Wells Fargo (WFC) Stock Holds Ground As Credit Quality Counters NIM Squeeze

Wells Fargo stock barely budged after earnings, up just 0.2% to about US$80.90, yet the quarter itself was anything but flat. The bank posted Q3 earnings per share of roughly US$1.89 on revenue of US$20.8b. Return on tangible common equity for the quarter and year to date continued to move closer to management’s 17% to 18% goal.

The real story sat on the balance sheet. Average loans climbed past US$1.0b and non performing loans edged down to about US$7.1b. This mix kept credit costs contained and gave this result more substance than the muted price move suggests.

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Q3 2026 Earnings Summary

• Total Revenue (Q3 2026 vs. Q3 2025): US$20,841m vs. US$20,755m (broadly stable, slight uptick)
• Net Income Excl. Extra Items (Q3 2026 vs. Q3 2025): US$5,703m vs. US$5,341m (up about 6.8%)
• Basic EPS (Q3 2026 vs. Q3 2025): US$1.89 vs. US$1.68 (increase of roughly 12.7%)
• Net Interest Margin, NIM (Q3 2026 vs. Q3 2025): 2.43% vs. 2.61% (compressed by about 18 bps)

Prefer clean charts instead of another wall of earnings tables and credit metrics? See Wells Fargo’s overall valuation and return profile at a glance in the company report for Wells Fargo.

Wells Fargo earnings still support a constructive view

For anyone leaning bullish on Wells Fargo, this print broadly keeps that story intact. Revenue is slightly higher year on year and non interest income is doing more of the lifting as net interest margin softened to 2.43%. Earnings per share at US$1.89 and higher net income back up the idea of a diversified bank that can lean on fees, lending and wealth when one engine cools. Return on tangible common equity tracking toward management’s 17% to 18% target also speaks to a franchise that is still improving its internal economics.

Margin pressure and regulatory noise cap the upside

The cautious side of the Wells Fargo debate also finds fresh support. Net interest margin slipped from 2.61% to 2.43%, which fits concerns about higher funding costs eating into loan profitability even as average balances grow. Market reaction has been subdued, with the share price roughly flat on the day and down over the past 30 and 90 days. That soft response, paired with ongoing regulatory headlines, shows that recent earnings progress has not fully cleared worries about profitability quality and the risk that credit or oversight issues could still bite.

Compare Wells Fargo’s improving return metrics and steady credit picture with how the Street is actually pricing the story. See the consensus price target analysis for Wells Fargo to check whether analyst targets support the current earnings narrative.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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