We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The PNC Financial Services Group (PNC) Down 3% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for The PNC Financial Services Group, Inc (PNC - Free Report) . Shares have lost about 3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is The PNC Financial Services Group due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
PNC Financial Beats Q1 Earnings on Higher NII After FirstBank Deal
PNC Financial has delivered adjusted earnings per share of $4.32 in the first quarter of 2026, beating the Zacks Consensus Estimate of $4.12 and up from $3.51 a year ago.
Results reflected higher net interest income, a rise in the net interest margin (NIM), and strong loan and deposit growth, aided by the FirstBank acquisition (completed in January 2026). However, higher expenses were headwinds.
Results excluded certain non-recurring charges. After considering those, net income (GAAP basis) was $1.77 billion, which rose 18.2% from the year-ago quarter.
Revenues & Expenses Rise
Quarterly revenue came in at $6.2 billion, up 13% year over year while missing the consensus mark by 0.5%.
NII rose to $4 billion in the quarter, increasing nearly 14% from the year-ago period. PNC’s NIM improved to 2.95%, expanding 17 basis points year over year, as the bank benefited from lower funding costs and loan growth.
Non-interest income totaled $2.2 billion, up 11.5% from the first quarter of 2025, reflecting broader improvement across several fee categories. Within fee income lines, capital markets and advisory revenues rose sharply from last year, while residential and commercial mortgage revenues declined year over year.
Non-interest expenses increased to $3.8 billion, up 11.2% year over year. The rise largely reflected FirstBank’s operating and integration expenses, increased business activity, and continued investments to support growth. PNC incurred $98 million of integration costs (pre-tax) in the quarter related to the FirstBank acquisition, and management noted that expense growth was notably more modest, excluding integration expenses.
The efficiency ratio was 61% compared with 62% in the prior-year quarter.
Loan and Deposit Balance Rises
The balance sheet expansion was notable following the closure of the FirstBank deal. Total loans increased 8.9% sequentially to $360.9 billion, while total deposits climbed 3.8% sequentially to $457.6 billion, aided by acquired balances.
Credit Quality Remained Solid
Total non-performing loans were $2.24 billion, down 2.1% from the year-ago quarter.
Net loan charge-offs were $253 million, up 23.4% from the year-ago quarter. These included $45 million in acquired net loan charge-offs related to certain FirstBank loans. Excluding acquired net loan charge-offs, net charge-offs were $208 million.
The company reported a provision for credit losses of $210 million in the first quarter, down 4.1% from the year-ago quarter. The allowance for credit losses increased to $5.5 billion from $5.22 billion as of March 31, 2025. The allowance for credit losses to total loans ratio was 1.52% compared with 1.64% in the year-ago quarter.
Capital Position & Profitability Ratios
As of March 31, 2026, the Basel III common equity tier 1 capital ratio was 10.1% compared with 10.6% as of March 31, 2025.
Return on average assets and average common shareholders’ equity were 1.19% and 11.92%, respectively, compared with 1.09% and 11.60% in the year-ago quarter.
Capital Return Stayed Robust
In the first quarter of 2026, PNC returned $1.4 billion of capital to shareholders. This included $0.7 billion in common stock dividends and $0.7 billion in common share repurchases. Share repurchase activity in the second quarter of 2026 is expected to be $600-$700 million.
Outlook
Q2 2026
The company expects average loans to increase 2%–3% from the first-quarter 2026 reported figure of $350.9 billion.
Management anticipates net interest income to rise around 3% from the $3.9 billion reported in the first quarter of 2026.
Fee income (non-GAAP) is expected to increase nearly 2.5% from the first-quarter 2026 reported figure of $2.1 billion.
Other non-interest income is projected to be in the range of $150 million to $200 million, compared with $125 million reported in the first quarter of 2026.
Total revenues are expected to rise approximately 3.5% from the $6.2 billion reported in the first quarter of 2026.
Non-interest expenses (excluding one-time integration costs, non-GAAP) are anticipated to increase around 2% from the $3.8 billion reported in the first quarter of 2026.
Net charge-offs are estimated to be around $225 million, compared with $253 million reported in the first quarter of 2026.
2026
Average loans are expected to grow around 11% from the 2025 baseline of $323.4 billion, up from the prior expectation of nearly 8% growth.
NII is projected to increase approximately 14.5% from the 2025 baseline of $14.4 billion, revised upward from the earlier guidance of around 14% growth.
Non-interest income is expected to rise nearly 6% from the 2025 baseline of $8.7 billion.
Total revenues are anticipated to increase about 11% from the 2025 baseline of $23.1 billion.
Adjusted non-interest expenses (excluding one-time integration costs, non-GAAP) are expected to rise nearly 7% from the 2025 baseline of $13.8 billion.
The effective tax rate is estimated to be approximately 19.5%.
Management expects to generate nearly 400 basis points of positive operating leverage in 2026.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
VGM Scores
Currently, The PNC Financial Services Group has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, The PNC Financial Services Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
The PNC Financial Services Group is part of the Zacks Financial - Investment Bank industry. Over the past month, Goldman Sachs (GS - Free Report) , a stock from the same industry, has gained 7.7%. The company reported its results for the quarter ended March 2026 more than a month ago.
Goldman reported revenues of $17.23 billion in the last reported quarter, representing a year-over-year change of +14.4%. EPS of $17.55 for the same period compares with $14.12 a year ago.
