Is PFG a Buy? What to Consider in 2026
Last updated July 2026
Short answer
The bull case for Principal Financial Group (PFG) rests on Retirement and asset management fee growth: Principal's largest profit engines are workplace retirement plans and global asset management, which generate recurring fees on assets under management of roughly $770 billion. Revenue (FY2025) is ~$15.6 billion. If you believe that thesis holds, the real questions become position sizing and overlap, not timing. The main risk to that view: Because a large share of Principal's revenue comes from fees on managed assets, the stock is sensitive to equity and bond market declines, which shrink assets under management and fee income. Whether PFG is a buy comes down to whether you believe the thesis. This is informational, not a recommendation, and Walnut is not an investment adviser.
Principal Financial Group, Inc. (Nasdaq: PFG) is a global financial services company headquartered in Des Moines, Iowa, that serves individuals and businesses across retirement, investment management, and insurance. Its business is organized around a few core engines: Retirement and Income Solutions (workplace retirement plans, annuities, and income products in the United States), Global Asset Management (the Principal Global Investors and Principal International operations that manage money for institutional and retail clients), and U.S. Insurance Solutions (specialty benefits like dental, vision, disability, and life insurance, plus individual life). The company earns money from fees on the assets it manages and administers, spread income on its insurance and annuity products, and insurance premiums, so a large share of its revenue is tied to the level of assets under management, which reached about $770 billion in early 2026. The investment picture rests on Principal's shift toward higher-fee, capital-lighter retirement and asset management businesses, its international pension franchise, and a strong capital-return story. The company has raised its dividend for many consecutive quarters and returns capital through buybacks, targeting a non-GAAP operating return on equity in the mid-teens. Full-year 2025 GAAP results were held down by items affecting net income, but underlying operating earnings and 2026 guidance pointed to continued growth in retirement deposits, record asset management sales, and margin expansion. Because so much of the model depends on asset values and flows, the stock tends to track equity markets, interest rates, and the pace of net client inflows and outflows.
What's the case for buying PFG?
1. Retirement and asset management fee growth.
Principal's largest profit engines are workplace retirement plans and global asset management, which generate recurring fees on assets under management of roughly $770 billion. In early 2026 the company reported strong retirement transfer deposits (up about 35% year over year) and record Global Asset Management gross sales near $37 billion. Continued net inflows and rising markets lift fee revenue without requiring much additional capital, which is central to the growth case.
2. International pension franchise.
Principal International operates pension and asset management businesses across markets in Latin America and Asia, where growing middle classes and mandatory or voluntary retirement systems expand the addressable pool of savings. International pension assets under management reached about $154 billion, up roughly 24% year over year in recent reporting, giving Principal a growth avenue less correlated with the mature U.S. market, though exposed to currency and local regulatory shifts.
3. Capital return and mid-teens returns.
Principal targets a non-GAAP operating return on equity in the 15% to 17% range and has been running near the middle of that band (about 16% in early 2026). It has raised its common dividend for many consecutive quarters (an 8% increase for the twelfth straight quarterly raise) and returned over $1.5 billion to shareholders in 2025 through dividends and buybacks. This steady capital return, backed by a roughly 3% dividend yield, is a core part of the total-return profile.
4. Business mix shift toward capital-light fees.
Over the past several years Principal has reshaped its portfolio toward higher-return, capital-lighter retirement and asset management businesses and away from lower-return legacy blocks. Investment Management operating margin expanded to about 36% in 2025, and management framed 2026 guidance around continued margin discipline and earnings growth. A larger fee-based mix can support more stable earnings and free cash flow than a heavily spread-based insurer.
What are the risks to PFG?
Because a large share of Principal's revenue comes from fees on managed assets, the stock is sensitive to equity and bond market declines, which shrink assets under management and fee income. Net outflows, where clients withdraw more than they add, can offset market gains and pressure the asset management and retirement segments. Interest rates cut both ways: they affect spread income on annuities and insurance products, the value of the investment portfolio, and demand for retirement products. The insurance operations carry underwriting, mortality, morbidity, and reserve risks, and adverse claims experience or reserve strengthening can depress earnings, as reflected in the gap between GAAP net income and operating earnings in 2025. International operations add currency and local regulatory and political risk, and the whole business faces intense competition and fee pressure from much larger asset managers and insurers.
How is PFG valued? (as of July 2026)
Snapshot for PFG as of July 2026, sourced from Yahoo Finance and may be delayed. Valuation figures move with price and earnings; verify the current numbers with your broker before deciding.
