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Wells Fargo
(NYSE:WFC)
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Rating:65Neutral
Price Target:
$88.00
â–²(8.09% Upside)
Action:Reiterated
Date:05/01/26
The score is supported by constructive earnings-call guidance/sentiment and attractive valuation (low P/E with a dividend). Offsetting this, the financial picture is held back by highly volatile/weak recent cash flow trends and a higher leverage profile, while technical indicators are largely neutral with slightly negative momentum.
Positive Factors
Diversified, broad-based revenue growth
Sustained, multi-segment revenue gains indicate durable business diversification and lower concentration risk. Broad-based growth across consumer, commercial, markets and wealth supports stable fee and interest income mix, improving resilience to sector-specific shocks over the next several quarters.
Negative Factors
Volatile and weak operating cash flow
Wide swings in cash generation undercut the reliability of reported earnings and constrain flexibility for investments, buybacks or capital buffers. Persistent cash-flow volatility raises funding and liquidity planning risk and weakens confidence in sustained capital returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified, broad-based revenue growth
Sustained, multi-segment revenue gains indicate durable business diversification and lower concentration risk. Broad-based growth across consumer, commercial, markets and wealth supports stable fee and interest income mix, improving resilience to sector-specific shocks over the next several quarters.
Read all positive factors
Wells Fargo Key Performance Indicators (KPIs)
Any
Average Loans by Segment
Shows the distribution of loan portfolios across various segments, indicating lending focus and potential exposure to credit risk or growth opportunities.
Shows the distribution of loan portfolios across various segments, indicating lending focus and potential exposure to credit risk or growth opportunities.
Data provided by:
The Fly
The FlyWells Fargo (WFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$252.89B
Dividend Yield1.8%
Average Volume (3M)17.33M
Price to Earnings (P/E)12.5
Beta (1Y)1.07
Revenue Growth1.28%
EPS Growth16.35%
CountryUS
Employees211,608
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)6.60
Shares Outstanding3,060,189,500
10 Day Avg. Volume15,922,803
30 Day Avg. Volume17,333,836
Financial Highlights & Ratios
PEG Ratio0.82
Price to Book (P/B)1.64
Price to Sales (P/S)2.40
P/FCF Ratio-15.59
Enterprise Value/Market Cap2.10
Enterprise Value/Revenue4.23
Enterprise Value/Gross Profit6.56
Enterprise Value/Ebitda15.93
Forecast
1Y Price Target
$96.04Price Target Upside17.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)7.01
Revenue Forecast (FY)$87.90B
Wells Fargo Business Overview & Revenue Model
Company Description
Wells Fargo & Company, a financial services company, provides diversified banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. It operates through four segments: Consume...
How the Company Makes Money
Wells Fargo primarily makes money through a mix of net interest income and noninterest income generated across its banking and wealth businesses. Net interest income is earned by taking deposits (and other funding sources) and lending or investing...
Wells Fargo Earnings Call Summary
Earnings Call Date:Apr 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 14, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives: double-digit EPS growth, broad-based revenue increases across segments, loan and deposit growth, robust consumer and wealth flows, active capital returns, and completion of legacy regulatory orders. Offsetting these positives are near-term margin pressure (NIM compression), higher expenses due to strategic investments and revenue-related compensation, a few specific business weaknesses (home lending and CRE comparables), and the need to monitor a large NDFI exposure and an isolated fraud-related loss. Management expressed confidence in execution, reiterated 2026 guidance (including $50B+ NII and ~$55.7B noninterest expense), and views proposed capital rule changes as constructive. On balance, the highlights materially outweigh the lowlights and management’s tone is constructive and forward-looking.Positive Updates
Strong Earnings and Revenue Growth
Diluted EPS increased 15% year-over-year; revenue rose 6% year-over-year, driven by a 5% increase in net interest income and an 8% increase in noninterest income.
Negative Updates
Margin Compression
Net interest margin compressed ~13 basis points quarter-over-quarter (and ~20 basis points year-over-year as noted on the call); net interest income declined $235 million (2%) from the fourth quarter, driven by two fewer days, rate cuts, growth in lower-ROA Markets assets, and higher interest-bearing deposit mix.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Earnings and Revenue Growth
Diluted EPS increased 15% year-over-year; revenue rose 6% year-over-year, driven by a 5% increase in net interest income and an 8% increase in noninterest income.
