PNC Eyes Double-Digit Growth In 2026 After Closing Strong Year

PNC Financial Services Group, Inc. (NYSE:PNC) stock rose Friday after the company reported better-than-expected fourth-quarter fiscal 2025 results.

Financial Performance

The bank reported earnings per share of $4.88, surpassing the consensus estimate of $4.21. Simultaneously, its quarterly revenue reached $6.07 billion, exceeding the street’s projection of $5.96 billion.

PNC’s revenue grew 3% quarter-over-quarter (Q/Q). Net interest income (NII) rose 2% Q/Q to $3.73 billion, attributed to a decline in funding costs, loan growth, and the continued benefit of fixed-rate asset repricing.

The net interest margin was 2.84%, a five-basis-point Q/Q increase.

Noninterest income increased 3% Q/Q to $2.34 billion, driven by higher fee income.

Average loans increased 1% Q/Q to $327.9 billion, led by growth in commercial loans. Average deposits of $439.5 billion increased 2% Q/Q, due to commercial and consumer client accounts and activity.

The provision for credit losses was $139 million, down from $167 million in the previous quarter. The CET1 capital ratio stood at 10.6%, down from 10.7% in the prior quarter.

Strategic Initiatives and Shareholder Actions

Chairman and CEO Bill Demchak said, “By virtually all measures, 2025 was a successful year. Strong execution across all business lines resulted in record revenue, well controlled expenses and 21% earnings per share growth. We’re entering 2026 with great momentum and are excited about the opportunities in front of us, including the recently closed acquisition of FirstBank.”

The company’s board declared a quarterly cash dividend of $1.70 per share, payable on February 5 to shareholders of record as of January 20, 2026.

PNC returned $1.1 billion to shareholders in the quarter, which included $700 million in dividends and $400 million in share repurchases.

Outlook

The company expects revenue to grow by 2% to 3% Q/Q, average loans to increase by up to around 5% Q/Q, net interest income to rise by around 6% Q/Q, while fee income is anticipated to decrease by around 1% to 2% Q/Q.

For 2026, PNC anticipates its total revenue to grow by around 11%, net interest income by about 14% and average loans to increase by 8%.

The company expects to generate positive operating leverage of ~400 bps in 2026.

The company expects share repurchases of around $600 million to $700 million in the first quarter of 2026.

PNC Price Action: PNC Financial Services shares were up 3.24% at $222.00 during premarket trading on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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