Wells Fargo (WFC) stock slipped 1.2% in Wednesday premarket trading after the company turned in mixed Q4 results and 2026 guidance. Q4 net interest income was lower than Wall Street expected, leading to a miss on the top line.
Its Consumer Banking and Wealth and Investment Management units showed the strongest revenue growth in Q4 2025.
The bank expects 2026 net interest income of about $50B (vs. Visible Alpha consensus of $50.1B), compared with 2025’s $47.5B. Noninterest expense is expected to be ~$55.7B, compared with the Visible Alpha estimate of $56.0B and $54.8B reported for 2025.
For the full year 2025, Wells Fargo (WFC) achieved its prior return on tangible common equity target of 15% and set a new medium-term target of 17%-18%.
Q4 EPS of $1.62 vs. $1.66 in Q3 and $1.43 in Q4 2024. The current quarter’s bottom line included $0.14 per share of severance expense. Excluding the charge, Q4 2025 EPS came to $1.76, vs. the average analyst estimate of $1.69.
Total revenue of $21.3B, missing the consensus estimate of $21.7B, compared with $21.4B in the prior quarter and $20.4B a year ago.
Provision for credit losses of $1.04B increased from $681M in Q3 and declined from $1.10B in Q4 2024.
Net interest income of $12.3B, vs. the Visible Alpha consensus of $12.4B, increased from $12.0B in the previous quarter and $11.8B in last year’s Q3.
Noninterest income of $8.96B vs. $9.49B in Q3 and $8.54B in the year-ago Q4.
Wells Fargo’s (WFC) noninterest expense of $13.7B edged down from $13.8B in the prior quarter and $13.9B a year ago.
Average loans were $955.8B in Q4 vs. $928.7B in Q3. Average deposits increased to $1.38T from $1.34T in the previous quarter.
“Wells Fargo enters into a new phase as it finally runs its business without any regulatory cap,” commented Seeking Alpha analyst Luca Socci. “Loans and deposits grew, which is a positive signal that shows real momentum that implies renewed engagement with retail customers, while credit metrics are under control.”
The commercial bank and wealth and management are also doing well, he said. “But we also have to give credit to cost management, which has gradually reduced the expense base while the bank’s revenues and earnings were growing. This results in improving financial ratios, which show the likely path ahead: as the bank exits the time of remediation, a growth story could be starting, with a 2026 outlook that seems finally clear.”
Q4 revenue performance by segment:
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Consumer Banking and Lending revenue of $9.57B slipped 1% Q/Q and increased 7% Y/Y. Average loan balances of $329.3B rose from $325.3B in Q2. Average deposits edged down to $778.6B from $781.3B.
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Commercial Banking revenue of $3.08B rose 1% Q/Q and dipped 3% Y/Y.
- Corporate and Investment Banking revenue of $4.62B fell 5% Q/Q and was roughly flat Y/Y.
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Wealth and Investment Management revenue of $4.36B grew 4% Q/Q and 10% Y/Y. Total client assets of $2.51T increased 1% Q/Q and 9% Y/Y.
“Evidence of increased growth can be seen across the company. In our consumer businesses, credit card continues to see strong increases in spend and new accounts grew over 20% from a year ago,” said Chairman and CEO Charlie Scharf. “Auto lending returned to growth, with balances up 19% from the prior year. Net checking account growth was stronger, and deposits and investment balances in our affluent offering – Wells Fargo Premier – grew 14% from the prior year.”
Conference call at 10:00 AM ET.