Wells Fargo Q3 EPS Rises 13% but Revenue and Net Interest Income Miss Estimates, Stock Falls 3%

Wells Fargo reported third-quarter 2026 diluted earnings per share of $1.87, up 13% from a year ago and just ahead of the $1.85 consensus estimate, while net income rose 6% year over year to $5.95 billion. Revenue of $21.87 billion grew 2% annually but fell short of the $22.31 billion Wall Street expected, and net interest income of $12.52 billion missed estimates of roughly $12.59 to $12.63 billion. Shares fell approximately 3% on the session as investors focused on the top-line shortfall.

Growth was broad-based across segments. Wealth and Investment Management led with revenue of $4.10 billion, up 12% year over year, while Commercial Banking added $3.24 billion, up 6%, and Consumer Banking and Lending contributed $10.66 billion, up 5%. Corporate and Investment Banking generated $5.01 billion, up 3%, though capital markets results were mixed: equities revenue rose 21% to $543 million, but fixed income and currencies fell 7% to $1.26 billion, dragging total markets revenue down 1% to $1.84 billion. Home Lending revenue of $743 million fell 15% from a year earlier.

Credit quality held up better than feared. The provision for credit losses came in at $1.03 billion, below the $1.14 billion estimate, and net loan charge-offs of $983 million were also under the $1.05 billion consensus. Average loans grew 11% year over year to $1.03 trillion and average deposits rose 11% to $1.48 trillion. The bank repurchased $2.5 billion in shares during the quarter. Return on equity was 13.8%, ahead of the 13.4% estimate, and return on tangible common equity reached 16.3%. The CET1 ratio was 10.0%, just below the 10.1% estimate.

Management maintained its full-year 2026 net interest income guidance of approximately $50 billion. CFO Mike Santomassimo told CNBC that the consumer is doing well, and CEO Charlie Scharf said US economic growth remains strong while flagging uncertainty from sticky inflation, Middle East conflict, persistent fiscal deficits, and volatile energy markets. Scharf also addressed stablecoins, saying US use cases remain unclear but that the bank is building internal solutions to be ready if opportunities emerge. UBS analyst Najarian called the stock a good long-term hold despite the mixed quarter, and CNBC's investment desk upgraded its rating on the pullback as an entry point.