DOWLING & PARTN Has Pessimistic View of PFG FY2026 Earnings

Key Points

• DOWLING & PARTN lowered Principal Financial Group’s FY2026 earnings estimate to $9.13 per share from $9.20, below the $9.44 consensus forecast. The firm projects EPS of $10.20 for FY2027 and $11.20 for FY2028.
• Principal’s latest quarterly results missed expectations, with EPS of $2.22 versus the $2.46 consensus and revenue of $4.28 billion versus $4.31 billion expected. Lower investment income, higher expenses and asset outflows pressured performance.
• The stock carries a consensus “Hold” rating and a $107.75 target price, while Principal raised its quarterly dividend to $0.85 per share, equal to a $3.40 annualized payout and approximately a 3% yield.

Principal Financial Group, Inc. (NASDAQ:PFG - Free Report) - Equities research analysts at DOWLING & PARTN reduced their FY2026 earnings estimates for Principal Financial Group in a research note issued on Tuesday, October 27th. DOWLING & PARTN analyst J. Hurwitz now expects that the company will earn $9.13 per share for the year, down from their previous estimate of $9.20. The consensus estimate for Principal Financial Group's current full-year earnings is $9.44 per share. DOWLING & PARTN also issued estimates for Principal Financial Group's FY2027 earnings at $10.20 EPS and FY2028 earnings at $11.20 EPS.

Principal Financial Group (NASDAQ:PFG - Get Free Report) last released its earnings results on Monday, October 26th. The company reported $2.22 EPS for the quarter, missing the consensus estimate of $2.46 by ($0.24). The firm had revenue of $4.28 billion during the quarter, compared to analysts' expectations of $4.31 billion. Principal Financial Group had a return on equity of 16.49% and a net margin of 9.93%. During the same period in the previous year, the firm posted $2.32 earnings per share.

Several other equities research analysts have also recently issued reports on PFG. Atlantic Securities set a $94.00 price objective on Principal Financial Group in a report on Wednesday, July 15th. Piper Sandler lowered their price objective on Principal Financial Group from $128.00 to $125.00 and set an "overweight" rating for the company in a research report on Wednesday. Keefe, Bruyette & Woods dropped their target price on Principal Financial Group from $117.00 to $115.00 and set a "market perform" rating for the company in a research note on Friday, October 9th. Barclays reduced their target price on Principal Financial Group from $92.00 to $86.00 and set an "underweight" rating on the stock in a research report on Wednesday, October 7th. Finally, Morgan Stanley increased their target price on Principal Financial Group from $107.00 to $112.00 and gave the stock an "equal weight" rating in a research report on Monday, July 6th. Three research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Principal Financial Group presently has an average rating of "Hold" and a consensus target price of $107.75.

Principal Financial Group Trading Down 0.1%

Shares of PFG opened at $111.84 on Thursday. Principal Financial Group has a fifty-two week low of $80.00 and a fifty-two week high of $121.18. The company has a market capitalization of $23.95 billion, a PE ratio of 12.43, a price-to-earnings-growth ratio of 1.05 and a beta of 0.86. The stock has a fifty day moving average of $112.09 and a two-hundred day moving average of $103.25. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.28 and a current ratio of 0.28.

Principal Financial Group Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 18th. Investors of record on Wednesday, December 2nd will be given a dividend of $0.85 per share. This represents a $3.40 annualized dividend and a yield of 3.0%. This is a positive change from Principal Financial Group's previous quarterly dividend of $0.84. The ex-dividend date of this dividend is Wednesday, December 2nd. Principal Financial Group's dividend payout ratio (DPR) is currently 37.33%.

Hedge Funds Weigh In On Principal Financial Group

Large investors have recently bought and sold shares of the stock. Valley Wealth Managers Inc. acquired a new stake in Principal Financial Group in the first quarter worth about $27,000. Ancora Advisors LLC bought a new position in Principal Financial Group in the 2nd quarter valued at about $27,000. Signature Equity Partners LLC increased its stake in Principal Financial Group by 5,733.3% during the 1st quarter. Signature Equity Partners LLC now owns 350 shares of the company's stock valued at $32,000 after buying an additional 344 shares during the period. Gould Capital LLC acquired a new position in Principal Financial Group during the 1st quarter valued at about $37,000. Finally, Wilkerson Advisory Group LLC raised its position in shares of Principal Financial Group by 57.5% during the 1st quarter. Wilkerson Advisory Group LLC now owns 422 shares of the company's stock worth $38,000 after buying an additional 154 shares in the last quarter. Hedge funds and other institutional investors own 75.08% of the company's stock.

Trending Headlines about Principal Financial Group

Here are the key news stories impacting Principal Financial Group this week:

• Positive Sentiment: Piper Sandler maintained an “overweight” rating while lowering its price target to $125 from $128, implying substantial potential upside from recent trading levels. Piper Sandler price target update
• Positive Sentiment: Principal declared a quarterly dividend of $0.85 per share, up from $0.84, for an annualized payout of $3.40 and an approximately 3% yield. The increase supports the stock’s income appeal. Principal dividend announcement
• Positive Sentiment: Third-quarter profit increased year over year, while revenue remained broadly near expectations, providing evidence of underlying business resilience. Principal Financial Group Q3 profit rises
• Neutral Sentiment: UBS reduced its price target to $112 from $120 but retained a “neutral” rating, indicating limited near-term conviction despite the stock’s longer-term potential. UBS Principal Financial price target update
• Neutral Sentiment: Coverage focused on what the results mean for retirement savers, highlighting the importance of Principal’s retirement and asset-management operations for customers and investors. Principal results and retirement savers
• Negative Sentiment: Third-quarter adjusted earnings of $2.22 per share missed the $2.46 consensus estimate. Lower investment income, higher expenses and net cash outflows from assets under management pressured results despite higher profit and revenue. PFG Q3 earnings miss estimates
• Negative Sentiment: Reports that earnings were affected by asset outflows reinforce concerns about pressure on fee-based revenue and investment-management momentum. PFG Q3 earnings and asset outflows

About Principal Financial Group

Principal Financial Group, Inc is a global financial services company that helps individuals and businesses build, protect and manage wealth. Its offerings include retirement plans, individual retirement accounts, investment products, life and disability insurance, and financial wellness solutions. The company also provides institutional investment management and pension-risk transfer services.

Principal serves employers, institutions and individual investors through a range of retirement and workplace benefits solutions.

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