Wells Fargo & Company
WFC · NYSE
Next quarter
Reports Oct 13, 2026.
Consensus is $1.84 EPS for Sep 2026 across 8 estimates, ranging $1.80 to $1.89.
WFC Jun 2026
- 13.29%
- +2.60%
- $1.73
- $1.96
- —
- —
Reported results
- $6.41B
- $2.00
Highlights
- Earnings beat: Reported EPS was $1.96 versus the $1.73 consensus, a 13.29% surprise; GAAP diluted EPS was $2.00 and net income was $6.41 billion.
- Profit growth: Net income rose 22% from $5.25 billion in Q1 2026 and 17% from $5.49 billion a year ago, while return on average equity reached 15.0% versus 12.2% in Q1.
- Revenue and costs: Total revenue increased 5% sequentially and 9% year over year to $22.62 billion; noninterest expense fell 5% sequentially to $13.66 billion, taking the efficiency ratio to 60% from 67%.
- Fee businesses: Noninterest income rose 10% sequentially and 13% year over year to $10.31 billion, led by $1.39 billion of trading gains, $939 million of investment banking fees and $847 million of equity-security gains.
- Markets-led CIB: Corporate and Investment Banking revenue increased 3% sequentially and 16% year over year to $5.43 billion, with net income up 29% sequentially and 34% year over year to $2.33 billion.
- Wealth momentum: Wealth and Investment Management revenue reached $3.89 billion, up 13% year over year, while net income rose 28% to $537 million and total WIM client assets increased 9% sequentially to $2.41 trillion.
- Balance-sheet growth: Average loans increased 3% sequentially and 12% year over year to $1.03 trillion; period-end loans reached $1.03 trillion, while deposits grew 3% sequentially and 12% year over year to $1.50 trillion.
- Credit and capital: Provision for credit losses declined 19% sequentially to $914 million, but the allowance for loan losses was broadly stable at $14.41 billion; preliminary standardized CET1 was 10.3% and the quarterly dividend was $0.45 per share.
Analysis
Wells Fargo’s second quarter was a broad operating beat, with reported EPS of $1.96 versus the $1.73 consensus. GAAP diluted EPS was $2.00, while net income of $6.41 billion increased 22% from $5.25 billion in Q1 2026 and 17% from $5.49 billion a year earlier. Total revenue rose 5% sequentially and 9% year over year to $22.62 billion, and pre-tax pre-provision profit increased 26% sequentially and 20% year over year to $8.96 billion.
The defining feature was stronger fee and markets activity combined with tighter costs. Noninterest income grew 10% sequentially to $10.31 billion, driven by trading, investment banking and equity-security gains, while CIB revenue rose 16% year over year to $5.43 billion and WIM client assets reached $2.41 trillion. Expenses fell 5% sequentially to $13.66 billion, lowering the efficiency ratio to 60%. Net interest income increased 2% sequentially to $12.32 billion despite a four-basis-point decline in net interest margin to 2.43%. Loan growth remained strong, with average loans up 12% year over year, and credit costs moderated to $914 million, although capital ratios continued to drift lower as the balance sheet expanded.
Core earnings and margins
Wells Fargo converted stronger revenue and lower expenses into its best quarterly profit in the reported series. Total revenue was $22.62 billion, up from $21.45 billion in Q1 and $20.82 billion a year ago. Noninterest expense declined to $13.66 billion from $14.33 billion sequentially, more than offsetting the modest pressure on the spread business. Net interest income rose to $12.32 billion from $12.10 billion in Q1 and $11.71 billion a year ago, although net interest margin fell to 2.43% from 2.47% sequentially and 2.61% a year ago. The result was $8.96 billion of pre-tax pre-provision profit and a 60% efficiency ratio, versus 67% in Q1 and 65% a year ago.
Markets and fee businesses
- CIB: Corporate and Investment Banking net income rose to $2.33 billion from $1.81 billion in Q1 and $1.74 billion a year ago. Revenue increased to $5.43 billion, with investment banking revenue of $628 million, total Markets revenue of $2.21 billion and trading activity contributing $1.31 billion at the consolidated level.
- WIM: Wealth and Investment Management net income increased to $537 million from $468 million sequentially and $420 million a year ago. Revenue reached $3.89 billion, up 13% year over year, while advisory assets rose to $1.23 trillion and total WIM client assets to $2.41 trillion.
- Other fee streams: Consolidated investment banking fees rose 35% year over year to $939 million, investment advisory and asset-based fees increased 13% to $2.82 billion, and card fees rose 4% to $1.22 billion.
Loan and deposit growth
The balance sheet continued to expand, led by commercial lending and selected consumer categories. Average loans were $1.03 trillion, up 3% sequentially and 12% year over year, while period-end loans reached $1.03 trillion, up $14.3 billion from March and $106.7 billion from June 2025. Commercial loans at period-end increased to $636.3 billion, including $487.6 billion of commercial and industrial loans. Consumer loans reached $394.8 billion, supported by auto loans of $56.9 billion and other consumer loans of $38.7 billion. Average deposits grew 4% sequentially and 10% year over year to $1.47 trillion, with period-end deposits at $1.50 trillion.
Credit performance
Credit costs improved sequentially, but loss formation remained concentrated in consumer lending. Consolidated provision for credit losses was $914 million, down from $1.14 billion in Q1 and $1.01 billion a year earlier. Consumer Banking and Lending accounted for $945 million of the provision, while CIB recorded a $181 million release. Consumer net charge-offs were $799 million, compared with $820 million in Q1, and credit-card loans 30-plus-days delinquent improved to 2.58% from 2.77%. The allowance for credit losses on loans was $14.41 billion at quarter-end, nearly unchanged sequentially, against $1.03 trillion of loans.
Capital and shareholder returns
Wells Fargo continued to return capital while supporting balance-sheet growth. The common dividend remained $0.45 per share, and common shares outstanding declined to 3.03 billion from 3.06 billion at March 31 and 3.22 billion a year earlier. Tangible common equity rose to $139.7 billion, and tangible book value per common share increased to $46.13 from $44.98 sequentially. Preliminary standardized CET1 was 10.3%, unchanged from Q1 but below 11.0% a year earlier, while risk-weighted assets rose 2% sequentially and 9% year over year to $1.34 trillion.
