10-Q · April 29, 2026
Wells Fargo reported solid Q1 2026 results with total revenue reaching $21.45 billion, an increase of 6% year-over-year, despite a slight earnings miss against estimates with diluted EPS of $1.60. The company emphasized…
Earnings analysis · 10-Q
WFC earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
Wells Fargo delivered a strong Q2, with revenue up 5% sequentially and 9% YoY to $22.622B and EPS up 25% on both comparisons to $2.00. Broad-based segment revenue growth, lower sequential expenses, lower charge-offs and…
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Wells Fargo delivered a strong Q2, with revenue up 5% sequentially and 9% YoY to $22.622B and EPS up 25% on both comparisons to $2.00. Broad-based segment revenue growth, lower sequential expenses, lower charge-offs and improved nonperforming assets supported the result. Offsetting considerations are ongoing NIM compression, elevated provisioning under a cautious macro outlook, and a modest decline in the CET1 ratio as risk-weighted assets increased.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $2.0
What stood out
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Revenue accelerated sequentially and YoY
Q2 revenue was $22.622B, up $1.176B or 5% sequentially from $21.446B and up $1.800B or 9% from $20.822B a year ago. Net interest income rose 5% YoY to $12.317B and noninterest income rose 13% to $10.305B.
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EPS grew 25% sequentially and YoY
Diluted EPS was $2.00, up 25% from both $1.60 in Q1 2026 and $1.60 in Q2 2025. Net income increased 22% sequentially to $6.407B and 17% YoY from $5.494B.
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Strong operating leverage and efficiency
Pre-tax pre-provision profit was $8.961B, up 26% sequentially from $7.116B and 20% YoY from $7.443B. The efficiency ratio improved to 60% from 67% in Q1 2026 and 64% in Q2 2025, as expenses fell 5% sequentially to $13.661B.
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All core operating segments posted growth
All four operating segments grew revenue: CIB rose $752M (16%) to $5.425B, WIM rose $454M (13%) to $3.892B, Consumer Banking and Lending rose $600M (6%) to $10.288B, and Commercial Banking rose $185M (6%) to $3.118B.
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Credit losses and nonperformers improved
Credit trends improved: total net charge-offs declined to $876M from $997M YoY, commercial charge-offs fell to $156M from $247M, and nonperforming assets decreased $559M from year-end to $7.944B.
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Loan, deposit and operating-cash-flow growth
The balance sheet expanded with period-end loans up $44.948B (5%) from year-end to $1.031T and deposits up $75.198B (5%) to $1.501T. The company generated $15.918B of operating cash flow in the first half versus a $22.253B outflow a year earlier.
What to watch
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NIM compression and rate sensitivity
Net interest margin was 2.43%, down from 2.47% in Q1 2026 and 2.68% in Q2 2025. Management attributes the YoY decline to growth in lower-yielding Markets assets and interest-bearing deposits; a hypothetical 100-bp rate decline would reduce next-12-month NII by $1.9B.
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Macro and commercial-credit exposure
Credit provisioning remains elevated at $914M, despite falling 9% YoY. The ACL scenario assumes unemployment reaches 5.3% by Q4 2027 and commercial-real-estate prices decline 7.7%, while criticized C&I loans increased to $16.9B from $15.9B at year-end.
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RWA growth reduced CET1 buffer
Capital ratios declined as balance-sheet growth increased RWAs: standardized CET1 was 10.26%, down from 10.61% at year-end, while standardized RWAs rose $47.716B to $1.342T. The 10.26% CET1 ratio remains above the 8.50% requirement.
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Legal exposure remains material
Legal uncertainty persists: the high end of reasonably possible losses above accrued legal reserves was approximately $1.5B at June 30, 2026. The company also agreed to pay $85M to resolve the hiring-practices securities-fraud class action.
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No formal risk-factor update; cyber risk noted
The filing does not identify a new or revised Item 1A risk factor; it incorporates the risk-factor discussion from the 2025 Form 10-K. However, management flags increased AI-enabled cybersecurity exposure, and Q2 average Trading General VaR rose to $31M from $30M in Q1 2026.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. It discloses a Board-approved increase in the third-quarter 2026 common dividend to $0.50 per share, from $0.45 declared for Q2 2026.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.