Principal Financial Group’s Upcoming Earnings and Stock Performance Insights

Principal Financial Group, Inc. (PFG), headquartered in Des Moines, Iowa, is a prominent global financial services entity that specializes in retirement, insurance, and asset management. With a market capitalization of $17.4 billion, PFG serves millions of customers around the globe, providing innovative financial products aimed at achieving security for individuals and businesses alike.

The company is scheduled to release its first-quarter earnings after market close on Thursday, April 24. Analysts are predicting a non-GAAP earnings per share (EPS) of $1.88, representing a significant 13.9% increase from the previous year’s EPS of $1.65. Despite this optimistic projection, PFG has struggled to meet Wall Street’s bottom-line estimates for four consecutive quarters.

For the entire fiscal year of 2025, PFG’s earnings are projected to rise to $8.34 per share, marking an impressive 19.7% increase from $6.97 in fiscal 2024. Furthermore, in fiscal 2026, earnings are expected to exceed $9.26 per share, reflecting over an 11% year-over-year growth.

Over the past 52 weeks, PFG’s stock has declined nearly 11.5%, notably lagging behind the S&P 500 Index, which has seen a modest gain of 2.1%, and the Financial Select Sector SPDR Fund (XLF), which has risen by 12.3%.

Despite the stock’s downturn, shares increased by 2.9% after the mixed Q4 results were announced on February 6. The company experienced a 76.6% year-over-year surge in total revenues to approximately $4.8 billion, greatly surpassing analysts’ expectations. Nonetheless, adjusted profits grew by just 6% year-over-year to $1.94 per share, which fell short of consensus estimates by 51 basis points.

While PFG has seen notable inflows in assets under management (AUM) in recent quarters, it has also faced significant outflows, resulting in a net decline in AUM over the past five quarters. As of December 2024, the company reported a quarter-on-quarter decline of 3.8% in AUM, totaling $712.1 billion, influenced by a downturn in the equities market.

Analyst consensus regarding PFG remains neutral, assigning an overall “Hold” rating. Out of the 16 analysts covering the stock, there are four “Strong Buys,” eight “Holds,” one “Moderate Sell,” and three “Strong Sells.” The average price target of $87.07 implies a potential upside of 21% from current price levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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