Executive Summary#

Earnings Miss Amid Operational Complexity#

Principal Financial Group reported third-quarter 2025 results that disappointed consensus expectations, with non-GAAP operating earnings per share of $2.10 falling $0.10 short of analyst estimates and revenue of $3.90 billion missing by $240 million. The consensus shortfall obscures a more nuanced operational picture: whilst reported earnings missed topline expectations, the company's underlying margin expansion in core franchises and decisive shareholder-return signal through an eight percent dividend raise suggest management confidence in structural earnings quality and capital generation capability that the headline miss does not fully capture. This earnings inflection represents a test of whether investors will distinguish between cyclical consensus misses attributable to specific business segments and the durability of higher-margin, fee-based revenue streams that characterize Principal's strategic transition away from legacy insurance products.