Revenue performance remains inconsistent, characterized by extreme quarterly fluctuations such as the 76.6% growth in 2024Q4 followed by a 34.5% contraction in 2024Q3.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 |
|---|
| Revenue | 15.46B | 15.63B | 16.13B | 13.67B | 17.54B | 14.43B | 14.74B | 16.22B | 14.24B | 14.09B | 12.39B | 11.96B | 10.48B | 9.29B | 9.22B | 8.67B | 9.2B | 8.85B | 9.94B | 10.91B | 9.87B | 9.01B | 8.3B | 7.99B | 7.63B | 7.8B | 8.21B |
| Revenue Growth % | -1.98% | -3.11% | 18.02% | -22.07% | 21.54% | -2.13% | -9.13% | 13.94% | 1.02% | 13.71% | 3.59% | 14.19% | 12.79% | 0.81% | 6.28% | -5.73% | 3.94% | -10.94% | -8.9% | 10.47% | 9.61% | 8.48% | 3.9% | 4.73% | -2.15% | -4.96% | - |
| Medical Costs & Claims | 7.93B | 8.56B | 8.77B | 7.77B | 6.49B | 7.35B | 8.28B | 9.91B | 8.19B | 7.82B | 6.91B | 6.7B | 5.23B | 4.68B | 5.12B | 4.62B | 5.2B | 5.33B | 6.22B | 6.44B | 5.69B | 5.28B | 4.96B | 4.86B | 5.22B | 5.8B | 0 |
| Medical Cost Ratio % | 51.32% | 54.81% | 54.41% | 56.83% | 37.02% | 50.96% | 56.18% | 61.06% | 57.54% | 55.51% | 55.78% | 55.98% | 49.93% | 50.42% | 55.6% | 53.24% | 56.58% | 60.28% | 62.6% | 59% | 57.66% | 58.65% | 59.73% | 60.83% | 68.36% | 74.32% | 0% |
| Gross Profit | 7.52B | 7.06B | 7.35B | 5.9B | 11.04B | 7.08B | 6.46B | 6.32B | 6.04B | 6.27B | 5.48B | 5.27B | 5.25B | 4.61B | 4.09B | 4.05B | 3.99B | 3.51B | 3.72B | 4.47B | 4.18B | 3.72B | 3.34B | 3.13B | 2.41B | 2B | 8.21B |
| Gross Margin % | 48.68% | 45.19% | 45.59% | 43.17% | 62.98% | 49.04% | 43.82% | 38.94% | 42.46% | 44.49% | 44.22% | 44.02% | 50.07% | 49.58% | 44.4% | 46.76% | 43.42% | 39.72% | 37.4% | 41% | 42.34% | 41.35% | 40.27% | 39.17% | 31.64% | 25.68% | 100% |
| Gross Profit Growth % | - | -3.98% | 24.63% | -46.58% | 56.08% | 9.53% | 2.28% | 4.49% | -3.6% | 14.41% | 4.07% | 0.38% | 13.91% | 12.58% | 0.92% | 1.51% | 13.64% | -5.42% | -16.89% | 6.95% | 12.24% | 11.38% | 6.82% | 29.69% | 20.55% | -75.59% | - |
| Operating Expenses | 5.61B | 5.64B | 5.46B | 5.16B | 5.06B | 5.16B | 4.77B | 4.62B | 4.26B | 4.02B | 3.89B | 3.84B | 3.75B | 3.48B | 3.13B | 3.18B | 3.21B | 2.77B | 3.25B | 3.4B | 2.85B | 2.6B | 2.46B | 3.59B | 2.94B | 2.57B | 0 |
| OpEx / Revenue % | 36.32% | 36.13% | 33.88% | 37.77% | 28.84% | 35.8% | 32.33% | 28.5% | 29.92% | 28.51% | 31.38% | 32.06% | 35.81% | 37.48% | 33.98% | 36.69% | 34.88% | 31.29% | 32.76% | 31.16% | 28.86% | 28.87% | 29.66% | 44.91% | 38.52% | 33% | 0% |
| Depreciation & Amortization | 0 | 251.4M | 256.2M | 272.7M | 295.9M | 275.3M | 251.9M | 226.8M | 205.1M | 195.7M | 186.6M | 193M | 169.5M | 153.9M | 132.1M | 119.9M | 164.7M | 138.5M | 145M | 130.2M | 101.3M | 101.6M | 321.6M | 255.8M | 249.3M | 476.3M | 549.5M |
| Combined Ratio % | 87.64% | 90.94% | 88.28% | 94.59% | 65.86% | 86.76% | 88.51% | 89.56% | 87.47% | 84.02% | 87.16% | 88.04% | 85.73% | 87.9% | 89.58% | 89.93% | 91.46% | 91.57% | 95.36% | 90.17% | 86.52% | 87.52% | 89.38% | 105.74% | 106.89% | 107.32% | 0% |
| Operating Income | 1.91B | 1.42B | 1.89B | 738.8M | 5.99B | 1.91B | 1.69B | 1.69B | 1.78B | 2.25B | 1.59B | 1.43B | 1.49B | 1.12B | 960M | 872.8M | 785.7M | 745.8M | 461.3M | 1.07B | 1.33B | 1.12B | 881.6M | -458.4M | -525.7M | -570.6M | 8.21B |
| Operating Margin % | 12.36% | 9.06% | 11.72% | 5.41% | 34.14% | 13.24% | 11.49% | 10.44% | 12.53% | 15.98% | 12.84% | 11.96% | 14.27% | 12.1% | 10.42% | 10.07% | 8.54% | 8.43% | 4.64% | 9.83% | 13.48% | 12.48% | 10.62% | -5.74% | -6.89% | -7.32% | 100% |
