TLDR
- Wells Fargo reported Q4 earnings of $1.62 per share, missing the $1.67 analyst consensus
- Net interest income reached $12.33 billion, below the expected $12.46 billion
- The bank took a $612 million severance charge tied to workforce reductions
- Shares fell 1.7% premarket after climbing 32.7% throughout 2025
- Wells Fargo forecasts $50 billion in 2026 interest income versus $50.33 billion expected
Wells Fargo delivered disappointing fourth-quarter results that failed to meet analyst expectations, pressuring shares lower in early trading Wednesday.
$WFC (Wells Fargo) #earnings are out: pic.twitter.com/Ct45yKOEzL
— The Earnings Correspondent (@earnings_guy) January 14, 2026
The bank reported earnings of $1.62 per share for the quarter ended December 31. Wall Street analysts had projected $1.67 per share. Revenue came in at $21.29 billion, falling short of the $21.64 billion consensus.
Net interest income climbed 4% year-over-year to $12.33 billion. The figure still missed analyst forecasts of $12.46 billion. This metric represents the spread between interest earned on loans and interest paid on deposits.
Wells Fargo absorbed $612 million in severance costs during the quarter. The expense reflects ongoing job cuts as CEO Charlie Scharf continues reshaping the bank’s operations.
Excluding severance charges, adjusted earnings per share reached $1.76, topping the $1.66 estimate. Adjusted net income totaled $5.8 billion.
Loan Growth Outpaces Deposit Expansion
Total revenue increased 4% from $20.38 billion in the prior-year quarter. Noninterest income rose 5% to $8.96 billion.
Average loans grew 5% year-over-year to $955.8 billion. Average deposits expanded 2% to $1.38 trillion.
Credit metrics improved. Net charge-offs dropped 13% year-over-year to $1.03 billion.
The bank’s Common Equity Tier 1 ratio stood at 10.6%, down from 11.1% a year earlier. Wells Fargo bought back 58.2 million shares for $5.0 billion during the quarter.
Workforce Shrinks Under Efficiency Drive
Wells Fargo employed 205,198 people at year-end 2025, down from 210,821 at September 30. The bank has reduced headcount every quarter since late 2020.
Scharf said last month Wells Fargo will keep cutting staff to improve efficiency. He highlighted artificial intelligence as a key opportunity to enhance productivity.
The bank forecasts approximately $50 billion in interest income for 2026. Analysts expected $50.33 billion on average.
Shares had jumped 32.7% in 2025 but slipped 1.7% in premarket trading. The bank capped a transformative year that saw regulators lift a $1.95 trillion asset cap in June. The restriction dated back to a fake-accounts scandal. With the cap removed, total assets crossed $2 trillion for the first time.
Wells Fargo terminated seven consent orders last year. One consent order from 2018 remains active.
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