SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                               ------------------



                                    FORM 8-K

                                 CURRENT REPORT



                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                         Date of Report: APRIL 30, 2007
                        (Date of earliest event reported)



                         PRINCIPAL FINANCIAL GROUP, INC.
             (Exact name of registrant as specified in its charter)


       DELAWARE                        1-16725                42-1520346
(State or other jurisdiction    (Commission file number)   (I.R.S. Employer
     of incorporation)                                   Identification Number)


                     711 HIGH STREET, DES MOINES, IOWA 50392
                    (Address of principal executive offices)

                                 (515) 247-5111
              (Registrant's telephone number, including area code)

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
    230.425)
[ ] Soliciting  material pursuant to Rule 14a-12 under the Exchange Act (17  CFR
    240.14a-12)
[ ] Pre-commencement  communications  pursuant  to  Rule 14d-2(b) under the
    Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-4(c))

                               ------------------



<PAGE>

ITEM 2.02.  RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On  April  30,  2007,   Principal   Financial  Group,  Inc.  publicly  announced
information  regarding its results of operations and financial condition for the
quarter ended March 31, 2007. The text of the announcement is included  herewith
as Exhibit 99.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

99    First Quarter 2007 Earnings Release




                                    SIGNATURE

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                    PRINCIPAL FINANCIAL GROUP, INC.



                                    By:    /s/ MICHAEL H. GERSIE
                                           -------------------------------------
                                    Name:  Michael H. Gersie
                                    Title: Executive Vice President and Chief
                                           Financial Officer

Date:    May 1, 2007


                                       2
<PAGE>

                                                                      EXHIBIT 99

RELEASE: On receipt

MEDIA CONTACT:               Jeff Rader, 515-247-7883, rader.jeff@principal.com
INVESTOR RELATIONS CONTACT:  Tom Graf, 515-235-9500,
                             investor-relations@principal.com


       PRINCIPAL FINANCIAL GROUP, INC. REPORTS FIRST QUARTER 2007 RESULTS

Des Moines,  IA (April 30, 2007) - Principal  Financial Group,  Inc. (NYSE: PFG)
today announced net income available to common stockholders for the three months
ended March 31, 2007, of $257.1 million,  or $0.95 per diluted share compared to
$285.7 million,  or $1.01 per diluted share for the three months ended March 31,
2006.  The  company  reported  operating  earnings  of $236.8  million for first
quarter  2007,  compared to $240.2  million for first  quarter  2006.  Operating
earnings per diluted share (EPS) for first  quarter 2007 were $0.87  compared to
$0.85 for the same period in 2006.(1)

"We were very  pleased  with our core asset  management  and asset  accumulation
businesses,  where  continued  strong  execution drove strong  performance,  but
disappointed with first quarter results for our insurance businesses, which were
heavily  impacted by unfavorable  claims  experience,"  said J. Barry  Griswell,
chairman and chief executive officer.

"Earnings  in our U.S.  and  international  asset  management  and  accumulation
segments  improved 13 percent from a year ago, to $198 million  combined,"  said
Griswell.  "Full  service  accumulation  earnings  improved 15 percent on strong
growth in account values,  reflecting  continued strong sales and retention.  We
also  successfully  completed  our  integration  of WM  Advisors  - mutual  fund
earnings  more than  doubled  from a year ago,  and we  achieved a $1.5  billion
increase in mutual funds  sales,  reflecting  strong early  results from our new
third party distribution, and outstanding growth from our existing channels."

"Reflecting  continued  strong  investment  performance  across  asset  classes,
Principal Global  Investors was awarded $2.2 billion of  institutional  mandates
during the  quarter,  including  a  billion-dollar  international  growth  stock
mandate from Thrivent Investment  Management," said Griswell.  "Principal Global
Investors'  net  cash  flows  were  a  record  $4.4  billion  for  the  quarter,
contributing to $14 billion of net cash flows for the trailing twelve months and
a $52 billion increase in AUM for our asset manager."

"For the full year,  we expect  strong  growth in assets  under  management  and
account values to continue  driving  double-digit  earnings  growth for our core
asset management and accumulation  businesses,"  said Griswell.  "We also expect
results for our Individual Life and Specialty  Benefits  divisions to improve as
claims return to more normal levels.  While this was a difficult quarter for the
Health  division,  returns  are still very  solid,  with a 14 percent  return on
equity for the trailing  twelve  months.  Importantly,  we expect the underlying


                                       3
<PAGE>

performance  of the  Health  division  to  improve  as we  continue  to focus on
expenses and improving network discounts."

     "In light of adverse claims  experience in the Health  division,  primarily
     related to high deductible health plans,  we're  establishing total company
     EPS guidance of $3.80 to $3.92 for 2007.(2)  This  compares to the range we
     announced  in  December  2006 of $3.80 to $3.95 per  diluted  share,"  said
     Griswell.  "As always, we're highly focused on building long-term value for
     our  shareholders.  We remain committed to and confident we can achieve our
     longer-term performance objectives - 11 to 13 percent average annual growth
     in EPS, and roughly 50 basis points average annual improvement in operating
     ROE(3)." Additional highlights for first quarter 2007 include:

o    Record operating  revenues of $2,623.7 million compared to $2,353.9 million
     for the same period last year.

o    Record assets under management  (AUM) of $270.1 billion,  up $64.8 billion,
     or 32 percent from a year ago(4).

o    Continued strong sales of the company's three key retirement and investment
     products,  including:  $2.5  billion  for mutual  funds;  $2.2  billion for
     organic  full  service  accumulation;   and  $0.5  billion  for  individual
     annuities.

