Following Advanced Micro Devices’ (NASDAQ: AMD) latest agreement with the artificial intelligence (AI) firm Anthropic, Wells Fargo’s (NYSE: WFC) Aaron Rakers announced that his confidence in his above-consensus price target for AMD stock has been further reinforced.
Specifically, the Wall Street analyst explains that the deal – despite being widely expected – strengthened the forecast that the blue-chip chipmaker’s revenue from graphics processing units (GPUs) will hit $40.6 billion in 2027.
Rakers added that the MI455X and Helios rack-scale systems, worth billions of dollars, might push expectations for AMD toward $50 billion before reiterating the ‘Overweight’ – ‘Buy’ – rating and the $615 stock price target for the next 12 months.
Analysts predict AMD stock price in the next 12 months Zooming out reveals that Wells Fargo’s recommendation for the semiconductor giant falls largely in line with the wider attitude on Wall Street, even if its share price forecast is significantly above the consensus.
Indeed, AMD stock is overall considered a ‘Strong Buy’ with 28 positive, 8 ‘Hold,’ and no negative ratings, per the data Finbold retrieved from TipRanks on July 23.
Notably, despite the recommendation, the chipmaker’s shares are, on average, expected to drop 1.99% from their latest close at $552.33 to $541.31 within the next 12 months.
Wall Street sets AMD stock price target for the next 12 months. Source: TipRanks Examining the individual notes reveals that the apparently bearish price target is most likely a result of older forecasts – aggregators tend to take into account all institutional predictions issued within the most recent three months.
Still, Blayne Curtis from Jefferies estimated AMD stock would find itself at $515 – a 6.76% downside from the latest close – despite issuing a ‘Buy’ recommendation as recently as July 16, demonstrating that not all bulls are confident the semiconductor giant’s rally can continue.
Is AMD stock headed for a massive breakout? Lastly, Advanced Micro Devices shares’ performance since 2026 indicates the equity might soon face a breakout. Year-to-date (YTD), AMD is up 147.16% but has, despite significant volatility, remained relatively stagnant since early June.
AMD stock price YTD chart. Source: Google Under the circumstances, it appears that the stock is undergoing an accumulation phase with its next direction remaining somewhat uncertain: though the large-scale agreement with Anthropic appears like a bullish catalyst, it could also trigger a sell-off due to rising skepticism among investors toward AI.
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Aureus Asset Management LLC purchased a new position in shares of Wells Fargo & Company (NYSE:WFC – Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 21,518 shares of the financial services provider’s stock, valued at approximately $1,713,000.
A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Diversified Trust Co. grew its stake in Wells Fargo & Company by 59.7% in the 4th quarter. Diversified Trust Co. now owns 35,285 shares of the financial services provider’s stock valued at $3,289,000 after acquiring an additional 13,196 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its holdings in shares of Wells Fargo & Company by 19.0% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 532,300 shares of the financial services provider’s stock valued at $49,610,000 after purchasing an additional 84,902 shares in the last quarter. Swiss Life Asset Management Ltd lifted its holdings in shares of Wells Fargo & Company by 4.2% in the fourth quarter. Swiss Life Asset Management Ltd now owns 350,567 shares of the financial services provider’s stock valued at $32,673,000 after purchasing an additional 14,168 shares in the last quarter. Vanguard Personalized Indexing Management LLC grew its position in shares of Wells Fargo & Company by 4.4% in the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 412,511 shares of the financial services provider’s stock valued at $38,446,000 after purchasing an additional 17,302 shares during the last quarter. Finally, Winning Points Advisors LLC purchased a new position in shares of Wells Fargo & Company during the 4th quarter worth approximately $3,384,000. Hedge funds and other institutional investors own 75.90% of the company’s stock.
More Wells Fargo & Company News Here are the key news stories impacting Wells Fargo & Company this week:
Positive Sentiment: Wells Fargo reported Q2 2026 earnings with EPS up 25%, supported by revenue growth and efficiency gains across all segments, reinforcing the company’s operating momentum. Wells Fargo Q2 2026 Earnings Call Transcript Positive Sentiment: The bank raised its dividend by 11% to $0.50 per share after passing the Federal Reserve stress test with a CET1 ratio comfortably above required levels, which signals balance-sheet strength and capital flexibility. This High-Yield Bank Stock Just Raised Its Dividend by 11% Positive Sentiment: Wall Street analysts remain broadly constructive on WFC, and recent coverage highlights that broker recommendations continue to lean bullish on the stock. Wall Street Bulls Look Optimistic About Wells Fargo (WFC): Should You Buy? Positive Sentiment: Wells Fargo also appointed Tom Nicholls to lead Sports Investment Banking, a move that suggests it is expanding higher-fee advisory capabilities in a niche growth area. Wells Fargo (WFC) Appoints Tom Nicholls To Lead Sports Investment Banking Neutral Sentiment: WFC is also showing up on “trending stocks” lists, reflecting elevated investor interest rather than a clear fundamental catalyst by itself. Wells Fargo & Company (WFC) Is a Trending Stock: Facts to Know Before Betting on It Neutral Sentiment: Broader market commentary favoring banks over volatile tech names is also providing a supportive backdrop for large financials like Wells Fargo. This High-Yield Bank Stock Just Raised Its Dividend by 11% Negative Sentiment: A MarketWatch piece about a customer receiving a lower-than-expected credit limit on a balance-transfer request could add to scrutiny around Wells Fargo’s consumer lending practices, though it appears anecdotal rather than company-wide. I wanted to transfer $17,000 in credit-card debt. Why did Wells Fargo offer me only a $4,000 credit limit? Wall Street Analysts Forecast Growth A number of equities research analysts recently issued reports on the company. Bank of America upped their target price on Wells Fargo & Company from $95.00 to $102.00 and gave the company a “buy” rating in a research note on Tuesday, July 7th. Truist Financial boosted their price target on Wells Fargo & Company from $90.00 to $94.00 and gave the stock a “buy” rating in a report on Friday, June 26th. Robert W. Baird upped their price objective on Wells Fargo & Company from $85.00 to $92.00 and gave the company a “neutral” rating in a research report on Wednesday, July 15th. Piper Sandler reaffirmed an “overweight” rating and set a $94.00 price objective (down from $100.00) on shares of Wells Fargo & Company in a research note on Wednesday, April 15th. Finally, HSBC raised shares of Wells Fargo & Company from a “hold” rating to a “buy” rating and set a $94.00 target price for the company in a research note on Wednesday, April 1st. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $98.50.
Get Our Latest Analysis on WFC
Wells Fargo & Company Trading Down 1.3% Shares of Wells Fargo & Company stock opened at $86.61 on Thursday. Wells Fargo & Company has a fifty-two week low of $72.78 and a fifty-two week high of $97.76. The firm has a market cap of $265.05 billion, a PE ratio of 12.59, a P/E/G ratio of 0.96 and a beta of 0.92. The business’s fifty day moving average is $82.21 and its two-hundred day moving average is $83.55. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 1.09.
Wells Fargo & Company Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Friday, May 8th were paid a dividend of $0.45 per share. The ex-dividend date of this dividend was Friday, May 8th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 2.1%. Wells Fargo & Company’s dividend payout ratio is currently 26.16%.
About Wells Fargo & Company (Free Report)
Wells Fargo & Company is a diversified, U.S.-based financial services company headquartered in San Francisco, California. Founded in 1852 by Henry Wells and William G. Fargo, the firm has evolved from its origins in express delivery and pioneer-era banking into one of the largest full-service banks in the United States. The company provides a broad range of financial products and services to individual, small business, commercial, and institutional clients. Charles W. Scharf serves as chief executive officer.
Wells Fargo operates across several core business segments, including consumer banking and lending, commercial banking, corporate and investment banking, and wealth and investment management.
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Wells Fargo & Co. Chief Executive Officer Charlie Scharf says "these times are really good for banks." He also says the firm is being very disciplined about adding investment banking resources.
Wells Fargo (WFC - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this bank have returned +4.3%, compared to the Zacks S&P 500 composite's +0.3% change. During this period, the Zacks Financial - Investment Bank industry, which Wells Fargo falls in, has gained 3.3%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Wells Fargo is expected to post earnings of $1.84 per share for the current quarter, representing a year-over-year change of +6.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
The consensus earnings estimate of $7.24 for the current fiscal year indicates a year-over-year change of +15.3%. This estimate has changed +3.7% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $7.92 indicates a change of +9.5% from what Wells Fargo is expected to report a year ago. Over the past month, the estimate has changed +1.8%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Wells Fargo.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Wells Fargo, the consensus sales estimate for the current quarter of $22.23 billion indicates a year-over-year change of +3.7%. For the current and next fiscal years, $88.64 billion and $93.14 billion estimates indicate +5.9% and +5.1% changes, respectively.
Last Reported Results and Surprise HistoryWells Fargo reported revenues of $22.62 billion in the last reported quarter, representing a year-over-year change of +8.6%. EPS of $1.96 for the same period compares with $1.54 a year ago.
Compared to the Zacks Consensus Estimate of $21.8 billion, the reported revenues represent a surprise of +3.76%. The EPS surprise was +13.29%.
Over the last four quarters, Wells Fargo surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Wells Fargo is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Wells Fargo. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Wells Fargo & Co. Chief Executive Officer Charlie Scharf says he's "big time bullish on the US." He talks about the state of the US consumer, the economy, earnings and where his employees want to live and work.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Wells Fargo (WFC - Free Report) .
Wells Fargo currently has an average brokerage recommendation (ABR) of 1.70, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 27 brokerage firms. An ABR of 1.70 approximates between Strong Buy and Buy.
Of the 27 recommendations that derive the current ABR, 16 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 59.3% and 11.1% of all recommendations.
Brokerage Recommendation Trends for WFC
Check price target & stock forecast for Wells Fargo here>>>
The ABR suggests buying Wells Fargo, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is WFC Worth Investing In?Looking at the earnings estimate revisions for Wells Fargo, the Zacks Consensus Estimate for the current year has increased 3.7% over the past month to $7.24.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Wells Fargo. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Wells Fargo may serve as a useful guide for investors.
Baader Bank Aktiengesellschaft lessened its holdings in shares of Wells Fargo & Company (NYSE:WFC – Free Report) by 15.5% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 46,660 shares of the financial services provider’s stock after selling 8,566 shares during the quarter. Baader Bank Aktiengesellschaft’s holdings in Wells Fargo & Company were worth $3,710,000 at the end of the most recent quarter.
Several other hedge funds have also made changes to their positions in WFC. Godfrey Financial Associates Inc. acquired a new position in Wells Fargo & Company during the fourth quarter worth approximately $25,000. Miller Capital Partners Inc. purchased a new position in Wells Fargo & Company during the fourth quarter worth approximately $25,000. Navalign LLC acquired a new position in shares of Wells Fargo & Company in the 4th quarter valued at $26,000. Joseph Group Capital Management acquired a new position in shares of Wells Fargo & Company in the 4th quarter valued at $28,000. Finally, Core Wealth Advisors LLC purchased a new stake in shares of Wells Fargo & Company during the 4th quarter valued at $29,000. Institutional investors and hedge funds own 75.90% of the company’s stock.
Wells Fargo & Company Stock Performance NYSE:WFC opened at $86.24 on Tuesday. The company has a debt-to-equity ratio of 1.09, a current ratio of 0.90 and a quick ratio of 0.90. The firm has a 50-day moving average of $81.70 and a two-hundred day moving average of $83.63. The stock has a market cap of $263.90 billion, a P/E ratio of 12.53, a PEG ratio of 0.96 and a beta of 0.92. Wells Fargo & Company has a 1-year low of $72.78 and a 1-year high of $97.76.
Wells Fargo & Company Announces Dividend The business also recently declared a quarterly dividend, which was paid on Monday, June 1st. Investors of record on Friday, May 8th were issued a $0.45 dividend. The ex-dividend date of this dividend was Friday, May 8th. This represents a $1.80 annualized dividend and a dividend yield of 2.1%. Wells Fargo & Company’s dividend payout ratio (DPR) is 26.16%.
Analyst Upgrades and Downgrades A number of equities analysts have recently commented on WFC shares. Piper Sandler restated an “overweight” rating and issued a $94.00 price objective (down from $100.00) on shares of Wells Fargo & Company in a report on Wednesday, April 15th. The Goldman Sachs Group decreased their target price on Wells Fargo & Company from $109.00 to $93.00 and set a “buy” rating for the company in a report on Monday, March 23rd. Keefe, Bruyette & Woods dropped their target price on shares of Wells Fargo & Company from $98.00 to $94.00 and set a “market perform” rating for the company in a research report on Wednesday, July 15th. Phillip Securities raised shares of Wells Fargo & Company from a “moderate buy” rating to a “strong-buy” rating in a research report on Thursday, May 7th. Finally, Jefferies Financial Group initiated coverage on shares of Wells Fargo & Company in a research note on Thursday, March 26th. They set a “buy” rating and a $100.00 price objective for the company. Two research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Wells Fargo & Company has a consensus rating of “Moderate Buy” and a consensus price target of $98.50.
Check Out Our Latest Report on Wells Fargo & Company
Wells Fargo & Company Company Profile (Free Report)
Wells Fargo & Company is a diversified, U.S.-based financial services company headquartered in San Francisco, California. Founded in 1852 by Henry Wells and William G. Fargo, the firm has evolved from its origins in express delivery and pioneer-era banking into one of the largest full-service banks in the United States. The company provides a broad range of financial products and services to individual, small business, commercial, and institutional clients. Charles W. Scharf serves as chief executive officer.
Wells Fargo operates across several core business segments, including consumer banking and lending, commercial banking, corporate and investment banking, and wealth and investment management.
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Andra AP fonden raised its position in shares of Wells Fargo & Company (NYSE:WFC – Free Report) by 11.4% in the first quarter, according to its most recent filing with the SEC. The firm owned 439,700 shares of the financial services provider’s stock after purchasing an additional 44,900 shares during the quarter. Andra AP fonden’s holdings in Wells Fargo & Company were worth $35,005,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Diversified Trust Co. raised its position in Wells Fargo & Company by 59.7% in the 4th quarter. Diversified Trust Co. now owns 35,285 shares of the financial services provider’s stock valued at $3,289,000 after buying an additional 13,196 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its holdings in Wells Fargo & Company by 19.0% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 532,300 shares of the financial services provider’s stock worth $49,610,000 after acquiring an additional 84,902 shares during the last quarter. Swiss Life Asset Management Ltd grew its stake in shares of Wells Fargo & Company by 4.2% in the 4th quarter. Swiss Life Asset Management Ltd now owns 350,567 shares of the financial services provider’s stock worth $32,673,000 after acquiring an additional 14,168 shares in the last quarter. Vanguard Personalized Indexing Management LLC grew its stake in shares of Wells Fargo & Company by 4.4% in the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 412,511 shares of the financial services provider’s stock worth $38,446,000 after acquiring an additional 17,302 shares in the last quarter. Finally, Winning Points Advisors LLC purchased a new stake in shares of Wells Fargo & Company in the fourth quarter valued at about $3,384,000. Institutional investors and hedge funds own 75.90% of the company’s stock.
Wells Fargo & Company Stock Performance NYSE WFC opened at $86.24 on Tuesday. The firm has a market cap of $263.90 billion, a P/E ratio of 12.53, a price-to-earnings-growth ratio of 0.96 and a beta of 0.92. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 1.09. The company’s 50 day moving average is $81.70 and its 200-day moving average is $83.63. Wells Fargo & Company has a 12-month low of $72.78 and a 12-month high of $97.76.
Wells Fargo & Company Announces Dividend The business also recently declared a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Friday, May 8th were given a $0.45 dividend. The ex-dividend date was Friday, May 8th. This represents a $1.80 annualized dividend and a dividend yield of 2.1%. Wells Fargo & Company’s payout ratio is 26.16%.
Analyst Ratings Changes A number of equities research analysts have issued reports on the stock. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Wells Fargo & Company in a research report on Friday. Jefferies Financial Group initiated coverage on Wells Fargo & Company in a research note on Thursday, March 26th. They issued a “buy” rating and a $100.00 price objective for the company. Wall Street Zen upgraded Wells Fargo & Company from a “sell” rating to a “hold” rating in a research note on Sunday, June 14th. Phillip Securities upgraded shares of Wells Fargo & Company from a “moderate buy” rating to a “strong-buy” rating in a research report on Thursday, May 7th. Finally, UBS Group lowered their price objective on shares of Wells Fargo & Company from $105.00 to $104.00 and set a “buy” rating on the stock in a research report on Tuesday, July 7th. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $98.50.
Read Our Latest Research Report on WFC
Wells Fargo & Company Profile (Free Report)
Wells Fargo & Company is a diversified, U.S.-based financial services company headquartered in San Francisco, California. Founded in 1852 by Henry Wells and William G. Fargo, the firm has evolved from its origins in express delivery and pioneer-era banking into one of the largest full-service banks in the United States. The company provides a broad range of financial products and services to individual, small business, commercial, and institutional clients. Charles W. Scharf serves as chief executive officer.
Wells Fargo operates across several core business segments, including consumer banking and lending, commercial banking, corporate and investment banking, and wealth and investment management.
