At a glance
Principal Financial Group Inc is worth $23.96B, about 22 times its fiscal 2025 earnings. Revenue fell 3.1% to $15.63B in fiscal 2025, with 7.6% kept as profit; over 5 years it has grown 1.2% a year. It pays a 2.88% dividend yield, raised every year for at least 9 years, and returned $8.55B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +38.8% over the past year with dividends reinvested and +14.5% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 56.3% in the 2020 crash (S&P 500: 33.7%) and 21.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 10 months and 1 month after the lows.
The business in plain English
Principal Financial Group sells retirement plans, investment management and workplace insurance to businesses, their employees, individuals and large institutions. As of December 31, 2025, it had $1,814.6 billion in assets under administration (client money it services). That included $781.0 billion in assets under management (money it invests). The company sees small and medium-sized businesses as an underserved market.
Retirement and Income Solutions is the largest segment. It brought in $8.2 billion, about 52% of fiscal 2025 revenue of $15.6 billion. As of December 31, 2025, it served over 42,000 defined contribution plans (workplace savings plans such as 401(k)s). Those plans held $625.3 billion for about 11.3 million eligible workers. The segment also sells annuities and offers pension risk transfer, which means taking over a company's pension promises for a single upfront payment. It earns fees tied to account values. It also keeps the gap between its investment income and what it credits customers.
Benefits and Protection, about 32% of revenue, sells specialty benefits and insurance to business owners and their employees and collects premiums. Principal Asset Management, about 18%, runs stock, bond, real estate and alternative investments for institutions, retirement savers and retail investors worldwide. It also includes international retirement businesses aimed at aging populations. Because much of the company's revenue depends on asset values, falling markets reduce it.
Price history
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PFG +38.8% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Segment Retirement And Income Solutions | $8.18B | 52.4% |
| Segment Benefits And Protection | $4.97B | 31.8% |
| Segment Principal Asset Management | $2.81B | 18% |
| Segment Corporate | $101.2M | 0.6% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $4.62B, up 25.4% from a year earlier, and net income was $631.9M (+195.6%).
- For fiscal 2025, revenue was $15.63B (-3.1% year over year; +1.2% a year from FY2020 to FY2025) with a 7.6% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +1.2% watch |
|---|---|
| Return on equity (FY2025) | 10% watch |
| Return on assets (FY2025) | 0.3% weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $14.74B | $1.40B | — |
| FY2021 | $14.43B | $1.58B | — |
| FY2022 | $17.54B | $4.76B | — |
| FY2023 | $13.67B | $623.2M | — |
| FY2024 | $16.13B | $1.57B | — |
| FY2025 | $15.63B | $1.19B | — |
Valuation snapshot
| Market value | $23.96B |
|---|---|
| P/E ratio | 21.5 |
| Dividend yield | 2.88% |
Rank among 1514 US companies
Market value at each year end
Principal Financial Group’s market value went from $16.65B at the end of 2016 to $23.96B on Nov 2, 2026, up 44%; since the end of 2025 it is up 24%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $23.96B | +23.6% |
| 2025 | $19.38B | +9.5% |
| 2024 | $17.71B | -5.6% |
| 2023 | $18.76B | -8.7% |
| 2022 | $20.53B | +7.1% |
| 2021 | $19.17B | +40.7% |
| 2020 | $13.63B | -10.8% |
| 2019 | $15.27B | +22.2% |
| 2018 | $12.50B | -38.6% |
| 2017 | $20.37B | +22.4% |
| 2016 | $16.65B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| PFG price data to Nov 2, 2026 | +31.0% | +38.8% | +21.1% | +14.5% | +11.8% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +31.0% |
| 2025 | +18.3% |
| 2024 | +1.9% |
| 2023 | -2.8% |
| 2022 | +20.1% |
| 2021 | +51.4% |
| 2020 | -5.0% |
| 2019 | +29.8% |
| 2018 | -35.0% |
| 2017 | +25.5% |
| 2016 | +33.1% |
| 2015 | -10.8% |
| 2014 | +8.0% |
| 2013 | +77.2% |
| 2012 | +19.4% |
| 2011 | -22.3% |
| 2010 | +38.1% |
| 2009 | +8.6% |
| 2008 | -66.4% |
| 2007 | +18.8% |
| 2006 | +25.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 90.6% over that stretch · deepest drop along the way 91.5%, back to its old high 92.1 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 56.2% over that stretch · deepest drop along the way 56.3%, back to its old high 9.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 6.7% over that stretch · deepest drop along the way 21.1%, back to its old high 1 months after the low |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 0 open-market purchases and 0 sales ($0.00).
