PFG Gears Up to Report Q4 Earnings: Here's What to Expect

Principal Financial Group, Inc. PFG is expected to register an improvement in its top and bottom lines when it reports fourth-quarter 2025 results on Feb. 9, after the closing bell.

The Zacks Consensus Estimate for PFG’s fourth-quarter revenues is pegged at $4.11 billion, indicating an increase of 0.7% from the year-ago reported figure.

The consensus estimate for earnings is pegged at $2.23 per share. The Zacks Consensus Estimate for PFG’s fourth-quarter earnings has moved up 0.4% in the past 60 days. The estimate suggests a year-over-year increase of 14.9%.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Principal Financial this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case, as you can see below.

Earnings ESP: Principal Financial has an Earnings ESP of 0.00% at present. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.23. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Principal Financial Group, Inc. Price and EPS Surprise

Principal Financial Group, Inc. price-eps-surprise | Principal Financial Group, Inc. Quote

Zacks Rank: Principal Financial currently carries a Zacks Rank #3.

Factors at Play

Principal Financial’s fourth-quarter results are likely to reflect solid performance in PRT, strong underwriting results, and growth in the business. 

Operating revenues are likely to have increased owing to higher premiums & other considerations, as well as higher fees & other revenues in Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection. 

Higher management fee revenues as a result of increased average AUM and continued expense discipline are likely to have benefited the Investment Management.

Improved fees from increased business, favorable relative market performance on required regulatory investments, and increased variable investment income are expected to have benefited International Pension operations.

Investment income is expected to have benefited from higher average invested assets in fixed maturities and higher income associated with derivatives in fair value hedges and other alternative investments for U.S. operations. The lower yields in fixed maturities and the sale of certain value-added real estate in the third quarter of 2024 for U.S. operations are likely to have offset the upside. 

Assets under management are likely to have benefited from strong market performance along with positive net cash flow. 
Expenses are likely to have increased due to higher benefits, claims and settlement expenses.

Stocks to Consider

Here are some insurance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:

American International Group, Inc. AIG has an Earnings ESP of +0.39% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $1.89 per share, indicating a year-over-year increase of 45.3%. 

AIG’s earnings beat estimates in each of the last four reported quarters.

Assurant, Inc. AIZ has an Earnings ESP of +13.61% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $5.55 per share, implying an increase of 15.8% from the year-ago reported figure.

AIZ’s earnings beat estimates in each of the last four reported quarters.

Goosehead Insurance GSHD has an Earnings ESP of +4.03% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at 54 cents per share, implying a decrease of 31.6% from the year-ago reported figure.

GSHD’s earnings beat estimates in two of the last four quarters while missing in the other two.

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This article originally published on Zacks Investment Research (zacks.com).

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