Overview
- Wells Fargo reported net income of about $5.4 billion with GAAP earnings of $1.62 per share missing the $1.67 consensus, while adjusted EPS of $1.76 topped the roughly $1.66 estimate.
- Revenue net of interest expense was $21.29 billion, below forecasts, as trading fees rose 8% to $1.6 billion and investment-banking revenue slipped 1%, a backdrop that contrasted with Bank of America’s stronger quarter and $7.6 billion profit.
- The bank recorded $612 million in severance costs, which management said equated to a $0.14 per-share impact, as efficiency initiatives and headcount reductions continued.
- Wells Fargo repurchased 58.2 million shares for $5.0 billion in the quarter and reported a Common Equity Tier 1 capital ratio of 10.6%.
- Management guided 2026 net interest income to about $50 billion, a touch below analyst expectations, and shares fell in premarket trading after a strong 2025 run.