Wells Fargo & Company
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.09%.
Did WFC Beat Earnings? Q4 2025 Results
Wells Fargo closed Q4 2025 with a modest earnings miss, posting GAAP EPS of $1.62 against the $1.67 consensus estimate, a shortfall of 2.99%, while revenue of $21.29 billion reflected a 30.4% year-over-year decline. A significant factor weighing on the headline figure was $612 million in severance expense; stripping that out, adjusted EPS climbed to $1.76, painting a cleaner picture of underlying momentum. The quarter capped a landmark year for the bank, most notably the removal of the Federal Reserve's longstanding asset cap, which has paved the way for accelerated balance sheet expansion. Net interest income rose 4% year-over-year to $12.33 billion, supported by loan growth and fixed-rate asset repricing, while the Wealth and Investment Management segment reached $2.51 trillion in total client assets. Looking ahead, management projects 2026 NII excluding Markets of approximately $48 billion, up from $46.75 billion, and has raised its medium-term ROTCE target to 17-18%, signaling confidence in the bank's growth trajectory as constraints ease.
- Net interest income growth of 4% driven by higher loan and investment securities balances and fixed rate asset repricing
- Strong credit card new account growth of over 20% year-over-year
- Auto lending balances up 19% from prior year
- Commercial loans grew 12%
- Investment banking fees increased 14% with M&A ranking improving from 12th to 8th
- Higher asset-based fees in Wealth and Investment Management on higher market valuations
- Gross expense reductions of $15 billion over past 5 years funding investments while reducing total expense base
- Removal of Federal Reserve asset cap enabling balance sheet growth
“Strong financial performance, removal of the asset cap imposed by the Federal Reserve, termination of multiple consent orders, and stronger growth in both our consumer and commercial businesses make me proud of our 2025 results.”
Wells Fargo CEO, on the earnings call
Forward Guidance & Outlook
Wells Fargo expects 2026 net interest income excluding Markets of approximately $48 billion (plus or minus $2 billion), up from $46.7 billion in 2025, driven by balance sheet growth, changes in loan and deposit mix, and continued fixed asset repricing. Key assumptions include two to three fed funds rate cuts in 2026, mid-single digit average loan growth (primarily commercial, auto, and credit card), and mid-single digit average deposit growth across all segments. Markets NII is expected to increase on lower short-term funding costs and balance sheet growth. Total 2026 noninterest expense is expected to be approximately $55.7 billion, up from $54.8 billion in 2025, reflecting efficiency initiatives offset by incremental technology investments, higher revenue-related compensation, and higher FDIC assessment expense. The company has set a new medium-term ROTCE target of 17-18%.
WFC YoY Financials
WFC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.