                               SEGMENT HIGHLIGHTS

U.S. ASSET MANAGEMENT AND ACCUMULATION
Segment operating earnings for first quarter 2007 were $178.4 million,  compared
to  $157.8  million  for the same  period  in 2006.  Full  service  accumulation
generated  record earnings of $82.4 million,  compared to $71.4 million in first
quarter 2006, as a result of increased  fees from higher  account  values.  Full
service  accumulation account values were a record $94.9 billion as of March 31,
2007,  compared to $82.5 billion as of March 31, 2006. The mutual funds business
also generated record earnings, $11.8 million for the quarter,  compared to $5.8
million in first quarter 2006,  reflecting  earnings from the company's purchase
of WM Advisors,  Inc.,  which closed  effective  December 31, 2006,  and organic
growth in the business.

Operating  revenues  for the first  quarter  increased  21  percent  to a record
$1,281.7  million  compared to $1,060.6 million for the same period in 2006. The
full service accumulation and mutual fund businesses achieved record revenues in
the first  quarter,  and all  businesses  in the segment  achieved  double-digit
revenue growth compared to first quarter 2006.

Segment  assets under  management  were a record $231.5  billion as of March 31,
2007, up 34 percent from $172.9 billion as of March 31, 2006.

INTERNATIONAL ASSET MANAGEMENT AND ACCUMULATION

Segment operating  earnings for first quarter 2007 were $19.3 million,  compared
to $17.6 million for the same period in 2006 primarily due to higher earnings in
Brazil and Hong Kong.

                                       4
<PAGE>

Operating  revenues  were $141.3  million for first  quarter  2007,  compared to
$143.4 million for the same period last year as lower sales of payout  annuities
in Chile more than offset higher yields on invested assets and 10 percent growth
in fee revenues.

Segment  assets under  management  were a record  $22.0  billion as of March 31,
2007, up 36 percent from $16.1 billion as of March 31, 2006.(5)

LIFE AND HEALTH INSURANCE
Segment operating  earnings for first quarter 2007 were $45.5 million,  compared
to $70.4 million for the same period in 2006.  Individual Life division earnings
were $15.4  million,  compared to $27.1  million  for first  quarter  2006.  The
decrease from a year ago primarily  reflects  unfavorable death claim costs, net
of reinsurance, and reduced investment income resulting from a lower asset base,
reflecting the division's  release of excess statutory  reserves to corporate in
2006. Health division earnings were $11.8 million, compared to $24.2 million for
first  quarter  2006,  as  unfavorable  experience  related  to prior year claim
development  reduced division earnings by approximately  $15 million.  Specialty
Benefits  division  earnings  were $18.3  million,  a decline of $0.8 million as
growth in premiums for the division  were offset by  unfavorable  claims  costs,
primarily in the group life line.

Operating revenues were $1,212.4 million, a tenth consecutive record quarter for
the  segment,  and an  increase  of five  percent  from the same period in 2006,
primarily due to higher revenues in the Specialty Benefits division.

CORPORATE AND OTHER
Operating losses for first quarter 2007 were $6.4 million, compared to operating
losses of $5.6  million for the same  period in 2006.  Higher  interest  expense
related to the company's  fourth quarter 2006 debt issuance,  was  substantially
offset by higher  operating  earnings  from  joint  venture  real  estate  sales
activity.

DISCLOSURES RELATED TO GUIDANCE
The company  also expects 2007 net income  available to common  stockholders  to
range from $3.60 to $3.75 per diluted  share.  This range reflects the company's
estimate for operating  earnings per diluted  share,  adjusted for the company's
estimate of mortgage and credit losses only for the remainder of the year. There
are a number of items the  company  does not  predict  that could  significantly
affect net income  available to common  stockholders and net income available to
common  stockholders  per  diluted  share,   including,   but  not  limited  to:
mark-to-market  on  derivatives;  changes to laws,  regulations,  or  accounting
standards; and gains or losses from discontinued  operations.  Guidance for 2007
incorporates certain  assumptions,  including domestic equity market performance
improvement of roughly two percent per quarter.  Guidance  speaks only as of the
date it is made. The company does not undertake to update annual guidance during
the  year,  but may do so if  significant  changes  occur  in  general  business
conditions or company  operations.  Company  guidance does not  contemplate  any
acquisition or divestiture  activity other than where a definitive agreement has
been signed by the company and publicly announced.

                                       5
<PAGE>

FORWARD LOOKING AND CAUTIONARY STATEMENTS
This press  release  contains  forward-looking  statements,  including,  without
limitation,  statements  as to sales  targets,  sales and earnings  trends,  and
management's  beliefs,  expectations,  goals and opinions.  The company does not
undertake to update these statements, which are based on a number of assumptions
concerning future conditions that may ultimately prove to be inaccurate.  Future
events and their effects on the company may not be those anticipated, and actual
results  may  differ   materially   from  the  results   anticipated   in  these
forward-looking  statements.  The risks,  uncertainties  and factors  that could
cause or contribute to such material  differences are discussed in the company's
annual  report on Form 10-K for the year ended  December 31, 2006,  filed by the
company  with  the   Securities  and  Exchange   Commission.   These  risks  and
uncertainties include,  without limitation:  competitive factors;  volatility of
financial  markets;  decrease in ratings;  interest rate  changes;  inability to
attract and retain sales representatives;  international business risks; foreign
currency  exchange  rate  fluctuations;  a pandemic,  terrorist  attack or other
catastrophic  event;  default  of  the  company's  re-insurers;  and  investment
portfolio risks.

SHARE REPURCHASES
On November 28, 2006, the Board  authorized the repurchase of up to $250 million
of the company's  outstanding common stock. Share repurchase activity under this
program began in January 2007. As of March 31, 2007, the company had repurchased
1.6 million shares under this program, at a cost of $100 million.

USE OF NON-GAAP FINANCIAL MEASURES
The  company  uses a number  of  non-GAAP  financial  measures  that  management
believes are useful to investors  because they  illustrate  the  performance  of
normal,  ongoing operations,  which is important in understanding and evaluating
the  company's  financial  condition  and results of  operations.  They are not,
however, a substitute for U.S. GAAP financial measures.  Therefore,  the company
has  provided  reconciliations  of the  non-GAAP  measures to the most  directly
comparable U.S. GAAP measure at the end of the release. The company adjusts U.S.
GAAP measures for items not directly related to ongoing operations.  However, it
is possible these  adjusting  items have occurred in the past and could recur in
the future reporting  periods.  Management also uses non-GAAP  measures for goal
setting, determining employee and senior management awards and compensation, and
evaluating  performance  on a basis  comparable  to that used by  investors  and
securities analysts.