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Dimensional Fund Advisors LP reduced its holdings in shares of Wells Fargo & Company (NYSE:WFC – Free Report) by 7.3% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 18,474,225 shares of the financial services provider’s stock after selling 1,449,872 shares during the period. Dimensional Fund Advisors LP owned approximately 0.60% of Wells Fargo & Company worth $1,470,461,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Private Wealth Group LLC raised its position in shares of Wells Fargo & Company by 2.5% in the 4th quarter. Private Wealth Group LLC now owns 4,514 shares of the financial services provider’s stock valued at $421,000 after purchasing an additional 108 shares during the last quarter. Nixon Peabody Trust Co. boosted its stake in Wells Fargo & Company by 3.6% in the 4th quarter. Nixon Peabody Trust Co. now owns 3,351 shares of the financial services provider’s stock worth $312,000 after purchasing an additional 115 shares in the last quarter. Simmons Bank grew its position in Wells Fargo & Company by 1.9% during the 4th quarter. Simmons Bank now owns 6,359 shares of the financial services provider’s stock worth $593,000 after purchasing an additional 116 shares during the last quarter. Moss Adams Wealth Advisors LLC grew its position in Wells Fargo & Company by 1.0% during the 4th quarter. Moss Adams Wealth Advisors LLC now owns 12,048 shares of the financial services provider’s stock worth $1,123,000 after purchasing an additional 117 shares during the last quarter. Finally, Wood Tarver Financial Group LLC increased its stake in Wells Fargo & Company by 1.6% during the 4th quarter. Wood Tarver Financial Group LLC now owns 7,754 shares of the financial services provider’s stock valued at $722,000 after purchasing an additional 120 shares in the last quarter. 75.90% of the stock is currently owned by hedge funds and other institutional investors.
Analyst Ratings Changes A number of research firms have issued reports on WFC. Piper Sandler reaffirmed an “overweight” rating and issued a $94.00 price target (down from $100.00) on shares of Wells Fargo & Company in a report on Wednesday, April 15th. HSBC raised shares of Wells Fargo & Company from a “hold” rating to a “buy” rating and set a $94.00 price objective on the stock in a report on Wednesday, April 1st. UBS Group reduced their target price on Wells Fargo & Company from $105.00 to $104.00 and set a “buy” rating for the company in a research note on Tuesday, July 7th. Morgan Stanley raised their price objective on Wells Fargo & Company from $97.00 to $102.00 and gave the stock an “equal weight” rating in a research note on Monday, June 29th. Finally, The Goldman Sachs Group dropped their target price on Wells Fargo & Company from $109.00 to $93.00 and set a “buy” rating on the stock in a research report on Monday, March 23rd. Two research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat.com, Wells Fargo & Company has an average rating of “Moderate Buy” and an average target price of $98.50.
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Key Stories Impacting Wells Fargo & Company Here are the key news stories impacting Wells Fargo & Company this week:
Positive Sentiment: Wells Fargo reported stronger-than-expected Q2 results, with adjusted EPS of $1.96 topping Wall Street’s $1.72 estimate, driven by higher fee income, investment banking activity and net interest income. Wells Fargo CEO Says America Is Still Spending Big—Even With Inflation Concerns Positive Sentiment: Wells Fargo was upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about its earnings outlook and adding another bullish signal for investors. Wells Fargo (WFC) Upgraded to Buy: Here’s What You Should Know Positive Sentiment: Analysts remain constructive after the bank’s earnings beat, with industry commentary highlighting strong Q2 performance across major banks including Wells Fargo. Revving Up Returns: Big Banks Race Through the Rate Plateau (WFC) Neutral Sentiment: Wells Fargo also appeared in commentary noting that big bank earnings beat estimates, but some of the profit strength came from lower loan-loss reserves, which may be less repeatable going forward. Revving Up Returns: Big Banks Race Through the Rate Plateau (WFC) Neutral Sentiment: Wells Fargo’s housing-market index showed weaker homebuilder confidence in July, a modest macroeconomic headwind for the bank’s mortgage-related business. U.S. Homebuilder Confidence Unexpectedly Deteriorates In July Wells Fargo & Company Trading Up 0.0% NYSE WFC opened at $87.52 on Monday. Wells Fargo & Company has a 1 year low of $72.78 and a 1 year high of $97.76. The company has a debt-to-equity ratio of 1.09, a current ratio of 0.90 and a quick ratio of 0.90. The company has a market capitalization of $267.82 billion, a PE ratio of 12.72, a P/E/G ratio of 0.96 and a beta of 0.92. The company has a fifty day moving average of $81.44 and a 200 day moving average of $83.69.
Wells Fargo & Company Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Friday, May 8th were issued a $0.45 dividend. This represents a $1.80 annualized dividend and a dividend yield of 2.1%. The ex-dividend date of this dividend was Friday, May 8th. Wells Fargo & Company’s payout ratio is 26.16%.
Wells Fargo & Company Profile (Free Report)
Wells Fargo & Company is a diversified, U.S.-based financial services company headquartered in San Francisco, California. Founded in 1852 by Henry Wells and William G. Fargo, the firm has evolved from its origins in express delivery and pioneer-era banking into one of the largest full-service banks in the United States. The company provides a broad range of financial products and services to individual, small business, commercial, and institutional clients. Charles W. Scharf serves as chief executive officer.
Wells Fargo operates across several core business segments, including consumer banking and lending, commercial banking, corporate and investment banking, and wealth and investment management.
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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Wells Fargo (WFC - Free Report) is headquartered in San Francisco, and is in the Finance sector. The stock has seen a price change of -5.5% since the start of the year. Currently paying a dividend of $0.45 per share, the company has a dividend yield of 2.04%. In comparison, the Financial - Investment Bank industry's yield is 1.15%, while the S&P 500's yield is 1.32%.
Looking at dividend growth, the company's current annualized dividend of $1.80 is up 5.9% from last year. Over the last 5 years, Wells Fargo has increased its dividend 4 times on a year-over-year basis for an average annual increase of 36.70%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Wells Fargo's current payout ratio is 27%, meaning it paid out 27% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for WFC for this fiscal year. The Zacks Consensus Estimate for 2026 is $7.14 per share, with earnings expected to increase 13.69% from the year ago period.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, WFC presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
Wells Fargo (WFC - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Wells Fargo is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Wells Fargo, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Wells FargoFor the fiscal year ending December 2026, this bank is expected to earn $7.14 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Wells Fargo. Over the past three months, the Zacks Consensus Estimate for the company has increased 4.4%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Wells Fargo to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Headline earnings beats across money-center banks frequently mask deep divergences in net interest income sustainability and operational leverage. A rapid glance at big bank second-quarter 2026 earnings reports shows broad consensus beats across the board.
However, peeling back the layers reveals a stark operational bifurcation. Bank of America Corporation NYSE: BAC and JPMorgan Chase & Co. NYSE: JPM continue to convert sticky deposit bases into pristine margin expansion. The Goldman Sachs Group, Inc. NYSE: GS rides the cyclical wave of an artificial intelligence-driven mergers-and-acquisitions supercycle. Wells Fargo & Company NYSE: WFC battles to outrun margin compression via raw loan volume.
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Calibrating Portfolios for Elevated RatesAnalyzing this divergence can help investors identify the business models that are best calibrated to compound shareholder returns in a prolonged elevated-rate environment.
Investors seeking to navigate this terrain need to look past the top-line revenue to examine how efficiently these banks manage their liability costs and capitalize on secular growth trends. Understanding how these engines operate under pressure provides a clear roadmap for investing effectively.
How Bank of America Laps Wells FargoBank of America provides a textbook example of a liability-insensitive balance sheet functioning optimally. The company grew second-quarter revenue 15% year-over-year to $31.6 billion.
Bank of America Today
BAC
Bank of America
$61.42 -0.17 (-0.28%)
As of 02:42 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$44.75▼
$62.03Dividend Yield1.82%
P/E Ratio14.10
Price Target$63.77
The underlying engine of this success is 450 basis points of operating leverage generated in the first half of the year. Operating leverage occurs when revenue grows faster than expenses, signaling efficient core operations.
With net interest income reaching $16.2 billion, Bank of America management confidently revised full-year net interest income guidance to the upper end of its 6% to 8% growth target. Fixed-rate asset repricing against a loyal, low-cost deposit base creates a formidable margin-expansion engine that requires no pressure to chase high-cost deposits.
Bank of America improved its efficiency ratio to 59%, proving that traditional banking operations can thrive without aggressive risk-taking.
Wells Fargo & Company Today
WFC
Wells Fargo & Company
$87.82 +0.31 (+0.35%)
As of 02:42 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$72.78▼
$97.76Dividend Yield2.05%
P/E Ratio12.77
Price Target$98.50
Conversely, Wells Fargo & Company faces a fundamentally different reality. Despite netting a 16.5% year-over-year increase in net income to $6.4 billion, Wells Fargo experienced a post-earnings drop as investors digested underlying net interest margin compression.
The catalyst keeping Wells Fargo competitive is the Federal Reserve's 2025 removal of its $1.95 trillion asset cap. Unshackled from this regulatory constraint, the company expanded average loan balances by 12% year over year. Management expects margin stabilization by the fourth quarter of 2026.
Until that inflection point arrives, Wells Fargo remains reliant on raw loan origination volume to outpace the pricing pressures on its deposit base. The inability to seamlessly translate loan volume into expanding margins exposes inefficiencies relative to peers such as Bank of America.
Trading in the Fast Lane: Goldman Meets JPMorganThe Goldman Sachs Group Today
GS
The Goldman Sachs Group
$1,091.08 -60.99 (-5.29%)
As of 02:42 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$691.88▼
$1,153.99Dividend Yield1.65%
P/E Ratio16.88
Price Target$1,056.67
When elevated rates place ceilings on consumer borrowing, dealmaking, and trading, volatility must step in to bridge the revenue gap. Goldman Sachs reported an exceptional 25.5% return on tangible equity, capitalizing heavily on the multi-trillion-dollar AI infrastructure capital expenditure cycle.
Corporate clients seeking scale are driving sector-wide consolidation, pushing Goldman Sachs advisory revenues up 17% and sending its investment banking backlog to a five-year high. Equities financing skyrocketed 91% year over year, driven largely by robust demand across Asia-Pacific.
Because Goldman Sachs holds minimal traditional net interest income exposure, its earnings quality relies heavily on this capital markets momentum. The company currently operates as a high-octane cyclical play, tethered directly to corporate restructuring and tech infrastructure financing rather than sustained interest rate spreads.
JPMorgan Chase & Co. Today
JPM
JPMorgan Chase & Co.
$342.83 -4.08 (-1.18%)
As of 02:42 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$279.10▼
$351.24Dividend Yield1.75%
P/E Ratio14.70
Price Target$354.92
JPMorgan Chase & Co. offers a masterclass in balance sheet agility and revenue diversification. Generating a 23% return on tangible common equity on $16.9 billion in net income highlights a fortress balance sheet operating at peak efficiency.
While Goldman Sachs relies almost exclusively on capital markets, JPMorgan fired on all cylinders, with investment banking fees rising 30% and equities trading climbing 86%. Crucially, the company management matched this capital markets dominance by revising its ex-markets net interest income guidance upward to $96.5 billion.
This dual-engine approach insulates JPMorgan Chase from sudden drops in mid-cycle mergers-and-acquisitions activity while still capturing upside yield from traditional lending. Executive transitions that established Doug Petno and Troy Rohrbaugh as co-presidents set a clear succession framework, removing lingering leadership uncertainty from JPMorgan's risk premium.
How Banks Provision for PotholesStrong top-line revenue means little if a bank fails to provision accurately for future loan losses. Underlying consumer and commercial credit health remains the ultimate barometer of systemic stability. Bank of America recorded flat net charge-offs of $1.4 billion, accompanied by improving consumer card delinquency metrics.
JPMorgan Chase booked a highly calculated $149 million net reserve build alongside $2.4 billion in net charge-offs. These highly controlled provisioning metrics confirm that the consumer remains resilient. Standardizing delinquency rates across the sector represents a normalization from historic, stimulus-driven lows, rather than signaling acute macroeconomic deterioration.
A stabilizing regulatory environment also contributes to this sector-wide confidence. Commentary across earnings calls indicates an easing of headwinds regarding Basel III endgame adjustments and G-SIB surcharge methodologies. This regulatory clarity effectively lowers the risk premium previously priced into financial equities, allowing institutions to focus capital on client deployment rather than defensive hoarding.
Victory Lap: Dividends, Buybacks, and Strategic PositioningUnprecedented earnings inevitably lead to aggressive capital return programs, and the second quarter of 2026 proved highly lucrative for shareholders. JPMorgan Chase intends to hike its quarterly dividend to $1.65 per share. Goldman Sachs approved a 25% bump, raising its payout to $5 per share while executing a $4 billion share repurchase program. Bank of America and Wells Fargo returned $8 billion and $3 billion, respectively, through aggressive buybacks and dividend payouts.
Investors building an allocation strategy for a prolonged higher-for-longer rate environment might prioritize JPMorgan Chase or Bank of America for core portfolio defensibility and proven margin expansion capabilities.
Those with a higher risk tolerance could add Goldman Sachs to their watchlist for exposure to the artificial intelligence infrastructure and dealmaking supercycle. Cautious investors may prefer to wait for clear stabilization of Wells Fargo's net interest margin before taking a heavy position.
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Key Takeaways Citigroup's restructuring is boosting revenue growth, earnings outlook and shareholder returns. C projects faster 2026-2027 earnings growth and trades at a lower trailing P/E than Wells Fargo.Wells Fargo's asset-cap removal expands growth potential, but benefits may take longer to materialize. Citigroup Inc. (C - Free Report) and Wells Fargo & Company (WFC - Free Report) delivered better-than-expected second-quarter 2026 results, reflecting improving revenue trends, disciplined expense management and healthy capital positions. Despite these similarities, the two banking giants are at different stages of their growth journeys.
Citigroup is gaining momentum as its multi-year restructuring begins to translate into stronger revenue growth, improved operating leverage and enhanced shareholder returns. Wells Fargo, conversely, is entering a phase of expansion after the Fed lifted its long-standing asset cap, giving the bank greater flexibility to grow its balance sheet and capitalize on improving net interest income (NII).
Against this backdrop, a closer look at their business outlooks, earnings prospects, capital deployment plans and valuations helps determine which stock offers the more compelling opportunity.
Strategic Transformation: Citigroup vs. Wells FargoC and WFC are taking different approaches to strengthen their operations and unlock growth opportunities.
Citigroup has strong global franchises across institutional banking, services, cards, wealth management and cross-border corporate finance. However, the bank has historically lagged peers in profitability, efficiency and shareholder returns. Its second-quarter 2026 results suggested that the multi-year turnaround is beginning to strengthen its earnings power and create room for additional investment.
Under CEO Jane Fraser, Citigroup has been working to simplify the organization. This includes exiting several international consumer markets, reducing management layers, cutting costs and focusing on higher-return businesses. Driven by these initiatives, Citigroup is targeting a return on tangible common equity (ROTCE) of 10-11% in 2026.
Conversely, Wells Fargo has been exiting non-core, lower-return businesses to sharpen its focus on consumer banking, commercial lending, and other high-return areas. Under CEO Charlie Scharf since 2019, the strategy targets up to $10 billion in annual cost cuts and capital reallocation to core franchises. The removal of asset cap in 2025 eliminates a long-standing constraint on balance-sheet expansion, allowing the company to grow deposits, increase loan balances and expand securities holdings, thereby unlocking its full operating potential. With greater strategic flexibility and improved earnings visibility, WFC expects its medium-term ROTCE target of 17-18%, indicating stronger profitability prospects over the next few years.
C vs. WFC: Comparing Revenue Growth ProspectsCitigroup’s restructuring is beginning to translate into stronger operating performance. The company’s second-quarter 2026 revenues rose 14.3%, marking its highest quarterly revenues in a decade. The breadth of this growth is important. Citigroup is not relying solely on expense reductions to improve earnings. Stronger performance across multiple businesses suggests that the bank’s simplified structure and focused investments are also supporting organic revenue expansion. Citigroup expects revenues to see a 4-5% compound annual growth rate through 2026.
The favorable operating backdrop should provide an additional tailwind. Management expects NII, excluding Markets, to increase 5-6% in 2026, supported by stabilizing funding costs, improving loan demand and asset repricing. Non-interest revenue growth will likely to be driven by continued fee momentum in Services, Banking and Wealth businesses.
The Zacks Consensus Estimate for C's 2026 and 2027 revenues indicates a year over year growth of 11.5% and 4.2%, respectively.
Revenue Estimates
Image Source: Zacks Investment Research
Wells Fargo’s revenue trends have also improved. After revenues declined, seeing a 0.3% compound annual rate between 2019 and 2025, they increased 8.6% year over year in the second quarter of 2026 on higher NII and fee revenues.
With removal of assset cap, the bank can now expand deposits, increase lending and grow its securities portfolio without the balance-sheet restriction, efforts that will help in an increase in NII. Management expects NII to approach $50 billion in 2026, up from $47.5 billion in 2025. The bank also gains room to scale fee-based businesses like payment services, asset management, and mortgage origination, enhancing its revenue mix and supporting future top-line growth.
The Zacks Consensus Estimate for WFC's 2026 and 2027 revenues indicates a year over year growth of nearly 5.4%.
Revenue Estimates
Image Source: Zacks Investment Research
WFC & C’s Expense Management StrategiesAs the banking industry adapts to rising expenses, shifting customer preferences and ongoing digital disruption, Citigroup and Wells Fargo are sharpening their focus. However, their approaches to expense management reflect two different paths.
Citigroup is not just trimming around the edges; it is undergoing a full-fledged transformation under the leadership of CEO Jane Fraser. The company is overhauling its operating model, simplifying reporting structures, reducing headcounts and streamlining operations. Driven by these efforts, management expects to achieve $2-$2.5 billion in annualized run rate savings by 2026.
