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What's in the Cards for Principal Financial This Earnings Season?
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Key Takeaways
PFG's revenues rise on higher premiums and fees across retirement, asset management and benefits businesses.
Higher average AUM, positive market performance and net cash flows could support investment management.
Improved mortality and international earnings aid results, while higher claims expenses could offset gains.
Principal Financial Group, Inc. (PFG - Free Report) is expected to register an improvement in its top and bottom lines when it reports third-quarter 2026 results on Oct. 26, after the closing bell.
The Zacks Consensus Estimate for PFG’s third-quarter revenues is pegged at $4.31 billion, indicating an increase of 10.6% from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.46 per share. The Zacks Consensus Estimate for PFG’s third-quarter earnings has moved down 2.8% in the past 30 days. The estimate suggests a year-over-year increase of 17.4%.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Principal Financial this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case, as you can see below.
Earnings ESP: Principal Financial has an Earnings ESP of 0.00% at present. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.46 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Principal Financial Group, Inc. Price and EPS Surprise
Zacks Rank: Principal Financial currently carries a Zacks Rank #3.
Factors at Play
Principal Financial’s third-quarter results are likely to reflect favorable underwriting results and improved mortality within the Benefits and Protection business, strong RIS fundamentals, and positive market conditions for fee-based businesses.
Operating revenues are likely to have increased owing to higher premiums & other considerations, as well as higher fees & other revenues in Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection.
Higher management fee revenues as a result of increased average AUM net of associated fee compression are likely to have benefited Investment Management. Lower performance fee revenues are likely to have offset the upside.
Higher earnings from equity method investments in Brazil and foreign currency tailwinds are expected to have benefited International Pension operations.
Investment income is expected to have benefited from higher average invested assets in fixed maturities and residential mortgages, derivatives in fair value hedges for U.S. operations, and higher inflation-based returns on average invested assets and cash in Latin America. The lower yields in fixed maturities and decreases in federal funds rates tied to short-term investments are likely to have offset the upside.
Assets under management are likely to have benefited from positive market performance and net cash flow, as well as foreign currency tailwinds.
Expenses are likely to have increased due to higher benefits, claims and settlement expenses.
Stocks to Consider
Here are three insurance stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:
RNR’s earnings beat estimates in each of the last four reported quarters.
Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +2.51% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $1.99, indicating a year-over-year decrease of 30.2%.
CINF’s earnings beat estimates in three of the last four reported quarters and missed in one.
Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +11.70% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $2.05, indicating a year-over-year decrease of 25.9%.
ACGL’s earnings beat estimates in each of the last four reported quarters.
View the Zacks #1 Rank List
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What's in the Cards for Principal Financial This Earnings Season?
Key Takeaways
Principal Financial Group, Inc. (PFG - Free Report) is expected to register an improvement in its top and bottom lines when it reports third-quarter 2026 results on Oct. 26, after the closing bell.
The Zacks Consensus Estimate for PFG’s third-quarter revenues is pegged at $4.31 billion, indicating an increase of 10.6% from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.46 per share. The Zacks Consensus Estimate for PFG’s third-quarter earnings has moved down 2.8% in the past 30 days. The estimate suggests a year-over-year increase of 17.4%.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Principal Financial this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case, as you can see below.
Earnings ESP: Principal Financial has an Earnings ESP of 0.00% at present. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.46 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Principal Financial Group, Inc. Price and EPS Surprise
Principal Financial Group, Inc. price-eps-surprise | Principal Financial Group, Inc. Quote
Zacks Rank: Principal Financial currently carries a Zacks Rank #3.
Factors at Play
Principal Financial’s third-quarter results are likely to reflect favorable underwriting results and improved mortality within the Benefits and Protection business, strong RIS fundamentals, and positive market conditions for fee-based businesses.
Operating revenues are likely to have increased owing to higher premiums & other considerations, as well as higher fees & other revenues in Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection.
Higher management fee revenues as a result of increased average AUM net of associated fee compression are likely to have benefited Investment Management. Lower performance fee revenues are likely to have offset the upside.
Higher earnings from equity method investments in Brazil and foreign currency tailwinds are expected to have benefited International Pension operations.
Investment income is expected to have benefited from higher average invested assets in fixed maturities and residential mortgages, derivatives in fair value hedges for U.S. operations, and higher inflation-based returns on average invested assets and cash in Latin America. The lower yields in fixed maturities and decreases in federal funds rates tied to short-term investments are likely to have offset the upside.
Assets under management are likely to have benefited from positive market performance and net cash flow, as well as foreign currency tailwinds.
Expenses are likely to have increased due to higher benefits, claims and settlement expenses.
Stocks to Consider
Here are three insurance stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:
RenaissanceRe Holdings Ltd. (RNR - Free Report) has an Earnings ESP of +9.02% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $9.28, indicating a year-over-year decrease of 40.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
RNR’s earnings beat estimates in each of the last four reported quarters.
Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +2.51% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $1.99, indicating a year-over-year decrease of 30.2%.
CINF’s earnings beat estimates in three of the last four reported quarters and missed in one.
Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +11.70% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $2.05, indicating a year-over-year decrease of 25.9%.
ACGL’s earnings beat estimates in each of the last four reported quarters.