Wells Fargo Earnings Top Estimates on Wealth Strength

Wells Fargo (WFC) reported third-quarter earnings on Oct. 13, 2026, that exceeded profit expectations as growth in wealth and investment-management fees and loan expansion lifted per-share results despite revenue and net interest income falling short of analyst forecasts.

Q3 Results and Operating Performance

For the quarter ended Sept. 30, 2026, Wells Fargo posted net income of $6.0 billion and diluted earnings per share of $1.87, up 13% from a year earlier and above the $1.85 analyst consensus, the company said in a press release. Revenue rose about 2.0% year over year to $21.9 billion but missed estimates, while net interest income (NII)—the interest earned on assets minus interest paid on funding—increased 5.0% to $12.5 billion. The company attributed NII growth to higher loan and investment-securities balances, Markets balance-sheet expansion, and fixed-rate asset repricing, partly offset by lower floating-rate yields, higher deposit costs, and a decline in noninterest-bearing deposits.

Wealth and investment-management revenue grew 12.0% year over year, supporting margins amid tighter interest-income dynamics. Other segments also advanced: Consumer Banking and Lending revenue rose 5.0%, Commercial Banking 6.0%, and Corporate and Investment Banking 3.0%. Investment-banking revenue increased 10.0% to $611 million.

Credit costs rose as the lender expanded its portfolio. The provision for credit losses increased to $1.0 billion from $681 million a year earlier, while net loan charge-offs totaled $983 million, or about 0.4% of average loans on an annualized basis. Management said the increase reflected portfolio seasoning amid balance growth.

Return metrics improved, with return on equity at 13.8%, return on tangible common equity at 16.3%, and an efficiency ratio of 63.0%. CEO Charlie Scharf said, "Our third quarter results reflect broad-based growth, higher earnings, and stronger returns."

Balance Sheet Expansion and Capital Returns

Average loans expanded 11.0% year over year to about $1.0 trillion, while average deposits also rose 11.0% to approximately $1.5 trillion, underscoring continued loan growth and funding expansion. These rising balances helped support interest income despite margin compression on some assets.

During the quarter, Wells Fargo repurchased roughly 29 million common shares for $2.5 billion as part of its capital-return program. The buyback, alongside asset growth, reflected management’s focus on expanding earning assets while returning capital to shareholders.

The company disclosed a $170 million discrete tax benefit related to the resolution of prior-period matters. It maintained its previously issued full-year 2026 guidance for net interest income and noninterest expense. The results and related investor materials were filed on Form 8-K with the SEC on Oct. 13, 2026.