PNC US S&P 500Russell 1000 Earnings call · transcribed from the recording
PNC Financial Services (PNC) · Q3 2026 results and valuation
Share price: $232.00 · 2026-11-11
PNC Financial Services Group, Inc. is a financial institution that provides banking services, including managing deposits, loans, and investment securities. The company serves customers and counterparties in the United States and global financial markets. Source: 10-K annual report (2026-02-20)
Results Q3 2026 vs Q2 2026 · previous quarter · published 15 Oct 2026 and 15 Jul 2026
Management sounded cautious, in its script and in answers to analysts.
1 · Numbers
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No financial figures for this pair
Outlook given
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Figure
Expansion markets have added approximately 500 new client relationships year-to-date, contributing materially to a 5% average C&IB loan growth during…
Valuation
Is PNC Financial Services undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 3.0% growth a year (3-year revenue growth), the model's fair value is $234.12 a share — the stock trades 1% below it. Today's price assumes 2.9% growth a year.
Current price
$232.00
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+2.9% for 10 yrs
Fair value / share
$234.12
Buy below
$175.59
Price vs fair value
Undervalued 1%
Price vs buy-below price
Overvalued 32%
Read between the lines
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Guidance
Taking the component pieces of revenue together, PNC Financial Services expects total revenue to be up approximately 13.7%.
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Figure
As you saw, PNC Financial Services generated $2.1 billion of net income or $5.09 per diluted share as adjusted, while delivering a return on tangible common equity of more than 18%.
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Figure
Through the first 9 months of the year, PPNR increased $1.2 billion or 17% compared to the same period last year, driving 19% growth in diluted EPS.
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Figure
During the quarter, PNC Financial Services returned $1.4 billion of capital to shareholders, which included approximately $800 million of common dividends and $560 million of share repurchases.
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Figure
PNC Financial Services remains focused on expense management, and it is on track to reach its goal to reduce costs by $350 million in 2026 through its continuous improvement program, which, as a reminder, is independent of the FirstBank acquisition.
4 more
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Guidance
When PNC Financial Services goes forward, into the fourth quarter, its calculation is to reach 3 or higher on NIM, even though it doesn't give NIM guidance.
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Figure
When PNC Financial Services looks at it, clearly, in '27, it will exceed in net interest income, its annualized run rate of what it projects to finish 2026 in.
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Figure
One is 50% of PNC Financial Services' loan growth occurred in the last 2 weeks of the quarter.
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Key theme
The modest decline in net interest margin was largely a function of the mix in loan growth and to a lesser extent, increased funding costs.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“All of our businesses are experiencing robust growth, in part driven by the high growth rates of our expansion markets and most recently, the successful conversion of FirstBank.”
“In regard to loans overall, Spot loans grew $11 billion in the quarter, contributing to the strong loan growth we've had throughout the year, all of which substantially exceeded what...”
“Expansion markets have added approximately 500 new client relationships year-to-date, contributing materially to a 5% average C&IB loan growth during the quarter, a 17% growth year-over-year.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q3 2026not yet filed | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | — | 6.88B | 5.92B | ||
| Operating income | — | 2.59B | 2.29B | ||
| Net income | — | 2.04B | 1.81B | ||
| EPS | — | 4.81 | 4.35 | ||
| P/E today 12.0 | — | 13.6 | — | 13.0 | — |
Topics
Most discussed now
- Quarter net interest income of $4.2 billion increased approximately $100 million or 2%, and driven by commercial loan growth...
- PNC Financial Services remains well positioned for a rising rate environment, which will support net interest income, capital generation…
- PNC Financial Services generated positive operating leverage and grew PPNR.
- The increase was primarily driven by the pull-through of previously reserved CRE office loans as well as one large commercial...
- New On the AOCI front, naturally, you got to think about the Basel III rules that are just around the corner...
Faded since Q2 2026
- Fading Cautionary statements about this information, as well as reconciliations of non GAAP measures are included in today's earnings release…
- Fading Average deposit balances of $457 billion were stable consistent with seasonal patterns.
- Fading The total average loan yield decreased 3 basis points linked quarter to 5.47%.
- Fading Virtually all of the loan growth was in C and I, reflecting strong new production and higher utilization across...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Other events · SEC 8-K
The PNC Financial Services Group, Inc. completed the public offer and sale of $1,200,000,000 in 5.463% Fixed Rate/Floating Rate Senior Notes and $300,000,000 in Senior Floating Rate Notes due October 23, 2029.
- Regulation FD disclosure · SEC 8-K
PNC reported diluted earnings per share of $4.97 and total loans of $372.2 billion, which increased 14% year-over-year.
- Results of operations · SEC 8-K
- Other events · SEC 8-K
PNC Financial Services Group, Inc. announced the redemption of 525,000 Depositary Shares of Series S Preferred Stock at a price of $1,000 per share on November 2, 2026.
- Other events · SEC 8-K
- Regulation FD disclosure · SEC 8-K
The PNC Financial Services Group, Inc. held a conference call on July 15, 2026, regarding its second-quarter 2026 earnings and business results.
- Results of operations · SEC 8-K
PNC Financial Services Group, Inc. issued a press release on July 15, 2026, regarding its earnings and business results for the second quarter of 2026.