• Wells Fargo posted a narrow EPS beat but missed on revenue and net interest income, raising questions about earnings quality.
  • The results mark the sixth consecutive quarter of NII misses, extending a troubling trend for the bank.
  • Investors will look to the earnings call for clarity on loan growth and credit quality as the bank operates without its asset cap for the first time in years.

Wells Fargo & Co. reported mixed third-quarter results on Tuesday, with earnings per share narrowly exceeding expectations but revenue and net interest income falling short, according to figures supplied in the company’s headline. The bank earned $1.87 per share, beating the $1.85 consensus estimate, while revenue of $21.87 billion missed the $22.30 billion projection. Net interest income came in at $12.52 billion, below the $12.63 billion expected.

The modest EPS beat—roughly 1.1% above estimates—was not enough to offset concerns about the top line. Revenue missed by approximately $430 million, or 1.9%, and NII missed by $110 million. Net income was $5.95 billion, with a return on equity of 13.8%. The bank’s common equity tier 1 ratio stood at 10.0%, and it set aside $1.03 billion for credit losses.

NII Miss Extends Troubling Streak

The NII shortfall is particularly noteworthy because it marks the sixth straight quarter in which Wells Fargo has missed expectations on this key metric, according to prior reporting. NII measures the difference between interest earned on loans and other assets and interest paid on deposits and funding. The persistent miss suggests the bank is struggling to manage margins in a volatile rate environment.

Management’s full-year 2026 NII outlook remains at approximately $50 billion, unchanged from previous guidance. That lack of an upgrade, despite the miss, may raise eyebrows on the earnings call scheduled for 10 a.m. ET. CFO Mike Santomassimo had previously indicated that 2026 loan growth could exceed the prior mid-single-digit forecast, but the headline figures do not yet reflect that optimism.

Beyond the Headline: What to Watch

The earnings release and financial supplement were not yet available on the company’s investor relations page as of 6:32 a.m. EDT, so the figures cited here are treated as unverified. The full release will provide crucial details on expenses, share count, and taxes that could explain the EPS beat despite the revenue miss.

Investment banking revenue was $611 million, while total markets revenue was $1.84 billion. Prior-period comparisons are needed to gauge whether these businesses are gaining or losing momentum. Before earnings, management had expected mid-single-digit increases in both investment banking fees and markets revenue.

The credit-loss provision of $1.03 billion is insufficient on its own to determine whether credit quality is improving or deteriorating. However, the bank’s ongoing efforts to simplify its operations—having sold or exited 12 businesses and terminated 14 consent orders since 2019—have positioned it for growth now that the Federal Reserve’s asset cap has been lifted.

The cap, imposed in 2018 after the fake-accounts scandal, was removed in June 2025, and the remaining enforcement action was terminated in March 2026. This newfound freedom allows Wells Fargo to expand its balance sheet, but it also puts pressure on management to demonstrate that growth can be achieved without compromising credit standards or profitability.

A Test of Post-Remediation Growth

Analysts will be listening closely for commentary on loan growth, deposit costs, and capital deployment. The bank’s ability to generate revenue growth in a competitive lending environment is far from assured, especially with interest rates and deposit pricing remaining key variables.

Wells Fargo’s shares may see muted reaction until the earnings call provides more color. The narrow EPS beat could be attributed to cost controls or one-time items, but without the full release, it’s difficult to assess the quality of earnings.

Peer banks, including JPMorgan Chase (JPM), Goldman Sachs (GS), and Citigroup (C), also report today, with Bank of America (BAC) and Morgan Stanley (MS) later this week. Their results will help distinguish industry-wide pressures from company-specific issues.

A spokesperson for Wells Fargo did not immediately respond to a request for comment.

Update: This article was updated to clarify that the Q3 figures are based on headline data and have not been independently verified from the company’s official release.