Wells Fargo (WFC) AI Stock Analysis

• Market Cap: $261.54B
• Dividend Yield: 1.8%
• Average Volume (3M): 16.07M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.13
• Revenue Growth: -4.37%
• EPS Growth: 26.41%
• Country: US
• Employees: 215,367
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 1.62
• Shares Outstanding: 3,092,600,000
• 10 Day Avg. Volume: 13,079,577
• 30 Day Avg. Volume: 16,074,549
• PEG Ratio: 0.79
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 2.40
• P/FCF Ratio: -15.59
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 3.45
• Enterprise Value/Gross Profit: 5.32
• Enterprise Value/Ebitda: 12.95
• 1Y Price Target: $100.03
• Price Target Upside: 18.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $88.00 ▲(4.06% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held back primarily by weak and volatile cash flow (including sharply negative 2025 operating cash flow) and bearish technical momentum (price below key moving averages with negative MACD). Offsetting factors include reasonable valuation metrics and a constructive earnings-call outlook for 2026 NII growth and capital targets, with corporate updates mildly supportive.

Positive Factors

Stronger capital and leverage

Wells Fargo’s materially larger equity base and lower debt-to-equity (from ~1.57–1.60 to ~1.07) and a CET1 around 10.6% create a durable capital buffer. That strengthens resilience to cyclical stress, supports measured capital returns and allows the bank to pursue lending growth without destabilizing capital ratios.

Diversified NII and fee revenue growth

Management’s guidance for NII (~$50B) alongside mid-single-digit loan and deposit growth and rising fee-based revenue indicates a balanced revenue mix. Growing loan balances and wealth/investment fees reduce reliance on volatile trading income and support more predictable earnings across rate cycles.

Regulatory progress and management execution

Removal of the Fed’s asset cap and closure of consent orders reflect tangible regulatory remediation and improved controls. That structural shift reduces an overhang on strategy, permits scaled balance-sheet growth, and signals management can implement capital and efficiency plans more effectively over the medium term.

Negative Factors

Volatile and weak cash generation

A swing to a large negative operating cash flow in 2025 highlights balance-sheet-driven cash volatility. Such swings can constrain internal funding for buybacks or investments, complicate liquidity planning, and make capital actions and reserve management more difficult during adverse macro scenarios.

Commercial real estate (office) stress

Rising commercial net charge-offs driven by office CRE and lower coverage ratios indicate a structural asset-quality headwind. Persistent CRE office weakness can require elevated provisions, depress ROE, and add uncertainty to risk-weighted asset growth and capital planning over multiple quarters.

Rising expense base and restructuring costs

Planned increases in noninterest expense for technology, investments, and assessments, alongside meaningful severance, create a structural margin challenge. Higher recurring operating costs reduce the net benefit of revenue gains and force difficult trade-offs between efficiency savings and necessary strategic investments.

Wells Fargo Business Overview & Revenue Model

Company Description

Wells Fargo & Company, a diversified financial services company, provides banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. It operates through four segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management. The Consumer Banking and Lending segment offers diversified financial products and services for consumers and small businesses. Its financial products and services include checking and savings accounts, and credit and debit cards, as well as home, auto, personal, and small business lending services. The Commercial Banking segment provides financial solutions to private, family owned, and certain public companies. Its products and services include banking and credit products across various industry sectors and municipalities, secured lending and lease products, and treasury management services. The Corporate and Investment Banking segment offers a suite of capital markets, banking, and financial products and services to corporate, commercial real estate, government, and institutional clients. Its products and services comprise corporate banking, investment banking, treasury management, commercial real estate lending and servicing, equity, and fixed income solutions, as well as sales, trading, and research capabilities services. The Wealth and Investment Management segment provides personalized wealth management, brokerage, financial planning, lending, private banking, and trust and fiduciary products and services to affluent, high-net worth, and ultra-high-net worth clients. It also operates through financial advisors. Wells Fargo & Company was founded in 1852 and is headquartered in San Francisco, California.

How the Company Makes Money

Wells Fargo generates revenue primarily through interest income from loans and investments, as well as non-interest income from fees for services. Key revenue streams include interest earned on commercial and consumer loans, residential mortgages, and credit card lending. Additionally, the company earns fees from wealth management services, investment banking, and transaction services. Significant partnerships with various financial institutions and businesses enhance its product offerings and customer reach. Factors contributing to its earnings include the management of interest rates, loan demand, and the overall economic environment.

