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Founded in 1879 and headquartered in Des Moines, Iowa, Principal Financial Group, Inc. (PFG) is a leading global financial services provider with a market cap of $19 billion. Principal specializes in retirement solutions, asset management, and insurance, serving individuals, businesses, and institutional clients. With a strong focus on financial security and investment growth, the company plays a vital role in helping customers achieve long-term financial well-being.
Shares of Principal Financial Group have underperformed the broader market over the past year. The stock has gained 5.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.7%. However, in 2025, PFG is up 9% compared to SPX’s 2.2% rise on a YTD basis.
Zooming in further, PFG has trailed the iShares U.S. Financials ETF (IYF). The exchange-traded fund has gained about 29.3% over the past year. However, the stock has outperformed the ETF’s 4.4% YTD gain.
On Feb. 6, Principal Financial reported its fourth-quarter earnings, with shares rising over 2% in the following session. Adjusted EPS came in at $1.94, just below analyst expectations of $1.95. Investment management operating revenues less pass-through expenses increased by $37.8 million, driven by an 11% rise in management fees from higher assets under management (AUM), partially offset by lower performance fees and other revenue.
For the current fiscal year, ending in December, analysts expect PFG’s EPS to grow 22% year over year to $8.50 on a diluted basis. The company's earnings surprise history is disappointing. It missed the consensus estimate in all four quarters.
Among the 16 analysts covering PFG stock, the consensus rating is a “Hold.” That’s based on three “Strong Buy” ratings, nine “Holds,” and four “Strong Sells.”
This consensus is slightly more bullish than two months ago when the stock had two “Strong Buys.”
On Feb. 18, Suneet Kamath from Jefferies maintained a “Hold” rating on Principal Financial with a price target of $82.
The mean price target is $86.07, representing a premium of 2% compared to PFG’s current price levels. The Street-high price target of $99 suggests an upside potential of 17.3%.
