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PNC Financial
(NYSE:PNC)
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Rating:72Outperform
Price Target:
$278.00
â–²(10.76% Upside)
Action:Reiterated
Date:07/22/26
The score is driven primarily by solid financial performance (strong profitability and improving cash generation) and favorable technicals (price above key moving averages with positive momentum). Offsetting these are a richer P/E valuation and fundamental watch items around declining revenue and balance-sheet leverage/funding sensitivity, despite upbeat guidance and continued capital returns from the latest earnings call.
Positive Factors
Strong profitability & cash conversion
Sustained high margins and a sharp improvement in operating and free cash flow (both roughly $6.8B TTM) indicate durable earning power and strong cash conversion. This underpins ongoing capital returns, investment in technology, and resilience to cyclical pressure over the next several months.
Negative Factors
Declining revenue trend
Top-line contraction despite margin resilience is a structural concern: declining revenue narrows organic growth options, increases reliance on margin expansion or balance-sheet growth to drive earnings, and could force persistent cost or strategic trade-offs over the 2–6 month horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability & cash conversion
Sustained high margins and a sharp improvement in operating and free cash flow (both roughly $6.8B TTM) indicate durable earning power and strong cash conversion. This underpins ongoing capital returns, investment in technology, and resilience to cyclical pressure over the next several months.
Read all positive factors
PNC Financial Key Performance Indicators (KPIs)
Any
Deposits
Measures the total amount of client deposits, providing insight into the bank's liquidity and funding base. Strong deposit growth can indicate customer trust and a stable source of low-cost capital.
Measures the total amount of client deposits, providing insight into the bank's liquidity and funding base. Strong deposit growth can indicate customer trust and a stable source of low-cost capital.
Data provided by:
The Fly
The FlyPNC Financial (PNC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$99.70B
Dividend Yield2.84%
Average Volume (3M)2.24M
Price to Earnings (P/E)13.7
Beta (1Y)0.92
Revenue Growth3.92%
EPS Growth24.15%
CountryUS
Employees53,859
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)17.23
Shares Outstanding399,000,000
10 Day Avg. Volume2,131,306
30 Day Avg. Volume2,235,217
Financial Highlights & Ratios
PEG Ratio0.60
Price to Book (P/B)1.36
Price to Sales (P/S)2.62
P/FCF Ratio18.76
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$279.97Price Target Upside11.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)18.99
Revenue Forecast (FY)$26.31B
PNC Financial Business Overview & Revenue Model
Company Description
PNC Financial Services Group, Inc. stands as a diversified financial institution operating across the United States. Founded in 1852 and headquartered in Pittsburgh, Pennsylvania, the company maintains an extensive physical footprint, boasting 2,5...
How the Company Makes Money
PNC primarily earns revenue from (1) net interest income and (2) noninterest (fee-based) income. Net interest income is generated by taking in deposits and other funding and deploying those funds into interest-earning assets—such as commercial and...
PNC Financial Earnings Call Summary
Earnings Call Date:Jul 15, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 15, 2026
Earnings Call Sentiment Positive
The call presented a strong quarter with substantial revenue and EPS growth, robust loan growth, broad-based fee income strength, solid credit metrics, and continued capital returns (dividend increase and buybacks). Management acknowledged modest integration and one-time items, some near-term fee and margin volatility, and a temporary increase in wholesale borrowings, but provided constructive full-year guidance (notably NII +15–15.5% and loan growth ~12.5%) and reiterated execution on strategic initiatives. Overall the positives materially outweigh the negatives.Positive Updates
Strong Profitability and EPS
Net income of $2.1 billion and diluted EPS of $4.81 for Q2 2026; adjusted diluted EPS of $4.85 after items that reduced EPS by $0.04.
Negative Updates
Integration and Significant Items Impact
Incurred $127 million of FirstBank integration costs (quarter included ~$121 million of integration expense); combined integration and significant items reduced EPS by $0.04 for the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Profitability and EPS
Net income of $2.1 billion and diluted EPS of $4.81 for Q2 2026; adjusted diluted EPS of $4.85 after items that reduced EPS by $0.04.
