Principal Financial Group: 2Q26 Wrap: Equity Market and Group Insurance Margins Are Positives, Net Flows a Negative

Research evidence excerpt

Principal Financial Group: 2Q26 Wrap: Equity Market and Group Insurance Margins Are Positives, Net Flows a Negative

J P M O R G A N North America Equity Research

03 August 2026

Principal Financial Group Neutral

PFG, PFG US

2Q26 Wrap: Equity Market and Group Insurance Price (31 Jul 26):$113.70

Margins Are Positives, Net Flows a Negative ▲Price Target (Dec-27):$107.00 Prior (Dec-27):$106.00

Raising EPS estimates and December 2027 price target from $106 to $107,

Neutral rating unchanged. PFG reported 2Q26 results on 7/27/26 and held its Insurance - Life & Nonlife

earnings call the following day. Pablo S. Singzon AC

(1-212) 622-2295

• Raising EPS estimates. Our EPS projections are changing as follows: 3Q26 pablo.s.singzon@jpmorgan.com

from $2.51 to $2.57, 4Q26 from $2.49 to $2.47, and 2027 from $10.14 to Kevin Wijendra

$10.27. Our updated model reflects (1) higher earnings in retirement, (1-212) 622-7054

international pensions, and specialty benefits, partly offset by (2) lower kevin.wijendra@jpmorgan.com

earnings in investment management and individual life, (3) lower flows in J.P. Morgan Securities LLC

retirement and investment management, and (4) higher corporate losses. Our

estimate for specialty benefits includes accretion from the Beam acquisition Quarterly Forecasts (FYE Dec)

(assumed close at the beginning of 4Q26), and PFG’s expectation of continued Adj. EPS ($)

strong claims trends in 2H26. We adjust for equity market, interest rate, and 2025A 2026E 2027E

variable investment income changes at the end of the quarter. Q1 1.81 2.07A

Q2 2.16 2.50A

• 2Q26 summary: earnings beat, mostly due to specialty benefits. Adjusted Q3 2.10 2.57

EPS of $2.50 was higher than our $2.36 estimate and consensus of $2.33. Q4 2.19 2.47

FY 8.27 9.61 10.27