Wells Fargo & Company profit rises, but revenue misses estimates
The bank earned $1.87 a share for the third quarter, kept its interest-income target, and the shares were lower in premarket trading on Tuesday, October 13.
Key takeaways
Wells Fargo reported a higher third-quarter profit on Tuesday and beat the earnings estimate, but revenue fell short of what analysts expected. The shares were lower before the opening bell.
Earnings were $1.87 a share, up 13% from $1.66 a year earlier, chairman and chief executive Charlie Scharf said. That was 2 cents above the $1.85 analysts expected, CNBC reported Tuesday morning. Profit rose 6.5% to $5.95 billion, a smaller gain than the per-share figure.
The bank bought back $2.5 billion of shares in the quarter. Common shares outstanding were 5% lower than a year earlier.
Revenue rose 2% to $21.87 billion, $430 million short of the $22.3 billion CNBC said analysts expected. Net interest income, what the bank earns on loans and securities after deposit costs, rose 5% to $12.52 billion, short of the $12.66 billion consensus from StreetAccount, the estimate service CNBC cited. Average loans and average deposits each rose 11% from a year earlier.
"Consumers are spending more, loan delinquencies are low, and deposit and investment balances have grown," Scharf said. "Businesses continue to have strong balance sheets and losses remain low."
Wells Fargo left its net interest income target for 2026, which is this year, at about $50 billion, unchanged from the prior quarter. The first three quarters have produced $36.9 billion, and the company said it expects about $13 billion in the fourth quarter. Those two figures would bring the year to about the target.
It said the full-year figure still depends on the level of rates, the shape of the yield curve, deposit balances and loan demand.
The common equity Tier 1 ratio, the core capital measure, fell to 10.0%, a preliminary figure, from 11.0% a year earlier. The company's presentation on Tuesday shows the regulatory minimum and buffers at 8.5%.
The shares were indicated at $82.25 at 7:40 a.m. Eastern, down 1.3% from Monday's close of $83.30. Through Monday's close the stock was down 10.6% in 2026.
Frequently asked questions
How much did Wells Fargo earn per share?
Earnings were $1.87 a share, up 13% from $1.66 a year earlier and 2 cents above the $1.85 analysts expected.
By how much did revenue miss estimates?
Revenue rose 2% to $21.87 billion, $430 million short of the $22.3 billion analysts expected.
Did Wells Fargo change its net interest income target?
The bank left its net interest income target for 2026 at about $50 billion, unchanged from the prior quarter.
How did the shares trade after the report?
The shares were indicated at $82.25 at 7:40 a.m. Eastern, down 1.3% from Monday's close of $83.30.
