01—Abstract
Summary
Summary of the 10-Q filed July 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Principal Financial Group, Inc. reported net income attributable to Principal Financial Group, Inc. of $403.4 milliona for the three months ended June 30, 2026, compared with $406.2 million in the prior-year quarter, and $828.0 million for the six months ended June 30, 2026, compared with $454.3 million a year earlier.
Basic earnings per common share were $1.87b for the quarter and $3.82 for the six months. The six-month comparison was affected by changes in the fair value of the funds withheld embedded derivative, which produced a gain of $73.0 million in 2026 versus a loss of $189.4 million in 2025, and by a 2025 impairment related to exiting the Hong Kong MPF sponsor and trustee roles. Total assets were $352.8 billion as of June 30, 2026, up from $341.4 billion at December 31, 2025.
Total stockholders' equity attributable to the company was $12.1 billion, and long-term debt rose to $4.32 billionc after the issuance of $400.0 million of 5.3% senior notes due 2037 on May 27, 2026. During the first six months, the company returned $838.2 million to common stockholders through $350.0 million of dividends and $488.2 million of share repurchases, and it had 214,104,641 shares outstanding as of July 22, 2026.
Management reported that the company signed an agreement on July 6, 2026 to acquire Beam Benefits, which generated approximately $175.0 milliond in premiums in 2025 and is expected to close later in 2026 subject to regulatory approval. Management also stated that its disclosure controls were effective as of June 30, 2026, and that it had no material changes to its risk factors from the 2025 Form 10-K.
02—Key points
Key Highlights
- Net income attributable to Principal Financial Group, Inc. was $403.4 million for Q2 2026 versus $406.2 million in Q2 2025, and $828.0 million for the six months versus $454.3 million a year earlier.
- Diluted earnings per share were $1.84 for the quarter and $3.77 for the six months, compared with $1.79 and $2.00 in the prior-year periods.
- Total revenues were $3,905.8 million for the quarter, up from $3,671.3 million, driven by higher net investment income of $1,301.8 million and net realized capital gains of $109.7 million.
- Total assets reached $352,752.3 million at June 30, 2026, and separate account assets were $202,396.0 million.
- The company issued $400.0 million of 5.3% senior notes due 2037 in May 2026, raising long-term debt to $4,324.4 million.
- Stockholder returns for the first six months totaled $838.2 million, including $350.0 million in dividends and $488.2 million in share repurchases.
- A July 2026 agreement to acquire Beam Benefits, a business with roughly $175.0 million of 2025 premiums, is expected to close later in 2026 pending regulatory approval.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 29, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $3.91B$3.67B | +6.4% |
| Net Income | $403.40M$406.20M | −0.7% |
| EPS (Basic) | $1.87$1.81 | +3.3% |
| EPS (Diluted) | $1.84$1.79 | +2.8% |
| Shares Outstanding (Basic) | 215.90M224.10M | −3.7% |
| Shares Outstanding (Diluted) | 218.70M226.50M | −3.4% |
05—Questions
Frequently Asked Questions
Why did six-month net income rise so sharply compared with 2025?
The filing attributes the increase mainly to the change in fair value of the funds withheld embedded derivative, which was a gain of $73.0 million in the first half of 2026 versus a loss of $189.4 million in 2025. The 2025 period also included write-downs tied to exiting the Hong Kong MPF sponsor and trustee roles. Net income attributable to the company rose by $373.7 million over the six months.
How much did the company return to shareholders in the first half of 2026?
The company paid $350.0 million in common stock dividends and repurchased common stock totaling $488.2 million, for a combined $838.2 million. Dividends declared were $0.82 per share for the quarter and $1.62 for the six months.
What new debt did the company issue, and what is it for?
On May 27, 2026, the company issued $400.0 million of senior notes bearing 5.3% that mature in 2037, with interest payable semi-annually beginning January 15, 2027. The proceeds are for general corporate purposes, which may include repayment, redemption or refinancing of existing indebtedness.
What is the Beam Benefits acquisition?
On July 6, 2026, the company signed an agreement to acquire Beam Benefits, an employee benefits company serving over 25,000 small businesses and offering dental, vision and ancillary benefits. Beam generated approximately $175.0 million in premiums in 2025. The transaction is expected to close later in 2026, subject to regulatory approval, and its results will be reported within the Benefits and Protection segment.
06—Continue