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Wells Fargo Q3 Earnings on the Deck: What's in Store for the Stock?
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Key Takeaways
Wells Fargo is expected to report Q3'26 revenues of $22.15 billion, suggesting a YoY rise of 3.3%.
WFC's NII is expected to rise in Q3'26, supported by lending activity and stabilized funding costs.
WFC's non-interest income is expected to hold up, supported by higher advisory and investment banking fees.
Wells Fargo & Company (WFC - Free Report) is slated to report third-quarter 2026 earnings results on Oct. 13, before market open.
WFC’s second-quarter 2026 earnings surpassed the Zacks Consensus Estimate. The results improved, attributable to higher net interest income (NII) and non-interest income, along with lower provisions. Growth in loan balances and improved deposits further supported performance.
This time around, the company’s performance is likely to have been decent. The consensus estimate for third-quarter revenues of $22.15 billion suggests 3.3% year-over-year growth.
In the past seven days, the Zacks Consensus Estimate for earnings for the to-be-reported quarter has been revised marginally upward to $1.85 per share. The figure indicates a 6.9% improvement from the prior-year quarter.
Estimate Revision Trend
Image Source: Zacks Investment Research
Wells Fargo has a decent earnings surprise history. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 7.41%.
Earnings Surprise History
Image Source: Zacks Investment Research
Factors Likely to Impact WFC’s Q3 Earnings
Loans & NII: In September 2026, the Federal Reserve raised interest rates by 25 basis points to 3.75-4.00%, citing persistently elevated inflation. As interest rates remained unchanged for most of the quarter, the recent hike is less likely to have a significant impact on WFC’s NII and margin in the third quarter of 2026.
Following solid lending activity in the first half of 2026, loan growth momentum likely moderated during the to-be-reported quarter. Per the Fed’s latest data, commercial and industrial loan demand remained healthy in the first two months of the quarter, while consumer and real estate lending stayed steady. This, along with stabilized deposit and funding costs, is expected to have provided support to WFC’s NII.
The Zacks Consensus Estimate for NII is pegged at $12.63 billion, which indicates a 5.7% rise from the year-ago quarter.
Non-Interest Revenues: In the third quarter of 2026, mortgage rates hovered near 7%, and affordability remained low. Refinancing activity and purchase volume faced persistent headwinds from affordability constraints 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 $241.39 million, suggesting a 9.9% decline from the year-ago quarter.
Meanwhile, investment advisory and other asset-based fee revenues are expected to have benefited from improved equity market performance and increased client transactional activity, supporting asset-based fees during the quarter. The consensus mark for investment advisory and other asset-based fee revenues is pegged at $2.95 billion, indicating a rise of 10.7%.
WFC’s investment banking (IB) fee revenues are expected to have witnessed decent momentum. Despite persistent uncertainty surrounding inflation and geopolitical tensions, strategic deal-making activity likely supported advisory fees. Meanwhile, healthy initial public offering (IPO) and equity issuance activity, along with resilient debt issuance, are expected to have supported underwriting fees.
Management expects third-quarter investment banking (IB) and markets fee revenues to rise by a mid-single-digit percentage year over year, reflecting continued growth across its corporate and institutional banking businesses. The Zacks Consensus Estimate for IB fee revenues is pegged at $903.79 million, which indicates a rise of 7.6% on a year-over-year basis.
Persistent inflation and continued pressure on lower-income consumers may have tempered spending growth. Nevertheless, resilient consumer spending across income groups and sustained card usage are expected to have supported card fee revenue in the third quarter of 2026. The Zacks Consensus Estimate for card fee revenues is pegged at $1.28 billion, suggesting a 4.8% rise.
The Zacks Consensus Estimate for Wells Fargo’s total non-interest income is pegged at $9.58 billion, indicating a 1.1% rise from the year-ago quarter.
Expenses: WFC’s non-interest expenses are expected to have remained well-managed in the third quarter of 2026. The company continues to focus on operational efficiency through organizational streamlining, branch network optimization, headcount reductions and technology investments. Although expenses increased in the first half of 2026, ongoing cost-control measures and network optimization efforts are expected to have helped contain expense growth in the quarter.
Asset Quality: Asset quality is expected to have remained a key area of focus in the third quarter. Geopolitical uncertainty stemming from the Middle East conflict, volatile oil prices, persistent inflation and elevated interest rates may have heightened credit risks. Against this backdrop, Wells Fargo is expected to have maintained a cautious approach to credit risk management, potentially increasing provisions for credit losses to account for heightened uncertainty and potential deterioration in borrowers’ repayment capacity.
The consensus mark for total non-accrual loans is pegged at $8.17 billion, suggesting a year-over-year rise of 7.3%. The Zacks Consensus Estimate for non-performing assets of $8.47 billion indicates an 8.1% increase from the year-ago reported level.
What Our Quantitative Model Unveils for WFC Stock
Our proven model does not conclusively predict an earnings beat for WFC this time. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here, as you can see below.
Earnings ESP of Wells Fargo: The Earnings ESP for WFC is -0.15%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
In the third quarter of 2026, Wells Fargo’s shares lost 6.3% compared with the industry’s decline of 6.7%. Its close peers, Bank of America (BAC - Free Report) and Citigroup’s (C - Free Report) shares fell 11.8% and 2.1%, respectively, during the quarter.
Third-Quarter Price Performance
Image Source: Zacks Investment Research
Citigroup is scheduled to report its quarterly results on Oct. 13, while Bank of America is set to announce its results on Oct. 14.
Over the past week, the Zacks Consensus Estimate for Citigroup’s third-quarter 2026 earnings has revised downward to $2.66 per share. Similarly, the consensus estimate for Bank of America’s earnings has been revised lower to $1.11 per share. At present, Citigroup and Bank of America carry a Zacks Rank #3 each.
