Wells Fargo (WFC) Delivers +13% EPS Growth in Q3 2026
Key Takeaways
- Wells Fargo reported third quarter 2026 net income of $5.95 billion, up 6% from $5.58 billion a year earlier.
- Diluted earnings per share (EPS) rose 13% to $1.87, slightly ahead of the consensus estimate of approximately $1.85–$1.86.
- Total revenue grew 2% to $21.87 billion, but came in below the roughly $22.31 billion analysts had expected.
- Return on tangible common equity (ROTCE), a key profitability measure, improved to 16.3% from 15.2% a year ago.
- Average loans and deposits each increased 11% year over year, reflecting broad-based balance sheet growth.
- The company raised its quarterly dividend to $0.50 per share and repurchased $2.5 billion of common stock during the quarter.
Why These Results Matter
As one of the largest U.S. banks, WFC’s quarterly results offer a useful window into the health of American consumer and corporate credit. The bank has been working through a multi-year turnaround centered on expense control and better returns, and this quarter shows further progress toward the long-term ROTCE target of 17%–18%. With the Federal Reserve’s asset cap now lifted, I’m watching closely to see whether WFC can turn its scale in lending and wealth management into sustained growth. These numbers also land against a backdrop of elevated interest rates and ongoing inflation, so loan demand, deposit costs, and credit quality remain central to how the market interprets the quarter. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
The Quarter in Detail
WFC posted diluted EPS of $1.87 for the quarter ended September 30, 2026, up 13% from $1.66 in the same period a year earlier and a touch above consensus. Net income rose 6% year over year to $5.95 billion.
Total revenue increased 2% to $21.87 billion, though it missed the roughly $22.31 billion consensus. That shortfall was driven in part by a 1% decline in noninterest income to $9.35 billion. Net interest income rose 5% to $12.52 billion. Noninterest expense fell 1% to $13.74 billion, and the efficiency ratio improved to 63% from 65% a year earlier.
On the credit side, the provision for credit losses rose 51% to $1.03 billion, while the net loan charge-off ratio stayed solid at 38 basis points. The Common Equity Tier 1 (CET1) ratio stood at 10%, down from 11% a year earlier. Management kept its full-year 2026 net interest income outlook at approximately $50 billion, with fourth-quarter NII expected near $13 billion.
Market Reaction
The initial market reaction was measured. Shares traded lower in premarket activity, reflecting investor attention on the revenue shortfall relative to consensus even though EPS came in modestly ahead. The combination of solid earnings growth, disciplined expenses, and strong loan and deposit expansion was tempered by softer noninterest income and a higher credit-loss provision. Analysts generally viewed the quarter as another incremental step in the profitability turnaround, while noting that elevated interest rates, oil prices, and persistent inflation remain important watchpoints for consumer and commercial credit. The stock’s opening move drew attention, given WFC had been down more than 10% year to date heading into the report.
What Comes Next
Looking ahead, management’s guidance sets a clear framework for the coming quarter. The company expects full-year 2026 net interest income of approximately $50 billion, with fourth-quarter NII around $13 billion and a stable net interest margin. This points to watching whether deposit costs and loan pricing trends continue to support that outlook.
Balance sheet momentum is another area to monitor. Average loans and deposits each grew 11% year over year, and further growth in wealth management client assets and investment banking activity could help future revenue. At the same time, the efficiency ratio’s improvement highlights ongoing cost discipline, which remains a stated priority.
Credit quality and capital stay key signals. While charge-offs remained low and early-stage delinquencies were historically low, the higher provision for credit losses and the decline in the CET1 ratio tied to higher interest rates deserve attention. Finally, the rising dividend and buyback activity reflect confidence in capital generation, so capital return looks set to stay a central theme.
Enhancing Research with Tickeron’s AI Tools
When I want a broader view of how WFC stacks up against peers, I turn to Tickeron’s AI Screener. It lets me quickly filter financial stocks by technical patterns, fundamentals, and AI signals, which helps surface comparable names and spot sector trends without spending hours on manual work.
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Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
WFC's Stochastic Oscillator is remaining in overbought zone for 2 days
Expect a price pull-back in the near future.
Technical Analysis (Indicators)
Bearish Trend Analysis
WFC moved below its 50-day moving average on September 17, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for WFC crossed bearishly below the 50-day moving average on September 24, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 53%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WFC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 58%.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where WFC's RSI Oscillator exited the oversold zone, 23 of 26 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 88%.
The Momentum Indicator moved above the 0 level on October 09, 2026. You may want to consider a long position or call options on WFC as a result. In 47 of 75 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 63%.
The Moving Average Convergence Divergence (MACD) for WFC just turned positive on October 09, 2026. Looking at past instances where WFC's MACD turned positive, the stock continued to rise in 31 of 49 cases over the following month. The odds of a continued upward trend are 63%.
Following a +4.10% 3-day Advance, the price is estimated to grow further. Considering data from situations where WFC advanced for three days, in 204 of 333 cases, the price rose further within the following month. The odds of a continued upward trend are 61%.
WFC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 149 of 268 cases where WFC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 56%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 2 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 24 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 21, placing this stock worse than average.
The Tickeron Valuation Rating of 53 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.482) is normal, around the industry mean (1.866). WFC has a moderately low P/E Ratio (11.746) as compared to the industry average of (14.888). Projected Growth (PEG Ratio) (1.264) is also within normal values, averaging (2.139). Dividend Yield (0.023) settles around the average of (0.026) among similar stocks. P/S Ratio (3.144) is also within normal values, averaging (3.867).
The Tickeron Price Growth Rating for this company is 56 (best 1 - 100 worst), indicating fairly steady price growth. WFC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 61 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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