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Wells Fargo
(NYSE:WFC)
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Rating:69Neutral
Price Target:
$93.00
â–²(14.24% Upside)
Action:Downgraded
Date:07/15/26
The score is driven by mixed financial quality: solid profitability and improving operating metrics are offset by elevated leverage and notably weak/volatile recent cash flow. Technicals are supportive with price above key moving averages and positive MACD, while valuation is reasonable (P/E 12.17 and 2.11% yield). The earnings call adds a positive tilt due to reiterated guidance, improving returns/efficiency, and strong capital returns, tempered by near-term NIM and deposit-mix pressure.
Positive Factors
Loan and Deposit Growth
Sustained double-digit loan and deposit growth materially increases scale and core earning assets, improving long-term net interest income potential and cross-sell opportunities. Larger deposit balances also widen customer relationships, supporting fee income and franchise stickiness over the next several quarters.
Negative Factors
Volatile Cash Generation
Sharp swings in operating cash flow and a steep free cash flow decline undermine confidence in cash conversion despite accounting profits. Weak, volatile cash generation constrains self-funding of investments and dividends, forcing greater reliance on capital actions or nonrecurring gains over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Loan and Deposit Growth
Sustained double-digit loan and deposit growth materially increases scale and core earning assets, improving long-term net interest income potential and cross-sell opportunities. Larger deposit balances also widen customer relationships, supporting fee income and franchise stickiness over the next several quarters.
Read all positive factors
Wells Fargo Key Performance Indicators (KPIs)
Any
Average Loans by Segment
Shows the distribution of loan portfolios across various segments, indicating lending focus and potential exposure to credit risk or growth opportunities.
Shows the distribution of loan portfolios across various segments, indicating lending focus and potential exposure to credit risk or growth opportunities.
Data provided by:
The Fly
The FlyWells Fargo (WFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$267.80B
Dividend Yield2.06%
Average Volume (3M)15.78M
Price to Earnings (P/E)12.5
Beta (1Y)1.08
Revenue Growth4.63%
EPS Growth18.04%
CountryUS
Employees205,000
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)6.60
Shares Outstanding3,060,189,500
10 Day Avg. Volume18,095,462
30 Day Avg. Volume15,782,566
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$99.96Price Target Upside22.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)7.22
Revenue Forecast (FY)$88.69B
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 primarily makes money by earning (1) net interest income and (2) noninterest (fee-based) income. Net interest income is generated by taking in customer deposits and other funding at a cost (interest paid on deposits and borrowings) and...
Wells Fargo Earnings Call Summary
Earnings Call Date:Jul 14, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 13, 2026
Earnings Call Sentiment Positive
The call presented a broad set of positive operating and financial trends: double‑digit improvements in EPS, revenue growth, strong loan and deposit expansion, improving efficiency, robust investment banking and markets momentum, and better credit metrics. Management reiterated full‑year NII guidance and a clear focus on achieving a 17%–18% RoTCE target. Counterbalancing these positives are near‑term margin pressure from growth in interest‑bearing deposits and markets financing, reliance on lumpy venture gains, declines in home lending/servicing revenue, and some regulatory/capital rule uncertainty. On balance the company showed sustainable operational momentum, but investors should watch NIM trajectory, deposit mix, and the translation of markets balance sheet growth into stable long‑term returns.Positive Updates
Strong EPS and Revenue Growth
Diluted EPS of $2.00, up 25% year over year; total revenue grew 9% year over year, driven by broad-based strength across all operating segments.
Negative Updates
Net Interest Margin Pressure and Near-term Compression
Net interest margin declined 4 basis points from the prior quarter and management expects modest NIM compression in Q3 (broadly in line with Q2's decline from Q1) before stabilizing in Q4. Growth in interest-bearing deposits and markets financing (lower spread) are cited as main drivers of NIM pressure.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong EPS and Revenue Growth
Diluted EPS of $2.00, up 25% year over year; total revenue grew 9% year over year, driven by broad-based strength across all operating segments.
