PNC Financial (PNC) Goes on the Offensive as Stock Buybacks Accelerate

PNC Financial (PNC) is executing at a high level, as shown in its recently reported Q4 results, and I believe the stock still offers meaningful upside — more so following the post-earnings stock plunge. I’m bullish on this “superregional” bank as a top pick for 2026, supported by strong recent performance, a disciplined expansion strategy, an attractive valuation, and consistent shareholder returns through a growing dividend and stepped-up share repurchases.

What is PNC Financial? 

PNC is a time-tested financial institution with deep roots dating back to 1845, when it was founded as the Pittsburgh Trust and Savings Company in Pittsburgh, Pennsylvania, where it remains headquartered today.

Now a leading “superregional” bank, PNC operates more than 2,200 branches across 27 states and Washington, D.C., and maintains a presence in each of the top 30 U.S. markets. The company ranks among the 10 largest U.S. banks by assets, ending Q4 2025 with $573 billion in total assets. PNC offers a broad suite of financial services, spanning consumer and commercial banking, asset management, and investment banking, among others.

Bold Ambitions Supported by Measured Approach  

Earlier this month, the company closed on its $4.1 billion acquisition of FirstBank, which will help the company further scale its business and boost its presence in the southwestern U.S. PNC has a track record of successful acquisitions over the years, making over 65 acquisitions over the past three decades, including major acquisitions such as National City Bank, RBC USA, and BBVA USA (BBVA) since 2008. CEO Bill Demchak says that the company has “ambitions of being a national coast-to-coast bank.” In fact, Demchak’s goal is to double PNC’s size.

Demchak is measured in his approach to these ambitions, explaining that the bank isn’t counting on acquisitions because PNC is experiencing faster organic growth than it ever has and onboarding more clients than ever before by expanding from slower-growing markets in the Northeast and Midwest into faster-growing Sun Belt markets like Colorado, Texas, and Florida while gaining share in these markets.  

Record Results 

PNC may be nearly 180 years old, but that hasn’t stopped it from delivering record performance in its latest quarter. The bank reported an all-time high quarterly revenue of $6.07 billion, representing an impressive 9% year-over-year increase, while earnings surged 25% from the prior year. Management’s outlook for 2026 remains equally encouraging, with guidance calling for 14% net interest income growth, roughly 8% loan growth, and overall revenue growth of 11%.

Even with these standout results and a strong forward outlook, PNC shares continue to trade at a reasonable valuation—something we’ll cover next.

Attractive Valuation 

PNC stands out as a compelling value opportunity. The stock trades at just over 12x projected 2026 earnings, or roughly half the market’s forward multiple. By comparison, the S&P 500 (SPX) currently trades around 22x forward earnings. That discount not only provides meaningful downside support but also leaves room for upside if PNC’s valuation expands as the market rewards its growth and improving fundamentals.

PNC also appears reasonably valued relative to its sector. The stock trades at 13.22x non-GAAP earnings, modestly above the sector median of 11.82x, but its valuation becomes more compelling on a forward basis, with PNC priced at 11.95x forward earnings, nearly in line with the sector median of 11.20x.

Escalating Returns to Shareholders 

PNC also shines as a shareholder-friendly income play. With a dividend yield of 3.1%, the stock offers nearly triple the yield of the broader market at a time when the S&P 500 (SPX) yields about 1.2%.

The bank’s dividend history further strengthens the case. PNC has paid a dividend for 36 consecutive years and raised it for 15 straight years—exactly the kind of consistency that dividend-focused investors look for. With a conservative payout ratio just under 40%, PNC has ample flexibility to continue growing the dividend over time.

Beyond dividends, PNC is also leaning into share repurchases. CEO Bill Demchak has said the company will be “pretty aggressive” with buybacks in 2026, and management expects to repurchase $600–$700 million of stock in the first quarter alone. If that pace continued through the year—even at the low end—it would translate to roughly $2.4 billion in buybacks in 2026, reducing shares outstanding by about 3%.

Buybacks can be a powerful driver of shareholder value by lifting earnings per share, increasing ownership percentage for remaining shareholders, and often signaling management’s belief that the stock is undervalued.

Is PNC Stock a Buy, According to Analysts?

Turning to Wall Street, PNC earns a Moderate Buy consensus rating based on nine Buys, three Holds, and one Sell rating assigned in the past three months. The average PNC stock price target of $247.25 implies 12% upside potential in 2026.

See more PNC analyst ratings

A Time-Tested Bank With Undervalued Upside

PNC may be nearly 180 years old, but its outlook remains strong. I’m bullish on PNC Financial as a top pick for the year ahead, supported by outstanding recent results, CEO Bill Demchak’s ambitious yet disciplined strategy to build a nationwide franchise through organic growth and targeted acquisitions, and an attractive valuation with shares trading below 12x earnings. Add in compelling shareholder returns—including a growing dividend currently yielding 3.1% and an accelerating pace of share repurchases—and PNC stands out as a well-rounded opportunity.