Wells Fargo Q3 EPS Rises 13% Year Over Year But Revenue and Net Interest Income Fall Short of Estimates

Wells Fargo reported third-quarter 2026 earnings that delivered a headline earnings beat alongside revenue and net interest income misses. Diluted EPS came in at $1.87, up 13% year over year and ahead of the $1.85 consensus estimate. Revenue of $21.87 billion rose 2% from a year ago but fell short of the $22.30-22.31 billion estimate, while net interest income of $12.52 billion missed expectations of roughly $12.59-12.63 billion. Net income reached $5.95 billion, a 6% year-over-year gain.

The bank's segment results showed broad-based growth. Consumer Banking and Lending generated $10.66 billion in revenue, up 5% year over year, while Commercial Banking added $3.24 billion, up 6%. Corporate and Investment Banking contributed $5.01 billion, up 3%, and Wealth and Investment Management posted $4.10 billion, up 12%. Within the CIB unit, investment banking revenue was $611 million, up 10%, and equities revenue jumped 21% to $543 million, though FICC slipped 7% to $1.26 billion. Total markets revenue was $1.84 billion, down 1%.

Credit quality showed signs of improvement relative to expectations. The provision for credit losses came in at $1.03 billion, below the roughly $1.14 billion estimate, and net charge-offs of $983 million were under the $1.05 billion consensus. Non-performing assets of $7.36 billion also beat the $8.04 billion estimate. Average loans were $1.03 trillion and average deposits $1.48 trillion, both up 11% year over year but each slightly below estimates. The CET1 capital ratio of 10.0% was a touch below the 10.1% estimate, while return on equity of 13.8% exceeded the 13.4% estimate. Wells Fargo repurchased $2.5 billion worth of shares, or 28.6 million shares, during the quarter.

For full-year 2026, the bank guided net interest income to approximately $50 billion. Management said consumer and business customers are performing well despite mixed consumer sentiment, and characterized the results as reflecting broad-based growth and stronger returns.