Read all positive updates
Company Guidance
Management reiterated full‑year 2026 guidance for net interest income of $50 billion, plus or minus (with NII ex‑markets ~ $48 billion and markets NII ~ $2 billion), and said they expect stronger H2 versus H1 revenue growth, modest net interest margin compression in Q3 (broadly in line with Q2’s decline from Q1) before stabilizing in Q4, and full‑year noninterest expense of about $55.7 billion (with somewhat higher revenue‑related expenses in H2 offset by lower other expenses from continued efficiency). They also highlighted Q2 operating metrics supporting the outlook: average loans up 12% YoY, average deposits up 10% YoY (non‑interest bearing balances now expected to be relatively stable versus prior expectations), Q2 net income $4.1B and diluted EPS $2 (up 17% and 25% YoY, respectively), RoTCE 17.7% in Q2 (16.1% YTD) toward a medium‑term 17%–18% target, CET1 10.3% (target range 10.0%–10.5%), net loan charge‑offs 34 bps (down 10 bps YoY), efficiency ratio 60% (improved 4 ppts YoY), headcount 197k (24 consecutive quarters of reductions), continued capital returns ($9.8B returned in H1, including $7.0B buybacks; $3.0B repurchased in Q2), an expected 11% Q3 dividend increase to $0.50 subject to board approval, and an estimated ~7% RWA reduction under the proposed capital rules.Wells Fargo Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 125.70B | 123.53B | 125.40B | 115.34B | 83.44B | 83.08B |
| Gross Profit | 81.14B | 80.04B | 77.96B | 77.20B | 72.83B | 83.32B |
| EBITDA | 33.41B | 29.35B | 30.92B | 27.91B | 22.46B | 37.45B |
| Net Income | 21.73B | 21.34B | 19.72B | 19.14B | 13.68B | 22.11B |
Balance Sheet | ||||||
| Total Assets | 2.21T | 2.15T | 1.93T | 1.93T | 1.88T | 1.95T |
| Cash, Cash Equivalents and Short-Term Investments | 612.09B | 471.55B | 363.46B | 362.61B | 272.75B | 411.47B |
| Total Debt | 450.59B | 425.72B | 281.88B | 297.15B | 226.01B | 195.10B |
| Total Liabilities | 2.03T | 1.97T | 1.75T | 1.75T | 1.70T | 1.76T |
| Stockholders Equity | 178.40B | 181.12B | 179.12B | 185.74B | 180.23B | 187.61B |
Cash Flow | ||||||
| Free Cash Flow | 1.18B | -19.00B | 3.04B | 40.36B | 27.05B | -11.53B |
| Operating Cash Flow | 1.18B | -19.00B | 3.04B | 40.36B | 27.05B | -11.53B |
| Investing Cash Flow | -215.95B | -192.41B | -15.65B | 16.04B | -42.48B | -7.62B |
| Financing Cash Flow | 211.87B | 177.59B | -21.53B | 20.49B | -59.65B | -11.24B |
Wells Fargo Technical Analysis
Positive
81.41
Price Trends
81.23
Positive
80.67
Positive
83.90
Positive
Market Momentum
1.62
Positive
59.45
Neutral
73.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WFC, the sentiment is Positive. The current price of 81.41 is below the 20-day moving average (MA) of 85.55, above the 50-day MA of 81.23, and below the 200-day MA of 83.90, indicating a bullish trend. The MACD of 1.62 indicates Positive momentum. The RSI at 59.45 is Neutral, neither overbought nor oversold. The STOCH value of 73.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $913.98B | 14.66 | 16.32% | 1.79% | 8.17% | 19.76% | |
73 Outperform | $434.81B | 13.89 | 10.50% | 1.93% | -2.06% | 27.92% | |
73 Outperform | $345.00B | 16.45 | 12.07% | 4.14% | -6.12% | 12.49% | |
73 Outperform | $98.36B | 13.24 | 12.22% | 3.77% | 2.42% | 19.99% | |
69 Neutral | $267.80B | 12.49 | 12.04% | 1.80% | 4.63% | 18.04% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $221.84B | 13.72 | 7.53% | 1.94% | 3.91% | 37.25% |
* Financial Sector Average
WFC
Wells Fargo
87.51
8.95
11.40%
BAC
Bank of America
61.27
14.80
31.86%
C
Citigroup
129.36
38.76
42.79%
HSBC
HSBC Holdings
100.61
39.97
65.91%
JPM
JPMorgan Chase
341.10
55.59
19.47%
USB
US Bancorp
63.14
19.12
43.42%
Wells Fargo Corporate Events
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...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Wells Fargo Shareholders Back Board, Pay and Auditor
Positive
Apr 30, 2026
At its April 28, 2026 annual shareholder meeting, Wells Fargo investors approved an amendment and restatement of the bank’s 2022 Long-Term Incentive Plan, reauthorized executive pay on an advisory basis, and ratified KPMG as the independent ...
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.