Wells Fargo underwhelms with Q4 results, new profit targets

14th Jan 2026 12:32

(Sharecast News) - Fourth-quarter results from Wells Fargo & Co underwhelmed investors on Wednesday despite the American banking group reporting small increases to revenues and profits and setting a new medium-term profitability target.

Total revenues improved to $21.29bn in the three months to 31 December, up from $20.39bn the year before, though well short of the $21.60bn consensus estimate.

Net income rose to $5.36bn from $5.08bn, with earnings per share up to $1.62 from $1.43. However, when excluding the $612m negative impact from severance costs during the quarter, adjusted earnings came out at $1.76 a share, which was ahead of the $1.66 market forecast.

Total revenues across the Consumer Banking and Lending division were up 7% year-on-year at $9.57bn, while Wealth and Investment Management grew revenues 10% to $4.36bn, making up for a 3% fall in Commercial Banking turnover to $1.14bn, and a flat performance in the Corporate and Investment Bank with revenues of $4.62bn.

"Strong financial performance, removal of the asset cap imposed by the Federal Reserve, termination of multiple consent orders, and stronger growth in both our consumer and commercial businesses make me proud of our 2025 results," said chief executive and chair Charlies Scharf.

Looking ahead, having achieved its return on tangible common equity target of 15%, Wells Fargo set a new target of 17-18% for 2028. However, the firm's guidance for net interest income of around $50bn was slightly short of the current consensus forecast of $50.3bn.

WFC stock futures were down 2.6% in pre-market trading at $91.11 by 1346 GMT.