Regional banking company Pinnacle Financial Partners (NASDAQ: PNFP) fell short of the markets revenue expectations in Q4 CY2025, but sales rose 11.3% year on year to $542.2 million. Its non-GAAP profit of $2.24 per share was 1.1% below analysts’ consensus estimates.
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Pinnacle Financial Partners (PNFP) Q4 CY2025 Highlights:
- Net Interest Income: $407.4 million vs analyst estimates of $411.5 million (12% year-on-year growth, 1% miss)
- Net Interest Margin: 3.3% vs analyst estimates of 3.3% (in line)
- Revenue: $542.2 million vs analyst estimates of $558.4 million (11.3% year-on-year growth, 2.9% miss)
- Efficiency Ratio: 55.8% vs analyst estimates of 53.9% (191.6 basis point miss)
- Adjusted EPS: $2.24 vs analyst expectations of $2.26 (1.1% miss)
- Tangible Book Value per Share: $63.71 vs analyst estimates of $63.56 (12.5% year-on-year growth, in line)
- Market Capitalization: $14.64 billion
"One of the most important measures of success for our recent merger with Synovus is our ability to sustain outsized growth momentum," said M. Terry Turner, Pinnacle's chairman and former chief executive officer.
Company Overview
Founded in 2000 with a focus on delivering big-bank capabilities with community bank personalization, Pinnacle Financial Partners (NASDAQ: PNFP) is a Tennessee-based financial holding company that provides banking, investment, trust, mortgage, and insurance services to businesses and individuals.
Sales Growth
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Luckily, Pinnacle Financial Partners’s revenue grew at a solid 12.5% compounded annual growth rate over the last five years. Its growth beat 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. Pinnacle Financial Partners’s annualized revenue growth of 11.6% over the last two years aligns with its five-year trend, suggesting its demand was stable. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Pinnacle Financial Partners’s revenue grew by 11.3% year on year to $542.2 million but fell short of Wall Street’s estimates.
Net interest income made up 72.3% of the company’s total revenue during the last five years, meaning lending operations are Pinnacle Financial Partners’s largest source of revenue.
Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
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Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
Pinnacle Financial Partners’s TBVPS grew at an incredible 11.3% annual clip over the last five years. The last two years show a similar trajectory as TBVPS grew by 11% annually from $51.71 to $63.71 per share.
Over the next 12 months, Consensus estimates call for Pinnacle Financial Partners’s TBVPS to grow by 3.3% to $65.81, lousy growth rate.
Key Takeaways from Pinnacle Financial Partners’s Q4 Results
We struggled to find many positives in these results. Its revenue missed and its EPS fell a bit short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 1.4% to $100.39 immediately after reporting.
Pinnacle Financial Partners’s earnings report left more to be desired. Let’s look forward to see if this quarter has created an opportunity to buy the stock. 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).