Wells Fargo Financial Statement Overview

Summary

Profitability and capital profile are solid (net margin ~17% in 2025; leverage improved with debt-to-equity ~1.07; ROE ~11–12%), but cash generation is a major concern given sharply negative operating cash flow and free cash flow in 2025, indicating high volatility in underlying cash movements.

Income Statement

Revenue has been relatively stable over the last few years, with 2025 essentially flat versus 2024 after a strong rebound in 2022–2023. Profitability is solid for a large diversified bank: 2025 net margin was ~17% (up from ~16% in 2024), and operating profitability also improved year over year. A key weakness is volatility across the cycle (notably the sharp profitability drop in 2020 and unusually high margin levels in 2021), which signals earnings can swing meaningfully with credit/macro and rate conditions.

Balance Sheet

The balance sheet shows a large, well-capitalized equity base (~$181B in 2025) and improving leverage: debt-to-equity declined to ~1.07 in 2025 from ~1.57–1.60 in 2023–2024, indicating a stronger capital posture. Returns on equity have also improved versus 2022 and remain around ~11–12% in 2024–2025, which is healthy. The main risk is that absolute debt remains high for the business (~$193B in 2025) and leverage has historically been higher, so capital strength is good but not immune to stress.

Cash Flow

Cash generation is the weak spot: operating cash flow turned sharply negative in 2025 (-$19.0B) after modestly positive levels in 2024 and strong inflows in 2022–2023. Free cash flow mirrors this pattern (negative in 2025 and also negative in 2021), highlighting volatility in cash movements year to year. While banks’ cash flow lines can be lumpy due to balance-sheet dynamics, the swing to a large negative figure in the most recent year is a clear near-term concern.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	123.53B	125.40B	115.34B	83.44B	83.08B
Gross Profit	80.04B	77.96B	77.20B	72.83B	83.32B
EBITDA	29.35B	30.92B	27.91B	22.46B	37.45B
Net Income	21.34B	19.72B	19.14B	13.68B	22.11B
Balance Sheet
Total Assets	2.15T	1.93T	1.93T	1.88T	1.95T
Cash, Cash Equivalents and Short-Term Investments	252.75B	363.46B	362.61B	272.75B	411.47B
Total Debt	193.03B	281.88B	297.15B	226.01B	195.10B
Total Liabilities	1.97T	1.75T	1.75T	1.70T	1.76T
Stockholders Equity	181.12B	179.12B	185.74B	180.23B	187.61B
Cash Flow
Free Cash Flow	-19.00B	3.04B	40.36B	27.05B	-11.53B
Operating Cash Flow	-19.00B	3.04B	40.36B	27.05B	-11.53B
Investing Cash Flow	-187.90B	-15.65B	16.04B	-42.48B	-7.62B
Financing Cash Flow	177.59B	-21.53B	20.49B	-59.65B	-11.24B

Wells Fargo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 84.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WFC, the sentiment is Negative. The current price of 84.57 is below the 20-day moving average (MA) of 89.44, below the 50-day MA of 90.98, and above the 200-day MA of 82.79, indicating a neutral trend. The MACD of -1.17 indicates Positive momentum. The RSI at 37.48 is Neutral, neither overbought nor oversold. The STOCH value of 22.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WFC.

Wells Fargo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBC	78 Outperform	$299.51B	18.45	8.66%	4.14%	-9.54%	-22.46%
USB	78 Outperform	$85.50B	12.09	12.16%	3.77%	2.91%	33.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JPM	67 Neutral	$801.83B	14.87	16.06%	1.79%	1.89%	12.32%
BAC	65 Neutral	$363.58B	13.40	10.23%	1.93%	0.15%	33.84%
WFC	59 Neutral	$261.54B	13.60	11.85%	1.80%	-4.37%	26.41%
C	58 Neutral	$191.66B	15.84	6.72%	1.94%	-0.62%	105.57%

Wells Fargo Corporate Events

Wells Fargo to Fully Redeem Series BB Preferred Stock

On Feb. 25, 2026, Wells Fargo announced it will fully redeem all 140,400 outstanding shares of its 3.90% Fixed Rate Reset Non-Cumulative Perpetual Class A Preferred Stock, Series BB, on March 15, 2026, with settlement shifting to March 16, 2026 due to a non-business day. The move will also redeem all 3,510,000 related depositary shares at $25,000 per preferred share and $1,000 per depositary share, leaving no Series BB instruments outstanding once the transaction is completed.