| Operating Income Growth % | - | -25.06% | 155.77% | -87.66% | 213.31% | 12.84% | 0.01% | -5.11% | -20.77% | 41.5% | 11.25% | -4.29% | 33% | 17.08% | 9.99% | 11.09% | 5.35% | 61.67% | -56.98% | -19.45% | 18.41% | 27.53% | 292.32% | 12.8% | 7.87% | -106.95% | - |
| EBITDA | 1.91B | 1.67B | 2.15B | 1.01B | 6.28B | 2.19B | 1.95B | 1.92B | 1.99B | 2.45B | 1.78B | 1.62B | 1.66B | 1.28B | 1.09B | 992.7M | 950.4M | 884.3M | 606.3M | 1.2B | 1.43B | 1.23B | 1.2B | -202.6M | -276.4M | -94.3M | 8.75B |
| EBITDA Margin % | 12.36% | 10.67% | 13.31% | 7.4% | 35.83% | 15.15% | 13.2% | 11.84% | 13.97% | 17.37% | 14.35% | 13.57% | 15.89% | 13.76% | 11.85% | 11.45% | 10.33% | 9.99% | 6.1% | 11.03% | 14.51% | 13.61% | 14.49% | -2.54% | -3.62% | -1.21% | 106.7% |
| Interest Expense | 0 | 2.2M | 2.6M | 1.9M | 1.2M | 1M | 1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Operating Income | 0 | -2.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | 1.87B | 1.42B | 1.89B | 738.8M | 5.99B | 1.91B | 1.69B | 1.69B | 1.78B | 2.25B | 1.59B | 1.43B | 1.49B | 1.12B | 960M | 872.8M | 785.7M | 745.8M | 461.3M | 1.07B | 1.33B | 1.12B | 881.6M | 820.6M | 371.5M | 333.2M | 8.21B |
| Pretax Margin % | 12.09% | 9.06% | 11.72% | 5.41% | 34.14% | 13.24% | 11.49% | 10.44% | 12.53% | 15.98% | 12.84% | 11.96% | 14.27% | 12.1% | 10.42% | 10.07% | 8.54% | 8.43% | 4.64% | 9.83% | 13.48% | 12.48% | 10.62% | 10.27% | 4.87% | 4.27% | 100% |
| Income Tax | 263.4M | 160.5M | 291.7M | 68.7M | 1.19B | 283.9M | 265M | 249.2M | 230.7M | -72.3M | 229.9M | 177.6M | 318.5M | 187.9M | 134.6M | 198.3M | 104.9M | 100.1M | -4.5M | 208.1M | 295.9M | 232.4M | 179.1M | 177M | -74.9M | 83.4M | 0 |
| Effective Tax Rate % | 14.09% | 11.33% | 15.44% | 9.3% | 19.87% | 14.86% | 15.65% | 14.72% | 12.93% | -3.21% | 14.44% | 12.41% | 21.31% | 16.72% | 14.02% | 22.72% | 13.35% | 13.42% | -0.98% | 19.41% | 22.23% | 20.67% | 20.32% | 21.57% | -20.16% | 25.03% | 0% |
| Net Income | 1.55B | 1.19B | 1.57B | 623.2M | 4.76B | 1.58B | 1.4B | 1.39B | 1.55B | 2.31B | 1.32B | 1.23B | 1.14B | 912.7M | 806.6M | 638.3M | 662.9M | 622.7M | 458.1M | 860.3M | 1.06B | 919M | 825.6M | 746.3M | 142.3M | 358.8M | 620.2M |
| Net Margin % | 10.03% | 7.58% | 9.74% | 4.56% | 27.13% | 10.95% | 9.47% | 8.59% | 10.86% | 16.39% | 10.62% | 10.31% | 10.92% | 9.83% | 8.75% | 7.36% | 7.21% | 7.04% | 4.61% | 7.89% | 10.78% | 10.2% | 9.94% | 9.34% | 1.86% | 4.6% | 7.56% |
| Net Income Growth % | 42.64% | -24.56% | 152.09% | -86.9% | 201.03% | 13.21% | 0.11% | -9.85% | -33.06% | 75.5% | 6.69% | 7.86% | 25.35% | 13.15% | 26.37% | -3.71% | 6.46% | 35.93% | -46.75% | -19.17% | 15.81% | 11.31% | 10.63% | 424.46% | -60.34% | -42.15% | - |
| EPS (Diluted) | 7.04 | 5.25 | 6.68 | 2.55 | 18.63 | 5.79 | 5.05 | 4.96 | 5.35 | 7.88 | 4.50 | 4.06 | 3.65 | 2.95 | 2.58 | 1.91 | 2.06 | 1.97 | 1.63 | 3.09 | 3.74 | 3.11 | 2.62 | 2.28 | 0.41 | 0.99 | 1.72 |
| EPS Growth % | 49.46% | -21.41% | 161.96% | -86.31% | 221.76% | 14.65% | 1.81% | -7.29% | -32.11% | 75.11% | 10.84% | 11.23% | 23.73% | 14.34% | 35.08% | -7.28% | 4.57% | 20.86% | -47.25% | -17.38% | 20.26% | 18.7% | 14.91% | 456.1% | -58.59% | -42.44% | - |
| EPS (Basic) | - | 5.32 | 6.77 | 2.58 | 18.94 | 5.87 | 5.08 | 5.00 | 5.41 | 8.00 | 4.55 | 4.11 | 3.70 | 2.99 | 2.60 | 1.92 | 2.08 | 1.98 | 1.64 | 3.12 | 3.78 | 3.13 | 2.64 | 2.29 | 0.41 | 0.99 | 1.72 |
| Diluted Shares Outstanding | 220.3M | 225.7M | 226.23M | 244.6M | 255.3M | 272.9M | 276.6M | 281M | 288.8M | 293.2M | 292.7M | 298M | 299.01M | 298.2M | 300.4M | 317.6M | 323M | 298.9M | 261.1M | 268.1M | 275.5M | 289.81M | 315.11M | 327.32M | 347.07M | 362.42M | 360.6M |
