS Surprise
Principal Financial Group, Inc. price-eps-surprise | Principal Financial Group, Inc. Quote
Zacks Rank: Principal Financial currently carries a Zacks Rank #3.
Factors at Play
Principal Financial’s second-quarter results are likely to reflect favorable underwriting results and improved mortality within the benefits and protection business, as well as positive market conditions for fee-based businesses.
Operating revenues are likely to have increased owing to higher premiums & other considerations, as well as higher fees & other revenues in Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection.
Higher management fee revenues, as a result of increased average AUM, are likely to have benefited Investment Management.
Higher earnings from equity method investments in Brazil and foreign currency tailwinds are expected to have benefited International Pension operations.
Investment income is expected to have benefited from higher average invested assets in fixed maturities, derivatives in fair value hedges, and other investments for our U.S. operations. The lower inflation-based returns on average invested assets and cash in Latin America are likely to have offset the upside.
Assets under management are likely to have benefited from positive market performance and net cash flow, as well as foreign currency tailwinds.
Expenses are likely to have increased due to higher benefits, claims and settlement expenses.
Other Stocks to Consider
Here are three other insurance stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:
Cincinnati Financial Corporation CINF has an Earnings ESP of +7.22% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $1.82, indicating a year-over-year decrease of 7.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
CINF’s earnings beat estimates in each of the last four reported quarters.
The Allstate Corporation ALL has an Earnings ESP of +2.59% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $5.61, indicating a year-over-year decrease of 5.5%.
ALL’s earnings beat estimates in each of the last four reported quarters.
Axis Capital Holdings Limited AXS has an Earnings ESP of +3.82% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $3.23, indicating a year-over-year decrease of 1.8%.
AXS’s earnings beat estimates in each of the last four reported quarters.
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Principal Financial Group, Inc. (PFG): Free Stock Analysis Report
Cincinnati Financial Corporation (CINF): Free Stock Analysis Report
The Allstate Corporation (ALL): Free Stock Analysis Report
Axis Capital Holdings Limited (AXS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).