01—Abstract
Summary
Summary of the 8-K filed February 9, 2026. Cited figures are marked; the original filing is the authoritative source.
Principal Financial Group, Inc. (Nasdaq: PFG) reported full-year and fourth-quarter 2025 results on February 9, 2026, per Exhibit 99 to this Form 8-K, and also provided 2026 outlook guidance and announced a raised first-quarter 2026 dividend.
For full year 2025, diluted GAAP net income attributable to PFG was $5.25a per share ($1,185 million), while non-GAAP operating earnings per diluted share, excluding significant variances, were $8.55, up 12% and at the high end of the company's 9-12% target. Reported non-GAAP operating earnings per diluted share rose 19% to $8.27. For 4Q25, GAAP net income attributable to PFG was $517 million ($2.32 per diluted share), down 43% from the prior-year quarter, while non-GAAP operating earnings excluding significant variances were $2.24 per share, up 7%.
The company returned over $1.5 billionb to shareholders in 2025, including $0.9 billion of share repurchases and $0.7 billion of common stock dividends, and ended the year with $1.6 billion of excess and available capital and a statutory risk-based capital ratio of 406% for Principal Life Insurance Company. Assets under management reached $781 billion at year-end, with AUM net cash flow of $(8.8) billion for the full year. Segment performance was mixed: Retirement and Income Solutions and International Pension posted higher trailing-twelve-month pre-tax operating earnings, while Life Insurance was a loss of $(8.2) million for the year.
For 2026, management guided to 9-12% annual non-GAAP operating earnings per diluted share growth, 75-85% free capital flow conversion, 15-17% non-GAAP ROE, and $1.5c-$1.8 billion of capital deployment, including $0.8-$1.1 billion of share repurchases. The first-quarter 2026 common dividend was raised by $0.01 to $0.80 per share, payable March 27, 2026, to shareholders of record as of March 11, 2026.
02—Key points
Key Highlights
- Full-year 2025 non-GAAP operating earnings per diluted share, excluding significant variances, were $8.55, up 12% and at the high end of the 9-12% target; reported non-GAAP operating earnings per share rose 19% to $8.27.
- 4Q25 GAAP net income attributable to PFG was $517 million ($2.32 per diluted share), down from $905.4 million in 4Q24, while 4Q25 non-GAAP operating earnings excluding significant variances were $2.24 per share, up 7%.
- Returned over $1.5 billion to shareholders in 2025, including $0.9 billion of share repurchases and $0.7 billion of common stock dividends; 4Q25 returns totaled $448 million.
- 2026 outlook calls for 9-12% non-GAAP operating EPS growth, 75-85% free capital flow conversion, 15-17% non-GAAP ROE, and $1.5-$1.8 billion of capital deployment including $0.8-$1.1 billion of share repurchases.
- First-quarter 2026 common stock dividend raised $0.01 to $0.80 per share, a 7% increase over the first-quarter 2025 dividend.
- Record 4Q25 Retirement and Income Solutions transfer deposits of $12 billion, up 35% from 4Q24, including over $1 billion of pension risk transfer sales.
- Assets under management of $781 billion at year-end 2025, within $1.8 trillion of assets under administration; the company reported $1.6 billion of excess and available capital and a 406% statutory RBC ratio for Principal Life Insurance Company.
03—Questions
Frequently Asked Questions
How did Principal Financial Group perform in full-year 2025 on an adjusted basis?
Non-GAAP operating earnings per diluted share, excluding significant variances, were $8.55 for 2025, an increase of 12% and at the high end of the company's 9-12% target. Reported non-GAAP operating earnings per diluted share increased 19% to $8.27. Reported GAAP net income attributable to PFG was $5.25 per diluted share, down 21% from $6.68 in 2024.
What drove the decline in fourth-quarter GAAP net income?
GAAP net income attributable to PFG was $517 million ($2.32 per diluted share) in 4Q25, down 43% from $905.4 million in 4Q24. The filing's reconciliation shows the change in income or loss from exited business, which was a gain of $27.1 million in 4Q25 compared with a gain of $551.9 million in 4Q24, as a major factor in the year-over-year difference. Adjusted non-GAAP operating earnings excluding significant variances rose 3% in dollar terms to $498.6 million.
What is Principal's 2026 outlook?
For 2026, the company guided to 9-12% annual non-GAAP operating earnings per diluted share growth, 75-85% free capital flow conversion, and 15-17% non-GAAP return on equity. It also expects $1.5-$1.8 billion of capital deployment, including $0.8-$1.1 billion of share repurchases and a 40% dividend ratio.
How much capital did Principal return to shareholders and what dividend was declared?
Principal returned over $1.5 billion to shareholders in 2025, including $0.9 billion of share repurchases and $0.7 billion of common stock dividends. The board-approved first-quarter 2026 dividend is $0.80 per share, a one-cent increase over the fourth-quarter 2025 dividend, payable March 27, 2026, to shareholders of record as of March 11, 2026.
How did the business segments perform in 2025?
Retirement and Income Solutions pre-tax operating earnings rose 12% to $1,185.6 million for the trailing twelve months, and International Pension rose 12% to $315.8 million. Specialty Benefits rose 16% to $531.4 million, and Investment Management rose 6% to $614.4 million. Life Insurance posted a pre-tax operating loss of $(8.2) million for the trailing twelve months, compared with earnings of $3.6 million in the prior year.
04—Continue