EARNINGS CONFERENCE CALL
At 9:00 A.M. (CST) tomorrow,  Chairman and CEO J. Barry Griswell,  President and
COO Larry Zimpleman,  and Executive Vice President and CFO Mike Gersie will lead
a discussion of results during a live  conference  call.  Parties  interested in
listening to the  conference  call live may access the webcast on the  company's
Investor Relations (IR) website (www.principal.com/investor) or by dialing (800)
374-1609 (U.S. callers) or (706) 643-7701  (International callers) approximately
10 minutes  prior to the start of the call.  To access the call,  leader name is
Tom Graf. Listeners can access an audio replay of the call on the IR website, or
by calling  (800)  642-1687  (U.S.  callers)  or (706)  645-9291  (International
callers).  The access code for the replay is 3510915.  Replays will be available
through May 8, 2007.  The  financial  supplement  is currently  available on our
website and may be referred to during the conference call.

ABOUT THE PRINCIPAL FINANCIAL GROUP
The Principal  Financial Group(R) (The Principal (R))(6) is a leader in offering
businesses,  individuals  and  institutional  clients A wide range of  financial
products and services,  including retirement and investment  services,  life and
health insurance,  and banking through its diverse family of financial  services


                                       6
<PAGE>

companies. A member of the Fortune 500, the Principal Financial Group has $270.1
billion in assets under  management(7)  and serves some 18.2  million  customers
worldwide from offices in Asia, Australia,  Europe, Latin America and the United
States. Principal Financial Group, Inc. is traded on the New York Stock Exchange
under the ticker symbol PFG. For more information, visit WWW.PRINCIPAL.COM.





                                       ###


                                       7
<PAGE>

SUMMARY OF SEGMENT AND PRINCIPAL FINANCIAL GROUP, INC. RESULTS

                                         OPERATING EARNINGS (LOSS)*
                                                IN MILLIONS
                                    --------------------------------------------

                                            THREE MONTHS ENDED,
                                    --------------------------------------------
SEGMENT                               3/31/07                   3/31/06
--------------------------------------------------------------------------------
U.S. ASSET MANAGEMENT AND
  ACCUMULATION                         $178.4                   $157.8
INTERNATIONAL ASSET MANAGEMENT AND
  ACCUMULATION                           19.3                     17.6
LIFE AND HEALTH INSURANCE                45.5                     70.4
CORPORATE AND OTHER                      (6.4)                    (5.6)
OPERATING EARNINGS                      236.8                    240.2
NET REALIZED/UNREALIZED CAPITAL
  GAINS, AS ADJUSTED                     20.3                     24.9
OTHER AFTER-TAX ADJUSTMENTS               0.0                     20.6
NET INCOME AVAILABLE TO COMMON
  STOCKHOLDERS                         $257.1                   $285.7


                                             PER DILUTED SHARE
                                    --------------------------------------------
                                             THREE MONTHS ENDED,
                                    --------------------------------------------
                                      3/31/07                   3/31/06
                                    --------------------------------------------

OPERATING EARNINGS                     $ 0.87                    $  0.85
NET REALIZED/UNREALIZED CAPITAL
  GAINS, AS ADJUSTED                     0.08                       0.09
OTHER AFTER-TAX ADJUSTMENTS              0.00                       0.07
NET INCOME AVAILABLE TO COMMON
  STOCKHOLDERS                         $ 0.95                    $  1.01
WEIGHTED-AVERAGE DILUTED COMMON
  SHARES OUTSTANDING                   270.9                      281.9










*OPERATING  EARNINGS  VERSUS  U.S.  GAAP (GAAP) NET INCOME  AVAILABLE  TO COMMON
STOCKHOLDERS
Management   uses  operating   earnings,   which  excludes  the  effect  of  net
realized/unrealized  capital gains and losses, as adjusted,  and other after-tax
adjustments, for goal setting, determining employee compensation, and evaluating
performance  on a basis  comparable  to that used by  investors  and  securities
analysts.  Segment operating  earnings are determined by adjusting U.S. GAAP net
income  available to common  stockholders  for net  realized/unrealized  capital
gains and losses,  as  adjusted,  and other  after-tax  adjustments  the company
believes are not indicative of overall  operating  trends.  Note: it is possible
these  adjusting  items  have  occurred  in the past and  could  recur in future
reporting  periods.   While  these  items  may  be  significant   components  in
understanding and assessing our consolidated financial  performance,  management
believes  the   presentation  of  segment   operating   earnings   enhances  the
understanding of our results of operations by highlighting earnings attributable
to the normal, ongoing operations of the company's businesses.


                                       8
<PAGE>

                         PRINCIPAL FINANCIAL GROUP, INC.
                              RESULTS OF OPERATIONS
                                  (IN MILLIONS)
--------------------------------------------------------------------------------
                                                     THREE MONTHS ENDED,
                                                --------------------------------
                                                   3/31/07            3/31/06
                                                ---------------- ---------------
Premiums and other considerations                 $1,107.7           $1,041.8
Fees and other revenues                              592.5              459.6
Net investment income                                923.1              851.9
Net realized/unrealized capital gains                 37.6               48.9
                                                ---------------- ---------------
TOTAL REVENUES                                     2,660.9            2,402.2
                                                ---------------- ---------------
Benefits, claims, and settlement expenses          1,498.0            1,341.8
Dividends to policyholders                            74.0               71.9
Operating expenses                                   754.7              615.2
                                                ---------------- ---------------
TOTAL EXPENSES                                     2,326.7            2,028.9
                                                ---------------- ---------------