In contrast, Wells Fargo is adopting a more balanced strategy that combines cost discipline with targeted investments. While the bank continues to optimize operations through workforce reductions and process improvements, it is also investing in its branch network and enhancing its digital capabilities to improve customer experience. This approach enables Wells Fargo to control expenses while strengthening customer service and accessibility.
As part of its efficiency initiatives, Wells Fargo reduced its branch network by 1.4% year over year to 4,079 locations at the end of the second quarter of 2026. The bank also lowered its workforce by 7% year over year during the same period. Despite these cost-saving measures, WFC expects noninterest expense to increase to $55.7 billion in 2026, compared with $54.8 billion in 2025, reflecting continued investments in strategic growth initiatives.
C vs. WFC: Capital Strength & Shareholder ReturnsOn the capital front, both C and WFC remain well above the current regulatory requirement. At the end of second-quarter 2026, C’s CET1 ratio was 12.8% while WFC’s CET1 ratio was 10.3%.
Post successful completion of this year’s stress test, WFC announced its intention to increase its third-quarter 2026 common stock dividend 11% to 50 cents per share, subject to board approval. It also has a share repurchase program in place. As of March 31, 2026, the company had remaining authority to repurchase up to $25.7 billion of common stock.
Similarly, post clearing the Fed’s 2026 stress test, C announced a 12% quarterly common stock dividend increase beginning in the third quarter of 2026. The company has also initiated a $30-billion multi-year common stock repurchase program.
C & WFC Earnings EstimatesThe earnings outlook further highlights the difference in the growth trajectories of the two banks.
The Zacks Consensus Estimate projects Citigroup's earnings to grow 39.7% in 2026, followed by an additional 13.5% increase in 2027, reflecting the early benefits of its restructuring initiatives, improving operating leverage and stronger business momentum.
Earnings Estimates
Image Source: Zacks Investment Research
By comparison, Wells Fargo's earnings are expected to rise 11.6% in 2026 and 12.3% in 2027. While these estimates point to steady earnings expansion, the pace is considerably slower than Citigroup's, as the bank's post-asset-cap growth strategy is likely to unfold more gradually.
Earnings Estimates
Image Source: Zacks Investment Research
C & WFC’s Stock Performance & ValuationYear to date, Wells Fargo shares have fallen 6.1%, whereas Citigroup’s stock has gained 15.6%. In comparison, the industry has risen 12.8%.
Price Performance
Image Source: Zacks Investment Research
In terms of valuation, Citigroup’s trailing 12-month price-to-earnings (P/E) ratio is 11.43X, while Wells Fargo’s is 11.72X. Both stocks are trading at a discount compared with the industry’s trailing 12-month P/E ratio of 14.76X, but the C stock is cheaper than WFC.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
C or WFC: Which Stock Offers Greater Upside Potential?Citigroup appears more compelling for both growth and value-focused investors. Its restructuring efforts are driving stronger revenues, positive operating leverage, lower credit costs and faster earnings growth than Wells Fargo. Despite this improving outlook, Citigroup trades at a slightly lower forward P/E, offering stronger growth at a more attractive valuation.
Its solid CET1 ratio also supports higher dividends and a $30-billion share repurchase program, strengthening total shareholder returns. Wells Fargo remains a solid long-term option following the removal of the asset cap, but the benefits of renewed balance-sheet expansion may take longer to materialize.
Therefore, supported by accelerating turnaround momentum, superior near-term earnings growth, substantial capital returns and a more attractive valuation, Citigroup emerges as the bank with better upside potential.
At present, both C and WFC carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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As always, the quarterly earnings were kicked off by the major large-cap money center banks, and as expected they all delivered solid earnings reports. The team at Jefferies remains very positive on the four top companies that beat earnings expectations and, most importantly, provided reassuring forward guidance. Net interest income, or NII, across all banks was impressive, and with the debate over where interest rates will be as we move through the rest of 2026 remaining a wild card for all the financial giants, the second half of the year could prove interesting.
The Jefferies team had this to say when discussing the results:
We’re out with our thoughts following large-cap bank earnings. We highlight that results were largely positive, with all four banks beating Earnings Per Share and Pre-Provision Net Revenue expectations. Loan growth came in modestly above expectations, while deposit trends were generally stable. NII growth remained healthy, supported by strong balance sheet momentum, deposit growth, and fixed-rate asset repricing. Fee income remained constructive, benefiting from strength in payments, treasury services, securities services, wealth management, and transaction banking. Meanwhile, capital markets were a standout performer, driven by robust trading activity, improving investment banking fees, and healthy client engagement.
Here are the four dividend-paying financial giants that Jefferies rates as Buy.
Bank of America Warren Buffett has trimmed his position over the past two years and sold a 50 million shares in the fourth quarter. This quality financial giant remains an exceptional long-term holding with a solid 1.89% dividend yield. Bank of America (NYSE:BAC | BAC Price Prediction) is a bank holding company that reported impressive Q2 results. Berkshire Hathaway owns 513,624,165 shares, which is 7.9% of the portfolio and 7.2% of the float. Berkshire did lower its Bank of America position in Q1 2026, but only modestly. According to the Q1 2026 13F filing, it was reduced by just 0.71%, a very small cut compared to other positions.
The Jefferies analyst noted this:
Bank of America delivered a strong quarter, with core EPS and Pre-Provision Net Revenue ahead of expectations, driven primarily by strength in investment banking and sales & trading. While NII was largely in line, management reiterated growth at the upper end of 6-8% and raised FY26 operating leverage guide to 300-400 bp from >200 bp previously following 2Q’s POL of 640 bp. The return on tangible common equity of 17.0% vs our 16.1% reinforces the earnings power of the franchise.
Its segments include:
Consumer Banking, which offers a range of credit, banking, and investment products and services to consumers and small businesses. Global Wealth & Investment Management (GWIM) comprises two businesses: Merrill Wealth Management, which offers tailored solutions to meet clients’ needs through a comprehensive suite of investment management, brokerage, banking, and retirement products. Bank of America Private Bank provides comprehensive wealth management solutions. Global Banking offers a range of lending-related products and services, including integrated working capital management and treasury solutions, as well as underwriting and advisory services. Global Markets offers sales and trading services, as well as research services, to institutional clients across fixed income, credit, currency, commodity, and equity markets. The Jefferies price target is $75.
Citigroup This money-center giant pays a solid 1.64% and could be poised to deliver continued upside. Citigroup (NYSE:C) is a global diversified financial services holding company. The Jefferies team had this to say when discussing the second-quarter results:
Citi delivered a strong quarter, with core earnings per share and pre-provision net revenue ahead of expectations, driven by stronger-than-expected NII, Markets, and Investment Bank results. Still, the expense outlook was worse than expected, as the return on tangible common equity guide for FY26 was reiterated at 10-11% despite 1H’26 ROTCE trending at 13%. Revenue outperformance could be offset by $5 billion of spending pulled forward that was originally planned for ’27/’28 related to US Card, growth, and productivity initiatives.
The company’s segments include:
Services Markets Banking Wealth U.S. Personal Banking (USPB) The Services segment includes Treasury and Trade Solutions (TTS) and securities services. TTS provides an integrated suite of tailored cash management, trade, and working capital solutions to multinational corporations, financial institutions, and public sector organizations.
The Markets segment provides corporate, institutional, and public-sector clients worldwide with a full range of sales and trading services across equities, foreign exchange, rates, spread products, and commodities.
The Banking segment includes investment banking, which supports client capital-raising needs to help strengthen and grow their businesses.
The Wealth segment includes Private Bank, Wealth at Work, and Citigold, and provides financial services to a range of client segments.
The USPB segment includes branded cards and retail services.
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Jefferies has a $165 target price for the shares.
Goldman Sachs The white-glove banking giant delivered exceptional results and pays a 1.47% dividend. Goldman Sachs (NYSE:GS) is a global financial institution that delivers a range of financial services to a large and diversified client base, including corporations, financial institutions, governments, and individuals.
The Jefferies team said this:
Following 2Q26 results, our EPS estimates for the second half of 2026 and FY2027 increase by 9% and 8%, respectively, following a record 1H26 in both markets and advisory. Record equities revenues, all-time-high prime balances, accelerating large-cap M&A, and a five-year-high backlog provide strong support for continued earnings momentum.
Its segments include:
Global Banking & Markets Asset & Wealth Management Platform Solutions The Global Banking & Markets segment offers a range of services, including financing, advisory services, risk distribution, and hedging for its institutional and corporate clients. It facilitates client transactions and makes markets in fixed income, equity, currency, and commodity products.
The Asset & Wealth Management segment manages assets and offers investment products across all asset classes to a diverse client base. It also provides investment and wealth advisory solutions.
The Platform Solutions segment includes consumer platforms, such as partnerships offering credit cards and point-of-sale financing, as well as transaction banking and other platform businesses.
Jefferies has set a price target of $1,299 for the shares.
Wells Fargo With some difficult years in the rearview mirror, this bank could be one of the best values in the financial sector, and pays a 2.11% dividend. Wells Fargo (NYSE:WFC) is a financial services company. The company provides a diversified set of banking, investment, and mortgage products and services, as well as consumer and commercial finance, to individuals, businesses, and institutions.
Jefferies analysts noted this:
WFC posted a headline beat on strong fee income and continued expense discipline, and reiterated its FY26 NII and expense guidance. Despite a solid quarter, shares traded lower amid a net interest margin outlook that fell short of expectations and rising deposit costs. NIM compressed as expected, down 4 bp, in line with the guide, but better-than-expected AEA growth drove a modest NII beat. IB deposit costs rose 9 bps Q/Q, with continued pressure expected in 2H’26 as IB outpaces NIB growth.
Wells Fargo operates through four segments:
Consumer Banking and Lending Commercial Banking Corporate and Investment Banking Wealth & Investment Management The company provides consumer financial products and services, including checking and savings accounts, credit and debit cards, and auto, residential mortgage, and small business lending.
In addition, the company offers financial planning, private banking, investment management, and fiduciary services. It also provides financial solutions to businesses through products and services, including traditional commercial loans and lines of credit, letters of credit, asset-based lending and leasing, trade financing, treasury management, and investment banking services.
The Jefferies target price is $100.
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SummaryWells Fargo & Company delivered strong Q2 results, with EPS of $2.00 and revenue up 8.6% Y/Y to $22.62 billion.WFC's growth was driven by net interest income, double-digit loan and deposit growth, and improved efficiency post-asset cap removal.Capital returns remain robust, with nearly $10 billion returned to shareholders and an 11% dividend hike to $0.50 expected in Q3.WFC rating issued, supported by profitability and growth, though peers like BAC and PNC offer stronger momentum or valuation.Looking for more investing ideas like this one? Get them exclusively at DIY Value Investing. Learn More » David Tran/iStock Editorial via Getty Images
On July 14, 2026, Wells Fargo & Company (WFC) posted a strong second quarter. Despite WFC stock earning a buy rating with a 3.93/5.00, shares fell by 2.71% that morning in
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Key Takeaways WFC posted broad-based revenue growth, with loans up 12% and deposits rising 10% year over year.Wells Fargo expects modest Q3 margin compression before stabilization in the fourth quarter.WFC maintained its 2026 outlook and sustainable 17-18% ROTCE target amid stronger loan growth. Wells Fargo & Company (WFC - Free Report) used its second-quarter 2026 earnings call to press a single message: growth is broadening across the franchise, even as some of that expansion weighs on near-term margin optics. Management repeatedly framed the pressure on net interest margin as a deliberate byproduct of balance sheet deployment, not a deterioration in underlying demand.
That distinction mattered because investors focused heavily on margin trends in the Q&A. Management responded by emphasizing that loan, deposit and fee growth are producing stronger returns across businesses and keeping the company on track toward its medium-term profitability goals.
WFC Pushes a Broader Growth StoryChairman and CEO Charlie Scharf said every operating segment posted year-over-year growth in both net interest income and noninterest income, with total revenue up 9% to $22.62 billion in the quarter. The earnings release also showed average loans rose 12% and average deposits increased 10%.
Management tied that growth to stronger execution after the asset cap came off, with Scharf highlighting momentum in checking accounts, credit cards, auto lending, wealth management and investment banking. He also said the company is deploying capital selectively rather than chasing volume indiscriminately.
WFC reported earnings per share of $1.96, surpassing the Zacks Consensus Estimate of $1.73, while revenues of $22.62 billion exceeded the Zacks Consensus Estimate of $21.8 billion. This resulted in earnings and revenue surprises of 13.3% and 3.8%, respectively. However, the earnings call centered less on the quarter's beat and more on how Wells Fargo intends to sustain loan, deposit and fee growth.
WFC Ties Results to Broader MomentumChief executive officer Charlie Scharf said revenue growth was broad-based, with every operating segment posting higher net interest income and non-interest income. He framed this as evidence that investments in talent, technology, marketing, AI and cyber defenses are beginning to show up more clearly in operating performance.
Chief financial officer Michael Santomassimo added that second-quarter net income rose 17% year over year to $6.4 billion, while earnings per share (EPS) reached $2.00. Total revenues increased 9%, net interest income rose 5% and non-interest income climbed 13%.
Management also pointed to balance-sheet growth as proof that the company is operating differently after the asset cap was lifted. Average loans rose 12% and average deposits increased 10% from a year ago.
Wells Fargo Defends the Margin Trade-OffThe sharpest investor focus in the call was on net interest margin. Santomassimo said the margin slipped because Wells Fargo is deliberately growing lower-spread but profitable businesses, particularly interest-bearing deposits and financing activity inside markets.
A UBS analyst pressed management on whether these were cyclical or structural pressures. Santomassimo said deposit costs should inch up in the second half as commercial and corporate interest-bearing balances continue to grow, while third-quarter margin compression should be modest, with stabilization expected in the fourth quarter.
Scharf was more direct in defending the strategy. He said the margin pressure is not something happening to the bank but the result of choices intended to drive stronger client share, future noninterest-bearing deposits, and better trading and fee revenues over time.
WFC Sees Consumer & Wealth GainsScharf pointed to a steadier consumer franchise than Wells Fargo has shown in years. Consumer primary checking accounts have now grown year over year for 13 straight quarters, while new credit card accounts jumped 46% and mobile active users reached 33.7 million.
He also said the company is willing to absorb near-term profitability pressure in cards because newer vintages carry upfront marketing, promotional, onboarding and reserve costs before seasoning into better returns over two to three years. Santomassimo echoed this point during the Q&A, saying profitability in cards should continue to improve over the next couple of years.
Wealth also remained a bright spot. Wells Fargo said client assets rose 15% to more than $2.4 trillion, helped by market gains and positive net flows, while adviser retention and recruiting remained strong as the firm rolls out upgraded technology such as Advisor Gateway.
Wells Fargo Presses Its Commercial BuildoutIn commercial businesses, the strongest tone came around corporate and investment banking. Scharf said the firm is seeing payoff from multiyear investments in senior bankers, product capabilities, and balance-sheet deployment, with banking revenue up 20% and markets revenue up 24%.
He highlighted share gains in leveraged finance, equity capital markets and M&A, while describing the quarter as a record for investment banking fees. Santomassimo added that investment banking fees exceeded $900 million in the period.
Asked by UBS about prime financing and investment banking opportunities, management said the pipeline remains strong and that clients want additional counterparties. Scharf stressed Wells Fargo is still early in building prime services, but sees a significant runway if it paces growth within its risk tolerance.
WFC Q&A Tests Expenses, Credit & CapitalQuestions from Truist and Evercore focused on whether efficiency gains can continue. Santomassimo said the company still sees room to run with lower headcount, more automation and methodical streamlining in risk and regulatory functions, extending a 24-quarter streak of headcount reductions.
Credit also drew scrutiny. In response to KBW and RBC, management said both consumer and commercial credit remain strong, with delinquencies running better than modeled and no meaningful broad-based deterioration across borrower cohorts. Net charge-offs fell to 0.34% of average loans.
On capital, Santomassimo said the bank is comfortable operating within its 10% to 10.5% CET1 target range after ending the quarter at 10.3%. He said buybacks will continue to balance client growth, market risk and the eventual finalization of capital rules.
Wells Fargo Keeps Its Return AmbitionManagement did not change its 2026 outlook. Santomassimo maintained guidance for net interest income of about $50 billion, plus or minus, and non-interest expense of about $55.7 billion, while saying second-half loan growth should be stronger than originally assumed.
Scharf’s closing tone was confident but disciplined. He said the bank remains focused on a sustainable 17-18% ROTCE target, with confidence rising as business trends broaden, even as Wells Fargo stays selective in a market where competitors are taking on more wholesale risk.
Zacks Signals on WFCWFC carries a Zacks Rank #3 (Hold), which points to a more neutral near-term earnings revision picture than a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy). Its Momentum Score of A stands out positively, while Value, Growth and VGM Score of D suggest weaker style characteristics in those categories. You can see the complete list of today’s Zacks #1 Rank stocks here.
Based on Zacks’ framework, the strongest setups tend to combine a top Zacks Rank with Style Scores of A or B. A Rank #3 can still be held, but the current score mix indicates a more mixed near-term profile, and the Zacks Rank can change as analysts update estimates after the quarter.
Citigroup (NYSE:C | C Price Prediction) stock is down 4.7% to $134 Tuesday afternoon, a sharp sell-the-news reversal after the bank beat every analyst estimate for the second quarter. Citigroup shares had traded higher earlier in the session before turning red.
