Wells Fargo (WFC) Stock: Earnings Miss Sends Shares Down After Strong 2025

TLDR

• Wells Fargo missed Q4 profit estimates with earnings of $1.62 per share versus expected $1.67 per share
• Net interest income of $12.33 billion fell short of the $12.46 billion analyst forecast
• The bank recorded $612 million in severance expenses as part of ongoing job cuts
• Wells Fargo’s 2026 interest income forecast of $50 billion came in below analyst expectations of $50.33 billion
• Shares dropped 1.7% in premarket trading after surging 32.7% in 2025

Wells Fargo reported mixed fourth-quarter results that fell short of Wall Street expectations, sending shares lower in premarket trading.

The bank posted earnings of $1.62 per share for the quarter ending December 31. Analysts had expected $1.67 per share. Revenue reached $21.29 billion, missing the consensus estimate of $21.64 billion.

Net interest income rose 4% year-over-year to $12.33 billion. However, this figure came in below the $12.46 billion analysts projected. The metric measures the difference between what banks earn on loans and pay out on deposits.

Wells Fargo & Company, WFC

The bank took a $612 million hit from severance expenses during the quarter. These costs stem from continued workforce reductions under CEO Charlie Scharf’s efficiency push.

Without the severance charges, adjusted earnings per share hit $1.76, beating the $1.66 estimate. Adjusted net income totaled $5.8 billion for the quarter.

Revenue Growth Meets Expense Pressures

Total revenue increased 4% from $20.38 billion in the same quarter last year. Noninterest income grew 5% to $8.96 billion.

Average loans climbed 5% year-over-year to $955.8 billion. Average deposits increased 2% to $1.38 trillion.

Credit quality showed improvement. Net charge-offs declined 13% year-over-year to $1.03 billion.

The bank maintained a Common Equity Tier 1 ratio of 10.6%. This was down from 11.1% a year earlier.

Wells Fargo repurchased 58.2 million shares for $5.0 billion during the quarter.

Headcount Reduction Continues

The bank’s workforce shrank to 205,198 employees at year-end 2025. This compares to 210,821 as of September 30.

Headcount has fallen every quarter since late 2020. Scharf said last month the bank will continue trimming staff to boost efficiency. He pointed to artificial intelligence as a tool for productivity gains.

Wells Fargo forecast interest income of about $50 billion for 2026. Analysts had expected $50.33 billion on average.

The stock had surged 32.7% in 2025 but fell 1.7% in premarket trading Wednesday. The bank wrapped up a strong year that saw regulators remove a $1.95 trillion asset cap in June. The penalty stemmed from a fake-accounts scandal. The removal allowed total assets to surpass $2 trillion for the first time.

Wells Fargo closed seven consent orders last year. One consent order from 2018 remains in place.

The post Wells Fargo (WFC) Stock: Earnings Miss Sends Shares Down After Strong 2025 appeared first on Blockonomi.