- Revenue (FY2025): ~$15.6 billion
- Net Income (FY2025, GAAP): ~$1.19 billion
- Diluted EPS (FY2025, GAAP): ~$5.32 (down from ~$6.77 in 2024)
- Assets Under Management (Q1 2026): ~$770 billion
- Non-GAAP Operating ROE (Q1 2026): ~16% (target 15-17%)
- Dividend: ~$3.28 per share annually, yield ~3%
- Market Capitalization: ~$24 billion (mid-2026)
- Price-to-Earnings: ~16x
Principal trades at a modest earnings multiple typical of diversified financials, with a roughly 3% dividend yield and a mid-teens operating return on equity. GAAP EPS fell in 2025 on items affecting net income, but non-GAAP operating EPS grew (up about 14% year over year in Q1 2026). Valuation and results are closely tied to the level of equity markets and asset flows, so figures move with market conditions.
How do you decide if PFG is a buy?
Rather than asking whether PFG is a buy in the abstract, it tends to help to answer four questions:
- Thesis: do you believe the case above, and is it still true today?
- Time horizon: a single stock can be volatile, so a longer horizon absorbs more of the swings.
- Position sizing: a thesis can be right and the sizing still wrong; decide how much of your portfolio one name should be.
- Overlap: check whether you already hold PFG indirectly through an index or sector ETF before adding more.
For the full picture, see the PFG stock guide (what the company does, the ETFs that hold it, similar stocks, and the themes it fits). In Walnut you can ask its AI about PFG against your real portfolio and see your actual exposure before deciding.
The bottom line on PFG
The bottom line: Principal Financial Group's story right now is Retirement and asset management fee growth, with revenue (fy2025) at ~$15.6 billion. If you believe that narrative continues, the call is about sizing PFG sensibly and checking overlap with what you own; if you doubt it (the risk: because a large share of Principal's revenue comes from fees on managed assets, the stock is sensitive to equity and bond market declines, which shrink assets under management and fee income.), it is not for you. Decide from the thesis, not the ticker. Walnut is not an investment adviser.
Build a basket around PFG with Walnut
Use Principal Financial Group as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
Is PFG a good stock to buy right now?
+
The case for Principal Financial Group right now is Retirement and asset management fee growth, with revenue (fy2025) at ~$15.6 billion. If you believe that thesis holds, PFG is a way to own it and the real questions are sizing and overlap, not timing; the main risk to that view is because a large share of Principal's revenue comes from fees on managed assets, the stock is sensitive to equity and bond market declines, which shrink assets under management and fee income. So it comes down to whether you believe the thesis. Walnut is not an investment adviser and this is not a recommendation.
What does Principal Financial Group do?
+
Principal Financial Group, Inc.
What are the main risks of PFG?
+
Because a large share of Principal's revenue comes from fees on managed assets, the stock is sensitive to equity and bond market declines, which shrink assets under management and fee income. Net outflows, where clients withdraw more than they add, can offset market gains and pressure the asset management and retirement segments. Interest rates cut both ways: they affect spread income on annuities and insurance products, the value of the investment portfolio, and demand for retirement products. The insurance operations carry underwriting, mortality, morbidity, and reserve risks, and adverse claims experience or reserve strengthening can depress earnings, as reflected in the gap between GAAP net income and operating earnings in 2025. International operations add currency and local regulatory and political risk, and the whole business faces intense competition and fee pressure from much larger asset managers and insurers.
What does Principal Financial Group do?
+
Principal is a global financial services company that provides workplace retirement plans, annuities, investment management, and insurance products such as group benefits and life insurance. It earns fees on assets it manages and administers, spread income on annuities, and insurance premiums.
How do you invest in PFG stock?
+
You can buy PFG shares or fractional shares through any major brokerage account, hold it indirectly through a financials or insurance ETF, or include it as one position in a thematic basket. Principal trades on the Nasdaq under the ticker PFG.
Does PFG pay a dividend?
+
Yes. Principal pays a quarterly dividend, recently around $3.28 per share annually for a yield near 3%. The company has raised its common dividend for many consecutive quarters, most recently an 8% increase marking its twelfth straight quarterly raise.
What are Principal's main business segments?
+
Principal is organized around Retirement and Income Solutions (U.S. retirement plans and annuities), Global Asset Management (Principal Global Investors and Principal International), and U.S. Insurance Solutions (specialty benefits and individual life), plus a corporate segment.
Walnut is informational and is not an investment adviser. This page is educational and not a recommendation to buy or sell PFG; figures are approximate and dated, and your own situation, time horizon, and risk tolerance should drive any decision. Verify current data before investing.