PFG Stock Forecast & Price Target

Principal Financial Group is supported by a resilient mix of fee, spread, and underwriting revenues that helped it deliver solid underlying results despite a messy quarter and a $2.22 reported EPS versus $2.42 consensus. Management’s confidence in maintaining its 9-12% EPS growth guide, along with capital deployment of more than $1.2 billion year-to-date and a full-year target of $1.5 billion to $1.8 billion, reinforces the quality of earnings and disciplined capital use. Although Investment Management outflows and the VII result remain watch items, strength in PRT sales, an ETF business with $14 billion in AUM and 84% year-over-year growth, and progress on Beam Benefits support the positive outlook.

Principal Financial Group is facing a weaker earnings trajectory, as EPS estimates were reduced to $9.18 from $9.47 for 2026 and to $10.14 from $10.43 for 2027, signaling a softer fundamental outlook. The downgrade appears driven by the 3Q26 VII result, which pressured near-term profitability and raised concerns about the sustainability of earnings momentum. Management’s more conservative assumptions for Retirement and Income Solutions and Principal Asset Management, despite the company’s diversified revenue base, suggest slower growth across two key segments and a more muted path to the newly introduced 2028 estimate of $11.00.