Read all positive updates
Company Guidance
PNC’s guidance for 2026 (ex‑FirstBank integration/significant items) calls for full‑year average loan growth of ~12.5%, net interest income up 15–15.5%, noninterest income up ~9%, total revenue up ~13%, noninterest expense up ~8.5%, and an effective tax rate of ~19.5%; the company expects to remain well‑capitalized with an estimated CET1 of ~9.9%, returned $1.3B of capital in Q2 (≈$690M dividends, $610M buybacks) and expects Q3 repurchases to be roughly similar while the Board raised the quarterly dividend $0.30 (18%) to $2.00/share. For Q3 versus Q2, PNC expects average loans +1–2%, NII +3–3.5%, fee income down 5–5.5%, other noninterest income $150–$200M, adjusted noninterest expense down 2–3%, ~ $50M of integration expense and net charge‑offs of ~ $225M; management’s macro assumptions include ~2.1% GDP for 2026, a year‑end unemployment rate of ~4.3%, a stable Fed rate path for 2026, an exit NIM above 3% and an exit ROTCE target near the high‑teens (Q2 ROTCE was 17.9%), with a $350M cost‑reduction goal for 2026.PNC Financial Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.05B | 31.34B | 33.69B | 31.90B | 23.54B | 19.70B |
| Gross Profit | 23.04B | 22.46B | 20.01B | 20.75B | 20.64B | 19.99B |
| EBITDA | 9.18B | 8.58B | 7.50B | 6.95B | 8.12B | 8.76B |
| Net Income | 7.21B | 6.94B | 5.89B | 5.58B | 6.04B | 5.67B |
Balance Sheet | ||||||
| Total Assets | 603.03B | 573.57B | 560.04B | 561.58B | 557.26B | 557.19B |
| Cash, Cash Equivalents and Short-Term Investments | 185.32B | 50.39B | 55.64B | 92.51B | 78.52B | 213.79B |
| Total Debt | 66.67B | 57.10B | 61.67B | 72.74B | 58.71B | 33.00B |
| Total Liabilities | 539.35B | 512.94B | 505.57B | 510.44B | 511.45B | 501.46B |
| Stockholders Equity | 63.63B | 60.59B | 54.42B | 51.10B | 45.77B | 55.70B |
Cash Flow | ||||||
| Free Cash Flow | 6.82B | 4.38B | 7.88B | 10.11B | 9.08B | 7.21B |
| Operating Cash Flow | 6.82B | 4.38B | 7.88B | 10.11B | 9.08B | 7.21B |
| Investing Cash Flow | -25.22B | -15.62B | -3.23B | 10.11B | -60.36B | -2.79B |
| Financing Cash Flow | 11.70B | 4.70B | -9.12B | -3.85B | 3.38B | -3.43B |
PNC Financial Risk Analysis
PNC Financial disclosed 29 risk factors in its most recent earnings report. PNC Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PNC Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $35.70B | 13.26 | 10.66% | 2.40% | 0.50% | 22.74% | |
74 Outperform | $34.43B | 12.53 | 8.58% | 3.57% | 18.13% | -3.57% | |
73 Outperform | $98.17B | 12.58 | 12.49% | 3.25% | 2.42% | 19.99% | |
72 Outperform | $99.70B | 13.74 | 12.34% | 2.83% | 3.92% | 24.15% | |
72 Outperform | $64.59B | 11.76 | 9.01% | 4.02% | 0.36% | 18.53% | |
71 Outperform | $51.21B | 19.09 | 8.43% | 2.79% | 17.75% | -8.65% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
PNC
PNC Financial
249.87
66.82
36.51%
TFC
Truist Financial
51.84
10.31
24.83%
FITB
Fifth Third Bancorp
56.50
16.43
41.00%
HBAN
Huntington Bancshares
17.04
1.36
8.67%
MTB
M&T Bank
246.29
63.44
34.69%
USB
US Bancorp
63.01
20.29
47.51%
PNC Financial Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
PNC Financial Raises $2 Billion Through Senior Notes
Positive
Jul 21, 2026
On July 21, 2026, PNC Financial completed the public offering and sale of $1 billion of 5.463% fixed-to-floating rate senior notes due July 21, 2037 and $1 billion of 4.831% fixed-to-floating rate senior notes due July 19, 2030. The notes were sol...
Business Operations and StrategyM&A Transactions
PNC Finalizes FirstBank Integration, Expanding Western U.S. Presence
Positive
Jun 22, 2026
On January 5, 2026, PNC completed its acquisition of FirstBank Holding Company and later finalized the full customer and branch conversion on June 22, 2026, following the legal merger of FirstBank into PNC Bank on June 18, 2026. The conversion bro...
Private Placements and FinancingRegulatory Filings and Compliance
PNC Financial Completes New Senior Notes Debt Offering
Neutral
May 26, 2026
On May 26, 2026, The PNC Financial Services Group, Inc. completed a public offering of $1.35 billion of 4.618% fixed-to-floating rate senior notes due Oct. 26, 2029, and $300 million of senior floating rate notes due the same date. The notes, issu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.