Key Takeaways
- Net income increased 6% year over year to $5.95 billion, while diluted EPS rose 13% to $1.87.
- Revenue grew 2% to $21.87 billion, driven by a 5% increase in net interest income to $12.52 billion.
- Operating expenses declined 1% to $13.74 billion, supported by cost-saving initiatives and an 8% reduction in headcount.
- Consumer Banking and Lending performed well, with revenue rising 5% to $10.66 billion and net income increasing 21% to $2.76 billion.
- Wealth and Investment Management showed strong growth, with revenue up 12% to $4.10 billion and net income increasing 19% to $603 million.
On October 13, 2026, Wells Fargo reported a net income of $6 billion for Q3 2026, up 6% from $5.59 billion in the same quarter last year. Diluted earnings per share (EPS) increased 13% year over year to $1.87, which shows growth in net interest income and improved performance across various business segments.
The US-based financial services company reported higher revenue for the quarter compared with a year ago. However, expenses declined slightly. Growth in consumer banking, commercial banking, and wealth management uplifted its performance. However, higher provisions for credit losses and weaker results from some investment activities affected the overall results.
Wells Fargo Stock Performance Against its Peers
Source: Reuters
Wells Fargo Q3 2026: Key Financial Highlights
Wells Fargo’s third-quarter results showed year-over-year growth in earnings, revenue, loans, and deposits.
| Financial metric | Q3 2026 | Q3 2025 | Year-over-year change |
| Total revenue | $21.87 billion | $21.44 billion | +2% |
| Net income | $5.95 billion | $5.59 billion | +6% |
| Diluted EPS | $1.87 | $1.66 | +13% |
| Net interest income | $12.52 billion | $11.95 billion | +5% |
| Noninterest income | $9.35 billion | $9.49 billion | -1% |
| Noninterest expenses | $13.74 billion | $13.85 billion | -1% |
| Average loans | $1.03 trillion | $928.7 billion | +11% |
| Average deposits | $1.48 trillion | $1.34 trillion | +11% |
Source: Wells Fargo’s Q3 2026 financial results. Figures are rounded.
Net Interest Income Supports Revenue Growth
Wells Fargo’s net interest income rose 5% year over year to $12.52 billion in Q3 2026. Net interest income represents the difference between the interest a bank earns on loans and investments and the interest it pays on deposits and other borrowings.
Total revenue increased 2% year over year to $21.87 billion. Noninterest income, which includes fees and other revenue not directly earned through interest, declined 1% to $9.35 billion. Higher investment advisory, investment banking, deposit-related, and card fees were offset by lower trading gains, mortgage banking income, and lease income following the sale of its rail car leasing business.
Expenses Decline Despite Higher Business Activity
Wells Fargo reported noninterest expenses of $13.74 billion, down 1% from $13.85 billion a year earlier. The company also reported an 8% reduction in headcount compared with the previous year.
These savings helped offset higher compensation linked to business performance and increased technology and equipment costs. Revenue-related expenses rose 15% during the quarter.
Despite the year-over-year improvement in expenses, the bank’s efficiency ratio increased to 63% from 60% in the previous quarter but improved from 65% in the year-ago quarter. The efficiency ratio shows how much a bank spends to generate revenue. A lower ratio generally indicates better cost efficiency.
Consumer Banking and Lending Leads Segment Earnings
Wells Fargo’s Consumer Banking and Lending segment reported revenue of $10.66 billion, up 5% year over year. Net income increased 21% to $2.76 billion.
Consumer, Small and Business Banking revenue rose 7%, helped by higher deposit balances, wider deposit spreads, and increased fees. Credit card revenue grew 3%, while auto lending revenue increased 33% due to higher loan balances and wider loan spreads.
However, Home Lending revenue declined 15%, mainly because of lower mortgage servicing income and reduced net interest income from lower loan balances.
The bank also reported continued growth in consumer primary checking accounts, more than 660,000 new credit card accounts, and a 15% year-over-year increase in auto originations.
Commercial Banking Revenue Increases 6%
Wells Fargo’s Commercial Banking segment recorded revenue of $3.24 billion, up 6% from the same quarter last year. Net income increased 3% to $1.20 billion.
Net interest income grew 9%, supported by higher loan and deposit balances. Noninterest income increased 1%, helped by stronger deposit-related fees and higher investment banking and markets fees.
Average loans in the segment rose 10% year over year to $240.5 billion, while average deposits increased 16% to $198.9 billion.
However, the provision for credit losses rose to $240 million from $39 million a year earlier. The increase was largely linked to a higher allowance for loan losses as the business expanded its lending.
Corporate and Investment Banking Reports Mixed Results
Wells Fargo’s Corporate and Investment Banking segment reported revenue of $5.01 billion, up 3% year over year. Net income, however, declined 2% to $1.92 billion.
The Banking business performed well, with revenue increasing 8%. Investment banking revenue rose 10%, supported by higher fees from debt and equity capital markets and mergers and acquisitions (M&A) advisory services. Treasury Management and Payments revenue also increased 8%.
M&A revenue grew 30% year over year, while equity capital markets and investment-grade underwriting fees each increased 33%.
These gains were partly offset by weaker performance in the Markets business. Total Markets revenue declined 1%, as stronger equities revenue was offset by lower results across most fixed-income, currencies, and commodities (FICC) products.
Equities revenue increased 21% year over year, while FICC revenue fell 7%. Higher personnel and professional service expenses also weighed on the segment’s results.
Wealth and Investment Management Shows Strong Growth
Revenue rose 12% year over year to $4.10 billion, while net income increased 19% to $603 million.
Net interest income increased by 12%, driven by higher loan and deposit balances and lower deposit costs. Noninterest income also increased 12% because of higher investment advisory fees.
Credit Quality and Capital Position
The bank also reported total nonperforming assets of $7.36 billion, down from $7.83 billion a year earlier. Nonperforming assets accounted for 0.70% of total loans, compared with 0.83% in the third quarter of 2025.
The allowance for credit losses on loans stood at $14.46 billion, up from $14.31 billion a year earlier. The increase in provisions during the quarter reflected higher allowances for certain commercial and auto loans, partly offset by lower allowances for commercial real estate loans.
On the capital front, Wells Fargo’s Common Equity Tier 1 (CET1) ratio was 10.0%, compared with 11.0% a year earlier. The ratio measures a bank’s core capital against its risk-weighted assets and is an important indicator of its financial resilience.
The bank also repurchased 28.6 million shares of common stock worth $2.5 billion during the quarter.
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