Wells Fargo Earnings Rise on Fee Income, Credit Quality

Wells Fargo & Company reported second-quarter results on July 14, 2026, with earnings rising as higher fee income and improved credit performance offset pressure on net interest margin, while trading desks saw increased activity.

Quarterly Results and Surprise

The company filed a Form 8-K with the Securities and Exchange Commission reporting net income of $6.4 billion for the quarter ended June 30, 2026. GAAP diluted earnings per share were $2.00, with adjusted EPS at $1.96. Total revenue reached $33.6 billion, and revenue net of interest expense was $22.6 billion.

These figures exceeded analysts’ expectations, which had forecast EPS near $1.73–$1.74 and revenue around $21.8 billion, implying an EPS surprise of about 13.3% and a revenue surprise of about 3.8%. Year over year, reported profit rose roughly 17%, adjusted EPS climbed about 27%, and revenue net of interest expense increased 8.7% from the prior year.

Drivers and Outlook

Non-interest revenue, led by fee income, was the primary driver of the upside. The company’s fee income surpassed pre-earnings models, while volatile markets boosted trading-related revenues. Key fee categories included investment advisory and asset-based fees, card fees, investment banking fees, and trading revenues. Consensus had expected non-interest income near $9.5 billion.

Strong loan growth supported net interest income, which helped lift profits despite ongoing pressure on the bank’s net interest margin amid funding costs and rate dynamics. Pre-earnings forecasts had placed net interest income near $12.4 billion. Management previously guided to about $50 billion in full-year net interest income for 2026, targeting mid-single-digit growth. First-quarter net interest income had risen 5% year over year but declined 2% sequentially.

Credit quality improved more than many expected, providing a tailwind that helped offset margin pressure. The bank’s cost discipline continued, with expenses declining and the efficiency ratio improving from roughly 69% to about 67% in recent quarters. Analysts say this trend will influence margin and earnings models going forward.

Post-quarter consensus estimates place third-quarter EPS near $1.83 on about $22.3 billion of revenue and full-year EPS around $6.98–$6.99 on roughly $87.8 billion of revenue. Investors will monitor net interest margin trends, credit quality, and fee or trading activity as markets normalize. Wells Fargo posted earnings materials on its investor-relations page and held its quarterly conference call on July 14.