Zoom out, though, and Citigroup stock is still the clear year-to-date leader of the big three. Citigroup stock is up 13.75% in 2026, ahead of Bank of America (NYSE:BAC) stock at up 9.34% and Wells Fargo (NYSE:WFC) stock at down 8.82%.
All three banks reported strong Q2 2026 results powered by an AI-driven trading and dealmaking boom. Yet, the reaction across the group is mixed to negative, with Wells Fargo stock down 3.32% to $84.76 and Bank of America shares up only 1.29% to $60.27 after touching a record high earlier.
Citigroup Delivers a Blowout, Stock Reverses Anyway Citigroup posted Q2 2026 earnings of $3.15 per share on $24.8 billion in revenue, marking the company’s highest revenue in a decade. The Street had expected about $2.74 in earnings per share, and record equity-trading revenue drove the upside.
Citigroup’s management paired the report with capital-return firepower, announcing a $30 billion buyback and a 12% dividend increase. That builds on the earlier hike from $0.56 to $0.60 per quarter that Citigroup pushed through last year.
The bear case that took over on Tuesday afternoon is straightforward. Citigroup’s CFO acknowledged that its equities franchise still trails larger rivals, and Citigroup stock now trades at a 16x P/E ratio. That’s the richest multiple of the three, which sets a higher bar even after a genuine beat.
Bank of America and Wells Fargo Also Beat, With Different Reactions Bank of America reported EPS of $1.21 on revenue of $31.6 billion, its fifth consecutive quarterly EPS beat. The company’s Global Markets revenue jumped 34% to $8.02 billion, with equities sales and trading up 70% and investment banking fees up 50%.
CEO Brian Moynihan called it “one of our strongest quarters to date” and struck an upbeat tone on financing the AI buildout. Bank of America stock trades at a 15x P/E ratio, cheaper than Citigroup but richer than Wells Fargo.
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Wells Fargo, meanwhile, posted EPS of $2, with investment banking fees up 35% and return on tangible common equity of 17.7%. The bank also announced a buyback and a planned dividend raise, but CEO Charlie Scharf’s “carefully deploying capital” tone weighed on Wells Fargo shares. Wells Fargo stock trades at a 13x P/E ratio, the cheapest of the group.
So Is Citigroup Actually Outperforming? The short answer is yes, at least on the year-to-date scoreboard. Citigroup’s 13.75% run tops Bank of America and doubles down on the turnaround story CEO Jane Fraser has been selling, with 65.9% gains over the past year backing it up.
The nuance is that Citigroup carries the richest valuation and the smallest markets franchise of the three, so any wobble in trading or dealmaking hits harder. Tuesday’s reversal is a reminder that leadership at the top of a rally leaves less margin for error, and investors should consider sizing their positions accordingly.
For readers who prefer a broader lens, the Financial Select Sector SPDR ETF (NYSEARCA:XLF) offers diversified exposure to the big banks and the wider financials complex in one fund. That can smooth out days like this one, when three earnings beats produced three different market reactions.
What to Watch Next The immediate cue is whether Citigroup stock can stabilize into Tuesday’s close after giving back ground from an earlier intraday high. Follow-through from the $8 billion in Bank of America capital returns and Wells Fargo’s guidance on its dividend plan could set the tone for the rest of bank earnings week.
Keep an eye on how the group trades over the next few sessions. If Citigroup holds most of its year-to-date lead through the JPMorgan Chase (NYSE:JPM) and regional bank earnings reports later this week, the outperformance thesis could remain intact even after a rough Tuesday.
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Wells Fargo CFO Mike Santomassimo discusses the bank's second-quarter earnings and the outlook for M&A on "Bloomberg The Close." -------- More on Bloomberg Television and Markets Like this video?
Wells Fargo's Wealth & Investment Management business has invested over $1 billion over the past several years to modernize its technology platform, with a new generative artificial intelligence-powered suite of tools for financial advisors being the latest addition, Wells Fargo Chairman and CEO Charlie Scharf said Tuesday (July 14) during an earnings call.
Wells Fargo & Company (WFC) Q2 2026 Earnings Call July 14, 2026 10:00 AM EDT
Company Participants
John Campbell - Director of Investor Relations
Charles Scharf - CEO & Chairman
Michael Santomassimo - Senior EVP & CFO
Conference Call Participants
Kenneth Usdin - Bernstein Autonomous LLP
John McDonald - Truist Securities, Inc., Research Division
L. Erika Penala - UBS Investment Bank, Research Division
Ebrahim Poonawala - BofA Securities, Research Division
Manan Gosalia - Morgan Stanley, Research Division
Matthew O'Connor - Deutsche Bank AG, Research Division
John Pancari - Evercore ISI Institutional Equities, Research Division
Christopher McGratty - Keefe, Bruyette, & Woods, Inc., Research Division
David Chiaverini - Jefferies LLC, Research Division
Vivek Juneja - JPMorgan Chase & Co, Research Division
Gerard Cassidy - RBC Capital Markets, Research Division
Presentation
Operator
Welcome, and thank you for joining the Wells Fargo Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note that today's call is being recorded. I would now like to turn the call over to John Campbell, Director of Investor Relations. Sir, you may begin the conference.
John Campbell
Director of Investor Relations
Good morning, everyone. Thanks for joining our call today where our CEO, Charlie Scharf; and our CFO, Mike Santomassimo, will discuss second quarter results and answer your questions. This call is being recorded. Before we get started, I would like to remind you that our second quarter earnings materials, including the release, financial supplement and presentation deck are available on our website at wellsfargo.com. I'd also like to caution you that we may make forward-looking statements during today's call that are subject to risks and uncertainties. Factors that may cause actual results to differ materially from expectations are detailed in our SEC filings including the Form 8-K filed today containing our earnings materials. Information about any non-GAAP financial measures referenced, including a reconciliation of those measures to GAAP measures, can also be found in our SEC filings and the earnings materials available on
Wells Fargo & Co (NYSE:WFC, XETRA:NWT) reported second-quarter profit that topped Wall Street expectations on Tuesday, as strong fee income and improved credit performance offset pressure on the bank's net interest margin.
The bank posted earnings of $2 per share, well above analysts' estimate of $1.72, on revenue of $22.62 billion, compared with expectations of $21.87 billion. Net income rose to $6.41 billion from $5.49 billion a year earlier.
Net interest income came in at $12.32 billion, in line with estimates, while net loan charge-offs of $876 million came in better than the $1.1 billion analysts had forecast, marking a 10 basis point improvement from a year ago.
Average loans grew 12% year-over-year to $1.03 trillion, while average deposits rose 10% to $1.47 trillion.
"The biggest positive from the quarter was the combination of strong fee income and better credit performance, which drove core PPNR above our estimate and helped offset NIM pressure," analysts at Jefferies noted.
Corporate and investment banking revenue climbed 16% year-over-year to $5.43 billion, while wealth and investment management revenue rose 13% to $3.89 billion. Consumer banking and lending revenue increased 6% to $10.29 billion, and commercial banking revenue also grew 6% to $3.12 billion.
Wells Fargo repurchased 37.4 million shares for $3 billion during the quarter and said it expects to raise its third-quarter common dividend by 11% to $0.50 per share.
The bank reiterated its full-year guidance, projecting net interest income of roughly $50 billion and noninterest expense of about $55.7 billion.
"We view the quarter as positive and expect investors to focus primarily on whether WFC can sustain strong NII growth despite NIM pressure, particularly now that management has reaffirmed its 2026 NII outlook," Jefferies said.
Key Takeaways WFC posted Q2'26 adjusted EPS of $1.96, beating estimates, while shares rose nearly 1.5% in early trading.Higher NII, fee income and lower provisions aided WFC, while non-interest expenses increased year over year.WFC's average loans rose 3.1% and deposits 3.6% sequentially, while provisions declined year over year. Wells Fargo & Company (WFC - Free Report) reported second-quarter 2026 adjusted earnings per share of $1.96, which surpassed the Zacks Consensus Estimate of $1.73. In the prior-year quarter, the company reported earnings per share of $1.54.
Shares of the company rose nearly 1.5% in the early trading session. A full day’s trading session will depict a clearer picture.
Results benefited from an improvement in net interest income (NII), higher non-interest income, and lower provisions. Higher loan balances and improved deposits were other positives. However, increased non-interest expenses remained a headwind.
Results included 4 cents per share of discrete tax benefits related to the resolution of prior-period matters. After considering this, net income (GAAP basis) was $6.41 billion, representing a 16.6% increase from the prior-year quarter.
Wells Fargo’s Revenues Improve, Expenses RiseTotal revenues were $22.62 billion, surpassing the Zacks Consensus Estimate of $21.80 billion. Also, the top line increased 8.6% from the year-ago quarter.
NII was $12.32 billion, up 5.2% year over year. The increase was driven by lower deposit costs, higher loan and investment securities balances, balance sheet growth in the Markets business and higher interest-bearing commercial deposits, partially offset by the impact of lower interest rates on floating-rate assets and a modest decline in noninterest-bearing deposits.
The net interest margin (on a taxable-equivalent basis) contracted 25 basis points year over year to 2.43%.
Non-interest income grew 13.1% year over year to $10.31 billion. The increase was driven by strong performance from venture capital investments, higher investment advisory fees on improved market valuations, higher investment banking fees and increases in most other fee categories, partially offset by lower lease income related to the sale of the railcar leasing business.
Non-interest expenses of $13.66 billion increased 2.1% year over year. The increase was due to higher revenue-related and incentive compensation, increased technology and equipment expense and higher advertising expense, partly offset by lower lease expense and continued efficiency initiatives, including a 7% reduction in headcount.
Wells Fargo's efficiency ratio of 60% was lower than 64% in the year-ago quarter. A decline in the efficiency ratio indicates improvement in profitability.
WFC’s Loan Balance & Deposits ImproveAs of June 30, 2026, total average loans were $1.03 trillion, which increased 3.1% on a sequential basis. Total average deposits were $1.47 trillion, up 3.6% on a sequential basis.
Wells Fargo’s Credit Quality ImprovesThe provision for credit losses was $914 million, down 9.1% from the year-ago quarter.
Net loan charge-offs were 0.34% of average loans in the reported quarter, down from 0.44% in the year-ago quarter. Non-performing assets declined marginally year over year to $7.94 billion.
WFC’s Capital Ratios DeclineAs of June 30, 2026, the Common Equity Tier 1 ratio under the Standardized Approach was 10.3%, down from 11.1% in the prior-year quarter.
Wells Fargo’s Profitability Ratios ImproveReturn on assets was 1.15% compared with 1.14% in the prior-year quarter. Return on equity was 15.0%, up from 12.8% a year ago.
WFC’s Share Repurchase UpdateDuring the reported quarter, Wells Fargo repurchased 37.4 million shares, or $3 billion, of common stock.
Our View on Wells FargoWFC’s higher NII, strong fee income growth and improving loan and deposit balances continue to support revenue growth. Broad-based strength across Consumer Banking, Commercial Banking, Corporate & Investment Banking and Wealth & Investment Management is encouraging. Nevertheless, higher expenses remain a key concern.
Wells Fargo & Company Price, Consensus and EPS SurpriseCurrently, Wells Fargo carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of Other BanksM&T Bank (MTB - Free Report) is slated to report second-quarter 2026 numbers on July 15.
Over the past week, the Zacks Consensus Estimate for M&T Bank’s quarterly earnings has remained unchanged at $4.66 per share. This indicates an 8.9% rise from the prior-year quarter’s reported figure.
U.S. Bancorp (USB - Free Report) is scheduled to release second-quarter 2026 earnings on July 16.
The Zacks Consensus Estimate for U.S. Bancorp’s quarterly earnings has been revised upward to $1.28 per share over the past seven days. This indicates a 15.3% rise from the prior-year quarter’s actual.
For the quarter ended June 2026, Wells Fargo (WFC - Free Report) reported revenue of $22.62 billion, up 8.6% over the same period last year. EPS came in at $1.96, compared to $1.54 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $21.8 billion, representing a surprise of +3.76%. The company delivered an EPS surprise of +13.3%, with the consensus EPS estimate being $1.73.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Wells Fargo performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Average Balance - Total interest-earning assets: $2044.61 billion versus the five-analyst average estimate of $2037.35 billion.Book value per common share: $54.48 compared to the $53.96 average estimate based on five analysts.Return on equity (ROE) - Financial Ratios: 15% compared to the 12.8% average estimate based on five analysts.Return on assets (ROA) - Financial Ratios: 1.2% versus the five-analyst average estimate of 1%.Efficiency Ratio: 60% versus 63.2% estimated by five analysts on average.Net loan charge-offs as a % of average total loans (annualized): 0.3% versus 0.4% estimated by five analysts on average.Net interest margin on a taxable-equivalent basis: 2.4% compared to the 2.4% average estimate based on five analysts.Total nonperforming assets: $7.94 billion versus $8.92 billion estimated by four analysts on average.Total nonaccrual loans: $7.64 billion versus $8.62 billion estimated by four analysts on average.Net loan charge-offs: $876 million versus $1.15 billion estimated by four analysts on average.Common Equity Tier 1 (CET1) - Standardized Approach: 10.3% versus 10.1% estimated by three analysts on average.Tier 1 Leverage Ratio: 6.9% versus the three-analyst average estimate of 6.9%.View all Key Company Metrics for Wells Fargo here>>>
Shares of Wells Fargo have returned +5.5% over the past month versus the Zacks S&P 500 composite's +1.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Wells Fargo & Co (NYSE:WFC, XETRA:NWT) reported second-quarter profit that topped Wall Street expectations on Tuesday, as strong fee income and improved credit performance offset pressure on the bank's net interest margin.
The bank posted earnings of $2 per share, well above analysts' estimate of $1.72, on revenue of $22.62 billion, compared with expectations of $21.87 billion. Net income rose to $6.41 billion from $5.49 billion a year earlier.
Net interest income came in at $12.32 billion, in line with estimates, while net loan charge-offs of $876 million came in better than the $1.1 billion analysts had forecast, marking a 10 basis point improvement from a year ago.
Average loans grew 12% year-over-year to $1.03 trillion, while average deposits rose 10% to $1.47 trillion.
"The biggest positive from the quarter was the combination of strong fee income and better credit performance, which drove core PPNR above our estimate and helped offset NIM pressure," analysts at Jefferies noted.
Corporate and investment banking revenue climbed 16% year-over-year to $5.43 billion, while wealth and investment management revenue rose 13% to $3.89 billion. Consumer banking and lending revenue increased 6% to $10.29 billion, and commercial banking revenue also grew 6% to $3.12 billion.
Wells Fargo repurchased 37.4 million shares for $3 billion during the quarter and said it expects to raise its third-quarter common dividend by 11% to $0.50 per share.
The bank reiterated its full-year guidance, projecting net interest income of roughly $50 billion and noninterest expense of about $55.7 billion.
"We view the quarter as positive and expect investors to focus primarily on whether WFC can sustain strong NII growth despite NIM pressure, particularly now that management has reaffirmed its 2026 NII outlook," Jefferies said.
The financial sector hasn’t inspired much confidence in 2026. The State Street Financial Select Sector SPDR ETF (NYSEARCA:XLF) has gained only about 3% this year and roughly 8% over the past 12 months, trailing much of the broader market. Investors have viewed that weakness as more than just a stock market story.
Banks sit at the center of the economy, so when they lag, recession fears tend to grow louder. This year, those concerns were fueled by the Federal Reserve’s seemingly hawkish interest rate stance, renewed regulatory scrutiny of consumer lending, and the growing migration of corporate borrowers toward private credit markets.
Yet second-quarter earnings from the nation’s biggest banks just challenged nearly every part of that bearish narrative.
The Numbers Paint a Very Different Economic Picture If the U.S. economy were slipping into recession, it would be difficult to explain the earnings reports delivered by JPMorgan Chase (NYSE:JPM | JPM Price Prediction), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS), and Citigroup (NYSE:C).
According to each company’s second-quarter earnings release, the group posted results that either exceeded Wall Street expectations or established new company records.
Most notable was JPMorgan Chase, which generated the largest quarterly profit ever reported by a U.S. bank. The bank earned $7.70 per share, well ahead of consensus estimates near $5.72, while net income climbed 41% from a year ago.
Here’s what the major banks told investors:
Bank Key Takeaway JPMorgan Chase Record quarterly profit and strong investment banking activity Bank of America Healthy consumer spending and stable credit quality Wells Fargo Loan performance remained resilient with disciplined expense control Goldman Sachs Investment banking and trading activity accelerated Citigroup Broad-based growth across institutional and consumer businesses Individually, any one of these reports could have reflected company-specific strengths. Together, they tell a broader story about the economy.
Healthy Businesses And Healthy Consumers Still Matter Bank earnings are valuable because they offer one of the widest windows into economic activity. These institutions lend to consumers, finance businesses, underwrite corporate debt, advise on mergers, process credit card transactions, and monitor loan performance across millions of customers.
The latest reports showed strength in several areas that typically weaken before a recession. Investment banking revenue increased as mergers, acquisitions, IPOs, and debt issuance accelerated. That suggests corporate executives remain willing to invest capital rather than retreat.
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Consumer banking also remained healthy. Credit-loss provisions stayed relatively contained, indicating households continue making loan and credit card payments despite higher interest rates. Stable net interest income across many of the banks also pointed to healthy deposit bases and continued lending activity.