Income from continuing operations before
  income taxes                                       334.2              373.3
Income taxes                                          68.9               79.6
                                                ---------------- ---------------
Income from continuing operations, net of
  related income taxes                               265.3              293.7

Income from discontinued operations, net of
  related taxes                                        0.0               0.2
                                                ---------------- ---------------
NET INCOME                                           265.3              293.9
Preferred stock dividends                              8.2                8.2
                                                ---------------- ---------------
NET INCOME AVAILABLE TO COMMON
  STOCKHOLDERS                                    $  257.1           $  285.7

Less:
Net realized/unrealized capital gains, as
  adjusted                                            20.3               24.9
Other after-tax adjustments                            0.0               20.6
                                                ---------------- ---------------
OPERATING EARNINGS                                $  236.8           $  240.2
                                                ================ ===============



                        SELECTED BALANCE SHEET STATISTICS

                                                    PERIOD ENDED,
                                       -----------------------------------------
                                         3/31/07       12/31/06       3/31/06
                                       ----------- ---------------- ------------
Total assets (in billions)              $   146.6       $  143.7     $ 132.0
Total common equity (in millions)       $ 7,565.0       $7,318.8     $7,056.7
Total common equity excluding
  accumulated other comprehensive
  income (in millions)                  $ 6,667.3       $6,471.9     $ 6,417.4
End of period common shares outstanding
  (in millions)                             267.4          268.4         277.6
Book value per common share             $    28.29      $   27.27    $    25.42
Book value per common share excluding
  accumulated other comprehensive
  income                                $    24.93      $   24.11    $    23.12



                                       9
<PAGE>




                         PRINCIPAL FINANCIAL GROUP, INC.
           RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO U.S. GAAP
                       (IN MILLIONS, EXCEPT AS INDICATED)

                                                  THREE MONTHS ENDED,
                                            ------------------------------------
                                                 3/31/07            3/31/06
                                            ------------------- ----------------
DILUTED EARNINGS PER COMMON SHARE:
Operating Earnings                                0.87                0.85
Net realized/unrealized capital gains             0.08                0.09
Other after-tax adjustments                       0.00                0.07
                                            ------------------- ----------------
Net income available to common
  stockholders                                   0.95                 1.01
                                            =================== ================

BOOK VALUE PER COMMON SHARE EXCLUDING
ACCUMULATED OTHER COMPREHENSIVE INCOME:
Book value per common share excluding
  accumulated other comprehensive income         24.93               23.12
Net unrealized capital gains                      3.41                2.43
Foreign currency translation                     (0.10)              (0.09)
Net unrecognized post-retirement benefit
  obligations                                     0.05                -
Minimum pension liability                         -                  (0.04)
                                            ------------------- ----------------

Book value per common share including
  accumulated other comprehensive income         28.29               25.42
                                            =================== ================

OPERATING REVENUES:
USAMA                                         1,281.7             1,060.6
IAMA                                            141.3               143.4
Life and Health                               1,212.4             1,159.6
Corporate and Other                             (11.7)               (9.7)
                                            ------------------- ----------------
Total operating revenues                      2,623.7             2,353.9
Add:  Net realized/unrealized capital
  gains and related fee adjustments              37.2                48.6
Less:  Operating revenues from
  discontinued real estate                        0.0                 0.3
                                            ------------------- ----------------
Total GAAP revenues                           2,660.9             2,402.2
                                            =================== ================

OPERATING EARNINGS:
USAMA                                           178.4              157.8
IAMA                                             19.3                17.6
Life and Health                                  45.5                70.4
Corporate and Other                              (6.4)               (5.6)
                                            ------------------- ----------------
Total operating earnings                        236.8               240.2
Net realized/unrealized capital gains            20.3                24.9
Other after-tax adjustments                       0.0                20.6
                                            ------------------- ----------------
Net income available to common stockholders     257.1               285.7
                                            =================== ================

NET REALIZED/UNREALIZED CAPITAL GAINS:
Net realized/unrealized capital gains,
  as adjusted                                    20.3                24.9
Add:
   Amortization of DPAC and sale inducement
     costs                                        0.7                 0.6
   Capital gains distributed                      2.0                 3.6
   Tax impacts                                   12.9                15.9
   Minority interest capital gains                1.3                 3.6
Less related fee adjustments:
   Unearned front-end fee income                  0.4                 0.6
   Certain market value adjustments to
     fee revenues                                (0.8)               (0.9)
                                            ------------------- ----------------
GAAP net realized/unrealized capital gains       37.6                48.9
                                            =================== ================

OTHER AFTER TAX ADJUSTMENTS:
IRS Audit Issue                                   -                  20.6
                                            ------------------- ----------------
Total other after-tax adjustments                 0.0                20.6
                                            =================== ================


                                       10
<PAGE>

------------------------
(1)  Use of non-GAAP  financial  measures is  discussed  in this  release  after
     Segment Highlights.
(2)  Disclosures related to guidance are discussed in this release after Segment
     Highlights.
(3)  Operating return on average equity excluding other comprehensive income
(4)  Total  company  AUM,  as  well  as AUM in the  U.S.  Asset  Management  and
     Accumulation  segment,  includes assets under management from the company's
     acquisition of WM Advisors,  Inc.,  which were $27.9 billion as of closing,
     effective Dec. 31, 2006.
(5)  Includes $2.2 billion of AUM from operations  acquired during first quarter
     2007 by CIMB-Principal , the company's joint venture in Malaysia.
(6)  "The Principal  Financial Group" and "The Principal" are registered service
     marks of Principal  Financial  Services,  Inc.,  a member of the  Principal
     Financial Group.
(7)  As of March 31, 2007



