PNC Financial Services Group Inc (PNC.N): 2Q26 Review - Strong Quarter Meets a High Bar; ‘26 Outlook Improved and Raise PT to $290

Research evidence excerpt

PNC Financial Services Group Inc (PNC.N): 2Q26 Review - Strong Quarter Meets a High Bar; ‘26 Outlook Improved and Raise PT to $290

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20 Jul 2026 05:00:00 ET │ 15 pages

PNC Financial Services Group Inc (PNC.N)

2Q26 Review - Strong Quarter Meets a High Bar; '26 Outlook Improved

and Raise PT to $290

CITI'S TAKE Buy

Short-Term View: Upside, expires 30-JUL-26

PNC lagged on earnings day (up ~0.9% vs BKX up ~1.5%) likely reflective of

Price (17 Jul 26 16:00) US$252.86 a high bar into the print as 2Q results were a ~34c core PPNR beat to

Target price US$290.00↑ expectations, largely driven by stronger cap markets revenues. Excluding

the Visa share gain (~34c impact to full-year estimates), our '26 estimates from US$280.00

move 1% higher on stronger fee revenue outlook. While mgmt raised full- Expected share price return 14.7%

year NII guidance to up 15-15.5% (~1% above cons), the outlook was Expected dividend yield 3.2%

broadly in-line with our estimates leaving our NII largely unchanged. PNC Expected total return 17.9%

was one of few to report lower deposit costs (down 5bps q/q), reflecting Market Cap US$100,891M

the strength of its deposit franchise. Mgmt commentary around deposit

costs retracing back toward 1Q levels compresses our NIM, although

stronger loan growth largely offsets the impact on NII. We raise our PT to

$290 as we roll forward our residual income model. Benjamin GerlingerAC

+1-212-816-3538

benjamin.gerlinger@citi.comEstimate Changes — Our 2026E EPS increases 60c to $19.00 (vs. FactSet

consensus of $18.85), 2027E EPS decreases 5c to $21.00 (vs. FactSet consensus of Mikhail Mrotchek

$21.40), and 2028E EPS increases 10c to $23.35. See Figure 1 for more detail on +1-212-816-2345

estimate revisions. misha.mrotchek@citi.com

Kaili Wang, CFA

+1-716-730-7408