Wells Fargo & Company (NYSE:WFC) is a leading American financial services company, competing with giants like JPMorgan Chase and Bank of America. On January 14, 2026, Wells Fargo disclosed its earnings, revealing an earnings per share (EPS) of $1.62 (adjusted EPS 1.76), slightly below the forecasted $1.66, and reported revenue of $21.29 billion, missing the expected $21.65 billion.
This marked an improvement from the previous year's EPS of $1.42. The uplift was primarily due to a 4% year-over-year increase in net interest income (NII) to $12.33 billion, driven by higher loans and repricing, although the net interest margin saw a contraction of 10 basis points.
Wells Fargo's stock experienced a nearly 2.6% drop in pre-market trading. The company managed to reduce its expenses by 1%, but faced a 7.1% year-over-year increase in non-performing assets, which negatively affected the overall results. Moreover, Wells Fargo reported $612 million in severance expenses due to workforce reductions, impacting approximately 5,600 employees compared to the previous quarter.
For the quarter, Wells Fargo reported a net income of $5.36 billion, or $1.62 per diluted share, an increase from $5.08 billion, or $1.43 per share, in the fourth quarter of 2024. Excluding the significant severance charge, net income would have been $5.8 billion, or $1.76 per diluted share. The bank also saw growth in average loans, reaching $955.8 billion, and in average deposits, which hit $1.38 trillion.
The bank's net interest income increased, though the net interest margin was slightly below expectations at 2.6%, against the anticipated 2.7%. Additionally, the efficiency ratio worsened to 64%, surpassing the 62.7% analysts had predicted. Despite these challenges, Wells Fargo observed gains across its operating segments, including corporate and investment banking.