Read all positive updates
Company Guidance
Management reiterated 2026 guidance and key estimates: net interest income of about $50 billion (±), roughly $2 billion of Markets NII, and noninterest expense near $55.7 billion; they expect average loan growth of mid‑single digits from Q4‑2025 to Q4‑2026 (Q1 average loans were +4% YTD; period‑end loans were +11% YoY and exceeded $1.0 trillion), with NII expected to grow through the year but some NIM compression anticipated (Q1 saw a 13 bps Q‑on‑Q decline and more compression next quarter); their planning assumed 2–3 Fed cuts (market now expects fewer, which would modestly help NII ex‑Markets). On capital, they estimate proposed rule changes could reduce RWAs by ~7%, expect to remain around a 1.5% G‑SIB surcharge, and are maintaining a CET1 target range of 10.0%–10.5% (Q1 CET1 10.3%); Q1 capital actions included $5.4 billion returned to shareholders, including $4.0 billion of buybacks.Wells Fargo Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 125.70B | 123.53B | 125.40B | 115.34B | 83.44B | 83.08B |
| Gross Profit | 81.14B | 80.04B | 77.96B | 77.20B | 72.83B | 83.32B |
| EBITDA | 33.41B | 29.35B | 30.92B | 27.91B | 22.46B | 37.45B |
| Net Income | 21.73B | 21.34B | 19.72B | 19.14B | 13.68B | 22.11B |
Balance Sheet | ||||||
| Total Assets | 2.21T | 2.15T | 1.93T | 1.93T | 1.88T | 1.95T |
| Cash, Cash Equivalents and Short-Term Investments | 612.09B | 471.55B | 363.46B | 362.61B | 272.75B | 411.47B |
| Total Debt | 450.59B | 425.72B | 281.88B | 297.15B | 226.01B | 195.10B |
| Total Liabilities | 2.03T | 1.97T | 1.75T | 1.75T | 1.70T | 1.76T |
| Stockholders Equity | 178.40B | 181.12B | 179.12B | 185.74B | 180.23B | 187.61B |
Cash Flow | ||||||
| Free Cash Flow | 1.18B | -19.00B | 3.04B | 40.36B | 27.05B | -11.53B |
| Operating Cash Flow | 1.18B | -19.00B | 3.04B | 40.36B | 27.05B | -11.53B |
| Investing Cash Flow | -215.95B | -192.41B | -15.65B | 16.04B | -42.48B | -7.62B |
| Financing Cash Flow | 211.87B | 177.59B | -21.53B | 20.49B | -59.65B | -11.24B |
Wells Fargo Technical Analysis
Positive
81.41
Price Trends
79.68
Positive
80.91
Positive
83.62
Negative
Market Momentum
1.32
Positive
53.54
Neutral
27.03
Neutral
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 81.41 is below the 20-day moving average (MA) of 82.70, above the 50-day MA of 79.68, and below the 200-day MA of 83.62, indicating a neutral trend. The MACD of 1.32 indicates Positive momentum. The RSI at 53.54 is Neutral, neither overbought nor oversold. The STOCH value of 27.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WFC.
Wells Fargo Risk Analysis
Wells Fargo disclosed 27 risk factors in its most recent earnings report. Wells Fargo reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Wells Fargo Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $877.08B | 15.66 | 16.32% | 1.79% | 1.33% | 2.47% | |
74 Outperform | $93.76B | 12.70 | 12.22% | 3.77% | 2.43% | 18.20% | |
73 Outperform | $325.45B | 15.54 | 12.07% | 4.14% | -6.12% | 12.49% | |
72 Outperform | $404.36B | 13.96 | 10.50% | 1.93% | -1.69% | 20.90% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $252.89B | 12.54 | 12.04% | 1.80% | 1.28% | 16.35% | |
65 Neutral | $240.02B | 17.12 | 7.53% | 1.94% | 3.02% | 27.74% |
* Financial Sector Average
WFC
Wells Fargo
85.94
5.35
6.64%
BAC
Bank of America
58.36
10.69
22.42%
C
Citigroup
140.13
55.29
65.18%
HSBC
HSBC Holdings
95.81
37.98
65.68%
JPM
JPMorgan Chase
334.07
47.64
16.63%
USB
US Bancorp
61.96
16.29
35.67%
Wells Fargo Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Wells Fargo Shareholders Back Board, Pay and Auditor
Positive
Apr 30, 2026
At its April 28, 2026 annual shareholder meeting, Wells Fargo investors approved an amendment and restatement of the bank’s 2022 Long-Term Incentive Plan, reauthorized executive pay on an advisory basis, and ratified KPMG as the independent ...
Stock BuybackFinancial Disclosures
Wells Fargo Posts Strong First-Quarter 2026 Earnings Growth
Positive
Apr 14, 2026
On April 14, 2026, Wells Fargo reported first quarter 2026 net income of $5.3 billion, or $1.60 per diluted share, as revenue rose 6% year over year to $21.4 billion and net income increased from $4.9 billion. The bank highlighted a 5% increase in...
Private Placements and FinancingRegulatory Filings and Compliance
Wells Fargo Establishes New Series GG Preferred Stock
Neutral
Mar 18, 2026
On March 16, 2026, Wells Fargo Company designated a new series of preferred stock under its existing authority to issue preferred shares without par value. The company filed a Certificate of Designation in Delaware establishing its 6.125% Fixed R...
Business Operations and Strategy
Wells Fargo Streamlines Capital Structure, Retires Series BB Preferred
Positive
Mar 17, 2026
On March 17, 2026, Wells Fargo Company eliminated the Certificate of Designation governing its 3.90% Fixed Rate Reset Non-Cumulative Perpetual Class A Preferred Stock, Series BB, from its Restated Certificate of Incorporation. By removing the Ser...
Business Operations and StrategyDividends
Wells Fargo to Fully Redeem Series BB Preferred Stock
Positive
Feb 25, 2026
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 du...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.