Granted, bank earnings aren’t perfect economic forecasting tools. Trading revenue can fluctuate with market volatility, and banks often benefit from one-time events. But when five of the country’s largest financial institutions all deliver strong results during the same quarter, dismissing the message becomes much harder.
Strong earnings also ripple beyond banks. Healthy capital markets benefit asset managers, insurers, exchanges, and payment companies. More importantly, resilient bank profits reinforce confidence that corporate America and consumers continue spending, borrowing, and investing.
That doesn’t eliminate risks. Investors should still watch management commentary for signs of slowing loan growth, rising loan-loss provisions, or weakening consumer credit trends during the second half of the year. Those indicators often shift before headline economic data does.
Key Takeaway In short, the latest earnings season delivered one of the strongest arguments yet against an imminent recession. According to the banks’ earnings releases, corporate dealmaking remains active, consumers continue paying their bills, and credit quality remains stable. Those aren’t the conditions that typically precede a sharp economic downturn.
For investors, the message extends beyond Wells Fargo, Bank of America, or JPMorgan. Financial stocks may deserve another look after a year of lagging performance, while the broader market gains another piece of evidence supporting the soft-landing narrative. Regardless of whether every economic indicator agrees, Wall Street’s largest banks just made a compelling case that the U.S. economy remains far more resilient than many expected.
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Key Takeaways June CPI Reached -0.4%, 3.5% Inflation RateLow Oil Prices from June's MOU Brought CPI LowerTensions Heat Up in Strait of Hormuz CurrentlyQ2 Results Good for JPM, C, BAC & More Tuesday, July 14th, 2026
We have lots of big stock market news ahead of today’s opening bell: Q2 earnings season shifts to a new gear with several of the top banks on Wall Street reporting, aggressions continue to boil in the Strait of Hormuz after more U.S. bombs strike Iran’s interior, and June inflation data takes a downward route for the third-straight month.
June CPI: 1st Negative Print Since Covid Era
For the first time since May 2020 — when the Covid pandemic was busy hitting the U.S. economy for a third-straight month — the Consumer Price Index (CPI) for June came in negative: -0.4%. This is a deeper cut than the -0.2% analysts had been expecting and a big drop from the +0.5% reported for May. It’s the lowest figure since April 2020’s -0.8%.
The Memorandum of Understanding (MOU) between the U.S. and Iran was signed on the 17th of June, and with that the Strait of Hormuz was again able to see oil tanker traffic pass in and out of the Persian Gulf. Global prices of crude oil dropped -21% as a result, as the Mideast oil trade normalized, which led to a -5.7% drop in monthly oil prices in this morning’s CPI report.
Subtracting volatile food and energy costs, core CPI month over month was flat in June — better than the +0.2% consensus, which had matched May’s unrevised tally. This equals January 2021, just ahead of the Great Reopening, which saw prices soar once the pandemic began to abate. (We also had no CPI data for October or November of 2025, due to the lengthy federal government shutdown.)
Year over year, not only does headline CPI (aka “the Inflation Rate”) thankfully sink back below 4% after May’s +4.2% — which was the highest in three years — but it goes back near March lows: +3.5%. This is -30 basis points (bps) below estimates. Core CPI year over year also dipped -30 bps from the +2.9% expected and reported for May, matching March’s level.
These numbers could not be reasonably expected to have performed better in our current economic climate. That said, these are necessarily backward-looking figures, and now that the Strait of Hormuz appears ready to close again, it’s unlikely these complimentary June CPI results will hold at these levels in the near term.
Q2 Earnings Parade Begins in Earnest: JPM, C, BAC, WFC, GS
One early non-tech beneficiary of the heady AI trade over the past year has been the big banks, as we see from this morning’s Q2 earnings results. Leading firm JPMorgan Chase (JPM - Free Report) posted a +9.8% earnings beat this morning, with earnings per share of $6.14 on $57.35 billion in quarterly revenues, up +16.7% from expectations. For more on JPM’s earnings, click here.
Citigroup (C - Free Report) performed even better on its bottom line: earnings of $3.15 per share outpaced the Zacks consensus by +15.8%, while revenues of $24.77 billion topped expectations by +4.59% for Q2. Pre-market shares are selling -2% on the news, but had gained more than +20% year to date. For more on C’s earnings, click here.
Zacks Rank #3 (Hold)-rated Bank of America (BAC - Free Report) posted earnings of $1.21 per share versus $1.13 projected, and +34% year over year. Revenues also outperformed expectations, but by less-gaudy numbers than JPMorgan or Citi: $31.56 billion versus $30.62 billion estimated. The Charlotte-based bank has only missed earnings estimates once in the past five years.
Wells Fargo (WFC - Free Report) shares had initially gone up on the Q2 report, but are soft ahead of the open. Earnings of $1.96 per share beat estimates by +13.3%, while revenues of $22.62 billion was +3.76% ahead of forecasts. Net interest margins were squeezed in the quarter, however, leading investors to put a check on the stock for now. For more on WFC’s earnings, click here.
Top investment bank Goldman Sachs (GS - Free Report) crushed earnings estimates in its Q2 results ahead of the open, with earnings of $20.98 per share nearly doubling year over year, and zooming past the $14.47 billion in the Zacks consensus. Revenues of $20.34 billion posted an eye-opening +23.3% beat over estimates. For more of GS’ earnings, click here.
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Fiserv’s Debit Network Talks Raise a Bigger Question for Visa and MastercardWells Fargo & Company NYSE: WFC reported stronger second-quarter 2026 results, with executives pointing to broad-based revenue growth, disciplined expenses, improved credit performance and balance sheet growth following the removal of the company’s asset cap last year.
Chief Executive Officer Charlie Scharf said diluted earnings per share rose 25% from a year earlier to $2, while revenue increased 9%. Net interest income grew 5%, and non-interest income rose 13%, reflecting what Scharf described as progress toward building a more balanced revenue mix with higher fee-based revenue.
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3 Big Banks Plan Double Digit Dividend Increases After Passing Fed Stress Test“We are clearly benefiting from the economic strength we see in the U.S., but the investments we are making and our improved operating discipline drove strong momentum and continued to result in improved performance,” Scharf said.
Chief Financial Officer Mike Santomassimo said net income increased 17% year over year to $6.4 billion. The quarter included $132 million, or $0.04 per share, of discrete tax benefits tied to the resolution of prior-period matters.
Revenue Growth Across All Operating Segments Ally Financial Is Back to Basics—And Investors Are WatchingScharf said each of Wells Fargo’s operating segments generated higher net interest income and non-interest income compared with a year earlier. In Consumer Banking and Lending, revenue rose 6%, helped by growth in checking accounts, credit cards and auto lending. Scharf said consumer primary checking accounts have increased year over year for 13 consecutive quarters, supported by investments in marketing and digital account opening.
Credit card momentum continued, with new accounts increasing 46% from a year earlier. Scharf said the company has enhanced its credit card products over the past five years and improved customer experience, but noted that rapid growth in the business carries near-term profitability pressure because of upfront costs tied to marketing, promotional rates, onboarding and reserves. He said card vintages from 2022 through 2024 are now adding to profitability, while larger 2025 and 2026 vintages are still absorbing upfront costs.
Auto lending also expanded, with originations rising 41% year over year and average balances up 31%. Scharf said growth was partly due to Wells Fargo becoming the preferred financing provider for Volkswagen and Audi vehicles in the U.S., adding that credit performance has remained in line with expectations.
In Wealth and Investment Management, revenue increased 13%. Client assets rose 15% to more than $2.4 trillion, driven by higher market valuations and four consecutive quarters of positive net flows. Scharf said Wells Fargo has invested more than $1 billion in recent years to modernize the unit’s technology platform, including the second-quarter launch of Advisor Gateway, a desktop platform with generative AI capabilities.
Investment Banking and Markets Drive CIB Results Corporate and Investment Banking revenue rose 16% from a year earlier. Scharf said markets revenue grew 24%, aided by balance sheet growth to support client financing activity. He noted that while this activity can lower net interest margin because it carries lower spreads, it has “good returns and profitability” and can support broader client relationships.
Santomassimo said Wells Fargo has increased its markets balance sheet by $198 billion since the end of 2024, with about 60% in financing balances, 20% in trading and 20% in lending within the business. He said the company is tracking client-level results and is seeing additional business from clients receiving incremental financing.
Banking revenue within Corporate and Investment Banking rose 20%, supported by investment banking fees and activity in equity and debt capital markets. Santomassimo said firmwide investment banking fees exceeded $900 million in the quarter, a record. Scharf highlighted Wells Fargo’s year-to-date leveraged finance market share of 7.2%, its No. 3 ranking in that category, a 3.8% share in equity capital markets and a move from No. 9 to No. 4 among U.S. advisors by announced M&A deal volume.
Commercial Banking revenue increased 6% from a year earlier. Scharf said targeted hiring in 20 high-density markets where Wells Fargo is under-penetrated has helped drive client growth and higher loan and deposit balances. He also said the company is investing in treasury management and payments, including blockchain-based payment rails intended to make cross-border payments faster, more transparent and more predictable.
Expenses, Headcount and Capital Returns Expenses increased 2% from a year earlier, reflecting investments in technology, advertising and revenue-related compensation, partially offset by efficiency initiatives. Santomassimo said Wells Fargo’s efficiency ratio improved to 60%, down four percentage points from a year earlier.
Scharf said headcount has declined for 24 consecutive quarters. The company ended the second quarter with 197,000 employees, down 79,000 from six years ago, 15,000 from last year and 3,500 from the prior quarter. He said Wells Fargo is using those efficiencies to fund investments including branch bankers, investment advisors, commercial banking relationship managers, investment bankers, traders, marketing, product development, AI and cybersecurity.
Wells Fargo returned more than $9.8 billion of capital to shareholders in the first half of 2026, including $7 billion of common stock repurchases. Santomassimo said the company repurchased $3 billion of common stock in the second quarter, and common shares outstanding declined 6% from a year earlier. The company’s common equity Tier 1 ratio was 10.3%, within its 10% to 10.5% target range and above its regulatory minimum plus buffers of 8.5%.
Scharf said Wells Fargo expects to raise its third-quarter common stock dividend by 11% to $0.50 per share, subject to board approval later this month.
Credit Quality Remains Strong Executives said credit performance remained strong across consumer and commercial portfolios. Santomassimo said the net loan charge-off ratio declined 10 basis points from a year earlier to 34 basis points of average loans. Commercial net loan charge-offs declined to 10 basis points, while consumer loan charge-offs also improved, including continued net recoveries in residential mortgage.
During the question-and-answer session, Santomassimo said consumer delinquency trends have been better than the company modeled throughout the year, with no meaningful deterioration by FICO score or income cohort. He also said Wells Fargo is not seeing systemic issues in the commercial portfolio, though individual borrower issues can arise.
Asked about underwriting conditions, Scharf said consumer lending competition appears broadly consistent, but he described wholesale lending as more varied. He said significant capital is being deployed by banks and non-banks across risk assets, including areas related to data centers and strategic transactions. Scharf said Wells Fargo is staying within its risk tolerances and underwriting only the parts of transactions where it is comfortable with the credit profile.
Outlook Maintained as NIM Remains in Focus Santomassimo said Wells Fargo is maintaining its full-year 2026 net interest income outlook of approximately $50 billion, including about $48 billion excluding markets and about $2 billion from markets. He said average loans rose 12% year over year in the second quarter, and loan growth in the fourth quarter is likely to exceed the mid-single-digit increase the company assumed in January.
Net interest margin declined four basis points from the first quarter, which Santomassimo attributed mainly to growth in interest-bearing deposits and continued growth in markets activity. He said Wells Fargo expects modest net interest margin compression in the third quarter, broadly in line with the second-quarter decline, before stabilization in the fourth quarter.
In response to analyst questions, Scharf emphasized that the pressure on net interest margin is tied to deliberate growth decisions, particularly in markets financing and interest-bearing deposit growth, rather than factors simply “happening” to the company. He said Wells Fargo can slow or reverse some activity if it does not generate the expected returns, but added that early results show higher trading revenue and share gains from clients receiving financing.
Wells Fargo also maintained its 2026 non-interest expense outlook of approximately $55.7 billion. Santomassimo said first-half expenses were in line with expectations, and higher revenue-related expenses in the second half are expected to be offset by efficiency initiatives elsewhere.
Scharf reiterated confidence in Wells Fargo’s medium-term target of a sustainable return on tangible common equity of 17% to 18%. The company reported ROTCE of 17.7% in the second quarter and 16.1% for the first half of 2026. Scharf said venture capital equity gains helped returns in the quarter, but he said broader growth and efficiency trends are what support confidence in reaching the target over a “reasonable timeframe,” assuming favorable conditions continue.
About Wells Fargo & Company NYSE: WFCWells Fargo & Company is a diversified, U.S.-based financial services company headquartered in San Francisco, California. Founded in 1852 by Henry Wells and William G. Fargo, the firm has evolved from its origins in express delivery and pioneer-era banking into one of the largest full-service banks in the United States. The company provides a broad range of financial products and services to individual, small business, commercial, and institutional clients. Charles W. Scharf serves as chief executive officer.
Wells Fargo operates across several core business segments, including consumer banking and lending, commercial banking, corporate and investment banking, and wealth and investment management.
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We have lots of big stock market news ahead of today’s opening bell: Q2 earnings season shifts to a new gear with several of the top banks on Wall Street reporting, aggressions continue to boil in the Strait of Hormuz after more U.S. bombs strike Iran’s interior, and June inflation data takes a downward route for the third-straight month.
June CPI: 1st Negative Print Since Covid EraFor the first time since May 2020 — when the Covid pandemic was busy hitting the U.S. economy for a third-straight month — the Consumer Price Index (CPI) for June came in negative: -0.4%. This is a deeper cut than the -0.2% analysts had been expecting and a big drop from the +0.5% reported for May. It’s the lowest figure since April 2020’s -0.8%.
The Memorandum of Understanding (MOU) between the U.S. and Iran was signed on the 17th of June, and with that the Strait of Hormuz was again able to see oil tanker traffic pass in and out of the Persian Gulf. Global prices of crude oil dropped -21% as a result, as the Mideast oil trade normalized, which led to a -5.7% drop in monthly oil prices in this morning’s CPI report.
Subtracting volatile food and energy costs, core CPI month over month was flat in June — better than the +0.2% consensus, which had matched May’s unrevised tally. This equals January 2021, just ahead of the Great Reopening, which saw prices soar once the pandemic began to abate. (We also had no CPI data for October or November of 2025, due to the lengthy federal government shutdown.)
Year over year, not only does headline CPI (aka “the Inflation Rate”) thankfully sink back below 4% after May’s +4.2% — which was the highest in three years — but it goes back near March lows: +3.5%. This is -30 basis points (bps) below estimates. Core CPI year over year also dipped -30 bps from the +2.9% expected and reported for May, matching March’s level.
These numbers could not be reasonably expected to have performed better in our current economic climate. That said, these are necessarily backward-looking figures, and now that the Strait of Hormuz appears ready to close again, it’s unlikely these complimentary June CPI results will hold at these levels in the near term.
Q2 Earnings Parade Begins in Earnest: JPM, C, BAC, WFC, GSOne early non-tech beneficiary of the heady AI trade over the past year has been the big banks, as we see from this morning’s Q2 earnings results. Leading firm JPMorgan Chase (JPM - Free Report) posted a +9.8% earnings beat this morning, with earnings per share of $6.14 on $57.35 billion in quarterly revenues, up +16.7% from expectations.
Citigroup (C - Free Report) performed even better on its bottom line: earnings of $3.15 per share outpaced the Zacks consensus by +15.8%, while revenues of $24.77 billion topped expectations by +4.59% for Q2. Pre-market shares are selling -2% on the news, but had gained more than +20% year to date.
Zacks Rank #3 (Hold)-rated Bank of America (BAC - Free Report) posted earnings of $1.21 per share versus $1.13 projected, and +34% year over year. Revenues also outperformed expectations, but by less-gaudy numbers than JPMorgan or Citi: $31.56 billion versus $30.62 billion estimated. The Charlotte-based bank has only missed earnings estimates once in the past five years.
Wells Fargo (WFC - Free Report) shares had initially gone up on the Q2 report, but are soft ahead of the open. Earnings of $1.96 per share beat estimates by +13.3%, while revenues of $22.62 billion was +3.76% ahead of forecasts. Net interest margins were squeezed in the quarter, however, leading investors to put a check on the stock for now.
Top investment bank Goldman Sachs (GS - Free Report) crushed earnings estimates in its Q2 results ahead of the open, with earnings of $20.98 per share nearly doubling year over year, and zooming past the $14.47 billion in the Zacks consensus. Revenues of $20.34 billion posted an eye-opening +23.3% beat over estimates.
Index Dow Jones +0,22 % na 52613,05 b., S&P 500 +0,38 % na 7544,24 b., Nasdaq Composite +0,73 % na 26061,63 b.
Americké akciové indexy na začátku obchodování mírně rostou, index S&P 500 přidává 0,38 %.
Akcie IBM padají o 23 % poté, co technologická společnost představila předběžné výsledky za 2Q. Tržby ve druhém kvartále vzrostly meziročně pouze o 1 % na 17,2 mld. USD, zatímco analytici očekávali 17,86 mld. USD. Z jednotlivých segmentů rostl pouze software, a to o 5 %. Tržby z infrastruktury naopak klesly o 7 % a poradenská divize stagnovala (při konstantních měnových kurzech +1 %).
Akcie softwarových a IT/profesionálních služeb obecně klesají poté, co předběžné tržby IBM za druhé čtvrtletí nedosáhly konsenzuálního odhadu.
