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Rise in NII, Fee Income Likely to Lift Wells Fargo's Q2 Earnings
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Key Takeaways
Wells Fargo is expected to post 4.7% y/y revenue growth in second-quarter 2026 results.
WFC's NII and fee income are projected to rise, supported by loan demand and stronger client activity.
Wells Fargo may face pressure from higher credit provisions and softer mortgage banking revenues.
Wells Fargo & Company (WFC - Free Report) is slated to report second-quarter 2026 earnings results on July 14, 2026, before market open.
WFC’s first-quarter 2026 earnings missed the Zacks Consensus Estimates. Its performance was affected by an increase in expenses and higher provisions. However, an improvement in net interest income (NII), along with higher non-interest income offered some support.
This time around, the company’s performance is likely to have been decent. The Zacks Consensus Estimate for second-quarter revenues of $21.83 billion suggests 4.7% year-over-year growth.
In the past seven days, the consensus estimate for earnings for the to-be-reported quarter has been revised upward to $1.74. The figure indicates a 12.9% improvement from the prior-year quarter’s actual.
Estimate Revision Trend
Image Source: Zacks Investment Research
The company also has a decent earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 6.40%.
Earnings Surprise History
Image Source: Zacks Investment Research
Factors to Impact WFC’s Q2 Earnings
Loans & NII: In the second quarter, the Federal Reserve kept interest rates unchanged, maintaining the target range for the federal funds rate at 3.50-3.75%. The Fed also noted that economic activity continued to expand at a solid pace, though uncertainty remained elevated partly due to geopolotical tension, while inflation stayed above its 2% goal.
Per the Fed’s latest data, the demand for commercial and industrial, real estate and consumer loans was decent in the first two months of the quarter. Hence, a stable rate environment, along with decent loan demand, is expected to have offered much-needed support to WFC’s NII.
The Zacks Consensus Estimate for NII is pegged at $12.36 billion, which indicates a 5.6% rise from the year-ago quarter’s reported number.
Non-Interest Revenues: In the second quarter of 2026, mortgage rates hovered near mid-6% range. Refinancing activity was stronger in the second quarter, while purchase volume was subdued, pressured by affordability and relatively higher mortgage rates. As a result, Wells Fargo’s mortgage banking fees are expected to have been affected in the quarter to be reported.
The Zacks Consensus Estimate for mortgage banking revenues is pegged at $228.7 million, suggesting a marginal decline from the year-ago reported level.
Meanwhile, investment advisory and other asset-based fee revenues are expected to have benefited from increased client transactional activity. Improved equity market performance and greater investor engagement likely supported asset-based fees in the quarter. The consensus mark for investment advisory and other asset-based fee revenues is pegged at $2.83 billion, indicating a year-over-year rise of 13.3%.
WFC’s Investment banking (IB) revenues are also expected to have witnessed decent momentum. While uncertainty related to geopolitical tensions and inflation remained concerning, deal-making activity stayed relatively healthy, supported by large transactions, resilient corporate confidence and expectations of stronger capital market activity.
Management expects second quarter 2026 IB and markets revenues to rise by mid-teen percentage points, supported by healthy client activity across corporate and institutional businesses. The Zacks Consensus Estimate for IB income is pegged at $875.6 million, which indicates a rise of 25.8% on a year-over-year basis.
WFC's management expects wealth management revenues to increase at a low double-digit pace year over year in the second quarter of 2026.
Card fees are expected to have benefited from resilient consumer spending and higher card usage. Nevertheless, persistent inflation and signs of pressure on lower-income consumers may have partly offset the upside to some extent. The Zacks Consensus Estimate for Card fees is pegged at $1.24 billion, suggesting a 6.4% rise from the prior-year quarter’s reported level.
The Zacks Consensus Estimate for Wells Fargo’s total non-interest income is pegged at $9.46 billion, indicating a 3.9% rise from the year-ago quarter’s reported figure.
Expenses: WFC’s non-interest expenses are expected to have remained well-managed in the second quarter. The company has been focused on efficiency initiatives, including streamlining its organizational structure, closing branches, reducing headcount and investing in technology to improve operating leverage. These efforts are likely to have led to a modest decline in expenses in the quarter to be reported.
Asset Quality: Asset quality is likely to have remained a key area of focus in the second quarter. The operating environment continued to be challenging, weighed down by geopolitical uncertainty and elevated inflation. Additionally, the Fed’s June statement indicated the possibility of a rate hike. Against this backdrop, Wells Fargo is expected to have maintained a cautious stance and built substantial provisions for potential credit losses in the second quarter of 2026.
The consensus mark for total non-accrual loans is pegged at $8.68 billion, suggesting a year-over-year rise of 12%. The Zacks Consensus Estimate for non-performing assets of $8.98 billion indicates a 12.8% increase from the year-ago reported level.
What Our Quantitative Model Unveils for WFC
Our proven model conclusively predicts an earnings beat for Wells Fargo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here, as you can see below.
The Earnings ESP for WFC is +0.09%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
In the second quarter of 2026, WFC shares delivered a subdued performance, lagging the industry and its close peers, Bank of America (BAC - Free Report) and Citigroup (C - Free Report) .
Price Performance
Image Source: Zacks Investment Research
Bank of America and Citigroup are also slated to announce quarterly numbers on July 14.
Over the past week, the Zacks Consensus Estimate for Citigroup’s second-quarter 2026 earnings has revised upward to $2.72. The consensus estimate for Bank of America’s earnings has been revised upward to $1.13 per share.