                                       11
<PAGE>
[{"type": "8-K", "sequence": "1", "filename": "final1stqtr07er.txt", "description": "8-K", "secsgml_size_bytes": 30340}]
{"company-data": {"conformed-name": "PRINCIPAL FINANCIAL GROUP INC", "cik": "0001126328", "assigned-sic": "6321", "irs-number": "421520346", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-16725", "film-number": "07803668"}, "business-address": {"street1": "711 HIGH STREET", "city": "DES MOINES", "state": "IA", "zip": "50392", "phone": "5152475111"}, "mail-address": {"street1": "711 HIGH STREET", "city": "DES MOINES", "state": "IA", "zip": "50392"}}
SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                               ------------------

                                    FORM 8-K

                                 CURRENT REPORT

                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                         Date of Report: APRIL 30, 2007
                        (Date of earliest event reported)

                         PRINCIPAL FINANCIAL GROUP, INC.
             (Exact name of registrant as specified in its charter)

       DELAWARE                        1-16725                42-1520346
(State or other jurisdiction    (Commission file number)   (I.R.S. Employer
     of incorporation)                                   Identification Number)

                     711 HIGH STREET, DES MOINES, IOWA 50392
                    (Address of principal executive offices)

                                 (515) 247-5111
              (Registrant's telephone number, including area code)

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
    230.425)
[ ] Soliciting  material pursuant to Rule 14a-12 under the Exchange Act (17  CFR
    240.14a-12)
[ ] Pre-commencement  communications  pursuant  to  Rule 14d-2(b) under the
    Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
    Act (17 CFR 240.13e-4(c))

                               ------------------
ITEM 2.02.  RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On  April  30,  2007,   Principal   Financial  Group,  Inc.  publicly  announced
information  regarding its results of operations and financial condition for the
quarter ended March 31, 2007. The text of the announcement is included  herewith
as Exhibit 99.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

99    First Quarter 2007 Earnings Release

                                    SIGNATURE

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                    PRINCIPAL FINANCIAL GROUP, INC.

                                    By:    /s/ MICHAEL H. GERSIE
                                           -------------------------------------
                                    Name:  Michael H. Gersie
                                    Title: Executive Vice President and Chief
                                           Financial Officer

Date:    May 1, 2007

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EXHIBIT 99

RELEASE: On receipt

MEDIA CONTACT:               Jeff Rader, 515-247-7883, rader.jeff@principal.com
INVESTOR RELATIONS CONTACT:  Tom Graf, 515-235-9500,
                             investor-relations@principal.com

       PRINCIPAL FINANCIAL GROUP, INC. REPORTS FIRST QUARTER 2007 RESULTS

Des Moines,  IA (April 30, 2007) - Principal  Financial Group,  Inc. (NYSE: PFG)
today announced net income available to common stockholders for the three months
ended March 31, 2007, of $257.1 million,  or $0.95 per diluted share compared to
$285.7 million,  or $1.01 per diluted share for the three months ended March 31,
2006.  The  company  reported  operating  earnings  of $236.8  million for first
quarter  2007,  compared to $240.2  million for first  quarter  2006.  Operating
earnings per diluted share (EPS) for first  quarter 2007 were $0.87  compared to
$0.85 for the same period in 2006.(1)

"We were very  pleased  with our core asset  management  and asset  accumulation
businesses,  where  continued  strong  execution drove strong  performance,  but
disappointed with first quarter results for our insurance businesses, which were
heavily  impacted by unfavorable  claims  experience,"  said J. Barry  Griswell,
chairman and chief executive officer.

"Earnings  in our U.S.  and  international  asset  management  and  accumulation
segments  improved 13 percent from a year ago, to $198 million  combined,"  said
Griswell.  "Full  service  accumulation  earnings  improved 15 percent on strong
growth in account values,  reflecting  continued strong sales and retention.  We
also  successfully  completed  our  integration  of WM  Advisors  - mutual  fund
earnings  more than  doubled  from a year ago,  and we  achieved a $1.5  billion
increase in mutual funds  sales,  reflecting  strong early  results from our new
third party distribution, and outstanding growth from our existing channels."

"Reflecting  continued  strong  investment  performance  across  asset  classes,
Principal Global  Investors was awarded $2.2 billion of  institutional  mandates
during the  quarter,  including  a  billion-dollar  international  growth  stock
mandate from Thrivent Investment  Management," said Griswell.  "Principal Global
Investors'  net  cash  flows  were  a  record  $4.4  billion  for  the  quarter,
contributing to $14 billion of net cash flows for the trailing twelve months and
a $52 billion increase in AUM for our asset manager."

"For the full year,  we expect  strong  growth in assets  under  management  and
account values to continue  driving  double-digit  earnings  growth for our core
asset management and accumulation  businesses,"  said Griswell.  "We also expect
results for our Individual Life and Specialty  Benefits  divisions to improve as
claims return to more normal levels.  While this was a difficult quarter for the
Health  division,  returns  are still very  solid,  with a 14 percent  return on
equity for the trailing  twelve  months.  Importantly,  we expect the underlying

                                       3
performance  of the  Health  division  to  improve  as we  continue  to focus on
expenses and improving network discounts."

     "In light of adverse claims  experience in the Health  division,  primarily
     related to high deductible health plans,  we're  establishing total company
     EPS guidance of $3.80 to $3.92 for 2007.(2)  This  compares to the range we
     announced  in  December  2006 of $3.80 to $3.95 per  diluted  share,"  said
     Griswell.  "As always, we're highly focused on building long-term value for
     our  shareholders.  We remain committed to and confident we can achieve our
     longer-term performance objectives - 11 to 13 percent average annual growth
     in EPS, and roughly 50 basis points average annual improvement in operating
     ROE(3)." Additional highlights for first quarter 2007 include:

o    Record operating  revenues of $2,623.7 million compared to $2,353.9 million
     for the same period last year.

o    Record assets under management  (AUM) of $270.1 billion,  up $64.8 billion,
     or 32 percent from a year ago(4).

o    Continued strong sales of the company's three key retirement and investment
     products,  including:  $2.5  billion  for mutual  funds;  $2.2  billion for
     organic  full  service  accumulation;   and  $0.5  billion  for  individual
     annuities.

