PNC raises 2026 revenue outlook to $26.264 bn

PNC Financial Services Group reported adjusted third-quarter 2026 earnings of $5.09 a share on Oct. 15, beating the $4.92 analyst consensus in an earnings release.

The bank raised full-year 2026 revenue guidance to about $26.264 billion from $26.102 billion, but the new target remained below the $26.329 billion analyst consensus.

Revenue increased 11% from a year earlier to $6.562 billion, missing Wall Street’s $6.610 billion estimate. GAAP diluted earnings rose to $4.97 a share from $4.35 in the year-earlier quarter.

The earnings beat came from lending income. Net interest income, the spread between what banks earn on assets and pay on funding, rose 15% to $4.206 billion; noninterest income increased 4% to $2.356 billion.

Net interest margin, a measure of lending profitability, improved to 2.94% from 2.79% a year earlier, though it narrowed by 2 basis points from the second quarter. The efficiency ratio, a cost measure where lower is better, fell to 57% from 59%.

Average loans rose 14% year on year to $372.2 billion, led by a 19% increase in commercial lending. Average deposits climbed 7% to $461.2 billion, and investment securities rose 5% to $151.4 billion.

PNC said Corporate & Institutional Banking generated $1.552 billion in earnings, compared with $1.425 billion from Retail Banking and $128 million from Asset Management Group. Corporate & Institutional Banking average loans increased 17%, supported by commercial and industrial lending.

Credit metrics remained part of the earnings mix. PNC recorded a $189 million provision for credit losses, while net loan charge-offs were $257 million, or 0.28% of average loans, including $35 million tied to the transfer of a $1.4 billion student-loan portfolio.

Nonperforming loans stood at $2.2 billion, equal to 0.58% of total loans, and the allowance for credit losses was 1.42%. PNC’s estimated common equity Tier 1 ratio, a core regulatory capital measure, was 9.8%, and its average liquidity coverage ratio was 106%.

The bank returned $1.4 billion to shareholders, comprising $800 million of common dividends and $600 million of share repurchases. Results included $36 million of FirstBank integration costs and a $25 million net loss from Visa-related activity, which together reduced earnings by 12 cents a share.

PNC projected average loans would grow about 13.5% for 2026, with net interest income up 15.5%, noninterest income up 10.5% and total revenue up 13.7%. For the fourth quarter, it expects average loans to rise about 2.5% and net interest income to increase about 4%.

On the earnings call, Chief Executive William Demchak warned that AI agents able to enter customer accounts and initiate transactions were “incredibly unsafe.” He said AI-enabled transactions would need secure connections, authentication, human oversight and clearer liability rules.

Demchak also said a slowdown in artificial-intelligence capital spending could weigh on loan growth even though PNC is not heavily tied to financing data centers directly. He linked AI investment to borrowing demand in energy, transportation and heavy equipment.

PNC shares rose 0.55% to $216.98 at the time of publication on Thursday.

For the fourth quarter of 2026, PNC’s guidance calls for average loans to increase about 2.5% and net interest income to rise about 4%.

The bank expects a fourth-quarter 2026 net interest margin of at least 3%, compared with 2.94% in the third quarter.

For full-year 2026, PNC’s updated outlook implies about $26.264 billion in revenue, average loan growth of about 13.5% and total revenue growth of 13.7%.

Source: news report, Benzinga, Oct. 15, 2026.