PNC Financial Services Group's (NYSE:PNC) Q3 Sales Top Estimates

Financial services giant PNC (NYSE:PNC) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 8.9% year on year to $5.92 billion. Its GAAP profit of $4.35 per share was 7.6% above analysts’ consensus estimates.

Is now the time to buy PNC Financial Services Group? Find out by accessing our full research report, it’s free for active Edge members.

Company Overview

Tracing its roots back to 1852 when Pittsburgh's industrial boom demanded stronger financial institutions, PNC (NYSE:PNC) is a diversified financial institution that provides retail banking, corporate banking, and asset management services through a coast-to-coast branch network.

Sales Growth

From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Luckily, PNC Financial Services Group’s revenue grew at a decent 5.8% compounded annual growth rate over the last five years. Its growth was slightly above the average banking company and shows its offerings resonate with customers.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. PNC Financial Services Group’s recent performance shows its demand has slowed as its annualized revenue growth of 1.6% over the last two years was below its five-year trend.

This quarter, PNC Financial Services Group reported year-on-year revenue growth of 8.9%, and its $5.92 billion of revenue exceeded Wall Street’s estimates by 1.8%.

Net interest income made up 61% of the company’s total revenue during the last five years, meaning lending operations are PNC Financial Services Group’s largest source of revenue.

Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.

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Tangible Book Value Per Share (TBVPS)

Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.

Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.

PNC Financial Services Group’s TBVPS grew at a sluggish 2.4% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 17.3% annually over the last two years from $78.40 to $107.84 per share.

Over the next 12 months, Consensus estimates call for PNC Financial Services Group’s TBVPS to grow by 7.9% to $116.33, decent growth rate.

Key Takeaways from PNC Financial Services Group’s Q3 Results

It was encouraging to see PNC Financial Services Group beat analysts’ revenue expectations this quarter. We were also happy its tangible book value per share narrowly outperformed Wall Street’s estimates. On the other hand, its net interest income and net interest margin both missed. Overall, this print was mixed. The market seemed to be hoping for more, and the stock traded down 3.1% to $184 immediately following the results.

Should you buy the stock or not? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.