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Wells Fargo
(NYSE:WFC)
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Rating:64Neutral
Price Target:
$86.00
â–²(1.43% Upside)
Action:Reiterated
Date:10/14/26
The score is anchored by solid underlying profitability and a constructive earnings outlook (improving returns, strong credit quality, and stable NII guidance), supported by an attractive valuation (low P/E with a dividend). These positives are tempered by weak technicals (price below key moving averages with negative MACD/low RSI) and financial-structure/cash-flow concerns, including rising leverage versus prior years and historically volatile operating cash flow.
Positive Factors
Broad-Based Franchise Growth
Growth across every operating segment demonstrates a diversified franchise rather than dependence on one business line. Expansion in wealth, commercial, consumer and investment banking can support more resilient revenue generation and broaden Wells Fargo’s earnings base over the next several quarters.
Negative Factors
Rising Leverage
The marked increase in debt-to-equity reduces financial flexibility relative to prior years and can heighten sensitivity to credit or funding shocks. Even with healthy profitability, higher leverage may constrain capital allocation and make balance-sheet management more demanding.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-Based Franchise Growth
Growth across every operating segment demonstrates a diversified franchise rather than dependence on one business line. Expansion in wealth, commercial, consumer and investment banking can support more resilient revenue generation and broaden Wells Fargo’s earnings base over the next several quarters.
Read all positive factors
Wells Fargo Key Performance Indicators (KPIs)
Any
Average Loans by Segment
Tracks the average loan balances in each business line (consumer, mortgage, commercial). Reveals where Wells Fargo is deploying credit, how lending growth or contraction will drive interest income, and where concentration or rising delinquencies could create downside risk.
Tracks the average loan balances in each business line (consumer, mortgage, commercial). Reveals where Wells Fargo is deploying credit, how lending growth or contraction will drive interest income, and where concentration or rising delinquencies could create downside risk.
Data provided by:
The Fly
The FlyWells Fargo (WFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$245.53B
Dividend Yield2.26%
Average Volume (3M)15.34M
Price to Earnings (P/E)11.6
Beta (1Y)1.05
Revenue Growth5.67%
EPS Growth16.80%
CountryUS
Employees197,466
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)7.01
Shares Outstanding3,001,639,000
10 Day Avg. Volume19,483,222
30 Day Avg. Volume15,338,941
Financial Highlights & Ratios
PEG Ratio0.82
Price to Book (P/B)1.64
Price to Sales (P/S)2.40
P/FCF Ratio-15.59
Enterprise Value/Market Cap2.71
Enterprise Value/Revenue5.15
Enterprise Value/Gross Profit7.98
Enterprise Value/Ebitda18.98
Forecast
1Y Price Target
$96.97Price Target Upside14.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)7.34
Revenue Forecast (FY)$88.43B
Wells Fargo Business Overview & Revenue Model
Company Description
Wells Fargo & Company, a financial services company, provides diversified banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. It operates through four segments: Consume...
How the Company Makes Money
Wells Fargo makes money primarily through a mix of net interest income and noninterest income generated across its banking, lending, capital markets, and wealth management activities.
1) Net interest income (core banking and lending): The company...
Wells Fargo Earnings Call Summary
Earnings Call Date:Oct 13, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 14, 2027
Earnings Call Sentiment Positive
The call was broadly positive, supported by 13% EPS growth, improving ROTCE, broad-based revenue and balance-sheet growth, strong credit quality, expense discipline and continued progress in strategic investments across wealth management, payments and AI. The main negatives were weaker late-quarter markets performance, lower venture capital and equity gains, modestly declining noninterest income, higher revenue-related expenses and acknowledged macroeconomic, commercial real estate, consumer credit and AI-related risks. Management nevertheless described current customer, commercial and credit conditions as strong and maintained its earnings, expense and capital outlook.Positive Updates
Higher Earnings and Returns
Third-quarter earnings per share increased to $1.87, up 13% from a year ago. ROTCE increased to 16.3% in the quarter and 16.2% for the first nine months of 2026, compared with 14.7% during the first nine months of 2025, moving closer to the 17% to 18% target.
Negative Updates
Lower Venture Capital and Lease Revenue
Revenue growth was partially offset by lower revenue from venture capital investments, as expected, and lower lease income following the sale of the rail car leasing business in the first quarter. The company reported only modest net gains from equity securities in the third quarter and expects those gains to remain low in the fourth quarter.
Read all updates
Q3-2026 Updates
Positive
Negative
Higher Earnings and Returns
Third-quarter earnings per share increased to $1.87, up 13% from a year ago. ROTCE increased to 16.3% in the quarter and 16.2% for the first nine months of 2026, compared with 14.7% during the first nine months of 2025, moving closer to the 17% to 18% target.