SMB market retention volatility
As reported in recent financial statements, PFG's top-line performance remains inconsistent, with quarterly revenue growth fluctuating between a 76.6% surge in 2024Q4 and a 34.5% contraction in 2024Q3, suggesting that the firm's revenue base is highly sensitive to market-related adjustments and periodic divestiture activity.
The erratic revenue trajectory appears to reflect the company's ongoing strategic pivot toward a capital-light model rather than a fundamental decline in client acquisition. Investors should monitor whether the volatility in top-line figures stabilizes as the firm completes its transition away from capital-intensive retail annuity blocks.
Based on the provided income statement data, PFG's combined ratio has demonstrated significant variance, peaking at a concerning 141.1% in 2023Q4 before improving to 85.2% in 2026Q1, which indicates that underwriting profitability remains highly susceptible to episodic claims spikes and broader market volatility.
The wide range in the combined ratio suggests that PFG's insurance segment is not yet fully insulated from external shocks, despite management's efforts to de-risk the portfolio. The recent improvement to sub-90% levels implies a potential recovery in underwriting discipline, though this warrants further investigation into whether current loss ratios are sustainable.
According to historical performance data, the 2023Q4 period served as a critical inflection point where a 141.1% combined ratio and significant net losses forced a strategic re-evaluation, leading to the subsequent divestiture of capital-intensive insurance blocks to prioritize more stable, fee-based asset management revenue streams.
This transition appears to be an attempt to reduce the firm's exposure to long-term mortality and interest rate risks that previously plagued the balance sheet. While this shift may improve long-term earnings quality, it also risks eroding the bundled service moat that historically differentiated PFG in the SMB retirement market.
While management emphasizes the stickiness of its SMB retirement platform, the data suggests that PFG's earnings remain vulnerable to payroll-linked contribution declines, as evidenced by the sharp 90.5% EPS contraction in 2025Q1, which may indicate that the firm's moat is less defensive than consensus models assume.
The reliance on small business health creates a unique risk profile where economic downturns simultaneously impact fee-based AUM and insurance premium retention. Investors should be cautious of the assumption that PFG's administrative services provide a permanent buffer against broader macroeconomic headwinds in the U.S. labor market.
Quick answers to the most common questions about buying PFG stock.
For fiscal year 2025, Principal Financial Group, Inc. (PFG) reported total revenue of $15.63B. This represents a 90.4% increase compared to $8.21B in 2000.
Principal Financial Group, Inc. (PFG) is profitable, generating $1.19B in net income for the fiscal year ending 2025 with a net profit margin of 7.6%.
Principal Financial Group, Inc. (PFG) reported an operating income of $1.42B, resulting in an operating profit margin of 9.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Principal Financial Group, Inc. (PFG) generated $7.06B in gross profit for the year, representing a gross profit margin of 45.2%. This demonstrates the company's core pricing power and production efficiency.