Principal Financial grows operating EPS 6% and raises dividend to 85 cents

Principal Financial Group raised its dividend on Monday as it reported higher third-quarter operating earnings per share and returned $429 million to shareholders.

Non-GAAP operating earnings were $481.8 million, or $2.22 per diluted share, according to the company's earnings release filed with the SEC. That is up 2% in dollars from a year earlier and up 6% on a per-share basis. Excluding significant variances, operating EPS was $2.49, up 7%.

Net income attributable to Principal was $631.9 million, or $2.91 per diluted share, compared with $213.8 million a year earlier.

"We grew earnings per share, continued to build momentum in the markets where we're focused, and returned $429 million to shareholders," Chair, President and CEO Deanna Strable said in the release. She added that the company is confident in delivering on its 2026 outlook.

A key measure fell

One non-GAAP measure moved the other way. Net income excluding the company's exited business fell 24% to $354.8 million. Starting this quarter, Principal also excludes the effects of its annual actuarial assumption review from operating earnings, the release noted.

Capital and dividend

Principal repurchased $250 million of stock in the quarter and paid $179 million in common dividends. It ended the period with $1.5 billion of excess and available capital.

The fourth-quarter dividend goes up 1 cent to $0.85 per share. The company said that is 8% higher than in the fourth quarter of 2025.

Assets under management were $785 billion, part of $1.8 trillion in assets under administration.

By the numbers

• Q3 operating EPS: $2.22, up 6%
• Q3 operating EPS excluding significant variances: $2.49, up 7%
• Q3 net income per share: $2.91
• Capital returned in Q3: $429 million
• Q4 dividend: $0.85

Sources

1. Principal Financial Group, Inc., Form 8-K with third quarter 2026 earnings release, filed Oct. 26, 2026 (accession 0001104659-26-118774)

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