Principal Financial Group (PFG)
NASDAQFinancialsAsset ManagementSnapshot 2026-07-08
$110.74-1.90%
Close 2026-07-08 · 1-day change
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Track PFG free→Principal Financial Group aims for 9-12% EPS growth in 2026. The company targets a strong return on equity of 15-17%. It plans to deploy $1.5-$1.8 billion in capital this year. The stock trades at a reasonable PE of 13.17 with a solid free cash flow yield of 15%.
EPS growth may lag as recent Q1 EPS missed estimates by 28%. Capital deployment progress is limited despite debt issuance. ROE targets lack clear evidence of achievement.
The market prices in about 10% revenue growth and values the stock near our fair value of $112.69. Our view aligns with consensus, expecting moderate growth but limited upside beyond current estimates.
Breaks if: Capital deployment falls below $1.3 billion in FY26
Plan to deploy between $1.5 billion and $1.8 billion in capital for the fiscal year 2026.
Stated in 2 of last 2 quarters. Capital deployment guidance for 2026 is $1.5-$1.8 billion. Recent debt issuance of $400 million suggests some progress, but overall capital deployment details are limited. Recurring focus, narrow delivery so far.
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“2026 Outlook Guidance: '$ 1.5-$1.8 billion capital deployment.'”
“We remain confident in achieving our full-year guidance and advancing our strategic initiatives.”
Breaks if: EPS growth falls below 6% YoY in FY26
Focus on achieving annual non-GAAP operating earnings per diluted share growth of 9-12%.
Stated in 3 of last 3 quarters. EPS guidance for 2026 is set at 9-12% growth. However, diluted EPS for 2026-Q1 was $1.93, showing limited progress towards the annual target. The trajectory is behind expectations.
“2026 Outlook Guidance: '9-12 % annual non-GAAP operating earnings per diluted share (EPS) growth.'”
“Based on our year-to-date execution and continued business momentum, we remain confident in achieving our full-year guidance.”
“We are well positioned to deliver on our full year enterprise outlook across our financial metrics.”
Breaks if: ROE falls below 13% in FY26
Aim to maintain a non-GAAP return on equity (ROE) of 15-17% for the fiscal year.
Stated in 2 of last 2 quarters. ROE guidance for 2026 is 15-17%. Financials do not provide specific ROE figures, making it difficult to assess progress. Recurring focus, narrow delivery so far.
“2026 Outlook Guidance: '15-17 % non-GAAP ROE.'”
“We remain confident in achieving our full-year guidance and advancing our strategic initiatives.”