Principal Financial Group reported second quarter 2026 results, with non-GAAP operating earnings per diluted share of $2.42, up 17% year-over-year excluding significant variances. The company returned $427 million to shareholders through $250 million in share repurchases and $177 million in dividends. Principal announced a third quarter dividend increase of $0.02 to $0.84 per share, representing an 8% rise over the prior year. Assets under management reached $808 billion, part of $1.9 trillion in assets under administration. The firm maintains $1.6 billion in excess and available capital. Chair and CEO Deanna Strable highlighted growth across retirement, small business markets, and global asset management, noting strong earnings growth and return on equity expansion.

Principal Financial Group has agreed to acquire Beam Benefits, an employee benefits company serving over 25,000 small businesses. Beam offers dental, vision, and ancillary benefits through cloud-native technology with AI capabilities, generating approximately $175 million in premiums in 2025. The acquisition strengthens Principal's position in the small and midsized business segment. Principal currently serves 180,000 employers with retirement, benefits, and business owner solutions. The deal is expected to close in the latter half of 2026, subject to regulatory approvals. Principal expects the acquisition to accelerate premium and fee growth for Specialty Benefits to at or above the high end of its 5–9% medium-term target range in 2027. Beam Benefits CEO Tolithia Kornweibel said joining Principal represents "the natural next step" in the company's journey to transform employee benefits experiences for small businesses.

Principal Financial Group has expanded its lifetime income suite, adding LifeTime Income Builder Index collective investment trust target date funds and new third-party retirement income options. The funds begin allocating to fixed indexed annuities around age 47 and aim to automatically activate a 6% income stream in retirement. The 30 June 2026 expansion aligns with Principal's strategy to deepen its role in defined contribution retirement plans, particularly for workers without traditional pensions. By partnering with third-party managers like TIAA/Nuveen, the company could strengthen its retirement positioning whilst fee income and asset flows face scrutiny. Principal's narrative projects $19.5 billion revenue and $2.3 billion earnings by 2029, requiring 8.1% yearly revenue growth. However, the near-term earnings impact remains uncertain, with persistent market volatility potentially pressuring retirement and asset management fees.