01—Abstract
Summary
Summary of the 10-Q filed October 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 $631.9 milliona for the three months ended September 30, 2026, compared with $213.8 million a year earlier, and $1,459.9 million for the nine months, compared with $668.1 million.
Diluted earnings per common share were $2.91b for the quarter and $6.68 for the nine months. The quarterly increase was driven primarily by a $528.9 million net increase in after-tax income from exited business, mainly a change in fair value of the funds withheld embedded derivative, partly offset by a $113.9 million decrease from after-tax net realized capital losses. Net realized capital losses for the quarter were $387.6 million, reflecting the net loss on the disposition of the Chilean annuities business.
Total revenues were $4,616.4 millionc for the quarter, up from $3,681.6 million, and $12,051.3 million for the nine months. Total assets were $338,742.2 million as of September 30, 2026, compared with $341,376.5 million at December 31, 2025, and stockholders' equity attributable to the company was $11,816.3 million, compared with $11,883.9 million. Accumulated other comprehensive loss increased to $4,643.0 million, reflecting higher net unrealized losses on available-for-sale securities as interest rates rose.
During 2026 the company completed the acquisition of Beam Benefits for $403.6 milliond in cash, net of cash acquired, and closed the sale of its Chilean annuities business, which carried a $276.7 million pre-tax net realized capital loss. Cash and cash equivalents were $4,450.7 million at quarter end, and the company returned $1,270.2 million to common stockholders in the nine months through dividends and share repurchases. Long-term debt rose to $4,326.2 million after issuing $400.0 million of 5.3% senior notes due 2037.
02—Key points
Key Highlights
- Net income attributable to Principal Financial Group, Inc. was $631.9 million in Q3 2026 versus $213.8 million in Q3 2025; diluted EPS was $2.91 versus $0.95.
- Nine-month net income attributable to Principal Financial Group, Inc. was $1,459.9 million versus $668.1 million; diluted EPS was $6.68 versus $2.95.
- Total revenues rose to $4,616.4 million in Q3 2026 from $3,681.6 million, driven largely by a $818.2 million gain on the funds withheld embedded derivative versus a $265.9 million loss a year earlier.
- Net realized capital losses were $387.6 million in Q3 2026, including the $276.7 million pre-tax loss on the disposition of the Chilean annuities business.
- Accumulated other comprehensive loss widened to $4,643.0 million from $4,188.4 million at year-end 2025, as net unrealized losses on available-for-sale securities increased with rising interest rates.
- Acquired Beam Benefits on September 1, 2026, for $403.6 million cash net of cash acquired, adding $325.4 million of goodwill.
- Issued $400.0 million of 5.3% senior notes due 2037 in May 2026; total debt rose to $4,503.8 million from $3,954.0 million.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 29, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $4.62B$3.68B | +25.4% |
| Net Income | $631.90M$213.80M | +195.6% |
| EPS (Basic) | $2.95$0.96 | +207.3% |
| EPS (Diluted) | $2.91$0.95 | +206.3% |
| Shares Outstanding (Basic) | 213.90M222.40M | −3.8% |
| Shares Outstanding (Diluted) | 216.90M225.20M | −3.7% |
05—Questions
Frequently Asked Questions
How did Principal's earnings change in the third quarter of 2026?
Net income attributable to Principal Financial Group, Inc. was $631.9 million, compared with $213.8 million in the third quarter of 2025. The filing attributes the increase mainly to a $528.9 million net increase in after-tax income from exited business, primarily from the change in fair value of the funds withheld embedded derivative, partly offset by a $113.9 million decrease from after-tax net realized capital losses.
What drove the net realized capital losses this quarter?
Net realized capital losses of $387.6 million were driven primarily by the $276.7 million pre-tax net realized capital loss on the disposition of the Chilean annuities business, along with losses on GMWB/RILA activities and increased losses on commercial mortgage loan reserve changes.
What acquisitions and dispositions occurred in 2026?
On September 1, 2026, the company acquired Beam Benefits, an employee benefits company serving over 26,000 small businesses, for $403.6 million in cash net of cash acquired. On the same date it closed the sale of its Chilean annuities business to Banco Santander, S.A., excluding the universal life and asset management business that was carved out before the sale.
How did the company's capital position and shareholder returns change?
Total stockholders' equity attributable to Principal Financial Group, Inc. was $11,816.3 million at September 30, 2026, versus $11,883.9 million at year-end 2025. In the first nine months the company returned $1,270.2 million to common stockholders through $528.8 million of dividends and $741.4 million of share repurchases, and debt-to-capitalization was 28%.
What is the company's debt and liquidity position?
Total debt was $4,503.8 million at September 30, 2026, including $4,326.2 million of long-term debt and $177.6 million of short-term debt. Cash and cash equivalents were $4,450.7 million. The company had a $900.0 million revolving credit facility maturing in September 2031, of which none was drawn, and the next long-term debt maturity was noted as November 2026.
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