                               SEGMENT HIGHLIGHTS

U.S. ASSET MANAGEMENT AND ACCUMULATION
Segment operating earnings for first quarter 2007 were $178.4 million,  compared
to  $157.8  million  for the same  period  in 2006.  Full  service  accumulation
generated  record earnings of $82.4 million,  compared to $71.4 million in first
quarter 2006, as a result of increased  fees from higher  account  values.  Full
service  accumulation account values were a record $94.9 billion as of March 31,
2007,  compared to $82.5 billion as of March 31, 2006. The mutual funds business
also generated record earnings, $11.8 million for the quarter,  compared to $5.8
million in first quarter 2006,  reflecting  earnings from the company's purchase
of WM Advisors,  Inc.,  which closed  effective  December 31, 2006,  and organic
growth in the business.

Operating  revenues  for the first  quarter  increased  21  percent  to a record
$1,281.7  million  compared to $1,060.6 million for the same period in 2006. The
full service accumulation and mutual fund businesses achieved record revenues in
the first  quarter,  and all  businesses  in the segment  achieved  double-digit
revenue growth compared to first quarter 2006.

Segment  assets under  management  were a record $231.5  billion as of March 31,
2007, up 34 percent from $172.9 billion as of March 31, 2006.

INTERNATIONAL ASSET MANAGEMENT AND ACCUMULATION

Segment operating  earnings for first quarter 2007 were $19.3 million,  compared
to $17.6 million for the same period in 2006 primarily due to higher earnings in
Brazil and Hong Kong.

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Operating  revenues  were $141.3  million for first  quarter  2007,  compared to
$143.4 million for the same period last year as lower sales of payout  annuities
in Chile more than offset higher yields on invested assets and 10 percent growth
in fee revenues.

Segment  assets under  management  were a record  $22.0  billion as of March 31,
2007, up 36 percent from $16.1 billion as of March 31, 2006.(5)

LIFE AND HEALTH INSURANCE
Segment operating  earnings for first quarter 2007 were $45.5 million,  compared
to $70.4 million for the same period in 2006.  Individual Life division earnings
were $15.4  million,  compared to $27.1  million  for first  quarter  2006.  The
decrease from a year ago primarily  reflects  unfavorable death claim costs, net
of reinsurance, and reduced investment income resulting from a lower asset base,
reflecting the division's  release of excess statutory  reserves to corporate in
2006. Health division earnings were $11.8 million, compared to $24.2 million for
first  quarter  2006,  as  unfavorable  experience  related  to prior year claim
development  reduced division earnings by approximately  $15 million.  Specialty
Benefits  division  earnings  were $18.3  million,  a decline of $0.8 million as
growth in premiums for the division  were offset by  unfavorable  claims  costs,
primarily in the group life line.

Operating revenues were $1,212.4 million, a tenth consecutive record quarter for
the  segment,  and an  increase  of five  percent  from the same period in 2006,
primarily due to higher revenues in the Specialty Benefits division.

CORPORATE AND OTHER
Operating losses for first quarter 2007 were $6.4 million, compared to operating
losses of $5.6  million for the same  period in 2006.  Higher  interest  expense
related to the company's  fourth quarter 2006 debt issuance,  was  substantially
offset by higher  operating  earnings  from  joint  venture  real  estate  sales
activity.

DISCLOSURES RELATED TO GUIDANCE
The company  also expects 2007 net income  available to common  stockholders  to
range from $3.60 to $3.75 per diluted  share.  This range reflects the company's
estimate for operating  earnings per diluted  share,  adjusted for the company's
estimate of mortgage and credit losses only for the remainder of the year. There
are a number of items the  company  does not  predict  that could  significantly
affect net income  available to common  stockholders and net income available to
common  stockholders  per  diluted  share,   including,   but  not  limited  to:
mark-to-market  on  derivatives;  changes to laws,  regulations,  or  accounting
standards; and gains or losses from discontinued  operations.  Guidance for 2007
incorporates certain  assumptions,  including domestic equity market performance
improvement of roughly two percent per quarter.  Guidance  speaks only as of the
date it is made. The company does not undertake to update annual guidance during
the  year,  but may do so if  significant  changes  occur  in  general  business
conditions or company  operations.  Company  guidance does not  contemplate  any
acquisition or divestiture  activity other than where a definitive agreement has
been signed by the company and publicly announced.

                                       5
FORWARD LOOKING AND CAUTIONARY STATEMENTS
This press  release  contains  forward-looking  statements,  including,  without
limitation,  statements  as to sales  targets,  sales and earnings  trends,  and
management's  beliefs,  expectations,  goals and opinions.  The company does not
undertake to update these statements, which are based on a number of assumptions
concerning future conditions that may ultimately prove to be inaccurate.  Future
events and their effects on the company may not be those anticipated, and actual
results  may  differ   materially   from  the  results   anticipated   in  these
forward-looking  statements.  The risks,  uncertainties  and factors  that could
cause or contribute to such material  differences are discussed in the company's
annual  report on Form 10-K for the year ended  December 31, 2006,  filed by the
company  with  the   Securities  and  Exchange   Commission.   These  risks  and
uncertainties include,  without limitation:  competitive factors;  volatility of
financial  markets;  decrease in ratings;  interest rate  changes;  inability to
attract and retain sales representatives;  international business risks; foreign
currency  exchange  rate  fluctuations;  a pandemic,  terrorist  attack or other
catastrophic  event;  default  of  the  company's  re-insurers;  and  investment
portfolio risks.

SHARE REPURCHASES
On November 28, 2006, the Board  authorized the repurchase of up to $250 million
of the company's  outstanding common stock. Share repurchase activity under this
program began in January 2007. As of March 31, 2007, the company had repurchased
1.6 million shares under this program, at a cost of $100 million.

