Wells Fargo Stock Slips as Third-Quarter Revenue and Capital Markets Miss Expectations

Wells Fargo & Company (NYSE:WFC) reported third-quarter results that topped earnings expectations but fell short on revenue. Diluted earnings per share rose to $1.87 from $1.66 in the same period last year, beating analyst estimates of $1.85. Total quarterly revenue increased to $21.87 billion from $21.44 billion a year ago, trailing analyst projections of $22.28 billion.

The revenue shortfall was driven by weaker performance in investment banking and corporate functions. Corporate and Investment Banking revenue rose 3% to $5.01 billion, below expectations of $5.41 billion, while lower venture capital revenue and reduced lease income following the sale of the rail car leasing business also weighed on results. Conversely, Consumer Banking and Lending revenue grew 5% to $10.66 billion, and Wealth and Investment Management revenue rose 12% to $4.10 billion. Net interest income climbed 5% to $12.52 billion, though it remained slightly below expectations.

Looking ahead, the bank maintained its full-year 2026 net interest income target of approximately $50 billion. For the fourth quarter, net interest income is projected at around $13 billion, slightly above analyst forecasts of $12.82 billion. Investors will monitor consumer spending trends, loan growth, and management commentary during the company's scheduled conference call.