View the Zacks #1 Rank List
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Rise in NII, Fee Income Likely to Lift Wells Fargo's Q2 Earnings
Key Takeaways
Wells Fargo & Company (WFC - Free Report) is slated to report second-quarter 2026 earnings results on July 14, 2026, before market open.
WFC’s first-quarter 2026 earnings missed the Zacks Consensus Estimates. Its performance was affected by an increase in expenses and higher provisions. However, an improvement in net interest income (NII), along with higher non-interest income offered some support.
This time around, the company’s performance is likely to have been decent. The Zacks Consensus Estimate for second-quarter revenues of $21.83 billion suggests 4.7% year-over-year growth.
In the past seven days, the consensus estimate for earnings for the to-be-reported quarter has been revised upward to $1.74. The figure indicates a 12.9% improvement from the prior-year quarter’s actual.
Estimate Revision Trend
Image Source: Zacks Investment Research
The company also has a decent earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 6.40%.
Earnings Surprise History
Image Source: Zacks Investment Research
Factors to Impact WFC’s Q2 Earnings
Loans & NII: In the second quarter, the Federal Reserve kept interest rates unchanged, maintaining the target range for the federal funds rate at 3.50-3.75%. The Fed also noted that economic activity continued to expand at a solid pace, though uncertainty remained elevated partly due to geopolotical tension, while inflation stayed above its 2% goal.
Per the Fed’s latest data, the demand for commercial and industrial, real estate and consumer loans was decent in the first two months of the quarter. Hence, a stable rate environment, along with decent loan demand, is expected to have offered much-needed support to WFC’s NII.
The Zacks Consensus Estimate for NII is pegged at $12.36 billion, which indicates a 5.6% rise from the year-ago quarter’s reported number.
Non-Interest Revenues: In the second quarter of 2026, mortgage rates hovered near mid-6% range. Refinancing activity was stronger in the second quarter, while purchase volume was subdued, pressured by affordability and relatively higher mortgage rates. As a result, Wells Fargo’s mortgage banking fees are expected to have been affected in the quarter to be reported.
The Zacks Consensus Estimate for mortgage banking revenues is pegged at $228.7 million, suggesting a marginal decline from the year-ago reported level.
Meanwhile, investment advisory and other asset-based fee revenues are expected to have benefited from increased client transactional activity. Improved equity market performance and greater investor engagement likely supported asset-based fees in the quarter. The consensus mark for investment advisory and other asset-based fee revenues is pegged at $2.83 billion, indicating a year-over-year rise of 13.3%.
WFC’s Investment banking (IB) revenues are also expected to have witnessed decent momentum. While uncertainty related to geopolitical tensions and inflation remained concerning, deal-making activity stayed relatively healthy, supported by large transactions, resilient corporate confidence and expectations of stronger capital market activity.
Management expects second quarter 2026 IB and markets revenues to rise by mid-teen percentage points, supported by healthy client activity across corporate and institutional businesses. The Zacks Consensus Estimate for IB income is pegged at $875.6 million, which indicates a rise of 25.8% on a year-over-year basis.
WFC's management expects wealth management revenues to increase at a low double-digit pace year over year in the second quarter of 2026.
Card fees are expected to have benefited from resilient consumer spending and higher card usage. Nevertheless, persistent inflation and signs of pressure on lower-income consumers may have partly offset the upside to some extent. The Zacks Consensus Estimate for Card fees is pegged at $1.24 billion, suggesting a 6.4% rise from the prior-year quarter’s reported level.
The Zacks Consensus Estimate for Wells Fargo’s total non-interest income is pegged at $9.46 billion, indicating a 3.9% rise from the year-ago quarter’s reported figure.
Expenses: WFC’s non-interest expenses are expected to have remained well-managed in the second quarter. The company has been focused on efficiency initiatives, including streamlining its organizational structure, closing branches, reducing headcount and investing in technology to improve operating leverage. These efforts are likely to have led to a modest decline in expenses in the quarter to be reported.
Asset Quality: Asset quality is likely to have remained a key area of focus in the second quarter. The operating environment continued to be challenging, weighed down by geopolitical uncertainty and elevated inflation. Additionally, the Fed’s June statement indicated the possibility of a rate hike. Against this backdrop, Wells Fargo is expected to have maintained a cautious stance and built substantial provisions for potential credit losses in the second quarter of 2026.
The consensus mark for total non-accrual loans is pegged at $8.68 billion, suggesting a year-over-year rise of 12%. The Zacks Consensus Estimate for non-performing assets of $8.98 billion indicates a 12.8% increase from the year-ago reported level.
What Our Quantitative Model Unveils for WFC
Our proven model conclusively predicts an earnings beat for Wells Fargo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here, as you can see below.
The Earnings ESP for WFC is +0.09%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Wells Fargo currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Wells Fargo’s Price Performance
In the second quarter of 2026, WFC shares delivered a subdued performance, lagging the industry and its close peers, Bank of America (BAC - Free Report) and Citigroup (C - Free Report) .
Price Performance
Image Source: Zacks Investment Research
Bank of America and Citigroup are also slated to announce quarterly numbers on July 14.
Over the past week, the Zacks Consensus Estimate for Citigroup’s second-quarter 2026 earnings has revised upward to $2.72. The consensus estimate for Bank of America’s earnings has been revised upward to $1.13 per share.