Because the redemption date coincides with a dividend payment date, regular quarterly dividends declared for Series BB preferred and depositary shares will be paid separately on March 16, 2026 to holders of record as of Feb. 27, 2026. Wells Fargo indicated that all regulatory requirements and covenants restricting redemption have been satisfied, underscoring continued active management of its capital structure and preference share base.

The most recent analyst rating on (WFC) stock is a Buy with a $94.00 price target. To see the full list of analyst forecasts on Wells Fargo stock, see the WFC Stock Forecast page.

Wells Fargo Board Approves CEO Charles Scharf’s 2025 Compensation

In 2025, Wells Fargo’s independent directors approved total compensation of $40 million for Chairman and CEO Charles W. Scharf, following a recommendation from the Board’s Human Resources Committee based on a broad review of company and individual performance across financial and non-financial measures. The decision reflects board recognition of Scharf’s leadership in closing seven regulatory consent orders, securing the removal of the Federal Reserve’s asset cap, strengthening risk and control infrastructure, and driving improved financial metrics including net income of $21.3 billion, a 17% rise in diluted EPS, a higher ROE of 12.4% versus 11.4% in 2024, and fee-based revenue growth of 5%, while maintaining disciplined expenses, returning roughly $23 billion to shareholders through dividends and buybacks, and establishing a new medium-term ROTCE target of 17–18%.

The most recent analyst rating on (WFC) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Wells Fargo stock, see the WFC Stock Forecast page.

Wells Fargo Wins Preliminary Approval of Derivative Settlement

On January 13, 2026, the U.S. District Court for the Northern District of California granted preliminary approval for a proposed settlement of shareholder derivative litigation against Wells Fargo & Company tied to the bank’s home mortgage lending and diversity-related hiring practices. The consolidated action, filed beginning in September 2022, alleged that certain current and former directors breached fiduciary duties by failing to adequately oversee fair lending controls and by allowing allegedly misleading statements about hiring practices that led the company to repurchase stock at inflated prices; the defendants deny all allegations. Following extensive motion practice, including partial dismissals in 2024 and early 2025, broad discovery, and expert work on lending practices, governance, and damages, the parties entered mediation in August 2025 and ultimately reached a settlement under which any benefits will accrue to Wells Fargo itself rather than directly to individual shareholders. The court has scheduled a settlement hearing for May 5, 2026, to assess whether the deal is fair and in the best interests of the company and its investors, a step that, if finalized, would remove a significant strand of ongoing governance and conduct litigation facing the bank and clarify potential exposure tied to its mortgage and diversity practices.

The most recent analyst rating on (WFC) stock is a Hold with a $97.00 price target. To see the full list of analyst forecasts on Wells Fargo stock, see the WFC Stock Forecast page.

Wells Fargo posts strong Q4 results, boosts outlook

On January 14, 2026, Wells Fargo reported fourth-quarter 2025 net income of $5.4 billion, or $1.62 per diluted share, and $5.8 billion, or $1.76 per share, excluding a $612 million severance charge. Quarterly revenue rose to $21.3 billion from $20.4 billion a year earlier, while noninterest expense declined slightly and provision for credit losses eased to $1.04 billion. Average loans increased to $955.8 billion and average deposits to $1.38 trillion, driven by growth across consumer, commercial, corporate and investment banking, and wealth and investment management segments, with notable double-digit year-over-year loan and deposit growth in corporate and investment banking and in wealth and investment management. The bank reported a return on equity of 12.3% and return on tangible common equity of 14.5%, repurchased 58.2 million shares worth $5.0 billion in the quarter, and highlighted the 2025 removal of the Federal Reserve’s asset cap and the termination of multiple consent orders as strengthening its regulatory standing and supporting a higher medium-term ROTCE target of 17–18%.

The most recent analyst rating on (WFC) stock is a Buy with a $113.00 price target. To see the full list of analyst forecasts on Wells Fargo stock, see the WFC Stock Forecast page.

Wells Fargo Announces Redemption of Debentures

On December 12, 2025, Wells Fargo announced the redemption of its Floating Rate Junior Subordinated Deferrable Interest Debentures due January 15, 2027, with the optional prepayment date set for January 15, 2026. This redemption will remove a covenant that previously restricted Wells Fargo’s ability to repurchase or redeem its 3.90% Fixed Rate Reset Non-Cumulative Perpetual Class A Preferred Stock, Series BB, potentially impacting the company’s financial flexibility and stakeholder interests.

The most recent analyst rating on (WFC) stock is a Buy with a $104.00 price target. To see the full list of analyst forecasts on Wells Fargo stock, see the WFC Stock Forecast page.