USE OF NON-GAAP FINANCIAL MEASURES
The  company  uses a number  of  non-GAAP  financial  measures  that  management
believes are useful to investors  because they  illustrate  the  performance  of
normal,  ongoing operations,  which is important in understanding and evaluating
the  company's  financial  condition  and results of  operations.  They are not,
however, a substitute for U.S. GAAP financial measures.  Therefore,  the company
has  provided  reconciliations  of the  non-GAAP  measures to the most  directly
comparable U.S. GAAP measure at the end of the release. The company adjusts U.S.
GAAP measures for items not directly related to ongoing operations.  However, it
is possible these  adjusting  items have occurred in the past and could recur in
the future reporting  periods.  Management also uses non-GAAP  measures for goal
setting, determining employee and senior management awards and compensation, and
evaluating  performance  on a basis  comparable  to that used by  investors  and
securities analysts.

EARNINGS CONFERENCE CALL
At 9:00 A.M. (CST) tomorrow,  Chairman and CEO J. Barry Griswell,  President and
COO Larry Zimpleman,  and Executive Vice President and CFO Mike Gersie will lead
a discussion of results during a live  conference  call.  Parties  interested in
listening to the  conference  call live may access the webcast on the  company's
Investor Relations (IR) website (www.principal.com/investor) or by dialing (800)
374-1609 (U.S. callers) or (706) 643-7701  (International callers) approximately
10 minutes  prior to the start of the call.  To access the call,  leader name is
Tom Graf. Listeners can access an audio replay of the call on the IR website, or
by calling  (800)  642-1687  (U.S.  callers)  or (706)  645-9291  (International
callers).  The access code for the replay is 3510915.  Replays will be available
through May 8, 2007.  The  financial  supplement  is currently  available on our
website and may be referred to during the conference call.

ABOUT THE PRINCIPAL FINANCIAL GROUP
The Principal  Financial Group(R) (The Principal (R))(6) is a leader in offering
businesses,  individuals  and  institutional  clients A wide range of  financial
products and services,  including retirement and investment  services,  life and
health insurance,  and banking through its diverse family of financial  services

                                       6
companies. A member of the Fortune 500, the Principal Financial Group has $270.1
billion in assets under  management(7)  and serves some 18.2  million  customers
worldwide from offices in Asia, Australia,  Europe, Latin America and the United
States. Principal Financial Group, Inc. is traded on the New York Stock Exchange
under the ticker symbol PFG. For more information, visit WWW.PRINCIPAL.COM.

                                       ###

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SUMMARY OF SEGMENT AND PRINCIPAL FINANCIAL GROUP, INC. RESULTS

                                         OPERATING EARNINGS (LOSS)*
                                                IN MILLIONS
                                    --------------------------------------------

                                            THREE MONTHS ENDED,
                                    --------------------------------------------
SEGMENT                               3/31/07                   3/31/06
--------------------------------------------------------------------------------
U.S. ASSET MANAGEMENT AND
  ACCUMULATION                         $178.4                   $157.8
INTERNATIONAL ASSET MANAGEMENT AND
  ACCUMULATION                           19.3                     17.6
LIFE AND HEALTH INSURANCE                45.5                     70.4
CORPORATE AND OTHER                      (6.4)                    (5.6)
OPERATING EARNINGS                      236.8                    240.2
NET REALIZED/UNREALIZED CAPITAL
  GAINS, AS ADJUSTED                     20.3                     24.9
OTHER AFTER-TAX ADJUSTMENTS               0.0                     20.6
NET INCOME AVAILABLE TO COMMON
  STOCKHOLDERS                         $257.1                   $285.7

                                             PER DILUTED SHARE
                                    --------------------------------------------
                                             THREE MONTHS ENDED,
                                    --------------------------------------------
                                      3/31/07                   3/31/06
                                    --------------------------------------------

OPERATING EARNINGS                     $ 0.87                    $  0.85
NET REALIZED/UNREALIZED CAPITAL
  GAINS, AS ADJUSTED                     0.08                       0.09
OTHER AFTER-TAX ADJUSTMENTS              0.00                       0.07
NET INCOME AVAILABLE TO COMMON
  STOCKHOLDERS                         $ 0.95                    $  1.01
WEIGHTED-AVERAGE DILUTED COMMON
  SHARES OUTSTANDING                   270.9                      281.9

*OPERATING  EARNINGS  VERSUS  U.S.  GAAP (GAAP) NET INCOME  AVAILABLE  TO COMMON
STOCKHOLDERS
Management   uses  operating   earnings,   which  excludes  the  effect  of  net
realized/unrealized  capital gains and losses, as adjusted,  and other after-tax
adjustments, for goal setting, determining employee compensation, and evaluating
performance  on a basis  comparable  to that used by  investors  and  securities
analysts.  Segment operating  earnings are determined by adjusting U.S. GAAP net
income  available to common  stockholders  for net  realized/unrealized  capital
gains and losses,  as  adjusted,  and other  after-tax  adjustments  the company
believes are not indicative of overall  operating  trends.  Note: it is possible
these  adjusting  items  have  occurred  in the past and  could  recur in future
reporting  periods.   While  these  items  may  be  significant   components  in
understanding and assessing our consolidated financial  performance,  management
believes  the   presentation  of  segment   operating   earnings   enhances  the
understanding of our results of operations by highlighting earnings attributable
to the normal, ongoing operations of the company's businesses.