Dneškem naplno odstartovala výsledková sezóna v USA za 2Q, když své hospodářské výsledky zveřejnily velké banky, včetně JPMorgan, Bank of America, Citigroup, Goldman Sachs a Wells Fargo.
Akcie Apple klesají o 1,1 % poté, co banka KeyBanc snížila doporučení pro akcie na underweight, přičemž očekává slabší poptávku po zařízeních a pomalejší růst výnosů ze služeb v USA.
Index S&P 500 +0,38 % na 7544,24 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Základní materiály +1,6 % Zdravotní péče -1,5 % Průmysl +1,1 % Nezbytná spotřeba -0,2 % Finanční sektor +0,8 % Zbytná spotřeba -0,1 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Crowdstrike Holdings (CRWD) +7,9 % IBM (IBM) -23 % Lumentum Holdings (LITE) +7,6 % Biogen (BIIB) -7,6 % Sandisk Corp (SNDK) +6,6 % Workday (WDAY) -7,0 % Goldman Sachs Group (GS) +6,4 % ServiceNow (NOW) -6,3 % Monolithic Power Systems (MPWR) +6,0 % Stryker Corp (SYK) -5,4 % Zdroj: Bloomberg
Investors are preparing for a significant earnings week as five of the six largest US banks, including JPMorgan, Citi, Wells Fargo, Bank of America, and Goldman Sachs, are scheduled to report their quarterly results within a few hours of each other. Mike Mayo, Head of US Large-Cap Bank Research at Wells Fargo, joined the program to share his outlook.
Stock futures are mixed as investors digest a full slate of big bank earnings and await the release of a key report on inflation; JPMorgan Chase, Bank of America, Wells Fargo, Goldman Sachs and Citigroup all reported results this morning; June Consumer Price Index data is expected to show that inflation moderated; Fed Chair Kevin Warsh is making appearances before Congress today and tomorrow to discuss the economy and the Fed's plans for inflation; and SK Hynix shares are surging while IBM shares are plunging as tech sector volatility continues. Here's what you need to know today.
Wells Fargo (WFC - Free Report) came out with quarterly earnings of $1.96 per share, beating the Zacks Consensus Estimate of $1.73 per share. This compares to earnings of $1.54 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +13.30%. A quarter ago, it was expected that this biggest U.S. mortgage lender would post earnings of $1.58 per share when it actually produced earnings of $1.56, delivering a surprise of -1.27%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Wells Fargo, which belongs to the Zacks Financial - Investment Bank industry, posted revenues of $22.62 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.76%. This compares to year-ago revenues of $20.82 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Wells Fargo shares have lost about 5.9% since the beginning of the year versus the S&P 500's gain of 9.8%.
What's Next for Wells Fargo?While Wells Fargo has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Wells Fargo was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.83 on $22.26 billion in revenues for the coming quarter and $6.98 on $87.77 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Bank is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Evercore (EVR - Free Report) , is yet to report results for the quarter ended June 2026.
This investment bank is expected to post quarterly earnings of $2.74 per share in its upcoming report, which represents a year-over-year change of +13.2%. The consensus EPS estimate for the quarter has been revised 1.1% lower over the last 30 days to the current level.
Evercore's revenues are expected to be $927.19 million, up 10.5% from the year-ago quarter.
Wells Fargo's profit jumped 17% in the second quarter as volatile markets kept its trading desks busy, while strong loan growth boosted interest income.
SAN FRANCISCO--(BUSINESS WIRE)--Wells Fargo & Company (NYSE: WFC) has released its second quarter 2026 financial results. The financial results are available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and on a Form 8-K filed by the company with the Securities and Exchange Commission (SEC) on July 14, 2026, and available on the SEC's website at https://www.sec.gov/.Conference callThe company will host a live conference call on Tuesday, July 14, at 10:00.
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Stock Market Week Ahead: Watching Big Banks, Warsh, TSMC For Signals Wall Street's largest banks prepare to report earnings this week against a backdrop of a renewed war in Iran, rising energy prices and inflation that is increasingly becoming stickier. JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC) and Goldman Sachs (GS) all report on Tuesday morning. Investors should keep an eye out for executives' comments on the broader…
Key Takeaways Nasdaq Leads Markets Lower on SK Hynix NewsHalfway Through the MOU, U.S.-Iran Attacks Re-emergeQ2 Earnings from Big Banks Join June CPI Ahead of Tuesday Open Monday, July 13th, 2026
Pre-market futures are down at this hour, led by the tech sector on the Nasdaq, which has shed -372 points at this hour, -1.24%. The Dow is -97 points, -0.18%, the S&P 500 -33, -0.43%. The small-cap Russell 2000 is -12 points lower currently, -0.41%, and the only index of the four not to have made gains on Friday.
News from South Korea’s newly minted SK Hynix (SKHY - Free Report) stock is sending shares down -10% presently, and taking memory-chip makers like SanDisk (SNDK - Free Report) down -6% with them. SK Hynix CEO Kwak Noh-Jung announced today that 2027 is expected to bring the most severe memory shortage in the industry’s history, which would bring a real bottleneck to the free-flowing AI trade. SK Hynix happens to be the top memory provider for top AI stock NVIDIA (NVDA - Free Report) .
Elsewhere, the war in Iran heated up over the weekend, with the U.S. bombing targets in Iran for a second-straight night. Sources say bombs have dropped inland of the Strait of Hormuz region of Iran. The Islamic state has responded by launching bombs at neighboring Gulf states and working to re-close the Strait of Hormuz (while President Trump insists the U.S. "will probably be running" the Strait).
Traffic through the Strait has reportedly decreased more than -50% already since this latest bout of aggression. We’re only half-way through the 60-day Memorandum of Understanding (MOU) peace agreement between the two countries, by the way.
Spot oil prices are up as a result, as one might expect: $74 per barrel (/bbl) on WTI and $79/bbl on Brent crude. WTI oil prices were at pre-conflict lows ($67/bbl) one short week ago. Bond yields are climbing as well: +4.58% on the 10-year and +4.23% on the 2-year, which happens to be an 18-month high on the shorter bond yield. The yield curve has now tightened again, after looking like it was moving back toward 40 bps.
Big-News Tuesday Ahead: Big Bank Earnings, CPI Inflation Rate
Q2 earnings season begins in earnest Tuesday morning, when no fewer than five of the nation’s top financial institutions reports quarterly results. These include Zacks Rank #2 (Buy)-rated JPMorgan (JPM - Free Report) and Goldman Sachs (GS - Free Report) , and Zacks Rank #3 (Hold)-rated Citigroup (C - Free Report) , Bank of America (BAC - Free Report) and Wells Fargo (WFC - Free Report) . Citi is expected to bring the highest earnings growth of the group, while BofA is expected to have grown +15.7% on the top line.
The Consumer Price Index (CPI) for June also comes out ahead of Tuesday’s opening bell — expected to bring to bear something we haven’t seen since the Covid pandemic: a negative month-over-month Inflation Rate. Expectations are for headline CPI to come in at -0.2% from +0.5% posted for May. Clearly this is a result of the mid-June reopening of the Strait of Hormuz, which brought the cost of crude oil -21% — -10% at the gas station. Year over year is expected to come back below +4%, where it breached in May for the first time in three years.
Questions or comments about this article and/or author? Click here>>
Published in inflation interest-rate oil-energy semiconductor
Pre-market futures are down at this hour, led by the tech sector on the Nasdaq, which has shed -372 points at this hour, -1.24%. The Dow is -97 points, -0.18%, the S&P 500 -33, -0.43%. The small-cap Russell 2000 is -12 points lower currently, -0.41%, and the only index of the four not to have made gains on Friday.
News from South Korea’s newly minted SK Hynix (SKHY - Free Report) stock is sending shares down -10% presently, and taking memory-chip makers like SanDisk (SNDK - Free Report) down -6% with them. SK Hynix CEO Kwak Noh-Jung announced today that 2027 is expected to bring the most severe memory shortage in the industry’s history, which would bring a real bottleneck to the free-flowing AI trade. SK Hynix happens to be the top memory provider for top AI stock NVIDIA (NVDA - Free Report) .
Elsewhere, the war in Iran heated up over the weekend, with the U.S. bombing targets in Iran for a second-straight night. Sources say bombs have dropped inland of the Strait of Hormuz region of Iran. The Islamic state has responded by launching bombs at neighboring Gulf states and working to re-close the Strait of Hormuz (while President Trump insists the U.S. "will probably be running" the Strait).
Traffic through the Strait has reportedly decreased more than -50% already since this latest bout of aggression. We’re only half-way through the 60-day Memorandum of Understanding (MOU) peace agreement between the two countries, by the way.
Spot oil prices are up as a result, as one might expect: $74 per barrel (/bbl) on WTI and $79/bbl on Brent crude. WTI oil prices were at pre-conflict lows ($67/bbl) one short week ago. Bond yields are climbing as well: +4.58% on the 10-year and +4.23% on the 2-year, which happens to be an 18-month high on the shorter bond yield. The yield curve has now tightened again, after looking like it was moving back toward 40 bps.
Big-News Tuesday Ahead: Big Bank Earnings, CPI Inflation RateQ2 earnings season begins in earnest Tuesday morning, when no fewer than five of the nation’s top financial institutions reports quarterly results. These include Zacks Rank #2 (Buy)-rated JPMorgan (JPM - Free Report) and Goldman Sachs (GS - Free Report) , and Zacks Rank #3 (Hold)-rated Citigroup (C - Free Report) , Bank of America (BAC - Free Report) and Wells Fargo (WFC - Free Report) . Citi is expected to bring the highest earnings growth of the group, while BofA is expected to have grown +15.7% on the top line.
The Consumer Price Index (CPI) for June also comes out ahead of Tuesday’s opening bell — expected to bring to bear something we haven’t seen since the Covid pandemic: a negative month-over-month Inflation Rate. Expectations are for headline CPI to come in at -0.2% from +0.5% posted for May. Clearly this is a result of the mid-June reopening of the Strait of Hormuz, which brought the cost of crude oil -21% — -10% at the gas station. Year over year is expected to come back below +4%, where it breached in May for the first time in three years.
Wells Fargo (WFC 0.44%) reports its second-quarter results at about 7 a.m. ET on Tuesday, July 14, with a conference call to follow at 10 a.m. For most big banks, a quarterly report is mainly a read on loan demand, credit costs, and trading. For Wells Fargo, this one carries a question investors have asked for years: Can the bank finally grow again?
That question exists because of a penalty that shaped the last seven years. In 2018, following its fake-accounts scandal, the Federal Reserve capped Wells Fargo's assets at $1.95 trillion, effectively freezing the size of the balance sheet. The Fed lifted that cap in June 2025. For the first time since 2018, the balance sheet can grow with the business without the asset-growth restriction.
So when the results land Tuesday morning, the line to watch isn't earnings per share. It's net interest income.
Image source: Getty Images.
Why net interest income matters most Net interest income (the gap between what a bank earns on its loans and pays on deposits) is the closest thing Wells Fargo has to a single gauge of growth. Under the asset cap, it went nowhere. Net interest income was about $47.5 billion in 2025, essentially flat with 2024. A bank that can't grow its balance sheet can't easily grow the income that comes off it.
The 2026 guidance is where that changes. Management has told investors to expect about $50 billion in net interest income this year -- which would mark a return to mid-single-digit growth after a down year and a flat one. The early read supports it: in the first quarter of 2026, net interest income rose 5% year over year, though it slipped $235 million, or 2%, from the fourth quarter on two fewer days and slightly lower rates.
That sequential dip is the catch, and it's why Tuesday matters. The full-year target leans on this income building through the year as loans and deposits grow -- the very activity the asset cap used to block. The deposits Wells Fargo is now free to gather tend to be higher-cost than the ones it leaned on under the cap, so growth and margin will work against each other as it rebuilds. If second-quarter net interest income steps up and management holds or raises the $50 billion target, the growth case is intact. If the number stalls and the guide comes down, the main reason to own the stock instead of a cheap index fund gets much harder to make.
There's a rates wrinkle, too. Like any bank, Wells Fargo earns more on its loans when rates stay higher for longer, so the path of Federal Reserve policy will shape this income alongside the bank's own growth. Fewer rate cuts than the market expects would actually work in its favor here.
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A cheap stock with a new lever Net interest income is the headline, but two other figures round out the picture.
The first is the efficiency ratio (the share of revenue a bank spends to run itself, with lower ratios being better). Wells Fargo's improved to 67% in the first quarter from 69% a year earlier, extending a multiyear cost-cutting push under CEO Charlie Scharf. Having spent years shrinking, the bank now has to spend to grow, so investors will want costs to stay contained even as the balance sheet expands.
The second is capital return, where Wells Fargo has been aggressive. It repurchased $17.7 billion of its own stock in 2025 and still has about $26 billion left on a $40 billion buyback authorization. After clearing the Fed's 2026 stress test, management said it plans to raise the quarterly dividend 11%, to $0.50 a share. Buybacks on this scale lift earnings per share even when net income grows slowly, a genuine support for the stock while that plays out.
Then there's the price. Around $87 a share, Wells Fargo trades at about 13 times earnings -- a discount to the S&P 500 at around 25 times, and cheap for a bank that just got a growth lever back.
That mix of a low multiple and a newly unfrozen balance sheet makes Wells Fargo a rare value stock among the big banks.
And with the dividend on its way up, you get paid to wait while the growth case plays out.
Put it together, and I think Wells Fargo is one of the more reasonably priced ways to own a large bank right now, and I'd lean toward buying. But the case rests on that one line. Before getting too excited, I'd want to see second-quarter net interest income move higher on Tuesday and management stand behind its $50 billion guide for the year. That's the number that should define the reaction -- and, more importantly, the investment.
Wells Fargo & Company (NYSE:WFC) will release earnings for its second quarter before the opening bell on Tuesday, July 14.
Analysts expect the bank to report quarterly earnings of $1.71 per share. That’s up from $1.60 per share in the year-ago period. The consensus estimate for Wells Fargo’s quarterly revenue is $21.81 billion. It reported $20.82 billion last year, according to Benzinga Pro.
Ahead of quarterly earnings, Bank of America Securities analyst Ebrahim Poonawala maintained a Buy rating on Wells Fargo and raised the price target from $95 to $102. UBS analyst Erika Najarian also maintained a Buy rating, but cut the price target from $105 to $104.
With the recent buzz around Wells Fargo, some investors may be eyeing potential gains from the company’s dividends too. Currently, WFC has an annual dividend yield of 2.07% and a quarterly dividend of 45 cents per share ($1.80 annually).
To figure out how to earn $500 per month from Wells Fargo, start with an annual target: $6,000 ($500 x 12 months).
Next, we divide this amount by WFC’s $1.80 dividend: $6,000 / $1.80 = 3,333 shares.
So, an investor would need to own approximately $289,671 worth of Wells Fargo, or 3,333 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $1.80 = 667 shares, or $57,969 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
WFC Price Action: Shares of Wells Fargo rose by 1.6% to close at $86.91 on Thursday.
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Wells Fargo (WFC - Free Report) closed the most recent trading day at $86.91, moving +1.58% from the previous trading session. This change outpaced the S&P 500's 0.81% gain on the day. On the other hand, the Dow registered a gain of 0.27%, and the technology-centric Nasdaq increased by 1.3%.
Shares of the biggest U.S. mortgage lender have appreciated by 4.38% over the course of the past month, outperforming the Finance sector's gain of 4.07%, and the S&P 500's gain of 1.13%.
Investors will be eagerly watching for the performance of Wells Fargo in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 14, 2026. The company is predicted to post an EPS of $1.74, indicating a 12.99% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $21.8 billion, up 4.71% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.99 per share and a revenue of $87.77 billion, representing changes of +11.31% and +4.87%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Wells Fargo. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.29% higher within the past month. Wells Fargo is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Wells Fargo is currently being traded at a Forward P/E ratio of 12.24. This valuation marks a discount compared to its industry average Forward P/E of 14.49.
Meanwhile, WFC's PEG ratio is currently 0.98. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial - Investment Bank industry had an average PEG ratio of 1.15 as trading concluded yesterday.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow WFC in the coming trading sessions, be sure to utilize Zacks.com.
In its upcoming report, Wells Fargo (WFC - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.74 per share, reflecting an increase of 13% compared to the same period last year. Revenues are forecasted to be $21.8 billion, representing a year-over-year increase of 4.7%.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.2% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some Wells Fargo metrics that Wall Street analysts commonly model and monitor.
Analysts forecast 'Book value per common share' to reach $53.96 . The estimate is in contrast to the year-ago figure of $51.13 .
The consensus estimate for 'Average Balance - Total interest-earning assets' stands at $2040.00 billion. Compared to the current estimate, the company reported $1762.16 billion in the same quarter of the previous year.
Analysts expect 'Return on equity (ROE) - Financial Ratios' to come in at 13.0%. The estimate is in contrast to the year-ago figure of 12.8%.
Analysts' assessment points toward 'Efficiency Ratio' reaching 63.1%. Compared to the present estimate, the company reported 64.0% in the same quarter last year.
It is projected by analysts that the 'Common Equity Tier 1 (CET1) - Standardized Approach' will reach 10.1%. Compared to the present estimate, the company reported 11.1% in the same quarter last year.
According to the collective judgment of analysts, 'Total nonperforming assets' should come in at $8.99 billion. Compared to the present estimate, the company reported $7.96 billion in the same quarter last year.
