$PFG · PRINCIPAL FINANCIAL GROUP INC
Principal Financial Group reported Q3 2026 results with non-GAAP operating earnings per share excluding significant variances of $2.49, a 7% increase over the prior-year quarter. GAAP net income attributable to PFG was $631.9M ($2.91/share), up from $213.8M ($0.95/share) in Q3 2025. The company returned $429M to shareholders through buybacks and dividends, and raised its quarterly dividend by $0.01 to $0.85 per share.
- Non-GAAP operating EPS excluding significant variances was $2.49, up 7% YoY from $2.32.
- GAAP net income attributable to PFG was $631.9M ($2.91/share) vs $213.8M ($0.95/share) in Q3 2025.
- AUM net cash flow was -$10.7B in Q3 2026 vs +$0.4B in Q3 2025; trailing twelve months -$25.5B.
- International Pension pre-tax operating earnings fell 38% YoY to $62.4M on unfavorable encaje returns.
- Returned $429M to shareholders: $250M in buybacks and $179M in dividends; dividend raised $0.01 to $0.85.
Extended-hours trading shows PFG at $108.22, down 1.73% vs the regular close of $110.13. The negative AUM net cash flow of -$10.7B and International Pension weakness appear to be weighing on sentiment despite the headline EPS beat.
The divergence between solid operating EPS growth (+7% ex-SVs) and accelerating AUM outflows (-$10.7B in Q3 alone) creates a split narrative for a $23.6B asset manager.
Principal's AUM net outflows contrast with broader industry trends where active managers are fighting to retain assets. The 7% ex-SV operating EPS growth and $1.5B in excess capital provide a buffer, but the -$10.7B quarterly outflow is a notable headwind for a firm with $785B in AUM.
AUM net cash flow swung from +$0.4B to -$10.7B YoY, with trailing twelve-month outflows of -$25.5B signaling persistent redemption pressure. International Pension encaje returns remain volatile, driving a 38% pre-tax earnings decline in the segment.