                                       8
PRINCIPAL FINANCIAL GROUP, INC.
                              RESULTS OF OPERATIONS
                                  (IN MILLIONS)
--------------------------------------------------------------------------------
                                                     THREE MONTHS ENDED,
                                                --------------------------------
                                                   3/31/07            3/31/06
                                                ---------------- ---------------
Premiums and other considerations                 $1,107.7           $1,041.8
Fees and other revenues                              592.5              459.6
Net investment income                                923.1              851.9
Net realized/unrealized capital gains                 37.6               48.9
                                                ---------------- ---------------
TOTAL REVENUES                                     2,660.9            2,402.2
                                                ---------------- ---------------
Benefits, claims, and settlement expenses          1,498.0            1,341.8
Dividends to policyholders                            74.0               71.9
Operating expenses                                   754.7              615.2
                                                ---------------- ---------------
TOTAL EXPENSES                                     2,326.7            2,028.9
                                                ---------------- ---------------

Income from continuing operations before
  income taxes                                       334.2              373.3
Income taxes                                          68.9               79.6
                                                ---------------- ---------------
Income from continuing operations, net of
  related income taxes                               265.3              293.7

Income from discontinued operations, net of
  related taxes                                        0.0               0.2
                                                ---------------- ---------------
NET INCOME                                           265.3              293.9
Preferred stock dividends                              8.2                8.2
                                                ---------------- ---------------
NET INCOME AVAILABLE TO COMMON
  STOCKHOLDERS                                    $  257.1           $  285.7

Less:
Net realized/unrealized capital gains, as
  adjusted                                            20.3               24.9
Other after-tax adjustments                            0.0               20.6
                                                ---------------- ---------------
OPERATING EARNINGS                                $  236.8           $  240.2
                                                ================ ===============

                        SELECTED BALANCE SHEET STATISTICS

                                                    PERIOD ENDED,
                                       -----------------------------------------
                                         3/31/07       12/31/06       3/31/06
                                       ----------- ---------------- ------------
Total assets (in billions)              $   146.6       $  143.7     $ 132.0
Total common equity (in millions)       $ 7,565.0       $7,318.8     $7,056.7
Total common equity excluding
  accumulated other comprehensive
  income (in millions)                  $ 6,667.3       $6,471.9     $ 6,417.4
End of period common shares outstanding
  (in millions)                             267.4          268.4         277.6
Book value per common share             $    28.29      $   27.27    $    25.42
Book value per common share excluding
  accumulated other comprehensive
  income                                $    24.93      $   24.11    $    23.12

                                       9
PRINCIPAL FINANCIAL GROUP, INC.
           RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO U.S. GAAP
                       (IN MILLIONS, EXCEPT AS INDICATED)

                                                  THREE MONTHS ENDED,
                                            ------------------------------------
                                                 3/31/07            3/31/06
                                            ------------------- ----------------
DILUTED EARNINGS PER COMMON SHARE:
Operating Earnings                                0.87                0.85
Net realized/unrealized capital gains             0.08                0.09
Other after-tax adjustments                       0.00                0.07
                                            ------------------- ----------------
Net income available to common
  stockholders                                   0.95                 1.01
                                            =================== ================

BOOK VALUE PER COMMON SHARE EXCLUDING
ACCUMULATED OTHER COMPREHENSIVE INCOME:
Book value per common share excluding
  accumulated other comprehensive income         24.93               23.12
Net unrealized capital gains                      3.41                2.43
Foreign currency translation                     (0.10)              (0.09)
Net unrecognized post-retirement benefit
  obligations                                     0.05                -
Minimum pension liability                         -                  (0.04)
                                            ------------------- ----------------

Book value per common share including
  accumulated other comprehensive income         28.29               25.42
                                            =================== ================

OPERATING REVENUES:
USAMA                                         1,281.7             1,060.6
IAMA                                            141.3               143.4
Life and Health                               1,212.4             1,159.6
Corporate and Other                             (11.7)               (9.7)
                                            ------------------- ----------------
Total operating revenues                      2,623.7             2,353.9
Add:  Net realized/unrealized capital
  gains and related fee adjustments              37.2                48.6
Less:  Operating revenues from
  discontinued real estate                        0.0                 0.3
                                            ------------------- ----------------
Total GAAP revenues                           2,660.9             2,402.2
                                            =================== ================

OPERATING EARNINGS:
USAMA                                           178.4              157.8
IAMA                                             19.3                17.6
Life and Health                                  45.5                70.4
Corporate and Other                              (6.4)               (5.6)
                                            ------------------- ----------------
Total operating earnings                        236.8               240.2
Net realized/unrealized capital gains            20.3                24.9
Other after-tax adjustments                       0.0                20.6
                                            ------------------- ----------------
Net income available to common stockholders     257.1               285.7
                                            =================== ================

NET REALIZED/UNREALIZED CAPITAL GAINS:
Net realized/unrealized capital gains,
  as adjusted                                    20.3                24.9
Add:
   Amortization of DPAC and sale inducement
     costs                                        0.7                 0.6
   Capital gains distributed                      2.0                 3.6
   Tax impacts                                   12.9                15.9
   Minority interest capital gains                1.3                 3.6
Less related fee adjustments:
   Unearned front-end fee income                  0.4                 0.6
   Certain market value adjustments to
     fee revenues                                (0.8)               (0.9)
                                            ------------------- ----------------
GAAP net realized/unrealized capital gains       37.6                48.9
                                            =================== ================

OTHER AFTER TAX ADJUSTMENTS:
IRS Audit Issue                                   -                  20.6
                                            ------------------- ----------------
Total other after-tax adjustments                 0.0                20.6
                                            =================== ================

                                       10
------------------------
(1)  Use of non-GAAP  financial  measures is  discussed  in this  release  after
     Segment Highlights.
(2)  Disclosures related to guidance are discussed in this release after Segment
     Highlights.
(3)  Operating return on average equity excluding other comprehensive income
(4)  Total  company  AUM,  as  well  as AUM in the  U.S.  Asset  Management  and
     Accumulation  segment,  includes assets under management from the company's
     acquisition of WM Advisors,  Inc.,  which were $27.9 billion as of closing,
     effective Dec. 31, 2006.
(5)  Includes $2.2 billion of AUM from operations  acquired during first quarter
     2007 by CIMB-Principal , the company's joint venture in Malaysia.
(6)  "The Principal  Financial Group" and "The Principal" are registered service
     marks of Principal  Financial  Services,  Inc.,  a member of the  Principal
     Financial Group.
(7)  As of March 31, 2007

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