PNC Financial stock dips after Q3 NII, Q4 guidance disappoint

[The PNC bank logo on the side of a building, Pittsburgh, Pennsylvania, USA]
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PNC Financial Services (NYSE:PNC [https://seekingalpha.com/symbol/PNC]) stock slid 3.1% in Wednesday premarket trading after the bank issued soft guidance for Q4 net interest income after Q3 NII fell slightly short of the consensus estimate. Q3 EPS and revenue, though, both beat Wall Street expectations.

The bank expects Q4 net interest income growth of ~1.5% from Q3's $3.65B. That implies Q4 2025 NII of $3.70B vs. the Visible Alpha consensus of $3.72B. Total revenue is expected to be stable to down 1% from Q3's $5.92B vs. the average analyst estimate of $5.92B.

Q3 GAAP EPS of $4.35, [https://seekingalpha.com/pr/20266207-pnc-reports-third-quarter-2025-net-income-of-1_8-billion-4_35-diluted-eps] vs. the average analyst estimate of $4.04, rose from $3.85 in Q2 and $3.49 in last year’s Q3.

Q3 revenue of $5.92B, topping the 5.81B consensus, increased from $5.66B in the prior quarter and $5.43B a year ago.

"Fee income grew 9% and expenses were well-controlled, which contributed to another quarter of positive operating leverage. Credit performed well, and we continued to build on our strong capital levels," said PNC Chairman and CEO Bill Demchak.

Net interest income of $3.65B, just short of the Visible Alpha estimate of $3.66B, grew from $3.56B in Q2 and $3.41B in Q3 2024.

Provision for credit losses dropped to $167M from $254M in the previous quarter and $243M a year ago.

Noninterest expense of $3.46B vs. $3.38B in Q2 and $3.33B in last year’s Q3.

Average loans grew to $325.9B from $322.8B in Q2. Average deposits of $431.8B compared with $423.0B in the previous quarter.

Conference call [https://investor.pnc.com/news-events/events-presentations]at 11:00 AM ET.

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* The PNC Financial Services Group, Inc. (PNC) Presents At Barclays 23rd Annual Global Financial Services Conference (Transcript) [https://seekingalpha.com/article/4821220-the-pnc-financial-services-group-inc-pnc-the-financial-services-group-inc-presents-at]
* PNC Financial: Limited Upside In 2025 [https://seekingalpha.com/article/4804889-pnc-financial-limited-upside-in-2025]
* PNC Financial GAAP EPS of $4.35 beats by $0.31, revenue of $5.92B beats by $110M [https://seekingalpha.com/news/4504179-pnc-financial-gaap-eps-of-4_35-beats-by-0_31-revenue-of-5_92b-beats-by-110m]
* Expect Q3 bank earnings to reflect increased IPOs, M&A ; watch for NII guidance [https://seekingalpha.com/news/4503645-expect-q3-bank-earnings-to-reflect-increased-ipos-ma-watch-for-nii-guidance]