The average prediction of analysts places 'Tier 1 Leverage Ratio' at 6.9%. The estimate compares to the year-ago value of 8.0%.
The combined assessment of analysts suggests that 'Total nonaccrual loans' will likely reach $8.69 billion. Compared to the current estimate, the company reported $7.76 billion in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Net loan charge-offs' of $1.15 billion. Compared to the present estimate, the company reported $997.00 million in the same quarter last year.
Analysts predict that the 'Tier 1 Capital Ratio - Standardized Approach' will reach 11.2%. The estimate is in contrast to the year-ago figure of 12.4%.
Based on the collective assessment of analysts, 'Net interest income (on a taxable-equivalent basis)' should arrive at $12.44 billion. Compared to the present estimate, the company reported $11.79 billion in the same quarter last year.
The consensus among analysts is that 'Total Noninterest Income' will reach $9.47 billion. The estimate compares to the year-ago value of $9.11 billion.
View all Key Company Metrics for Wells Fargo here>>>
Over the past month, Wells Fargo shares have recorded returns of +4.4% versus the Zacks S&P 500 composite's +1.1% change. Based on its Zacks Rank #3 (Hold), WFC will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways Wells Fargo is expected to post 4.7% y/y revenue growth in second-quarter 2026 results. WFC's NII and fee income are projected to rise, supported by loan demand and stronger client activity. Wells Fargo may face pressure from higher credit provisions and softer mortgage banking revenues. Wells Fargo & Company (WFC - Free Report) is slated to report second-quarter 2026 earnings results on July 14, 2026, before market open.
WFC’s first-quarter 2026 earnings missed the Zacks Consensus Estimates. Its performance was affected by an increase in expenses and higher provisions. However, an improvement in net interest income (NII), along with higher non-interest income offered some support.
This time around, the company’s performance is likely to have been decent. The Zacks Consensus Estimate for second-quarter revenues of $21.83 billion suggests 4.7% year-over-year growth.
In the past seven days, the consensus estimate for earnings for the to-be-reported quarter has been revised upward to $1.74. The figure indicates a 12.9% improvement from the prior-year quarter’s actual.
Estimate Revision Trend
Image Source: Zacks Investment Research
The company also has a decent earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 6.40%.
Earnings Surprise History
Image Source: Zacks Investment Research
Factors to Impact WFC’s Q2 EarningsLoans & NII: In the second quarter, the Federal Reserve kept interest rates unchanged, maintaining the target range for the federal funds rate at 3.50-3.75%. The Fed also noted that economic activity continued to expand at a solid pace, though uncertainty remained elevated partly due to geopolotical tension, while inflation stayed above its 2% goal.
Per the Fed’s latest data, the demand for commercial and industrial, real estate and consumer loans was decent in the first two months of the quarter. Hence, a stable rate environment, along with decent loan demand, is expected to have offered much-needed support to WFC’s NII.
The Zacks Consensus Estimate for NII is pegged at $12.36 billion, which indicates a 5.6% rise from the year-ago quarter’s reported number.
Non-Interest Revenues: In the second quarter of 2026, mortgage rates hovered near mid-6% range. Refinancing activity was stronger in the second quarter, while purchase volume was subdued, pressured by affordability and relatively higher mortgage rates. As a result, Wells Fargo’s mortgage banking fees are expected to have been affected in the quarter to be reported.
The Zacks Consensus Estimate for mortgage banking revenues is pegged at $228.7 million, suggesting a marginal decline from the year-ago reported level.
Meanwhile, investment advisory and other asset-based fee revenues are expected to have benefited from increased client transactional activity. Improved equity market performance and greater investor engagement likely supported asset-based fees in the quarter. The consensus mark for investment advisory and other asset-based fee revenues is pegged at $2.83 billion, indicating a year-over-year rise of 13.3%.
WFC’s Investment banking (IB) revenues are also expected to have witnessed decent momentum. While uncertainty related to geopolitical tensions and inflation remained concerning, deal-making activity stayed relatively healthy, supported by large transactions, resilient corporate confidence and expectations of stronger capital market activity.
Management expects second quarter 2026 IB and markets revenues to rise by mid-teen percentage points, supported by healthy client activity across corporate and institutional businesses. The Zacks Consensus Estimate for IB income is pegged at $875.6 million, which indicates a rise of 25.8% on a year-over-year basis.
WFC's management expects wealth management revenues to increase at a low double-digit pace year over year in the second quarter of 2026.
Card fees are expected to have benefited from resilient consumer spending and higher card usage. Nevertheless, persistent inflation and signs of pressure on lower-income consumers may have partly offset the upside to some extent. The Zacks Consensus Estimate for Card fees is pegged at $1.24 billion, suggesting a 6.4% rise from the prior-year quarter’s reported level.
The Zacks Consensus Estimate for Wells Fargo’s total non-interest income is pegged at $9.46 billion, indicating a 3.9% rise from the year-ago quarter’s reported figure.
Expenses: WFC’s non-interest expenses are expected to have remained well-managed in the second quarter. The company has been focused on efficiency initiatives, including streamlining its organizational structure, closing branches, reducing headcount and investing in technology to improve operating leverage. These efforts are likely to have led to a modest decline in expenses in the quarter to be reported.
Asset Quality: Asset quality is likely to have remained a key area of focus in the second quarter. The operating environment continued to be challenging, weighed down by geopolitical uncertainty and elevated inflation. Additionally, the Fed’s June statement indicated the possibility of a rate hike. Against this backdrop, Wells Fargo is expected to have maintained a cautious stance and built substantial provisions for potential credit losses in the second quarter of 2026.
The consensus mark for total non-accrual loans is pegged at $8.68 billion, suggesting a year-over-year rise of 12%. The Zacks Consensus Estimate for non-performing assets of $8.98 billion indicates a 12.8% increase from the year-ago reported level.
What Our Quantitative Model Unveils for WFCOur proven model conclusively predicts an earnings beat for Wells Fargo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here, as you can see below.
The Earnings ESP for WFC is +0.09%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Wells Fargo currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Wells Fargo’s Price PerformanceIn the second quarter of 2026, WFC shares delivered a subdued performance, lagging the industry and its close peers, Bank of America (BAC - Free Report) and Citigroup (C - Free Report) .
Price Performance
Image Source: Zacks Investment Research
Bank of America and Citigroup are also slated to announce quarterly numbers on July 14.
Over the past week, the Zacks Consensus Estimate for Citigroup’s second-quarter 2026 earnings has revised upward to $2.72. The consensus estimate for Bank of America’s earnings has been revised upward to $1.13 per share.
Key Takeaways Bank of America is benefiting from accelerating NII, a rebound in IB and trading, and digital expansion.Wells Fargo is poised to benefit from the removal of the asset cap.While WFC trades at a lower valuation, BAC offers a superior recent stock performance. As the second-quarter 2026 earnings season approaches, investors are turning their attention to the banking sector, wherein resilient credit quality, evolving interest-rate expectations and improving capital markets activity are shaping the outlook. Among the large-cap banks, Bank of America (BAC - Free Report) and Wells Fargo (WFC - Free Report) stand out as two compelling investment candidates, each offering distinct strengths and catalysts.
BAC is leveraging its industry-leading deposit franchise, diversified revenue streams and growing net interest income (NII) to navigate the current operating environment. Wells Fargo, meanwhile, continues to benefit from disciplined expense management, balance sheet optimization and operational improvements following years of restructuring.
With both banks set to report earnings on July 14, investors face an important question: which among BAC and WFC offers the more compelling investment opportunity ahead of the release? A closer comparison of their fundamentals, growth catalysts, valuation and near-term outlook may help identify the better bet.
The Case for BACBeing the second-largest bank in the United States, Bank of America is well-positioned for continued improvement in NII, supported by loan growth, fixed-rate asset repricing and stabilizing funding costs. From 2020 to 2025, the company’s NII saw a compound annual growth rate (CAGR) of 6.7%, with the momentum continuing in the first quarter of 2026. Management expects fully taxable-equivalent NII to increase in the upper end of 6-8% this year.
BAC’s investment banking (IB) business has shown a meaningful recovery after weak 2022 and 2023, when IB fees in the Global Banking segment declined 45.7% and 2.4%, respectively. The business rebounded in 2024 and 2025, with fees rising 31.4% and 8.4%, respectively. With global merger and acquisition activity improving and the company maintaining a healthy deal pipeline, BAC is expected to continue benefiting from solid growth in IB fees.
The company’s trading business has also improved since 2022. In the first quarter of 2026, sales and trading revenues, excluding net DVA, rose 12% year over year. Management expects trading revenues in the second quarter to increase 15% year over year, driven by higher client activity and market volatility. However, given the volatile nature of capital markets, trading revenues can fluctuate significantly and may create earnings variability even when overall performance remains favorable.
Bank of America continues to focus on organic growth by expanding both physical and digital presence. This strategy is aimed at strengthening customer relationships, entering new markets and supporting long-term NII growth. By 2027, the company plans to open more than 150 financial centers. At the same time, the increased adoption of digital tools such as Zelle and its AI-powered assistant Erica is helping BAC boost customer engagement and cross-sell products, including mortgages, auto loans and credit cards. The company's plan to launch a cross-border real-time payments solution is expected to support high-volume, low-value international payments.
The Case for WFCWells Fargo has been moving to expand across multiple business lines now that the Fed has lifted the asset cap that limited its growth since 2018. With this, the company can boost deposits, grow its loan portfolio and broaden its securities holdings, efforts that will help in an increase in NII, going forward. Management expects NII to be $50 billion in 2026, driven by balance-sheet growth, a favorable loan and deposit mix, and continued fixed-asset repricing.
Due to elevated funding costs, WFC’s revenues have witnessed a negative CAGR of 0.3% over the last six years (2019-2025). However, the trend reversed in the first quarter of 2026, when revenues rose 6.4% year over year, driven by a rise in NII and fee income. As the bank intends to expand fee-generating businesses like payment services, asset management and mortgage origination, its top-line mix is expected to improve in the quarters ahead.
Wells Fargo is adopting a more balanced approach to its operations. While the bank is reducing headcount and streamlining processes, it is investing in its branch network and digital upgrades. This will allow the bank to maintain a focus on cost management.
Wells Fargo has been taking a strategic approach to its branch network, reducing its total branches 1.5% year over year to 4,093 by the end of the first quarter of 2026. At the same time, it continues to invest and optimize its branch network to reduce costs. In 2025, the company refurbished approximately 700 branches, with more than half of its branch network now upgraded and the remaining branches expected to be completed over the next few years.
BAC & WFC: Price Performance, Valuation & Other ComparisonsOver the past six months, BAC shares have gained 4.5%, while shares of Wells Fargo have lost 11%. Hence, in terms of price performance, Bank of America has a clear edge over WFC.
6-Month Price Performance
Image Source: Zacks Investment Research
In terms of valuation, Bank of America is currently trading at a 12-month forward price-to-earnings (P/E) of 12.45X. In contrast, Wells Fargo is trading at a 12-month forward P/E of 11.73X.
Therefore, WFC is currently trading at a discount compared with BAC.
P/E F12M
Image Source: Zacks Investment Research
Bank of America’s return on equity (ROE) of 11.49% is lower than WFC’s 13.28%. This reflects WFC’s relatively more efficient use of shareholder funds in generating profits.
ROE
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for BAC & WFC?The Zacks Consensus Estimate for BAC's 2026 and 2027 earnings indicates 17.9% and 14.3% year-over-year growth, respectively. In the past 30 days, earnings estimates for both years have been revised higher.
BAC Estimate Revision Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for WFC’s 2026 and 2027 earnings indicates rallies of 11% and 12.9%, respectively. Earnings estimates for both years have been revised higher in the past 30 days.
WFC Estimate Revision Trend
Image Source: Zacks Investment Research
BAC or WFC: Which is the Better Investment Option Now?Both Bank of America and Wells Fargo are well-positioned to benefit from an improving operating backdrop, marked by stabilizing funding costs, resilient credit quality and a gradual recovery in capital markets activity.
Wells Fargo’s post-asset-cap growth opportunity and attractive valuation make it an appealing long-term turnaround story. However, the bank is still in the process of rebuilding its revenue mix and expanding its balance sheet.
Bank of America, conversely, appears better-positioned heading into the second-quarter earnings release as it continues to benefit from one of the industry’s strongest deposit franchises, accelerating NII growth, a sustained recovery in IB, solid trading momentum and ongoing digital initiatives. These strengths are complemented by stronger expected earnings growth for both 2026 and 2027, upward estimate revisions, and a better recent stock performance.
Currently, both WFC and BAC carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
Total Q2 earnings for the S&P 500 index are currently expected to be up +24.0% from the same period last year on +11.3% higher revenues, with 11 of the 16 Zacks sectors expected to enjoy positive earnings growth.Excluding the significant upward revisions to Energy sector estimates, aggregate Q2 earnings estimates for the remainder of the S&P 500 index would still be in positive territory since the start of April.The Tech sector has been a critical growth pillar since 2023 Q3 and is expected to continue playing that role in 2026 Q2, with expected earnings growth of +48.5%. Excluding the Tech sector’s substantial contribution, Q2 earnings growth for the rest of the S&P 500 index would be +12.2% (vs. +24.0% otherwise).Q2 earnings for the ‘Magnificent 7’ group of companies are expected to be up +28.5% from the same period last year on +24.4% higher revenues. Excluding the ‘Mag 7’ contribution, Q2 earnings for the rest of the index would be up +22.5% (vs. +24.0%).Bank Earnings in Focus as Q2 Earnings Season Takes the SpotlightJPMorgan (JPM - Free Report) , Bank of America (BAC - Free Report) , Citigroup (C - Free Report) and Wells Fargo (WFC - Free Report) kick off the June-quarter reporting cycle for the Finance sector on July 14th. Bank stocks in general and these four stocks in particular have enjoyed a decent but otherwise unspectacular run this year, as some of the earlier geopolitical risk factors have eased lately. Banks are cyclical businesses, so any real or perceived reduction in economic risk is positive for their outlook.
The chart below shows the year-to-date performance of JPMorgan, Bank of America, Citigroup and Wells Fargo shares relative to the S&P 500 index and the Zacks Finance sector.
Image Source: Zacks Investment Research
The revisions trend is positive as a whole, with Q2 estimates for JPMorgan, Bank of America, and Citigroup modestly moving higher, while the same for Wells Fargo are going down a bit.
JPMorgan is expected to earn $5.49 per share on $48.7 billion in revenues in Q2, representing year-over-year changes of +10.7% and +8.5%, respectively. The Zacks Consensus EPS estimate for JPMorgan has increased +1.9% over the past month and +3% over the last three months. Q2 estimates for Bank of America and Citigroup have increased +2.8% and +4.7% over the last three months, while the same for Wells Fargo have decreased by -1.1%.
Total Q2 earnings for the Zacks Investment Banks/Managers industry, of which JPMorgan, Bank of America, Citigroup and Wells Fargo are a part, are expected to increase by +11.1% from the same period last year on +11.4% higher revenues, as the table below shows.
Image Source: Zacks Investment Research
The growth in Q2 will come from the core banking and trading franchises, with investment banking activities largely stable. On the core banking side, loan growth is expected to accelerate further from the very strong numbers in the preceding quarter, with industry-wide data suggesting that Q2 loan growth will reach its highest level in three years. Growth is expected to expand into higher-margin categories such as commercial & industrial (C&I), autos, credit cards, and others.
For context, loan growth has trended below historical averages over the past three years, but the growth pace began improving in 2025, and the trend continued into 2026 Q1. The favorable outlook for loan portfolios bodes well for net interest income in Q2 and beyond, even though the yield curve lost some of its steepness in Q2. We remain skeptical of the consensus Fed view of a rate hike later this year, but renewed hostilities in the Persian Gulf will keep the inflation debate alive and kicking.
On the investment banking front, we should get solid numbers from the capital markets side of the business, particularly on the equity capital markets front. But M&A activities have been underwhelming, reflecting the effects of geopolitical uncertainties. Trading revenues remained robust in Q2, with mid-quarter updates indicating growth rates in the +10% to +15% range.
Aggregate trends on the credit quality front have been benign, as reflected in household and commercial delinquencies, bankruptcies, debt-service and other metrics. But the market’s focus will be private-credit exposure for banks, as the space has been in the spotlight lately for its exposure to the software and data-center industries.
For the Finance sector as a whole, Q2 earnings are expected to increase by +12.7% on +8.3% higher revenues, following the sector’s +25.6% earnings growth on +9.8% higher revenues in the preceding period. The chart below shows the earnings and revenue growth picture for the Zacks Finance sector on a quarterly basis.
Image Source: Zacks Investment Research
The chart below shows the sector’s earnings growth picture on an annual basis.
Image Source: Zacks Investment Research
The Finance sector is the second largest earnings contributor to the S&P 500 index, behind only the Tech sector, accounting for 16.4% of the index’s expected forward 12-month earnings.
Keeping Track of the Revisions TrendThe expected decline in Energy sector estimates notwithstanding, the overall revisions trend continues to be positive, with estimates for 2026 Q2 and full-year 2026 increasing. This favorable earnings backdrop is evident in the revisions trend, as seen in how expectations for 2026 Q2 have evolved in recent weeks.
Image Source: Zacks Investment Research
The sectors enjoying positive estimate revisions since the start of April included Energy, Tech, Basic Materials, Utilities, and Business Services. Aggregate Q2 earnings estimates would still be positive since the start of the period, even without favorable revisions for the Energy sector, but aggregate estimates would be down if we exclude the increases in the Energy and Tech sector estimates.