View the Zacks #1 Rank List
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Wells Fargo Q3 Earnings on the Deck: What's in Store for the Stock?
Key Takeaways
Wells Fargo & Company (WFC - Free Report) is slated to report third-quarter 2026 earnings results on Oct. 13, before market open.
WFC’s second-quarter 2026 earnings surpassed the Zacks Consensus Estimate. The results improved, attributable to higher net interest income (NII) and non-interest income, along with lower provisions. Growth in loan balances and improved deposits further supported performance.
This time around, the company’s performance is likely to have been decent. The consensus estimate for third-quarter revenues of $22.15 billion suggests 3.3% year-over-year growth.
In the past seven days, the Zacks Consensus Estimate for earnings for the to-be-reported quarter has been revised marginally upward to $1.85 per share. The figure indicates a 6.9% improvement from the prior-year quarter.
Estimate Revision Trend
Image Source: Zacks Investment Research
Wells Fargo has a decent earnings surprise history. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 7.41%.
Earnings Surprise History
Image Source: Zacks Investment Research
Factors Likely to Impact WFC’s Q3 Earnings
Loans & NII: In September 2026, the Federal Reserve raised interest rates by 25 basis points to 3.75-4.00%, citing persistently elevated inflation. As interest rates remained unchanged for most of the quarter, the recent hike is less likely to have a significant impact on WFC’s NII and margin in the third quarter of 2026.
Following solid lending activity in the first half of 2026, loan growth momentum likely moderated during the to-be-reported quarter. Per the Fed’s latest data, commercial and industrial loan demand remained healthy in the first two months of the quarter, while consumer and real estate lending stayed steady. This, along with stabilized deposit and funding costs, is expected to have provided support to WFC’s NII.
The Zacks Consensus Estimate for NII is pegged at $12.63 billion, which indicates a 5.7% rise from the year-ago quarter.
Non-Interest Revenues: In the third quarter of 2026, mortgage rates hovered near 7%, and affordability remained low. Refinancing activity and purchase volume faced persistent headwinds from affordability constraints 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 $241.39 million, suggesting a 9.9% decline from the year-ago quarter.
Meanwhile, investment advisory and other asset-based fee revenues are expected to have benefited from improved equity market performance and increased client transactional activity, supporting asset-based fees during the quarter. The consensus mark for investment advisory and other asset-based fee revenues is pegged at $2.95 billion, indicating a rise of 10.7%.
WFC’s investment banking (IB) fee revenues are expected to have witnessed decent momentum. Despite persistent uncertainty surrounding inflation and geopolitical tensions, strategic deal-making activity likely supported advisory fees. Meanwhile, healthy initial public offering (IPO) and equity issuance activity, along with resilient debt issuance, are expected to have supported underwriting fees.
Management expects third-quarter investment banking (IB) and markets fee revenues to rise by a mid-single-digit percentage year over year, reflecting continued growth across its corporate and institutional banking businesses. The Zacks Consensus Estimate for IB fee revenues is pegged at $903.79 million, which indicates a rise of 7.6% on a year-over-year basis.
Persistent inflation and continued pressure on lower-income consumers may have tempered spending growth. Nevertheless, resilient consumer spending across income groups and sustained card usage are expected to have supported card fee revenue in the third quarter of 2026. The Zacks Consensus Estimate for card fee revenues is pegged at $1.28 billion, suggesting a 4.8% rise.
The Zacks Consensus Estimate for Wells Fargo’s total non-interest income is pegged at $9.58 billion, indicating a 1.1% rise from the year-ago quarter.
Expenses: WFC’s non-interest expenses are expected to have remained well-managed in the third quarter of 2026. The company continues to focus on operational efficiency through organizational streamlining, branch network optimization, headcount reductions and technology investments. Although expenses increased in the first half of 2026, ongoing cost-control measures and network optimization efforts are expected to have helped contain expense growth in the quarter.
Asset Quality: Asset quality is expected to have remained a key area of focus in the third quarter. Geopolitical uncertainty stemming from the Middle East conflict, volatile oil prices, persistent inflation and elevated interest rates may have heightened credit risks. Against this backdrop, Wells Fargo is expected to have maintained a cautious approach to credit risk management, potentially increasing provisions for credit losses to account for heightened uncertainty and potential deterioration in borrowers’ repayment capacity.
The consensus mark for total non-accrual loans is pegged at $8.17 billion, suggesting a year-over-year rise of 7.3%. The Zacks Consensus Estimate for non-performing assets of $8.47 billion indicates an 8.1% increase from the year-ago reported level.
What Our Quantitative Model Unveils for WFC Stock
Our proven model does not conclusively predict an earnings beat for WFC this time. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here, as you can see below.
Earnings ESP of Wells Fargo: The Earnings ESP for WFC is -0.15%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
WFC’s Zacks Rank: Wells Fargo currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Wells Fargo’s Price Performance
In the third quarter of 2026, Wells Fargo’s shares lost 6.3% compared with the industry’s decline of 6.7%. Its close peers, Bank of America (BAC - Free Report) and Citigroup’s (C - Free Report) shares fell 11.8% and 2.1%, respectively, during the quarter.
Third-Quarter Price Performance
Image Source: Zacks Investment Research
Citigroup is scheduled to report its quarterly results on Oct. 13, while Bank of America is set to announce its results on Oct. 14.
Over the past week, the Zacks Consensus Estimate for Citigroup’s third-quarter 2026 earnings has revised downward to $2.66 per share. Similarly, the consensus estimate for Bank of America’s earnings has been revised lower to $1.11 per share. At present, Citigroup and Bank of America carry a Zacks Rank #3 each.