Wells Fargo & Company (NYSE:WFC) Issues Earnings Results

Wells Fargo & Company (NYSE:WFC) released its quarterly earnings data on Tuesday. The financial services provider reported $1.87 earnings per share for the quarter, beating the consensus estimate of $1.85 by $0.02, FiscalAI reports. Wells Fargo & Company had a return on equity of 13.85% and a net margin of 17.55%. The company had revenue of $21.87 billion for the quarter, compared to analyst estimates of $22.31 billion. During the same period in the prior year, the company posted $1.66 EPS. The company’s revenue was up 2.0% compared to the same quarter last year.

Here are the key takeaways from Wells Fargo & Company’s conference call:

• Strong third-quarter performance: EPS rose 13% year over year to $1.87, revenue increased 2%, and ROTCE improved to 16.3%, moving closer to Wells Fargo’s 17%-18% target.
• Balance-sheet momentum remained broad-based, with average loans and deposits both up 11% year over year. Management expects fourth-quarter net interest income of approximately $13 billion and reaffirmed full-year 2026 NII guidance of about $50 billion.
• Growth investments are gaining traction across businesses: wealth and investment management revenue rose 12%, commercial banking revenue increased 6%, and investment-banking areas such as M&A and equity-capital-markets fees grew 30% and 33%, respectively.
• Credit quality remains solid, with total net charge-offs declining to 38 basis points, consumer charge-offs falling to 70 basis points, and commercial losses at 18 basis points. The company also returned $2.5 billion through share repurchases and raised its dividend to $0.50 per share.
• Markets revenue was roughly flat year over year and weaker than expected late in the quarter as sharp interest-rate moves reduced fixed-income valuations and client activity. Management also expects equity-security gains to remain low in the fourth quarter, while acknowledging risks from persistent inflation, higher rates, commercial real estate valuations, and potential leverage in the AI infrastructure investment cycle.

Wells Fargo & Company Price Performance

Wells Fargo & Company stock opened at $80.82 on Wednesday. The business’s fifty day moving average is $85.58 and its two-hundred day moving average is $83.25. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.90 and a current ratio of 0.90. The firm has a market cap of $244.40 billion, a P/E ratio of 11.89, a P/E/G ratio of 0.89 and a beta of 0.96. Wells Fargo & Company has a 52 week low of $72.78 and a 52 week high of $97.76.

Wells Fargo & Company Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Friday, August 7th were paid a $0.50 dividend. This is an increase from Wells Fargo & Company’s previous quarterly dividend of $0.45. This represents a $2.00 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend was Friday, August 7th. Wells Fargo & Company’s payout ratio is presently 29.07%.

Wall Street Analysts Forecast Growth

WFC has been the subject of several analyst reports. The Goldman Sachs Group set a $94.00 target price on Wells Fargo & Company in a research report on Tuesday. Robert W. Baird upped their price target on Wells Fargo & Company from $85.00 to $92.00 and gave the company a “neutral” rating in a research report on Wednesday, July 15th. Morgan Stanley upgraded Wells Fargo & Company from an “equal weight” rating to an “overweight” rating and set a $102.00 price target on the stock in a research report on Monday, October 5th. Weiss Ratings reiterated a “buy (b)” rating on shares of Wells Fargo & Company in a research note on Friday, July 17th. Finally, TD Cowen began coverage on Wells Fargo & Company in a report on Thursday, October 8th. They set a “buy” rating and a $95.00 price objective for the company. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $99.36.

Key Headlines Impacting Wells Fargo & Company

Here are the key news stories impacting Wells Fargo & Company this week:

• Positive Sentiment: Wells Fargo reported third-quarter EPS of $1.87, ahead of the $1.85 consensus, while net income rose 6% year over year to approximately $5.95 billion. Average loans and deposits each increased 11%, and noninterest expense declined 1%, supporting profitability. Wells Fargo profit rises on robust loan growth, interest income
• Positive Sentiment: Management cited resilient consumers and businesses, with revenue growth across consumer banking, commercial banking, investment banking and wealth management. Morgan Stanley reiterated its Buy rating, pointing to a favorable net interest income trajectory and longer-term growth potential, although it modestly reduced its price target to $101. Wells Fargo analyst rating and price target
• Neutral Sentiment: Wells Fargo is preparing to join a consortium that may launch a U.S. dollar stablecoin in the first half of 2027. The initiative could create payments opportunities, but CEO Charlie Scharf acknowledged that near-term use cases remain uncertain. Wells Fargo stablecoin plans
• Negative Sentiment: Revenue was $21.87 billion, below the $22.31 billion analyst estimate, while net interest income of $12.52 billion missed forecasts of $12.66 billion. Trading activity slowed sharply late in September, weighing on revenue. Wells Fargo trading activity slowdown
• Negative Sentiment: Wells Fargo kept its 2026 net interest income outlook at $50 billion and projected fourth-quarter NII of $13 billion, while net interest margin was flat sequentially at 2.43%. Investors viewed the guidance as less bullish than expected, particularly with meaningful rate-related benefits pushed into 2027.
• Negative Sentiment: Credit-loss provisions rose to $1.03 billion from $681 million a year earlier. Management said consumer credit remains healthy but warned that inflation, gas costs and higher rates could eventually weaken borrowers; executives also cautioned that higher rates are pressuring commercial real estate valuations. Wells Fargo credit outlook

Wells Fargo & Company Company Profile

Wells Fargo & Company (NYSE: WFC) is a diversified financial services company that provides banking, lending, investment, and wealth management services to individuals, businesses, institutions, and government entities. Its offerings include checking and savings accounts, credit cards, personal and commercial loans, mortgages, payment services, and other deposit and credit products.

The company also provides investment banking, capital markets, brokerage, advisory, asset management, and retirement services through its corporate and investment banking and wealth and investment management businesses.