10-Q · July 28, 2026
Wells Fargo delivered a strong Q2, with revenue up 5% sequentially and 9% YoY to $22.622B and EPS up 25% on both comparisons to $2.00. Broad-based segment revenue growth, lower sequential expenses, lower charge-offs and…
Earnings analysis · 10-Q
WFC earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
Wells Fargo reported solid year-over-year earnings growth, with revenue up 2% to $21.870 billion, diluted EPS up 13% to $1.87, net interest income up 5%, and lower expenses. Operating momentum was strongest in Consumer…
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Wells Fargo reported solid year-over-year earnings growth, with revenue up 2% to $21.870 billion, diluted EPS up 13% to $1.87, net interest income up 5%, and lower expenses. Operating momentum was strongest in Consumer Banking and Lending and Wealth and Investment Management, while Corporate and Investment Banking net income declined 2% amid weaker trading revenue. The quarter was tempered by a 51% increase in credit-loss provision, lower net interest margin, sequential revenue and EPS declines, and sensitivity to credit, interest-rate and regulatory developments.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.87
What stood out
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EPS grew year over year despite softer quarter
Third-quarter revenue was $21.870 billion, up $434 million, or 2%, from $21.436 billion a year earlier, but down 3% from $22.622 billion in the second quarter. Diluted EPS increased 13% year over year to $1.87 from $1.66, while declining 6% sequentially from $2.00.
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NII growth and lower expenses supported earnings
Net interest income increased $567 million, or 5%, year over year to $12.517 billion, supported by higher loan and securities balances, lower funding costs and balance-sheet growth. Noninterest expense declined $103 million, or 1%, to $13.743 billion, as lower personnel expense and efficiency initiatives offset higher technology expense.
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Consumer Banking delivered broad improvement
Consumer Banking and Lending was the strongest major contributor, with revenue of $10.656 billion, up 5%, and net income of $2.755 billion, up 21%. Its efficiency ratio improved to 58% from 63%, while average loans rose 4% to $342.119 billion.
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Wealth benefited from market valuations
Wealth and Investment Management revenue rose 12% to $4.104 billion and net income rose 19% to $603 million, driven by higher asset-based fees and net interest income. Company-wide client assets increased 11% to $2.739 trillion.
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Loan and deposit balances continued to expand
Period-end loans increased 6% from December 31, 2025, to $1.048 trillion, including commercial loans of $647.145 billion, up 8%, and consumer loans of $400.968 billion, up 4%. Deposits rose 5% to $1.503 trillion, primarily from a $76.147 billion increase in interest-bearing deposits.
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Operating cash generation turned positive
Operating cash flow was $24.785 billion for the first nine months of 2026 versus negative $23.122 billion a year earlier. Investing cash flow was negative $103.900 billion, including $97.377 billion of AFS debt-security purchases and $72.404 billion of net loan originations; the filing does not disclose a conventional free-cash-flow measure.
What to watch
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Credit costs and commercial risk are rising
Provision for credit losses rose 51% year over year to $1.029 billion in the quarter, while criticized commercial and industrial loans increased to $16.9 billion from $15.9 billion at December 31, 2025. Management's weighted economic scenarios include U.S. real GDP declining 0.3% in 2Q 2027 and commercial real-estate prices declining 5.9% year over year.
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Lower rates could pressure NII and margins
Net interest margin declined to 2.43% from 2.61% year over year despite net interest income growth of 5%. The company estimates that an instantaneous 100-basis-point decline in rates would reduce net interest income by $1.9 billion over the next 12 months, while a 200-basis-point decline would reduce it by $4.0 billion.
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Potential Basel changes may constrain capital
The company disclosed a proposed Basel III rule that would replace the current capital approaches with an Expanded Risk-Based Approach. Standardized RWAs increased $46.7 billion from December 31, 2025, to $1.341 trillion, while CET1 was 10.03% versus an 8.50% required minimum, indicating regulatory changes could affect capital flexibility.
Management's outlook
No quantitative revenue or EPS guidance was provided. The filing contains forward-looking discussion of net interest income, credit quality, capital, liquidity, expenses and repurchases, but no numeric company outlook range.
Earlier filings 2
10-Q · April 29, 2026
Wells Fargo reported solid Q1 2026 results with total revenue reaching $21.45 billion, an increase of 6% year-over-year, despite a slight earnings miss against estimates with diluted EPS of $1.60. The company emphasized…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.