Wells Fargo (WFC) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $5.3 billion, up 7% year-over-year, with diluted EPS of $1.60, a 15% increase, reflecting higher noninterest and net interest income and discrete tax benefits.

• Total revenue rose 6% year-over-year to $21.4 billion, driven by growth in both net interest and noninterest income.

• Loans increased 11% and deposits grew 7% year-over-year, reflecting broad-based business momentum across all segments.

• All operating segments posted revenue growth, with Wealth and Investment Management up 14%, Consumer Banking and Lending and Commercial Banking each up 7%, and Corporate and Investment Banking up 4%.

• $5.4 billion was returned to shareholders, including $4 billion in stock repurchases, while maintaining strong capital levels.

Financial highlights

• Net interest income rose 5% year-over-year to $12.1 billion, though down 2% sequentially, mainly due to fewer days and lower rates.

• Noninterest income increased 8% year-over-year to $9.4 billion, driven by higher investment advisory fees, card fees, and trading activities.

• Noninterest expense rose 3% year-over-year to $14.3 billion, primarily due to higher compensation, advertising, and technology costs.

• Pre-tax, pre-provision profit increased 14% year-over-year to $7.1 billion.

• Provision for credit losses was $1.1 billion, up from $932 million in Q1 2025, reflecting higher commercial and auto loan balances.

Outlook and guidance

• Net interest income guidance for 2026 remains at approximately $50 billion, with expectations for continued loan and deposit growth.

• Noninterest expense guidance for 2026 is unchanged at approximately $55.7 billion.

• Margin compression is expected to continue in the near term but should moderate as growth stabilizes.

• Management remains confident in continued growth across all business segments, citing strong customer engagement and a robust investment banking pipeline.

• If interest rates remain higher for longer, it could be a modest positive for net interest income.