Principal's Q3 Operating EPS Excluding Significant Variances Rises 7%

Principal Financial Group’s third-quarter 2026 non-GAAP operating earnings per diluted share were $2.49 after significant variances were excluded, up 7% from $2.32 a year earlier. The company’s separate non-GAAP figure before those exclusions was $2.22 per diluted share, 6% higher than the $2.10 recorded in the year-earlier quarter.

Measured in dollars rather than per diluted share, non-GAAP operating earnings excluding significant variances reached $540.6 million, 3% above $523.3 million. The measure before those exclusions totaled $481.8 million, up 2% from $473.7 million in the third quarter of 2025.

The two presentations show higher earnings than their corresponding year-earlier measures. Excluding significant variances raised the current quarter’s per-share figure by 27 cents compared with the measure before exclusions; the difference was 22 cents a year earlier. The gap between the total dollar measures was $58.8 million this quarter, versus $49.6 million a year ago. Earnings excluding significant variances grew faster in both comparisons: 7% versus 6% per share and 3% versus 2% in total.

Net income attributable to Principal was $631.9 million, or $2.91 per diluted share, compared with $213.8 million and $0.95 per share in the year-earlier quarter. The dollar increase in net income was $418.1 million from the prior-year result.

Principal returned $429 million to shareholders during the quarter. The total consisted of $250 million in share repurchases and $179 million in common stock dividends. The company also announced a $0.01 increase to its fourth-quarter 2026 common stock dividend, lifting it to $0.85 per share.

Assets under management totaled $785 billion, while assets under administration were $1.8 trillion. Beginning in the third quarter, Principal excludes the effects of its actuarial assumption review from non-GAAP operating earnings.

“Our third-quarter results demonstrate the strength of our diversified business and the progress we’re making against our strategic priorities,” Principal chair, president and CEO Deanna Strable said.