Wells Fargo Q1 2026 Results Show Revenue Shortfall

Wells Fargo disclosed first-quarter 2026 results in a press release and SEC Form 8-K on April 14, 2026, reporting revenue and net interest income below expectations. Management warned that higher energy prices could reduce consumer spending in the second half of the year.

Quarter Results and Metrics

The company reported total revenue of $21.4 billion, a 6.4% increase year over year but short of forecasts. Net interest income rose 5.2% to $12.1 billion, missing estimates, while the tax-equivalent net interest margin (NIM) declined 20 basis points year over year to 2.47%, and fell 13 basis points sequentially. Management attributed the margin compression to loan and deposit mix, Markets assets, and lower rates, despite growth in loans and deposits supporting interest income.

Net income increased 7.3% to $5.3 billion. Diluted earnings per share (EPS) showed mixed results: adjusted EPS was $1.56, below the $1.58 estimate, while GAAP diluted EPS was $1.60, above consensus. Noninterest income rose about 8% to $9.4 billion, and noninterest expenses increased roughly 3.2% to $14.3 billion. The efficiency ratio improved to 67% from 69% a year earlier, despite higher costs for compensation, advertising, and technology.

Return on assets declined to 0.98% from 1.03% a year earlier, while return on equity rose to 12.2% from 11.5%. Return on tangible common equity reached 14.5%. Nonperforming assets increased 6.6% year over year, a trend the bank said it is monitoring closely.

Outlook and Capital Actions

Management said the sequential decline in net interest income reflected fewer days in the quarter and rate cuts on floating-rate assets. Margin pressure was linked to Markets assets, deposit mix, and lower rates, which the company expects to affect near-term interest-earning results.

CEO Charlie Scharf cautioned that higher energy prices could prompt consumers to reduce spending over several months, likely in the second half of 2026, with uncertain effects on credit performance. The investment-banking outlook entering the second quarter remained strong, supported by a robust pipeline driven by mergers and acquisitions and equity capital markets activity.

The bank returned $4.0 billion through common-stock repurchases and $5.4 billion in total to shareholders during the quarter, maintaining a focus on capital returns despite margin pressures. Management said the common-equity Tier 1 capital target range remains unchanged pending final Basel III rules. The decline in the stress capital buffer reflected changes in credit-risk metrics.