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 9% | Mar 31, 2026 |
| Vanguard Capital Management | 7.18% | Mar 31, 2026 |
| Vanguard Portfolio Management | 5.2% | Mar 31, 2026 |
ETFs with the most weight in PFG
| SHRY First Trust Bloomberg Shareholder Yield ETF | 5.14% |
| DIVY Sound Equity Dividend Income ETF | 3.26% |
| IAK iShares U.S. Insurance ETF | 1.83% |
| RSPF Invesco S&P 500 Equal Weight Financials ETF | 1.28% |
| KNGZ First Trust S&P 500 Diversified Dividend Aristocrats ETF | 1.06% |
| FUNL CornerCap Fundametrics Large-Cap ETF | 0.69% |
| WTV WisdomTree U.S. Value Fund | 0.59% |
| CPTL Global X Morningstar Capital Allocation Leaders ETF | 0.53% |
What could go wrong
- Annuity guarantees rely on hedging. Some annuities promise minimum withdrawals even if markets fall. Principal bears that risk on $4.7 billion of $7.4 billion in variable annuity values at December 31, 2025, and relies on hedging that may fall short.
- Iowa rules can limit dividends and buybacks. Iowa insurance laws limit what its insurance subsidiary, Principal Life, can pay out. That can constrain Principal's ability to pay dividends, buy back shares and meet its obligations.
- A ratings downgrade could hurt sales. Companies transferring pensions generally buy only from highly rated insurers. A cut to Principal's financial strength or credit ratings could raise withdrawals, reduce new sales, end distributor relationships and raise borrowing costs.
- Revenue rises and falls with markets. Fees in its retirement and asset management businesses are largely based on asset values. Falling stock, bond or real estate markets, or clients pulling money out, shrink revenue and profit margins.
- Interest rates and credit spreads swing results. Credit spreads are the extra yield on corporate debt over Treasuries. Shifts in rates or spreads change what Principal earns versus what it credits customers, so net income can vary from period to period.
- Borrower defaults could hit its investments. Principal holds a large investment portfolio to back its promises to customers. A long downturn could leave borrowers unable to repay, cutting asset values. The annual report flags commercial mortgage loans for credit monitoring.
Recent events
- Quarterly results released
- Investor presentation or announcement
- Major agreement signed; New debt or financial obligation
- Quarterly results released
- Investor presentation or announcement
- Major agreement signed; New debt or financial obligation; Other company announcement
- Shareholder vote results
- Quarterly results released
- Investor presentation or announcement
- Quarterly results released
For income and retirement investors
Principal has raised its dividend for at least nine straight years through fiscal 2025, and the streak may be longer. Dividends per share grew from $2.22 in 2020 to $3.08 in 2025, about 6.8% a year. Dividends paid equaled 57.7% of 2025 net income, and the yield was 2.91% as of October 30, 2026. Buybacks have been larger than dividends: $5.3 billion versus $3.3 billion over fiscal 2021–2025. The share count fell 18.7% between January 2022 and October 2026.
Past downturns hit the stock hard. It fell 91.5% in the 2008 financial crisis and needed about 92 months after its March 2009 low, until November 2016, to recover. It dropped 56.3% in the 2020 COVID crash and recovered in about 10 months. In 2022 it fell 21.1% from its February peak but recovered within about a month of its July low. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Principal Financial Group make money?
Principal makes money from fees on retirement and investment assets and from insurance premiums. It also keeps the spread between its investment income and what it credits customers. In fiscal 2025, Retirement and Income Solutions produced about 52% of $15.6 billion in revenue. Benefits and Protection produced about 32%, and Principal Asset Management about 18%. The company runs 401(k) and pension plans, sells annuities and workplace insurance, and manages money for institutions and individuals.
Does Principal Financial Group raise its dividend every year?
Yes, so far. Principal has raised its dividend for at least nine straight years through fiscal 2025, and the streak may be longer. Dividends per share rose from $2.22 in 2020 to $3.08 in 2025, about 6.8% a year. Dividends paid equaled 57.7% of 2025 net income, and the yield was 2.91% as of October 30, 2026. Future increases are not guaranteed. Iowa insurance laws limit what its insurance subsidiary, Principal Life, can pay out, which can constrain dividends.
What is Principal Financial Group's P/E ratio?
It was 21.3 as of October 30, 2026. That means the share price was 21.3 times 2025 diluted earnings of $5.25 per share. The ratio can mislead because Principal's earnings swing widely. Diluted earnings per share were $18.63 in 2022, $2.55 in 2023 and $6.68 in 2024. Net income fell 24.6% in 2025. Then, in the quarter ended September 30, 2026, it rose 195.6% from a year earlier to $631.9 million.
How did Principal Financial Group stock do in the 2008 financial crisis?
Badly. The stock fell 91.5% from its December 24, 2007 peak to its March 9, 2009 low. It did not get back to its old high until November 10, 2016, about 92 months after the low. Later drops were shorter. A 56.3% fall in the 2020 COVID crash took about 10 months to recover, and a 21.1% slide in 2022 recovered within about a month. The 2008 drop is still its worst decline in more than 21 years of price history.
How has Principal Financial Group stock performed over the long term?
Measured by share price, PFG gained 11.3% a year over the 10 years to October 30, 2026, or 193% in total. Over five years it gained 14.7% a year. It rose 39.5% over the 12 months to that date. Calendar years varied widely, from a 35% loss in 2018 to a 51% gain in 2021. Its one-year beta of 0.59 means it moved less than the broad market on average over that period.