Principal Financial Group has announced a solid rebound in earnings for the fourth quarter of 2024, with net income and revenue showing significant year-over-year growth. Alongside these positive earnings, the company raised its first-quarter 2025 dividend and announced a substantial share buyback program. Despite these strong corporate actions, Principal’s stock price registered a decline of 6.38% over the last quarter. This movement mirrors broader market trends, as the S&P 500 faced a more significant slump of 6% attributed to global trade tensions and tariff uncertainties, which created volatility across financial markets including the performance of Nasdaq-listed companies like PFG.

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Over the last five years, Principal Financial Group’s total shareholder return has seen an impressive growth of 170.39%. This performance can be attributed to key actions and strategies implemented by the company. Notably, the strategic synergies built between its retirement ecosystem and global asset management have enhanced revenue growth, particularly through new retirement investment mandates and expanded target-date fund offerings. These initiatives are supported by strong free cash flow, allowing the company to continuously increase dividends and engage in significant share buybacks, exemplified by the US$1.5 billion repurchase program announced in early 2025.

While these efforts contributed to Principal’s long-term success, the past year saw some challenges as the stock underperformed the US insurance industry, which returned 20.5%. Factors such as foreign exchange rate impacts and pressure from demographic changes in retirement services influenced the net revenue. However, the company’s appointment of Deanna Strable as CEO in early 2025 aims to steer the next phase of growth and address these challenges effectively.

Learn about Principal Financial Group’s future growth trajectory here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.