PomegraWells Fargo Stock Falls 3% on Revenue Miss Despite Profit Beat
Why is Wells Fargo stock down today?
Wells Fargo (WFC) stock fell 3% to about $81 on Tuesday after quarterly revenue of $21.87 billion missed forecasts by roughly $440 million, as weaker trading and interest income offset a profit beat.
Key numbers
| Diluted EPS | $1.87+13% YoY |
|---|---|
| Revenue | $21.87Babout $440M below forecast |
| Net interest income | $12.52B+5% YoY, below $12.63B forecast |
| Corporate & investment banking revenue | $5.01B+3% YoY |
| Bond, currency, commodity trading | —-17% vs prior quarter (per [2]) |
| WFC share price move | about $81-3.1% |
What happened
Wells Fargo (WFC) stock fell 3% to about $81 on Tuesday after quarterly revenue of $21.87 billion missed forecasts by roughly $440 million, as weaker trading and interest income offset a profit beat. Profit per share was $1.87, up 13% from a year ago and just above forecasts. Interest the bank earns from lending, minus what it pays on deposits (net interest income), rose 5% to $12.52 billion but fell short of the $12.63 billion expected. Its bond, currency and commodity trading business fell 17% from the prior quarter. The bank kept its full-year interest income outlook at about $50 billion.
Why it matters
Wells Fargo's shares fell because investors had expected more sales, even though profit grew. The miss came in two areas that matter for any bank: interest earned on loans, and capital markets work such as trading and dealmaking. Wells Fargo is one of America's largest lenders, so its results hint at how healthy borrowing and Wall Street activity are. Rival Goldman Sachs moved the other way on strong stock trading.
Who this affects
- MarketmixedMedium impact
- Bank investors saw mixed results; Wells Fargo and Citigroup fell.
- CompanymixedMedium impact
- Shareholders saw profit growth but a roughly 3% share drop.
- CompetitorsmixedMedium impact
- Goldman gained on equity trading; Citigroup lost ground.
- IndustryneutralLow impact
- Banks' trading and lending income grew unevenly this quarter.
Wells Fargo vs JPMorgan, Goldman Sachs, Citigroup
How we got here
Wells Fargo reports Q3 profit of $1.87 per share on $21.87B revenue.
Shares fall about 3% after revenue and interest income miss forecasts.
Goldman Sachs beats forecasts on equity trading; Citigroup shares fall 5.6%.
What to watch
- Whether fourth-quarter net interest income reaches the roughly $13B the bank has signaled.Q4 2026
- Whether trading and capital markets revenue recovers after the weaker quarter.2027-01
Educational content only. Not investment advice.
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