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PNC (PNC) reported record Q4 results and issued upbeat 2026 guidance that surpassed market expectations, driving shares sharply higher. The bank enters 2026 with significant momentum following the completion of its FirstBank acquisition, forecasting robust revenue and loan growth while planning to increase its quarterly share repurchase activity to as much as $700 mln in 1Q26.

• Total Q4 revenue reached a record $6.1 bln, representing 3% growth compared to Q3.
• Net interest income (NII) grew 2% to $3.7 bln, driven by lower funding costs and a net interest margin that expanded 5 bps to 2.84%.
• Average loans rose 1% to $328 bln, while average deposits grew 2% to $440 bln.
• Credit quality remained strong with net loan charge-offs of $162 mln, or 20 bps, which was a sequential decrease of $17 mln.
• FY26 guidance projects 8% average loan growth and an 11% increase in total revenue, including a 14% jump in NII.

Briefing.com Analyst Insight:

Investors are applauding PNC's record performance and bullish 2026 outlook. The acquisition of FirstBank is a major catalyst, expanding PNC's footprint into high-growth Colorado and Arizona markets and adding about $1 per share to 2027 earnings. CEO Bill Demchak highlighted "substantial momentum" fueled by record technology and AI investments aimed at optimizing existing business lines. Key tailwinds include a resilient economy with 2% real GDP growth and stable unemployment. Management’s decision to hike share repurchases to a $700 mln quarterly pace signals strong capital flexibility. By successfully executing its "National Main Street Bank" strategy, PNC is outperforming regional peers through scale and efficiency. The shift toward a 3% NIM by late 2026 further supports the bull case as loan demand recovers. The projected 400 bps of positive operating leverage for 2026 is particularly impressive as it is being achieved primarily on a standalone basis while absorbing significant investment costs. Furthermore, the stabilization of commercial real estate balances and anticipated moderate growth in that segment remove a key overhang that has recently plagued the broader banking sector.