Wells Fargo (WFC) AI Stock Analysis

• Market Cap: $288.04B
• Dividend Yield: 1.8%
• Average Volume (3M): 13.53M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.08
• 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: 17,002,833
• 30 Day Avg. Volume: 13,533,401
• PEG Ratio: 1.08
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 1.92
• P/FCF Ratio: 79.29
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 3.65
• Enterprise Value/Gross Profit: 5.66
• Enterprise Value/Ebitda: 14.11
• 1Y Price Target: $99.50
• Price Target Upside: 6.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 7.02
• Revenue Forecast (FY): $88.42B

• Rating: 71 Outperform
• Price Target: $97.00 ▲(4.14% Upside)

Overall score reflects strong core profitability and constructive 2026 guidance (NII growth outlook and higher medium-term ROTCE targets) tempered by weaker cash-flow quality and higher leverage. Near-term technicals are also soft (below key moving averages with negative MACD), while valuation is reasonable and supported by a modest dividend.

Positive Factors

Profitability & Margins

Sustained high margins and strong TTM revenue growth reflect durable operating leverage across lending, wealth and markets businesses. Robust profitability supports reinvestment, capital returns and medium-term ROTCE targets, making earnings less dependent on short-term rate moves.

Regulatory relief and capital position

Removal of the Federal Reserve asset cap and a CET1 ratio around 10.6% materially restore balance-sheet optionality. This structural change enables sustained loan and deposit growth, greater capital deployment and a cleaner regulatory backdrop that supports longer-term ROTCE targets.

Balance-sheet and loan growth momentum

Consistent loan growth and expanding assets after regulatory constraints point to durable NII capacity expansion. Growing loan balances deepen client relationships, enhance fee cross-sell opportunities and provide a stable interest-earning base that supports medium-term net interest income targets.

Negative Factors

Weak cash generation

Persistent negative operating and free cash flows reduce internal funding for investments, dividends and buybacks. Over months this limits flexibility to fund technology and franchise initiatives without increasing leverage or trimming capital returns, making execution riskier.

Elevated leverage

A higher debt-to-equity ratio increases sensitivity to funding and interest-rate volatility and can constrain capital actions if adverse macro or underwriting events occur. Elevated leverage raises the bar for capital generation and heightens downside risk to CET1 and returns under stress.

Commercial real estate — office credit stress

Ongoing office-sector credit losses and lower coverage ratios signal structural asset-quality pressure from secular shifts in office demand. This persistent stress may require higher provisions, compress returns on commercial lending and constrain capital allocation over the medium term.

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 revenue trends are strong (Income Statement score 85, improved margins), and ROE is solid (11.7%). However, higher leverage (debt-to-equity 2.25; Balance Sheet score 75) and especially negative operating/free cash flow (Cash Flow score 60) raise liquidity and risk-management concerns.

Income Statement

Wells Fargo has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 18.9%. The gross profit margin is robust at 64.5%, and the net profit margin has improved to 17.2%. The EBIT and EBITDA margins are healthy, indicating efficient operations. However, the slight decline in revenue from 2024 to 2025 suggests potential challenges in maintaining growth momentum.

Balance Sheet

The company's debt-to-equity ratio has increased to 2.25 in the TTM, indicating higher leverage, which could pose risks if interest rates rise. Return on equity remains solid at 11.7%, reflecting effective use of equity. The equity ratio is stable, suggesting a balanced asset structure, but the increased debt levels warrant caution.

Cash Flow

Wells Fargo's cash flow situation is concerning, with negative operating and free cash flows in the TTM. The free cash flow growth rate is positive, but the operating cash flow to net income ratio is negative, indicating potential liquidity issues. The company needs to improve its cash flow management to ensure long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	122.31B	125.40B	115.34B	83.44B	83.08B	82.23B
Gross Profit	78.82B	77.96B	77.20B	72.83B	83.32B	60.13B
EBITDA	31.63B	30.92B	27.91B	22.46B	37.45B	10.72B
Net Income	21.06B	19.72B	19.14B	13.68B	22.11B	3.38B
Balance Sheet
Total Assets	2.06T	1.93T	1.93T	1.88T	1.95T	1.95T
Cash, Cash Equivalents and Short-Term Investments	380.45B	363.46B	362.61B	272.75B	411.47B	485.00B
Total Debt	408.42B	281.88B	297.15B	226.01B	195.10B	271.95B
Total Liabilities	1.88T	1.75T	1.75T	1.70T	1.76T	1.77T
Stockholders Equity	181.15B	179.12B	185.74B	180.23B	187.61B	184.68B
Cash Flow
Free Cash Flow	-14.22B	3.04B	40.36B	27.05B	-11.53B	2.05B
Operating Cash Flow	-14.22B	3.04B	40.36B	27.05B	-11.53B	2.05B
Investing Cash Flow	-103.39B	-15.65B	16.04B	-42.48B	-7.62B	122.55B
Financing Cash Flow	106.00B	-21.53B	20.49B	-59.65B	-11.24B	-1.24B

Wells Fargo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 93.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WFC, the sentiment is Positive. The current price of 93.14 is above the 20-day moving average (MA) of 90.62, above the 50-day MA of 90.88, and above the 200-day MA of 81.88, indicating a bullish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 58.49 is Neutral, neither overbought nor oversold. The STOCH value of 81.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$306.48B	18.78	8.66%	4.14%	-9.54%	-22.46%
USB	78 Outperform	$92.36B	12.71	12.18%	3.77%	2.91%	33.77%
WFC	71 Outperform	$288.04B	14.75	11.85%	1.80%	-4.37%	26.41%
JPM	69 Neutral	$863.69B	15.73	16.06%	1.79%	1.89%	12.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
C	66 Neutral	$210.11B	16.83	6.72%	1.94%	-0.62%	105.57%
BAC	65 Neutral	$404.41B	14.29	10.23%	1.93%	0.15%	33.84%

Wells Fargo Corporate Events

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.