Read all positive updates
Company Guidance
Management expects full year 2026 net interest income to be $50 billion, plus or minus, with fourth quarter net interest income approximately $13 billion and the net interest margin stable from the third quarter; fourth quarter net interest income growth is expected to increase versus the prior 2 quarters, with markets net interest income slightly below $2 billion, call it, $1.8-ish billion, and non-markets net interest income making up some of it to get back to the full year of $50 billion. 2026 noninterest expense is expected to be approximately $55.7 billion, while full year revenue-related expenses are expected to be approximately $400 million above original expectations. Wells Fargo plans to manage its CET1 ratio within its targeted range of 10% to 10.5%, and estimated risk-weighted assets could decrease by approximately 7% under the Basel III proposal. Credit card originations are expected to operate in this 600,000 to 700,000 cards a quarter, somewhere in that range, for a little bit, and net gains from equity securities are currently expected to remain low in the fourth quarter.Wells Fargo Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 129.10B | 123.53B | 125.40B | 115.34B | 83.44B | 83.08B |
| Gross Profit | 83.28B | 80.04B | 77.96B | 77.20B | 72.83B | 83.32B |
| EBITDA | 35.01B | 32.91B | 30.92B | 27.91B | 22.46B | 37.45B |
| Net Income | 22.65B | 21.34B | 19.72B | 19.14B | 13.68B | 22.11B |
Balance Sheet | ||||||
| Total Assets | 2.28T | 2.15T | 1.93T | 1.93T | 1.88T | 1.95T |
| Cash, Cash Equivalents and Short-Term Investments | 939.76B | 471.55B | 363.46B | 362.61B | 272.75B | 411.47B |
| Total Debt | 459.14B | 425.72B | 281.88B | 297.15B | 226.01B | 195.10B |
| Total Liabilities | 2.10T | 1.97T | 1.75T | 1.75T | 1.70T | 1.76T |
| Stockholders Equity | 180.19B | 181.12B | 179.12B | 185.74B | 180.23B | 187.61B |
Cash Flow | ||||||
| Free Cash Flow | 19.17B | -19.00B | 3.04B | 40.36B | 27.05B | -11.53B |
| Operating Cash Flow | 19.17B | -19.00B | 3.04B | 40.36B | 27.05B | -11.53B |
| Investing Cash Flow | -253.87B | -192.41B | -15.65B | 16.04B | -42.48B | -7.62B |
| Financing Cash Flow | 243.03B | 177.59B | -21.53B | 20.49B | -59.65B | -11.24B |
Wells Fargo Technical Analysis
Neutral
84.79
Price Trends
85.20
Negative
84.55
Negative
83.54
Positive
Market Momentum
-0.83
Negative
52.38
Neutral
66.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WFC, the sentiment is Neutral. The current price of 84.79 is above the 20-day moving average (MA) of 81.96, below the 50-day MA of 85.20, and above the 200-day MA of 83.54, indicating a neutral trend. The MACD of -0.83 indicates Negative momentum. The RSI at 52.38 is Neutral, neither overbought nor oversold. The STOCH value of 66.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WFC.
Wells Fargo Risk Analysis
Wells Fargo disclosed 27 risk factors in its most recent earnings report. Wells Fargo reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Wells Fargo Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $318.79B | 13.20 | 13.03% | 4.03% | -5.19% | 39.48% | |
70 Outperform | $886.58B | 14.23 | 17.91% | 1.84% | 8.74% | 18.04% | |
70 Outperform | $90.13B | 11.45 | 12.65% | 3.63% | 1.06% | 17.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $348.83B | 11.83 | 10.69% | 2.30% | -1.02% | 14.91% | |
64 Neutral | $245.53B | 11.62 | 12.86% | 2.26% | 5.67% | 16.80% | |
64 Neutral | $204.13B | 11.71 | 9.15% | 2.03% | 4.73% | 44.35% |
* Financial Sector Average
WFC
Wells Fargo
81.80
-2.38
-2.83%
BAC
Bank of America
50.39
-0.56
-1.10%
C
Citigroup
121.69
24.45
25.14%
HSBC
HSBC Holdings
92.96
30.17
48.05%
JPM
JPMorgan Chase
333.53
36.88
12.43%
USB
US Bancorp
57.85
12.50
27.55%
Wells Fargo Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Wells Fargo Posts Strong Third-Quarter 2026 Results
Positive
Oct 13, 2026
On October 13, 2026, Wells Fargo reported third quarter 2026 net income of $6.0 billion, or $1.87 per diluted share, as total revenue rose to $21.87 billion and noninterest expense fell slightly year over year. The bank’s return on equity im...
Business Operations and StrategyExecutive/Board Changes
Wells Fargo Names Scott Powell New Chief Risk Officer
Neutral
Sep 23, 2026
On September 23, 2026, Wells Fargo Company announced that Scott E. Powell will become its Chief Risk Officer effective January 15, 2027, marking a shift in his responsibilities within the organization. Following this transition, Powell will no lo...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Wells Fargo Establishes New Series HH Preferred Stock
Positive
Aug 19, 2026
On August 17, 2026, Wells Fargo Company filed a Certificate of Designation in Delaware to create a new series of preferred stock titled 6.55% Fixed Rate Reset Non-Cumulative Perpetual Class A Preferred Stock, Series HH. The designation authorizes...
Stock BuybackFinancial Disclosures
Wells Fargo Posts Strong Second-Quarter 2026 Earnings
Positive
Jul 15, 2026
On July 14, 2026, Wells Fargo reported second quarter 2026 net income of $6.4 billion, equivalent to $2.00 per diluted share, with total revenue rising to $22.6 billion from $20.8 billion a year earlier. The results reflected a 9% year-over-year r...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.