Results reported October 13, 2026 (before market open) | NYSE: WFC | Banks
The Quick Take
Wells Fargo delivered a steady quarter: earnings beat slightly while revenue fell a little short. Diluted EPS of $1.87 rose 13% from $1.66 and topped the roughly $1.85 consensus. Revenue of $21.87B grew 2% but trailed the roughly $22.35B estimate. Returns improved and loans and deposits both grew 11%, but credit provisions rose and the capital cushion narrowed.
Results
| Metric | Q3 2026 | Q3 2025 | YoY |
|---|---|---|---|
| Net income | $5,951M | $5,589M | +6% |
| Diluted EPS | $1.87 | $1.66 | +13% (consensus about $1.85) |
| Total revenue | $21,870M | $21,436M | +2% (consensus about $22.35B) |
| Net interest income | $12,517M | $11,950M | +5% |
| Noninterest income | $9,353M | $9,486M | -1% |
| Noninterest expense | $13,743M | $13,846M | -1% |
| Provision for credit losses | $1,029M | $681M | +51% |
| CET1 ratio (standardized, preliminary) | 10.0% | 11.0% | -1.0 pt |
| ROE | 13.8% | 12.8% | +1.0 pt |
| ROTCE | 16.3% | 15.2% | +1.1 pt |
| Average loans | $1,033.4B | $928.7B | +11% |
| Average deposits | $1,482.9B | $1,339.9B | +11% |
What Drove the Quarter
- Balance sheet growth: Average loans and deposits both rose 11%, and average assets reached about $2.24T, up 12%.
- Net interest income: Up 5% on higher volumes.
- Cost discipline: Noninterest expense fell 1%, with savings funding investment elsewhere.
- Buybacks: The bank repurchased 28.6 million shares, or $2.5B, which helped EPS grow faster than net income.
What Management Said
CEO Charlie Scharf said the results “reflect broad-based growth, higher earnings, and stronger returns,” and that the bank will “continue to remain vigilant about risk as we build for the long term.”
Why the Numbers Matter
EPS growth of 13% against revenue growth of 2% shows the effect of cost control and buybacks, not a surge in the business. That is a legitimate way to build returns, and ROTCE of 16.3% is the best evidence. The two soft spots are the 51% rise in credit loss provisions and the one-point drop in the CET1 ratio to 10.0%, which gives less room to keep buying back stock at the current pace while growing the balance sheet.
Risks
- Provisions grew far faster than revenue; if consumer or commercial credit weakens, earnings feel it quickly.
- CET1 at 10.0% is lower than a year ago, which may limit buybacks.
- Noninterest income declined 1%, so fee growth is not offsetting interest rate sensitivity.
- Revenue missed the Street, and growth of 2% is modest.
Recommendation: BUY
Wells Fargo is still in a self-improvement phase, with returns climbing, expenses falling and the balance sheet growing at double digits. Valuation tends to lag the large peers, which leaves room for re-rating if returns hold above mid-teens. Position sizing should reflect the credit and capital watch-points above.
This is educational analysis, not personalized investment advice. Do your own research before investing.
Sources: Wells Fargo Q3 2026 earnings release (SEC Form 8-K); 24/7 Wall St. earnings calendar for consensus estimates. Consensus figures vary slightly by provider.
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