PNC's Q3 revenue grows slightly less than expected on tepid capital markets activity

PNC Financial Services group

15/10/2026 11:43

Overview
U.S. banking group's Q3 revenue and net interest income grew yr/yr, slightly missed analyst expectations
Adjusted EPS for Q3 rose, driven by higher net interest income and reduced expenses
Company returned $1.4 bln to shareholders via dividends and share repurchases

Outlook
PNC expects Q4 2026 share repurchase activity to approximate Q3 2026 levels

Result Drivers
COMMERCIAL LOAN GROWTH - Co said net interest income rose due to strong new production and increased utilization of commercial loans
LOWER NONINTEREST INCOME - Co said revenue fell qtr/qtr as growth in net interest income was more than offset by lower noninterest income, mainly due to reduced capital markets and advisory revenue
REDUCED EXPENSES - Co said noninterest expense declined qtr/qtr, mainly due to lower compensation expense and continued expense discipline

Company press release: ID:nPn1kPcwRa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
$6.56 bln
$6.61 bln (17 Analysts)
Q3 EPS
 
$4.97
 
Q3 Net Income
 
$2.10 bln
 
Q3 Net Interest Income
Slight Miss*
$4.21 bln
$4.25 bln (12 Analysts)
Q3 Adjusted Net Interest Margin
 
2.94%
 
Q3 CET1 Capital Ratio
 
9.80%
 
Q3 Provision for Credit losses
 
$189 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for The PNC Financial Services Group, Inc. is $275.00, about 27.4% above its October 14 closing price of $215.80
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Oct 14 - US banks post solid third-quarter loan growth, but face more competition for deposits
Oct 15 - Wall St banks caught in capital markets lull after a strong first half of 2026
Oct 13 - Wells Fargo beats profit estimates, but net interest income, revenue fall short

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)