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Wells Fargo Q3 Profit Beats Estimates Despite Revenue Shortfall

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WFC$80.74 −3.10%

Wells Fargo & Company (NYSE:WFC) reported mixed third-quarter financial results, with earnings per share surpassing expectations even as total revenue came in lower than projected. The firm delivered earnings per share of $1.87, up 13% from a year earlier and above Wall Street forecasts of $1.85. Revenue increased 2% year-over-year to $21.9 billion, falling short of expectations for $22.3 billion.

Despite the revenue miss, internal performance metrics improved. Return on tangible common equity rose to 16.3% from 15.2% in the prior-year period, while net interest margin stabilized at 2.43% quarter-over-quarter. The bank also repurchased $2.5 billion of its common stock during the period, and an analyst upgraded the shares to a buy-equivalent rating while keeping a $95 price target.

Looking forward, management expects net interest margin stability to persist into the fourth quarter. Full-year net interest income guidance was reaffirmed at roughly $50 billion, with fourth-quarter net interest income projected at around $13 billion. Additionally, non-interest expenses for 2026 were reiterated at approximately $55.7 billion.

Key points

  • Earnings per share rose 13% year over year to $1.87, beating forecasts of $1.85.
  • Revenue increased 2% to $21.9 billion, missing expectations of $22.3 billion.
  • Net interest margin stabilized at 2.43%, with management expecting stability to continue into Q4.
  • The firm repurchased $2.5 billion of common stock during the third quarter.
  • Full-year net interest income guidance was kept unchanged at around $50 billion.

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Questions and answers

Did Wells Fargo beat Q3 earnings expectations?

Yes. Wells Fargo posted earnings per share of $1.87, exceeding the expected $1.85.

What was Wells Fargo revenue in the third quarter?

Revenue rose 2% year over year to $21.9 billion, missing the expected $22.3 billion.

What is Wells Fargo guidance for net interest income?

The bank kept its full-year net interest income outlook at around $50 billion, expecting roughly $13 billion in the fourth quarter.