10-Q · May 5, 2026
PNC Financial Services Group reported a strong Q1 2026, with net income of $1.8 billion, marking an 18% increase over the prior year. Total revenue increased by 13% year-over-year to $6.2 billion, driven by growth in…
Earnings analysis · 10-Q
PNC earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
PNC delivered strong year-over-year Q3 growth, with revenue up 10.9% to $6.562 billion, diluted EPS up 14.3% to $4.97, and net interest income up 15.3% to $4.206 billion. Retail Banking, Corporate & Institutional…
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PNC delivered strong year-over-year Q3 growth, with revenue up 10.9% to $6.562 billion, diluted EPS up 14.3% to $4.97, and net interest income up 15.3% to $4.206 billion. Retail Banking, Corporate & Institutional Banking, and Asset Management all expanded revenue, while operating cash flow nearly doubled to $7.140 billion for the first nine months. Offsetting positives were a $22.656 billion increase in borrowed funds, a decline in cash and restricted cash, materially greater AOCI losses, and higher net charge-offs and integration costs.
Reported figures
- Earnings per share
- $4.97
- Segment
- Retail Banking revenue was $4.088 billion in Q3 2026 versus $3.840 billion in Q3 2025; net income excluding noncontrolling interests was $1.425 billion versus $1.351 billion.
- Segment
- Corporate & Institutional Banking revenue was $3.192 billion versus $2.995 billion; net income excluding noncontrolling interests was $1.552 billion versus $1.545 billion.
- Segment
- Asset Management Group revenue was $459 million versus $433 million; net income excluding noncontrolling interests was $128 million versus $120 million.
- Segment
- Other activities produced $(1.177) billion of revenue versus $(1.353) billion and $(1.024) billion of net income excluding noncontrolling interests versus $(1.208) billion.
What stood out
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Revenue and EPS accelerated year over year
Q3 revenue increased 10.9% year over year to $6.562 billion from $5.915 billion, while diluted EPS rose 14.3% to $4.97 from $4.35. Net income attributable to common shareholders increased to $2.006 billion from $1.735 billion.
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Net interest income drove growth
Net interest income rose 15.3% to $4.206 billion from $3.648 billion as loan interest income increased to $5.187 billion from $4.751 billion, while total interest expense declined to $2.798 billion from $2.879 billion.
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Broad-based segment revenue growth
All three reportable segments grew revenue: Retail Banking rose to $4.088 billion from $3.840 billion, Corporate & Institutional Banking to $3.192 billion from $2.995 billion, and Asset Management Group to $459 million from $433 million.
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Operating cash flow improved materially
Nine-month operating cash flow increased to $7.140 billion from $3.627 billion. The filing does not disclose a bank-specific free cash flow measure or capital-expenditure figure.
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Loan growth remained strong
Loans increased 14.3% to $378.792 billion from $331.481 billion at December 31, 2025, while deposits grew 5.8% to $466.362 billion from $440.866 billion, supporting balance-sheet expansion.
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FirstBank expanded the franchise
The FirstBank acquisition added $15.177 billion of net loans and $23.076 billion of deposits at acquisition, while PNC incurred $261 million of integration costs during the first nine months of 2026.
What to watch
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Liquidity declined as borrowings increased
Cash, cash equivalents and restricted cash declined to $30.425 billion from $38.871 billion at September 30, 2025, while total borrowed funds increased to $79.757 billion from $57.101 billion at December 31, 2025, raising funding and liquidity sensitivity.
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AOCI losses pressured capital
Accumulated other comprehensive loss worsened to $(6.472) billion from $(3.408) billion at December 31, 2025, driven in part by after-tax nine-month losses of $1.346 billion on debt securities and $1.715 billion on cash-flow hedge derivatives.
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Credit losses and defaults increased
Nine-month net loan charge-offs increased to $736 million from $582 million, and consumer loans subsequently defaulting after financial-difficulty modifications increased to $88 million from $69 million.
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Integration costs remain a headwind
PNC recorded $261 million of FirstBank integration costs for the first nine months, including $245 million in expenses and $16 million in revenue reductions; the acquisition also produced $2.358 billion of preliminary goodwill.
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Loan growth required additional reserves
The allowance for credit losses related to loans increased to approximately $5.4 billion from approximately $5.2 billion at December 31, 2025, primarily due to loan growth, FirstBank balances and updated macroeconomic factors.
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Legal exposure remains uncertain
PNC estimated that reasonably possible legal losses in excess of accrued liabilities were less than $300 million as of September 30, 2026, while noting that the estimate excludes some disclosed matters and may not represent maximum exposure.
Management's outlook
The 10-Q provides no new quantitative revenue or EPS guidance. It states that fourth-quarter 2026 share repurchases are expected to approximate Q3 2026 levels; Q3 repurchases totaled 2.300 million shares under the announced program. The filing also states that the stress capital buffer will remain at the regulatory minimum of 2.5% through December 31, 2027.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.