Wells Fargo (WFC)
NYSE:WFC
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Wells Fargo
(NYSE:WFC)
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Rating:61Neutral
Price Target:
$80.00
▼(-2.26% Downside)
Action:ReiteratedDate:03/18/26
The score is held back primarily by weak and volatile cash flow (including a large negative operating cash flow in 2025) and bearish technical momentum (below key moving averages with negative MACD). Offsetting factors are constructive earnings-call guidance (higher 2026 NII and growth targets with strong capital metrics) and a reasonable valuation (P/E ~13.9 with a ~2.31% yield), with corporate events providing a smaller incremental positive.
Positive Factors
Capital strength
Wells Fargo’s sizable equity base and materially lower debt-to-equity provide durable loss-absorbing capacity and funding flexibility. A stronger capital posture supports regulatory compliance, measured capital returns and investment cadence while reducing probability of forced deleveraging under stress.
Negative Factors
Cash-flow volatility
A large negative operating cash flow swing undermines sustained internal funding for buybacks, investments and reserves. Even if banking cash flows are lumpy, continued volatility constrains capital flexibility, increases reliance on external funding, and elevates execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Capital strength
Wells Fargo’s sizable equity base and materially lower debt-to-equity provide durable loss-absorbing capacity and funding flexibility. A stronger capital posture supports regulatory compliance, measured capital returns and investment cadence while reducing probability of forced deleveraging under stress.
Read all positive factors
Wells Fargo (WFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$252.56B
Dividend Yield1.8%
Average Volume (3M)18.77M
Price to Earnings (P/E)13.9
Beta (1Y)1.14
Revenue Growth-4.37%
EPS Growth26.41%
CountryUS
Employees217,000
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.62
Shares Outstanding3,085,635,700
10 Day Avg. Volume17,947,272
30 Day Avg. Volume18,772,439
Financial Highlights & Ratios
PEG Ratio0.79
Price to Book (P/B)1.64
Price to Sales (P/S)2.40
P/FCF Ratio-15.59
Enterprise Value/Market Cap1.99
Enterprise Value/Revenue4.08
Enterprise Value/Gross Profit6.29
Enterprise Value/Ebitda15.31
Forecast
1Y Price Target
$98.60Price Target Upside20.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)7.03
Revenue Forecast (FY)$88.24B
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: Consume...
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,...
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 Earnings Call Summary
Earnings Call Date:Jan 14, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 14, 2026
Earnings Call Sentiment Positive
The call highlights meaningful progress across profitability, revenue growth, capital returns and strategic transformation: strong full-year net income, EPS growth, improved ROTCE, loan and deposit growth, and continued cost-efficiency gains. Management provided constructive 2026 NII and business growth targets while also planning disciplined investments in technology, wealth and markets. Key challenges include near-term severance and higher operating investments driving expense growth, margin pressure if rates decline, and isolated credit stress in CRE office loans. On balance the company appears to be transitioning from constraint to growth with strong capital and clear priorities, while acknowledging execution and macro risks.Positive Updates
Recordable Profitability and EPS Growth
Full-year net income of $21.3 billion and diluted EPS growth of 17% year-over-year; fourth-quarter net income ~$5.4 billion and Q4 diluted EPS of $1.62, up 13% YoY (ex-severance EPS $1.76).
Negative Updates
Severance and Near-Term Charges
Fourth-quarter severance expense of $612 million (primarily for actions in 2026) and $908 million of severance in second half of 2025; Q4 severance lowered but remains a meaningful near-term headwind to EPS.
Read all updates
Q4-2025 Updates
Positive
Negative
Recordable Profitability and EPS Growth
Full-year net income of $21.3 billion and diluted EPS growth of 17% year-over-year; fourth-quarter net income ~$5.4 billion and Q4 diluted EPS of $1.62, up 13% YoY (ex-severance EPS $1.76).
Read all positive updates
Company Guidance
The company gave detailed 2026 guidance: total net interest income is expected to be about $50 billion (±), with markets NII growing to roughly $2 billion and NII excluding markets to about $48 billion (2025 NII was $47.5B and NII ex‑markets $46.7B); key assumptions include 2–3 Fed rate cuts and relatively stable 10‑year Treasury rates, with average loans and average deposits each expected to grow mid‑single digits from Q4 2025 to Q4 2026 (Q4 tailwind/headwind and a Q1 decline in NII due to 2 fewer days noted). On expenses, 2026 noninterest expense is projected at ≈$55.7 billion (2025: $54.8B), reflecting ~ $2.4 billion of gross expense reductions from efficiency initiatives offset by ~$1.1 billion of incremental technology spend, ~$800 million of higher Wealth & Investment revenue‑related expenses, ~$800 million of other investments/merit, and a ~$400 million higher FDIC assessment (and an expected ~$700 million reduction in severance versus 2025); first‑quarter personnel costs are seasonally higher by about $700 million. Capital and returns targets were reiterated: CET1 managed to ~10.0–10.5% (Q4 CET1 10.6%), ROTCE of 17–18% medium term (2025 ROTCE was 15%), and capital actions will be more measured in 2026 (repurchases down from $18B in 2025 and $5B in Q4 as excess capital optimization continues).Wells Fargo Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
38
Negative
| 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 | 471.55B | 363.46B | 362.61B | 272.75B | 411.47B |
| Total Debt | 425.72B | 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 | -192.41B | -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
Neutral
81.85
Price Trends
83.77
Negative
86.62
Negative
83.64
Negative
Market Momentum
-0.79
Negative
55.04
Neutral
85.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WFC, the sentiment is Neutral. The current price of 81.85 is above the 20-day moving average (MA) of 77.97, below the 50-day MA of 83.77, and below the 200-day MA of 83.64, indicating a neutral trend. The MACD of -0.79 indicates Negative momentum. The RSI at 55.04 is Neutral, neither overbought nor oversold. The STOCH value of 85.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $289.10B | 12.28 | 11.88% | 4.14% | -9.54% | -22.46% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $796.84B | 15.75 | 15.95% | 1.79% | 1.89% | 12.32% | |
66 Neutral | $359.26B | 13.28 | 10.15% | 1.93% | 0.15% | 33.84% | |
65 Neutral | $83.03B | 10.95 | 12.12% | 3.77% | 2.91% | 33.77% | |
61 Neutral | $252.56B | 13.89 | 11.78% | 1.80% | -4.37% | 26.41% | |
58 Neutral | $205.30B | 14.89 | 6.71% | 1.94% | -0.62% | 105.57% |
* Financial Sector Average
WFC
Wells Fargo
81.85
21.09
34.71%
BAC
Bank of America
50.06
15.80
46.12%
C
Citigroup
117.36
60.08
104.89%
HSBC
HSBC Holdings
84.64
40.28
90.79%
JPM
JPMorgan Chase
295.45
82.72
38.88%
USB
US Bancorp
53.44
18.52
53.04%
Wells Fargo Corporate Events
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...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial DisclosuresRegulatory Filings and Compliance
Wells Fargo Board Approves CEO Charles Scharf’s 2025 Compensation
Positive
Jan 29, 2026
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 an...
Business Operations and StrategyLegal Proceedings
Wells Fargo Wins Preliminary Approval of Derivative Settlement
Positive
Jan 22, 2026
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 le...
Business Operations and StrategyStock BuybackFinancial DisclosuresRegulatory Filings and Compliance
Wells Fargo posts strong Q4 results, boosts outlook
Positive
Jan 14, 2026
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...
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.