Principal Financial Group, Inc.

Non-GAAP operating earnings were $547 million, up 12% year over year, and EPS was $2.50, up 16%. Excluding significant variances, operating earnings were $529 million, up 13%, and EPS was $2.42, up 17%; total company margin was 32%, up 200 basis points, and non-GAAP operating ROE was 16.4%, up 120 basis points. Net income excluding exited business was $535 million, up 24%. For capital, Principal ended the quarter with over $1.6 billion of excess available capital and about 400% RBC, and it returned $427 million to shareholders in the quarter; year to date capital deployment was $800 million, and the company reaffirmed its full-year capital deployment target of $1.5 billion to $1.8 billion. Management also said the Beam Benefits deal does not change 2026 capital deployment, EPS growth targets, free capital flow, or ROE outlook.

Deanna Strable said the quarter showed the earnings power of Principal’s diversified model and execution across the enterprise. She emphasized momentum in retirement, SMB benefits, and global asset management, while noting that strong retirement participation trends, product expansion, and platform breadth are supporting growth. Her tone was confident and upbeat, but she also stressed portfolio discipline, capital framework consistency, and a high bar for M&A.

Joel Pitz highlighted $547 million of non-GAAP operating earnings, $2.50 EPS, 32% margin, and 16.4% operating ROE, all supported by 6% net revenue growth. He pointed to over $1.6 billion of excess available capital, about 400% RBC, and reiterated the $1.5 billion to $1.8 billion full-year capital deployment target. He also noted total managed AUM of $808 billion, up 5% from Q1 and 7% year over year, and said corporate losses remain elevated due to investment in the business, expecting the segment to finish at the high end of the target range.

Analysts focused on the Beam Benefits acquisition, the sustainability of asset-management outflows, and whether strong Benefits and Protection results could continue. Management said Beam is strategically aimed at expanding SMB reach, adding technology and distribution capabilities, and creating revenue and expense synergies, while not changing 2026 guidance; they also said the company’s capital position and back-half cash generation support the deal. On outflows, Kamal Bhatia said the roughly $11 billion of outflows were concentrated in a couple of U.S. active equity strategies, not broad-based, and that the environment remains unusual and difficult to time, though the committed not-funded pipeline is now around $10 billion.