Wells Fargo Earnings Rise as Analyst Upgrades Stock After 6% Pullback

Wells Fargo’s third-quarter earnings increased as net interest income and returns improved, prompting an analyst to upgrade the stock after shares fell 6% since the beginning of September.

The bank reported third-quarter 2026 net income of $5.951 billion, or $1.87 per diluted share, for the quarter ended Sept. 30, 2026. Revenue rose 2% from a year earlier to $21.870 billion but came in below the $22.3 billion consensus estimate.

The analyst raised Wells Fargo’s rating from 2 to rating 1, equivalent to a buy rating, while keeping the price target at $95. Shares fell 2% on Oct. 13, 2026.

Net interest income increased 5% from a year earlier to $12.517 billion. Net interest margin remained at 2.43% from the second quarter, down from 2.61% a year earlier.

Return on average tangible common equity rose to 16.3% from 15.2% a year earlier, moving closer to management’s 17% to 18% target. The efficiency ratio improved to 63% from 65% a year earlier.

Wells Fargo repurchased 28.6 million shares for $2.5 billion during the third quarter of 2026. Its preliminary Common Equity Tier 1 ratio was 10.0% as of Sept. 30, 2026.

Revenue growth extended across the bank’s major businesses. Wealth and Investment Management revenue increased 12% from a year earlier, followed by Commercial Banking at 6%, Consumer Banking and Lending at 5% and Corporate and Investment Banking at 3%.

Within Corporate and Investment Banking, Markets revenue declined 1%. Fixed Income, Currencies and Commodities revenue fell 7%, while equities revenue increased 21%. Noninterest income declined 1% overall.

Wells Fargo Chairman and CEO Charlie Scharf said the results reflected “broad-based growth, higher earnings, and stronger returns.” He also said average loans and deposits both increased 11% from a year earlier.

Scharf said economic uncertainty and mixed consumer sentiment remained, while the bank’s data showed consumer and business customers were doing well.

The preliminary third-quarter results and CET1 ratio remain subject to Wells Fargo’s Form 10-Q filing.