Wells Fargo posts earnings beat but revenue misses expectations

Investing.com -- Wells Fargo & Co reported fourth quarter 2025 adjusted earnings that beat analyst expectations, but shares fell 2% after the bank missed revenue forecasts.

The banking giant posted adjusted earnings per share of $1.76, exceeding the analyst estimate of $1.66. However, revenue came in at $21.29 billion, falling short of the consensus estimate of $21.64 billion. The company reported that total revenue increased 4% YoY from $20.38 billion in the same quarter last year.

Wells Fargo’s net income for the quarter was $5.4 billion, or $1.62 per diluted share, which includes a $612 million severance expense. Excluding this notable item, adjusted net income was $5.8 billion. The bank’s net interest income rose 4% YoY to $12.33 billion, while noninterest income increased 5% to $8.96 billion.

"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 Chairman and CEO Charlie Scharf.

Average loans increased 5% YoY to $955.8 billion, while average deposits grew 2% to $1.38 trillion. Credit performance improved with net charge-offs declining 13% YoY to $1.03 billion.

The bank maintained strong capital levels with a Common Equity Tier 1 (CET1) ratio of 10.6%, down from 11.1% a year earlier. During the quarter, Wells Fargo repurchased 58.2 million shares of common stock for $5.0 billion.

Scharf added, "We have built a strong foundation and have made great progress in improving growth and returns though we have operated with significant constraints. We are excited to now compete on a level playing field."

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