The Tech sector has been enjoying positive estimate revisions for more than a year now, so the sector’s ongoing positive revisions trend is basically more of the same. We have discussed in this space the positive revisions that the Mag 7 group has been experiencing.
On the negative side, Q2 estimates were under pressure for the Transportation, Autos, Medical, Consumer Discretionary, Consumer Staples, and other sectors.
The chart below shows S&P 500 expectations for 2026 Q2 in terms of what was achieved in the preceding four periods and what is currently expected for the following three quarters.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture for the S&P 500 index on an annual basis.
Image Source: Zacks Investment Research
As with estimates for Q2, estimates for full-year 2026 have also been steadily going up, particularly since the start of March. The chart below shows the evolution of aggregate S&P 500 earnings estimates since last July.
Image Source: Zacks Investment Research
Full-year 2026 earnings estimates have increased for 11 of the 16 Zacks sectors since the start of March, with the most pronounced gains at the Energy, Basic Materials, Tech, Industrials, Utilities, and Business Services sectors. On the negative side, estimates have been under pressure for the Transportation, Autos, Medical, and Consumer Discretionary sectors since the start of March. History suggests that these favorable revisions will get a boost from the Q2 earnings season and updated management guidance.
The market expects Wells Fargo (WFC - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 14. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis biggest U.S. mortgage lender is expected to post quarterly earnings of $1.73 per share in its upcoming report, which represents a year-over-year change of +12.3%.
Revenues are expected to be $21.76 billion, up 4.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.78% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Wells Fargo?For Wells Fargo, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.19%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Wells Fargo will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Wells Fargo would post earnings of $1.58 per share when it actually produced earnings of $1.56, delivering a surprise of -1.27%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Wells Fargo appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Takeaways The Dow Is Up After Closing Above 53K 1st Time MondayTrade Balance Sank to -$77.6B, but Better than ExpectedLater This Week, Q2 Earnings Hit from PEP, DAL Tuesday, July 7th, 2026
The rotation trade continues to benefit the Dow this morning, as gains in Tech on AI investment and buildout seep into other sectors in the economy. The blue-chip index is racing ahead another +170 points in pre-market trading so far today, adding to its all-time closing high Monday above 53K for the first time ever.
Look no further than Caterpillar (CAT - Free Report) , which supplies power sources and construction equipment for data center buildouts. It’s up modestly this morning but nearly +70% from the start of the year. Prior to today’s opening bell, soon-to-report big banks JPMorgan (JPM - Free Report) and Goldman Sachs (GS - Free Report) , +1.4% and +3.4%, respectively — both of which are Dow components. IBM (IBM - Free Report) , another Dow stock, is +3.45% currently, following a wave of positive news on its quantum supercomputing initiatives.
This is not to say other major indexes are performing poorly. The tech-heavy Nasdaq, while down -1.65% over the past five trading days, is up +100% over the past five years — including downward shifts from the war in Iran this year and tariff initiatives last year. This is nearly double the +54% the Dow has grown over the past five years — and even that averages +10% growth year over year.
Trade Balance Gets Steeper, but Less Than Expected
The U.S. Trade Balance for May fell into a deeper deficit month over month — -$77.6 billion from an improved revision to -$54.6 billion in April — but did not fall as much as the -$78.0 billion expected. We had spent the first third of 2026 in the -$50Bs range (not great, but a big improvement from the record low -$132 billion in March of 2025, directly ahead of the “Liberation Day” tariffs, which lasted one week). The October 2025 -$37.37 billion was the slimmest deficit since prior the Covid pandemic.
Today is also the day we have hearings on Section 301 tariffs, which concern forced labor and oversupply. We don’t have a clear sense on all the rules from this vista, but we do know 24 states are challenging these tariffs. The hearings are scheduled to continue through Friday. Then, in a couple weeks, Section 122 tariff surcharges are due to expire, after the Court of International Trade declared them unlawful back in May.
What to Expect from the Trading Week
Published in earnings fang finance
Key Takeaways Fiserv shares rose Tuesday following a report that big banks are considering buying a payment processing network from the company.Big banks are weighing a deal that would help them get around a law limiting the fees they can charge on debit card transactions, The Wall Street Journal reported. Get personalized, AI-powered answers built on 27+ years of trusted expertise.
Big banks have reportedly been looking to acquire a payments processing network from Fiserv, and the financial technology firm’s stock is getting a boost Tuesday on the news.
Shares of Fiserv (FISV) were up 4% in recent trading after The Wall Street Journal reported late Monday that banks including JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC) and PNC Financial Services (PNC) have weighed making an offer for a network owned by Fiserv.1
Acquiring their own payment processing network could allow the banks to bypass limits on the fees they charge merchants to process debit card transactions, which banks have said would pay for things like expanded rewards programs for debit cards. The report noted that some of the banks have already dropped the idea of pursuing a deal, likely due to concerns over pushback from regulators or merchants that could come as a result of such a deal.
Why This Matters to Investors A deal to sell part of its business or be acquired by a big bank could help lift Fiserv’s stock out of a rough stretch, as shares are down about 20% since the start of the year and some 70% in the last 12 months.
The banks are reportedly looking to get around the Durbin Amendment, part of the 2010 Dodd-Frank Act, which caps debit card transaction fees but also has an exception for banks that own their own payment network.
The deal would mirror Capital One’s (COF) acquisition of Discover Financial, and could help banks avoid billions in so-called “swipe fees” annually, while critics could say such a deal could lead to higher fees that would be passed on to consumers.
JPMorgan Chase declined to comment on the report, and Fiserv and the other big banks did not immediately respond to requests for comment.
SAN FRANCISCO--(BUSINESS WIRE)--Wells Fargo & Company (NYSE: WFC), as previously announced, will report its second quarter 2026 earnings results on Tuesday, July 14, 2026, at approximately 7:00 a.m. Eastern time. The results will be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/. In addition to being available on the company's Investor Relations website, the earnings results also will be available on the Securities and Exchange Commission website.
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
The overall earnings picture remains strong and broad-based. We saw that in the last earnings season, when companies not only comfortably beat consensus estimates but also provided reassuring reads on macro and business trends despite elevated energy costs and other risks. All of this has helped sustain a favorable revisions trend, with estimates for the current and upcoming quarters rising.Total Q2 earnings for the S&P 500 index are currently expected to be up +23.9% from the same period last year on +11.7% higher revenues, with 11 of the 16 Zacks sectors expected to enjoy positive earnings growth.Q2 earnings estimates have been steadily going up since the quarter got underway, with the current +23.9% growth rate up from +18% at the start of April. Estimates have increased for 5 of the 16 Zacks sectors, including Tech, Energy, Basic Materials, Utilities, and Business Services.Excluding the significant upward revisions to Energy sector estimates, aggregate Q2 earnings estimates for the remainder of the S&P 500 index would still be in positive territory since the start of April.Bank Earnings in Focus as Q2 Earnings Season Takes the SpotlightJPMorgan (JPM - Free Report) , Bank of America (BAC - Free Report) , Citigroup (C - Free Report) and Wells Fargo (WFC - Free Report) kick off the June-quarter reporting cycle for the Finance sector on July 14th. Bank stocks in general and these four stocks in particular have enjoyed a decent but otherwise unspectacular run this year, as some of the earlier geopolitical risk factors have eased lately. Banks are cyclical businesses, so any real or perceived reduction in economic risk is positive for their outlook.
The chart below shows the year-to-date performance of JPMorgan, Bank of America, Citigroup and Wells Fargo shares relative to the S&P 500 index and the Zacks Finance sector.
Image Source: Zacks Investment Research
The revisions trend is positive as a whole, with Q2 estimates for JPMorgan, Bank of America, and Citigroup modestly moving higher, while the same for Wells Fargo are going down a bit.
JPMorgan is expected to earn $5.49 per share on $48.7 billion in revenues in Q2, representing year-over-year changes of +10.7% and +8.5%, respectively. The Zacks Consensus EPS estimate for JPMorgan has increased +1.9% over the past month and +3% over the last three months. Q2 estimates for Bank of America and Citigroup have increased +2.8% and +4.7% over the last three months, while the same for Wells Fargo have decreased by -1.1%.
Total Q2 earnings for the Zacks Investment Banks/Managers industry, of which JPMorgan, Bank of America, Citigroup and Wells Fargo are a part, are expected to increase by +10.4% from the same period last year on +10.7% higher revenues, as the table below shows.
Image Source: Zacks Investment Research
The growth in Q2 will be coming from the core banking and trading franchises, with investment banking activities largely stable. On the core banking side, loan growth is expected to accelerate further from the very strong numbers in the preceding quarter. For context, loan growth has trended below historical averages over the past three years, but the growth pace began improving in 2025, and the trend continued into 2026 Q1. The favorable outlook for loan portfolios bodes well for net interest income in Q2 and beyond, even though the yield curve lost some of its steepness in Q2.
On the investment banking front, we should get solid numbers from the capital markets side of the business, particularly on the equity capital markets front. But M&A activities have been underwhelming, reflecting the effects of geopolitical uncertainties. Trading revenues remained robust in Q2, with mid-quarter updates indicating growth rates in the +10% to +15% range.
Aggregate trends on the credit quality front have been benign, as reflected in household and commercial delinquencies, bankruptcies, debt-service and other metrics. But the market’s focus will be private-credit exposure for banks, as the space has been in the spotlight lately for its exposure to the software and data-center industries.
For the Finance sector as a whole, Q2 earnings are expected to increase by +12.5% on +8.1% higher revenues, which will follow the sector’s +25.6% earnings growth on +9.8% higher revenues in the preceding period. The chart below shows the earnings and revenue growth picture for the Zacks Finance sector on a quarterly basis.
Image Source: Zacks Investment Research
The chart below shows the sector’s earnings growth picture on an annual basis.
Image Source: Zacks Investment Research
The Finance sector is the second largest earnings contributor to the S&P 500 index, behind only the Tech sector, accounting for 16.4% of the index’s expected forward 12-month earnings.
Keeping Track of the Revisions TrendThe expected decline in Energy sector estimates notwithstanding, the overall revisions trend continues to be positive, with estimates for 2026 Q2 and full-year 2026 increasing. This favorable earnings backdrop is evident in the revisions trend, as seen in how expectations for 2026 Q2 have evolved in recent weeks.
Image Source: Zacks Investment Research
The sectors enjoying positive estimate revisions since the start of April include Energy, Tech, Basic Materials, Utilities, and Business Services. Aggregate Q2 earnings estimates would still be positive since the start of the period, even without favorable revisions for the Energy sector, but aggregate estimates would be down if we exclude the increases in the Energy and Tech sector estimates.
The Tech sector has been enjoying positive estimate revisions for more than a year now, so the sector’s ongoing positive revisions trend is basically more of the same. We have discussed in this space the positive revisions that the Mag 7 group has been experiencing.
On the negative side, Q2 estimates have come under renewed pressure since the start of the period for the Transportation, Autos, Medical, and Consumer Discretionary sectors.
The chart below shows S&P 500 expectations for 2026 Q2 in terms of what was achieved in the preceding four periods and what is currently expected for the following three quarters.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture for the S&P 500 index on an annual basis.
Image Source: Zacks Investment Research
As with estimates for Q2, estimates for full-year 2026 have also been steadily going up, particularly since the start of March. The chart below shows the evolution of aggregate S&P 500 earnings estimates since last July.
Image Source: Zacks Investment Research
Full-year 2026 earnings estimates have increased for 11 of the 16 Zacks sectors since the start of March, with the most pronounced gains at the Energy, Basic Materials, Tech, Industrials, Utilities, and Business Services sectors. On the negative side, estimates have been under pressure for the Transportation, Autos, Medical, and Consumer Discretionary sectors since the start of March.
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
The overall earnings picture remains strong and broad-based. We saw that in the last earnings season, when companies not only comfortably beat consensus estimates but also provided reassuring reads on macro and business trends despite elevated energy costs and other risks. All of this has helped sustain a favorable revisions trend, with estimates for the current and upcoming quarters rising.Total Q2 earnings for the S&P 500 index are currently expected to be up +23.9% from the same period last year on +11.7% higher revenues, with 11 of the 16 Zacks sectors expected to enjoy positive earnings growth.Q2 earnings estimates have been steadily going up since the quarter got underway, with the current +23.9% growth rate up from +18% at the start of April. Estimates have increased for 5 of the 16 Zacks sectors, including Tech, Energy, Basic Materials, Utilities, and Business Services.Excluding the significant upward revisions to Energy sector estimates, aggregate Q2 earnings estimates for the remainder of the S&P 500 index would still be in positive territory since the start of April.Bank Earnings in Focus as Q2 Earnings Season Takes the SpotlightJPMorgan (JPM - Free Report) , Bank of America (BAC - Free Report) , Citigroup (C - Free Report) and Wells Fargo (WFC - Free Report) kick off the June-quarter reporting cycle for the Finance sector on July 14th. Bank stocks in general and these four stocks in particular have enjoyed a decent but otherwise unspectacular run this year, as some of the earlier geopolitical risk factors have eased lately. Banks are cyclical businesses, so any real or perceived reduction in economic risk is positive for their outlook.
The chart below shows the year-to-date performance of JPMorgan, Bank of America, Citigroup and Wells Fargo shares relative to the S&P 500 index and the Zacks Finance sector.
Image Source: Zacks Investment Research
The revisions trend is positive as a whole, with Q2 estimates for JPMorgan, Bank of America, and Citigroup modestly moving higher, while the same for Wells Fargo are going down a bit.
JPMorgan is expected to earn $5.49 per share on $48.7 billion in revenues in Q2, representing year-over-year changes of +10.7% and +8.5%, respectively. The Zacks Consensus EPS estimate for JPMorgan has increased +1.9% over the past month and +3% over the last three months. Q2 estimates for Bank of America and Citigroup have increased +2.8% and +4.7% over the last three months, while the same for Wells Fargo have decreased by -1.1%.
Total Q2 earnings for the Zacks Investment Banks/Managers industry, of which JPMorgan, Bank of America, Citigroup and Wells Fargo are a part, are expected to increase by +10.4% from the same period last year on +10.7% higher revenues, as the table below shows.
Image Source: Zacks Investment Research
The growth in Q2 will be coming from the core banking and trading franchises, with investment banking activities largely stable. On the core banking side, loan growth is expected to accelerate further from the very strong numbers in the preceding quarter. For context, loan growth has trended below historical averages over the past three years, but the growth pace began improving in 2025, and the trend continued into 2026 Q1. The favorable outlook for loan portfolios bodes well for net interest income in Q2 and beyond, even though the yield curve lost some of its steepness in Q2.
On the investment banking front, we should get solid numbers from the capital markets side of the business, particularly on the equity capital markets front. But M&A activities have been underwhelming, reflecting the effects of geopolitical uncertainties. Trading revenues remained robust in Q2, with mid-quarter updates indicating growth rates in the +10% to +15% range.
Aggregate trends on the credit quality front have been benign, as reflected in household and commercial delinquencies, bankruptcies, debt-service and other metrics. But the market’s focus will be private-credit exposure for banks, as the space has been in the spotlight lately for its exposure to the software and data-center industries.
For the Finance sector as a whole, Q2 earnings are expected to increase by +12.5% on +8.1% higher revenues, which will follow the sector’s +25.6% earnings growth on +9.8% higher revenues in the preceding period. The chart below shows the earnings and revenue growth picture for the Zacks Finance sector on a quarterly basis.
Image Source: Zacks Investment Research
The chart below shows the sector’s earnings growth picture on an annual basis.
Image Source: Zacks Investment Research
The Finance sector is the second largest earnings contributor to the S&P 500 index, behind only the Tech sector, accounting for 16.4% of the index’s expected forward 12-month earnings.
Keeping Track of the Revisions TrendThe expected decline in Energy sector estimates notwithstanding, the overall revisions trend continues to be positive, with estimates for 2026 Q2 and full-year 2026 increasing. This favorable earnings backdrop is evident in the revisions trend, as seen in how expectations for 2026 Q2 have evolved in recent weeks.
Image Source: Zacks Investment Research
The sectors enjoying positive estimate revisions since the start of April include Energy, Tech, Basic Materials, Utilities, and Business Services. Aggregate Q2 earnings estimates would still be positive since the start of the period, even without favorable revisions for the Energy sector, but aggregate estimates would be down if we exclude the increases in the Energy and Tech sector estimates.
The Tech sector has been enjoying positive estimate revisions for more than a year now, so the sector’s ongoing positive revisions trend is basically more of the same. We have discussed in this space the positive revisions that the Mag 7 group has been experiencing.
On the negative side, Q2 estimates have come under renewed pressure since the start of the period for the Transportation, Autos, Medical, and Consumer Discretionary sectors.
The chart below shows S&P 500 expectations for 2026 Q2 in terms of what was achieved in the preceding four periods and what is currently expected for the following three quarters.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture for the S&P 500 index on an annual basis.
Image Source: Zacks Investment Research
As with estimates for Q2, estimates for full-year 2026 have also been steadily going up, particularly since the start of March. The chart below shows the evolution of aggregate S&P 500 earnings estimates since last July.
Image Source: Zacks Investment Research
Full-year 2026 earnings estimates have increased for 11 of the 16 Zacks sectors since the start of March, with the most pronounced gains at the Energy, Basic Materials, Tech, Industrials, Utilities, and Business Services sectors. On the negative side, estimates have been under pressure for the Transportation, Autos, Medical, and Consumer Discretionary sectors since the start of March.
