Principal Financial

Q2 FY2026 EarningsFY26 Q2 missed consensus across major GAAP metrics, with diluted EPS of $1.84 vs. $2.36 expected and total revenue of $3.91B vs. $4.14B expected. The variance was primarily driven by a $166.5M pre-tax loss from exited businesses, largely stemming from a $104.4M unfavorable fair value change in funds-withheld embedded derivatives. Despite the GAAP miss, segment pre-tax operating earnings of $668.8M were relatively in-line with the $680.0M EBIT consensus, supported by strong Retirement and Income Solutions (RIS) performance. Book value per share (BPS) beat expectations at $56.57 vs. $55.51, bolstered by $838M in capital returns to shareholders through June.