Goldman is expected to post earnings of $13.71 per share for the current quarter, representing a year-over-year change of +25.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Goldman. Also, the stock has a VGM Score of D.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
The PNC Financial Services Group (PNC) Down 3% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for The PNC Financial Services Group, Inc (PNC - Free Report) . Shares have lost about 3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is The PNC Financial Services Group due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
PNC Financial Beats Q1 Earnings on Higher NII After FirstBank Deal
PNC Financial has delivered adjusted earnings per share of $4.32 in the first quarter of 2026, beating the Zacks Consensus Estimate of $4.12 and up from $3.51 a year ago.
Results reflected higher net interest income, a rise in the net interest margin (NIM), and strong loan and deposit growth, aided by the FirstBank acquisition (completed in January 2026). However, higher expenses were headwinds.
Results excluded certain non-recurring charges. After considering those, net income (GAAP basis) was $1.77 billion, which rose 18.2% from the year-ago quarter.
Revenues & Expenses Rise
Quarterly revenue came in at $6.2 billion, up 13% year over year while missing the consensus mark by 0.5%.
NII rose to $4 billion in the quarter, increasing nearly 14% from the year-ago period. PNC’s NIM improved to 2.95%, expanding 17 basis points year over year, as the bank benefited from lower funding costs and loan growth.
Non-interest income totaled $2.2 billion, up 11.5% from the first quarter of 2025, reflecting broader improvement across several fee categories. Within fee income lines, capital markets and advisory revenues rose sharply from last year, while residential and commercial mortgage revenues declined year over year.
Non-interest expenses increased to $3.8 billion, up 11.2% year over year. The rise largely reflected FirstBank’s operating and integration expenses, increased business activity, and continued investments to support growth. PNC incurred $98 million of integration costs (pre-tax) in the quarter related to the FirstBank acquisition, and management noted that expense growth was notably more modest, excluding integration expenses.
The efficiency ratio was 61% compared with 62% in the prior-year quarter.
Loan and Deposit Balance Rises
The balance sheet expansion was notable following the closure of the FirstBank deal. Total loans increased 8.9% sequentially to $360.9 billion, while total deposits climbed 3.8% sequentially to $457.6 billion, aided by acquired balances.
Credit Quality Remained Solid
Total non-performing loans were $2.24 billion, down 2.1% from the year-ago quarter.
Net loan charge-offs were $253 million, up 23.4% from the year-ago quarter. These included $45 million in acquired net loan charge-offs related to certain FirstBank loans. Excluding acquired net loan charge-offs, net charge-offs were $208 million.
The company reported a provision for credit losses of $210 million in the first quarter, down 4.1% from the year-ago quarter. The allowance for credit losses increased to $5.5 billion from $5.22 billion as of March 31, 2025. The allowance for credit losses to total loans ratio was 1.52% compared with 1.64% in the year-ago quarter.
Capital Position & Profitability Ratios
As of March 31, 2026, the Basel III common equity tier 1 capital ratio was 10.1% compared with 10.6% as of March 31, 2025.
Return on average assets and average common shareholders’ equity were 1.19% and 11.92%, respectively, compared with 1.09% and 11.60% in the year-ago quarter.
Capital Return Stayed Robust
In the first quarter of 2026, PNC returned $1.4 billion of capital to shareholders. This included $0.7 billion in common stock dividends and $0.7 billion in common share repurchases. Share repurchase activity in the second quarter of 2026 is expected to be $600-$700 million.
Outlook
Q2 2026
The company expects average loans to increase 2%–3% from the first-quarter 2026 reported figure of $350.9 billion.
Management anticipates net interest income to rise around 3% from the $3.9 billion reported in the first quarter of 2026.
Fee income (non-GAAP) is expected to increase nearly 2.5% from the first-quarter 2026 reported figure of $2.1 billion.
Other non-interest income is projected to be in the range of $150 million to $200 million, compared with $125 million reported in the first quarter of 2026.
Total revenues are expected to rise approximately 3.5% from the $6.2 billion reported in the first quarter of 2026.
Non-interest expenses (excluding one-time integration costs, non-GAAP) are anticipated to increase around 2% from the $3.8 billion reported in the first quarter of 2026.
Net charge-offs are estimated to be around $225 million, compared with $253 million reported in the first quarter of 2026.
2026
Average loans are expected to grow around 11% from the 2025 baseline of $323.4 billion, up from the prior expectation of nearly 8% growth.
NII is projected to increase approximately 14.5% from the 2025 baseline of $14.4 billion, revised upward from the earlier guidance of around 14% growth.
Non-interest income is expected to rise nearly 6% from the 2025 baseline of $8.7 billion.
Total revenues are anticipated to increase about 11% from the 2025 baseline of $23.1 billion.
Adjusted non-interest expenses (excluding one-time integration costs, non-GAAP) are expected to rise nearly 7% from the 2025 baseline of $13.8 billion.
The effective tax rate is estimated to be approximately 19.5%.
Management expects to generate nearly 400 basis points of positive operating leverage in 2026.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
VGM Scores
Currently, The PNC Financial Services Group has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, The PNC Financial Services Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
The PNC Financial Services Group is part of the Zacks Financial - Investment Bank industry. Over the past month, Goldman Sachs (GS - Free Report) , a stock from the same industry, has gained 7.7%. The company reported its results for the quarter ended March 2026 more than a month ago.
Goldman reported revenues of $17.23 billion in the last reported quarter, representing a year-over-year change of +14.4%. EPS of $17.55 for the same period compares with $14.12 a year ago.
Goldman is expected to post earnings of $13.71 per share for the current quarter, representing a year-over-year change of +25.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Goldman. Also, the stock has a VGM Score of D.