WFC US S&P 500Russell 1000 Earnings call

Wells Fargo (WFC) · Q2 2026 results and valuation

Share price: $85.80 · 2026-11-11

Wells Fargo is a financial holding company and bank holding company that provides banking, investment, and mortgage products and services. The company serves individuals, businesses, and institutions, primarily in the United States and in countries outside the U.S. Its offerings include consumer and commercial finance, wealth management, and capital markets solutions. Source: 10-K annual report (2026-02-24)

Results Q2 2026 vs Q1 2026 · previous quarter · published 14 Jul 2026 and 14 Apr 2026

Net income up 22.0% on the previous quarter. Management sounded upbeat, though noticeably less so answering analysts.

1 · Numbers

+22.0%

Net income vs Q1 2026

Outlook given

Net income 6.41B vs 5.25B

Revenue +5.5%

Against the same quarter last year (Q2 2025) it is +16.6%, so it is not just seasonal.

Why Against the same quarter last year (+16.6%), net income rose mainly because revenue grew 13% from a year ago driven by higher deposit and loan balances, growth in noninterest income, and higher market valuations, while expenses increased only 2% from a year ago.

2 · How management spoke

Upbeat

More upbeat than 85% of company calls

Answers to analysts: typical, but clearly less so than the script.

Last call it was different: script and answers matched.

3 · What stood out

Wells Fargo expects to increase its third quarter common stock dividend by 11% to $0.50 per share, pending Board of Directors approval.

Valuation

Is Wells Fargo undervalued?

Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 4.0% growth a year (3-year revenue growth), the model's fair value is $102.37 a share — the stock trades 16% below it. Today's price assumes 1.6% growth a year.

Current price

$85.80

close of 2026-11-11

Market implies growth of i

+1.6% for 10 yrs

Fair value / share

$102.37

Buy below

$76.78

Price vs fair value

Undervalued 16%

Price vs buy-below price

Overvalued 12%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Guidance

The company is maintaining its full-year net interest income guidance of $50 billion plus or minus.
Guidance

The company maintained its 2026 outlook of $50 billion plus or minus of NII despite changes in the underlying drivers since the original outlook.
Figure

Diluted earnings per share grew to $2 in the second quarter, up 25% from a year ago.

Source quote
“We grew diluted earnings per share to $2 in the second quarter up 25% from a year ago.”
Guidance

The company expects to increase the third quarter common stock dividend by 11% to $0.50 per share, pending Board of Directors approval later this month.
Figure

Banking business revenue grew 20% due to a focus on providing a broader set of capital and advisory solutions.

Source quote
“In our banking business, revenue grew 20%, as our focus on providing a broader set of capital and advisory solutions is working.”

4 more

Guidance

Wells Fargo expects 2026 noninterest expense to be approximately $55.7 billion, providing clarity on the company's projected spending for the year.
Guidance

Steady improvements in returns provide confidence in achieving the company's medium-term target of a 17% to 18% RoTCE.
Figure

RoTCE increased from 15.2% a year ago to 17.7% in the second quarter, reflecting a focus on improving returns.

Source quote
“Our continued focus on improving returns was evident with RoTCE increasing from 15.2% a year ago to 17.7% in the second quarter and 16.1% in the first half of 26.”
Figure

In M&A, Wells Fargo has climbed from number 9 to number 4, among U.

Source quote
“In M&A, we have climbed from number 9 to number 4, among U. S. Advisers by announced deal volume, reflecting our active role in advising our clients on franchise defining transactions.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Upbeat (was cautious)

Answers to analysts Typical (was typical)

Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 89% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.

Sentences that drove the tone

“We are clearly benefiting from the economic strength we see in the US, but the investments we are making, our improved operating discipline drove strong momentum and continued to result...”

“We have had success, which has helped drive revenue growth, but we still see significant opportunities to grow revenue here.”

