Diluted EPS rose 12.7% to $1.87 against revenue growth of 2.0% 8-K. Fewer shares, lower expenses and a $170 million discrete tax benefit helped, while the provision rose 51% from a year earlier 8-K.
Wells Fargo & Company · Q3 2026 · Reported 13 Oct 2026 · US
Key figures
Billion USD | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Net revenues | 21.87 | 21.44 | +2.0 % |
Net income | 5.95 | 5.59 | +6.5 % |
Diluted EPS | 1.87 USD/share | 1.66 USD/share | +12.7 % |
Net margin | 27.2 % | 26.1 % | +1.1 pp |
Figures in USD, as reported. Margins are computed from the reported lines.
Buybacks and lower costs, not revenue, drove the EPS gain
Revenue rose 2.0% to $21.87 billion from a year earlier, and net income rose 6.5% to $5.95 billion 8-K. Diluted EPS rose 12.7% to $1.87, because the implied diluted share count fell about 5% 8-K. The company repurchased 28.6 million shares, or $2.5 billion, in the quarter 8-K.
Noninterest expense fell 1% to $13,743 million, helped by an 8% headcount reduction and lower severance expense 8-K. The year-earlier quarter included $296 million of severance 8-K. The efficiency ratio was 63%, against 65% a year earlier and 60% in the prior quarter 8-K. Net margin widened by 1.1 points to 27.2% from a year earlier 8-K.
Net interest income grew on balances while the margin stayed below last year
Net interest income rose 5% to $12,517 million, driven by higher loan and investment securities balances and balance sheet growth in Markets 8-K. Higher deposit costs from interest-bearing commercial deposits partly offset it 8-K. Average loans and average deposits each rose 11% 8-K.
The net interest margin on a taxable-equivalent basis was 2.43%, level with the prior quarter and down from 2.61% a year earlier 8-K. Growth therefore came from volume, not spread. Noninterest income fell 1%, as lower trading gains, lease income after the rail car leasing sale, venture capital results and mortgage banking income outweighed higher advisory, deposit, investment banking and card fees 8-K.
Provisions rose with loan growth and a tax benefit cushioned earnings
The provision for credit losses rose 51% to $1,029 million from a year earlier 8-K. The company attributes the allowance increase to higher commercial and industrial and auto loan balances, partly offset by a lower commercial real estate allowance 8-K. Net loan charge-offs were 0.38% of average loans (annualized), against 0.34% in the prior quarter and 0.40% a year earlier 8-K. Commercial net loan charge-offs rose to 0.18% from 0.10% in the prior quarter 8-K.
Income tax expense fell 11% to $1,161 million from a year earlier and included $170 million of discrete tax benefits from the resolution of prior period matters 8-K. That one-off helped lift net income growth.
Against the prior quarter, earnings slipped and capital thinned
Corporate noninterest income was $115 million, against $1,002 million in the prior quarter, and the segment lost $526 million 8-K.
The CET1 ratio was 10.0%, against 10.3% in the prior quarter and 11.0% a year earlier 8-K. Tangible common equity was $133.4 billion, against $139.1 billion a year earlier 8-K. ROTCE rose to 16.3% from 15.2% a year earlier 8-K. Higher returns are being earned on a thinner capital base.
What to watch next
Management says higher interest rates, higher oil prices and persistent inflation create risks, but that investment in AI infrastructure, high employment and wage growth outweigh them 8-K.
Whether the 2.43% net interest margin, 18 basis points below a year earlier, holds while deposit costs rise on commercial deposit growth 8-K.
Commercial credit: commercial charge-offs and the $240 million Commercial Banking provision, against $39 million a year earlier, as loan growth continues 8-K.
The report does not give net interest income or expense guidance, income before income taxes or operating cash flow.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.