Principal Financial Group Inc (NASDAQ:PFG) stock fell 3.96% (As on February 10, 11:21:16 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY25. Principal Financial Group reported assets under management of $781 billion, a 10% increase from the previous year, while assets under administration rose 9% to $1.81 trillion. The company’s Retirement and Income Solutions segment saw pre-tax operating earnings increase 7% to $299.5 million, while Investment Management pre-tax operating earnings rose 2% to $166.7 million. International Pension showed strong growth with pre-tax operating earnings up 25% to $64.9 million. Retirement and Income Solution revenues increased 15.6% year over year to $2.5 billion. Investment Management revenues of $482.7 million were up 1.7% from the prior-year quarter. International Pension revenues decreased 9.6% year over year to $216.6 million. Specialty Benefits revenues increased 2.8% year over year to $898.2 million. Life Insurance  revenues increased 5.1% year over year to $346.1 million. As of Dec. 31, 2025, cash and cash equivalents were $4.4 billion, which increased 5.2% from 2024-end. At the fourth-quarter end, long-term debt was $3.9 billion, which declined 0.7% from 2024-end. As of Dec. 31, 2025, book value per share (excluding cumulative change in fair value of funds withheld embedded derivative and AOCI other than foreign currency translation adjustment) was $57.25, up 6.6% from 2024-end.

PFG in the fourth quarter of FY25 has reported the adjusted earnings per share of $2.19, missing the analysts’ estimates for the adjusted earnings per share by 1.8%, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 9.2 percent to $4.46 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $4.11 billion. Total expenses increased 8.2% year over year to $3.9 billion due to higher benefits, claims and settlement expenses and operating expenses.

Looking ahead, Principal Financial Group provided 2026 guidance projecting 9-12% annual non-GAAP operating earnings per share growth, 75-85% free capital flow conversion, and 15-17% non-GAAP return on equity. The company plans $1.5-$1.8 billion in capital deployment, including $0.8-$1.1 billion in share repurchases.

Additionally, Principal announced a 7% increase in its quarterly dividend to $0.80 per share for the first quarter of 2026. Principal Financial returned $1.5 billion of capital to shareholders for 2025, including $0.9 billion of share repurchases and $0.7 billion of dividends.