The PNC Financial Services Group (PNC) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $2.1 billion, with diluted EPS of $4.81 and adjusted EPS of $4.85, up 16% sequentially and 25% year-over-year, reflecting strong operating performance and successful FirstBank integration.

• Record revenue of $6.9 billion, up 12% sequentially and 21% year-over-year, driven by growth in net interest and noninterest income.

• $1.3 billion returned to shareholders, including $0.7 billion in dividends and $0.6 billion in share repurchases; dividend increased by 18% to $2.00 per share.

• Positive operating leverage generated through disciplined expense control.

• Credit quality improved across all key indicators.

Financial highlights

• Net interest income rose 4% sequentially and 16% year-over-year to $4.1 billion, benefiting from commercial loan growth and higher noninterest-bearing deposits.

• Noninterest income increased 26% sequentially and 31% year-over-year to $2.8 billion, including a $448 million gain from the Visa exchange program, partially offset by securities losses and foundation contributions.

• Total revenue grew 12% sequentially and 21% year-over-year to $6.9 billion.

• Pretax, pre-provision earnings (PPNR, non-GAAP) up 16% sequentially and 22% year-over-year to $2.8 billion.

• Net interest margin improved to 2.96%, up 1 bp sequentially and 16 bps year-over-year.

Outlook and guidance

• FY26 guidance: average loans up 15–15.5%, net interest income up 14.5%, noninterest income up 9%, total revenue up 13%, noninterest expense up 8.5%.

• 3Q26 guidance: average loans up 1–2%, net interest income up 3–3.5%, fee income down 5–5.5%, noninterest expense down 2–3%.

• Effective tax rate expected at 19.5% for FY26.

• Management expects continued economic expansion in 2026, with real GDP growth of 2.1% and inflation above 3%.

• Federal Reserve policy anticipated to remain unchanged through 2026, with risks skewed toward tighter monetary policy.