Principal builds momentum for 2026 after a strong Q4

Principal Financial Group closed out the fourth quarter with solid performance, driven by steady revenue growth across its main business lines: Retirement and Income Solutions, Investment Management, and Specialty Benefits.

Retirement and Income Solutions delivered higher pre-tax operating earnings, supported by continued net revenue growth and meaningful margin expansion. Investment Management also posted gains, benefiting from higher management fees and improved margins.

The real standout, however, was Specialty Benefits, which showed strong growth in pre-tax operating earnings, fueled by favorable underwriting results and notable margin improvement.

Deanna Strable, president and CEO, said that Principal’s current momentum, paired with its strong diversified business mix, sets the company up for a strong 2026.

In Other News

Sale of runoff annuity business in Chile. Principal will sell its annuity business in Chile in order to focus on higher growth, higher return, capital-efficient businesses, such as retirement and personal investment services.

Focus on customers with less than $1 million to $2 million in investable assets. Principal’s decision to niche down to this demographic is unique and pivotal to continued success with its retirement business, executives said.

Dental pricing and dental network optimization 2026. Dental pricing and dental network optimization will be a huge focus for Principal in 2026. As a result, the company is confident its loss ratio will likely go down and expects a figure in the high 60s. 

Private wealth platform in France. Principal launched Principal Inside, a private wealth platform in France. This is proving to be a smart move, executives said, as it elevates the brand of Principal asset management in Europe.

2025 Snapshot

• In 2025, Retirement and Income Solutions saw a 6% increase in pre-tax operating earnings, driven by 4% net revenue growth and a 90-basis-point margin expansion to 41%
• Investment Management reported a 5% increase in pre-tax operating earnings in 2025, supported by 4% growth in management fees and a 60-basis-point margin expansion to 36%
• Specialty Benefits increased pre-tax operating earnings by 11%, reflecting strong underwriting results in 2025 and a 120-basis-point margin expansion to 16%

Management Perspective

“Our momentum is broad-based, where total retirement transfer deposits of $35 billion grew 8% year-over-year and workplace savings and retirement solutions recurring deposits increased by 5%,” said Deanna Strable, chair, president and CEO of Principal Financial Group

This growth reflects Principal’s ability to win new business and retain existing clients in a competitive marketplace, she explained.

By The Numbers

• Total Revenue: $4.46 billion for Q4 2025 (up 9.2% over the same period last year)
• Net Income: $1.18 million or $5.25 per share for 2025 and $517 million or $2.32 per share for Q4 2025
• Earnings Per Share: Non-GAAP earnings $1.8 million or $8.27 per share for 2025 (Up 19% from 2024) and $488 million or $2.19 per share for Q4 2025 (Up 13% from 2024)
• Share Repurchases: $1.5 billion in 2025, including $448 million in Q4 2025
• Dividends: $0.7 billion of common stock dividends in 2025 and $172 million of common stock dividends in Q4 2025
• Stock Price Movement: Shares dipped to $95.93 as of Monday afternoon

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