Principal Financial Q4 Revenue Gains Offset by Expenses, EPS Outlook $9.20–$9.45
Principal Financial Group's Q4 2025 revenue rose due to higher premiums, but EPS missed forecasts as elevated expenses weighed on results. The firm projects 2026 EPS of $9.20–$9.45, maintains $1.6B in excess capital for buybacks and dividend growth, and carries a Hold rating as shares approach fair value.
1. Q4 2025 Results
Principal Financial Group reported revenue growth in Q4 2025 driven by higher premiums across its key segments, but net earnings per share fell short of consensus as underwriting and operating expenses increased notably.
2. 2026 EPS Outlook
Management projects full-year 2026 earnings per share between $9.20 and $9.45, reflecting disciplined underwriting practices, favorable premium trends, and targeted expense controls aligned with the company's medium-term profitability goals.
3. Capital Returns and Valuation
With $1.6 billion in excess capital on its balance sheet, the company plans to support continued share repurchases and dividend increases; as shares near fair value, analysts have reduced the rating to Hold.