“Average loans increased $110 billion or 12% from a year ago, driven by growth in commercial and industrial loans as well as growth across our consumer portfolios except for residential...”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)

Metric	Q2 2026period end 2026-06-30	Q1 2026period end 2026-03-31	Change	Q2 2025	YoY
Revenue	22.62B	21.45B	+5.5%	20.82B	+8.6%
Operating income	8.05B	5.98B	+34.5%	6.44B	+25.0%
Net income	6.41B	5.25B	+22.0%	5.49B	+16.6%
EPS	2.00	1.60	+25.0%	1.60	+25.0%
P/E today 11.8	12.0	12.3	−0.3	13.8	−1.8

Topics

Most discussed now

Wells Fargo is clearly benefiting from the economic strength it sees in the US, but the investments it is making, its...
Net interest income grew 5% from a year ago, and noninterest income grew 13% as Wells Fargo is making good progress...
Wells Fargo is using these efficiencies to offset broad based investments across the company to drive growth including adding branch…
Wells Fargo's second quarter results were strong with broad based revenue growth disciplined expense management and improved credit…
It is not it is not quite a not quite a double, but it is pretty close when you sort...

Faded since Q1 2026

Fading Wells Fargo's consistent focus on investing across all of its businesses helped contribute to broad-based revenue growth with each of its...
Fading This decline was partially offset by higher markets net interest income, higher loan and deposit balances, as well as continued...
Fading The biggest driver in the credit risk portfolio is getting the benefit for investment-grade credits, both public and nonpublic…
Fading It is low ROA, low risk, good returns, and it then allows it to do much more with those clients...

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-10-13 Results of operations; Regulation FD disclosure · SEC 8-K
Wells Fargo reported revenue of $21.9 billion for the third quarter of 2026, which increased by 2% compared to the $21.4 billion reported in the third quarter of 2025.
2026-09-24 Current report · SEC 8-K · routine
2026-09-23 Director or officer change · SEC 8-K
Wells Fargo & Company announced the appointment of Scott E. Powell as Chief Risk Officer effective January 15, 2027, following his role as Chief Operating Officer.
2026-08-19 Articles or bylaws amended · SEC 8-K · routine
2026-07-14 Results of operations; Regulation FD disclosure · SEC 8-K
Wells Fargo reported revenue of $22.6 billion, up 9% from the previous year, and net income of $6.4 billion, resulting in $2.00 per diluted share.
2026-05-20 Current report · SEC 8-K · routine
2026-04-30 Director or officer change; Shareholder vote results · SEC 8-K
Shareholders approved the 2022 Long-Term Incentive Plan amendment and elected 12 director nominees, with individual approval ratings ranging from 93.92% to 98.60%.
2026-04-14 Results of operations; Regulation FD disclosure · SEC 8-K

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-19.

Cash & runway

Cash & equivalents

$42.16B

2026-06-30

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: -5.8% YoY, -1.2% QoQ.

Quarter	Shares
Q3 2024	3.38B
Q1 2025	3.28B
Q2 2025	3.23B
Q3 2025	3.18B
Q1 2026	3.08B
Q2 2026	3.04B

Shares outstanding: 3.02B (2026-07-17)

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 99 filings; 50 filings parsed.

Sold by insiders

60.0K shares

$5.2M · 1 transactions

Bought by insiders

0 shares

0 transactions

Net direction

net selling

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

third quarter

increase common stock dividend by 11% to $0.50 per share

Source quote
“As we previously announced, we expect to increase our third quarter common stock dividend by 11% to $0.50 per share subject to approval by our Board of Directors at its meeting later this month.”
2 to 3 years

time for vintages to season and earn through upfront costs

Source quote
“It takes approximately 2 to 3 years for Vintage's to season and earn through these upfront costs.”
2025 and 2026

vintages are bigger and offset some of the positive contribution from the earlier vintages

Source quote
“Our 2025 and 2026 vintages are bigger, as account openings have accelerated so they offset some of the positive contribution from the earlier vintages”
third quarter

modest net interest margin compression

Source quote
“we expect modest net interest margin compression in the third quarter broadly in line with second quarter's decline from the first quarter before stabilizing the fourth quarter.”
third quarter

results will reflect market valuations as of July 1

Source quote
“As a reminder, the majority of WIM advisory assets are priced at the beginning of the quarter, so third quarter results will reflect market valuations as of July 1.”