How does Principal Financial Group (PFG) make money?

Principal Financial Group (PFG) generates revenue primarily from Segment Retirement and Investor Services, which accounted for 48.3% of total revenue in TTM through Q1 2026. The company reported $15.46B in revenue and converted 10% of it into net profit, equivalent to roughly $1.55B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Principal Financial Group (PFG)?

Principal Financial Group (PFG) reported a gross profit margin of 48.7% in TTM through Q1 2026, equivalent to $7.52B in gross profit on $15.46B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Principal Financial Group (PFG)?

Principal Financial Group (PFG) reported an operating profit margin of 12.4% in TTM through Q1 2026, equivalent to $1.91B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Principal Financial Group (PFG)?

Principal Financial Group (PFG) reported a net profit margin of 10% in TTM through Q1 2026, equivalent to $1.55B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Principal Financial Group (PFG) profitable?

Yes. Principal Financial Group (PFG) reported $1.55B in net income for TTM through Q1 2026, with a net profit margin of 10%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Principal Financial Group (PFG) spend on capital expenditures?

Principal Financial Group (PFG) spent $115.40M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 0.7% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Principal Financial Group (PFG) generate?

Principal Financial Group (PFG) generated $3.63B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 23.5%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Principal Financial Group (PFG)?

Principal Financial Group (PFG) had an effective tax rate of 14.1% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Principal Financial Group (PFG)?

Principal Financial Group (PFG) reports revenue across 4 reportable product segments, led by Segment Retirement and Investor Services at 48.3% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Principal Financial Group Makes Money: 2026 Visual Revenue Map

Principal Financial Group (PFG) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 29, 2026).

Principal Financial Group discloses geographic revenue only in annual filings. to view the full breakdown.

Principal Financial Group (PFG) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Principal Financial Group (PFG) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Segment Retirement and Investor Services	$7.47B	48.3%
Benefits and Protection	$4.91B	31.7%
Principal Asset Management	$2.75B	17.8%
Corporate	$327.76M	2.1%
Total	$15.46B	100%

Segment Retirement and Investor Services$7.47B
Benefits and Protection$4.91B
Principal Asset Management$2.75B
Corporate$327.76M
Total$15.46B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Principal Financial Group (PFG) reports revenue across 4 operating segments; the largest segment was Segment Retirement and Investor Services at 48.3%, followed by Benefits and Protection (31.7%) and Principal Asset Management (17.8%).

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