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Wells Fargo (WFC) shares slipped after Q3 2026 revenue of $21.87 billion missed the $22.3 billion forecast, even as EPS rose 13% to $1.87 on loan growth.
- Q3 revenue of $21.87B rose 2% year over year but fell about $430M short of the $22.3B consensus.
- EPS of $1.87 topped the $1.85 forecast; net income rose 6% to $5.95B.
- Goldman Sachs beat on trading and advisory income, and JPMorgan shares held steady despite an EPS miss.
Lead
Wells Fargo reported third-quarter 2026 revenue of $21.87 billion on Tuesday, up 2% from a year earlier but down 3% from the second quarter and below the $22.3 billion analysts expected. Shares fell during the session, at one point losing about 3% to $81.08, as the shortfall in both net interest income and fee income overshadowed a profit beat. Rival Goldman Sachs (GS) rose on a trading-led beat, widening the gap in how investors treated the largest U.S. banks on the first big day of earnings season.What Did Wells Fargo Report for Q3 2026?
Wells Fargo earned $5.95 billion, or $1.87 per diluted share, in the third quarter, up 6% and 13% respectively from a year ago. Per-share growth outpaced net income because the bank repurchased $2.5 billion of stock, or 28.6 million shares, during the quarter.
Net interest income, the gap between what the bank earns on loans and pays on deposits, reached $12.52 billion, up 5% year over year and 2% from the prior quarter. Noninterest income was $9.35 billion, down 1% from a year ago and 9% from the second quarter. Average loans and average deposits each rose 11% from a year earlier, to $1.03 trillion and $1.48 trillion.
By segment, revenue grew 12% in wealth and investment management, 6% in commercial banking, 5% in consumer banking and lending, and 3% in corporate and investment banking. Return on tangible common equity, a measure of profitability, climbed to 16.3% from 15.2% a year earlier. The efficiency ratio improved to 63%, from 65% in the year-ago quarter.
Why Did Wells Fargo Shares Fall?
Wells Fargo shares fell because revenue growth lagged the expansion in the balance sheet, and the shortfall appeared in both interest and fee lines. A sharp rise in interest rates in the final weeks of September slowed client trading activity, leaving markets revenue flat from a year earlier. Management had expected mid-single-digit growth in that business.
Credit costs also moved higher. The provision for credit losses was $1.03 billion, up 51% from a year ago and 13% from the second quarter. Chief Executive Charlie Scharf said consumers are spending more and delinquencies remain low. Management reiterated full-year net interest income guidance of about $50 billion, and the CET1 capital ratio stood at 10.0%, within the bank's target range of 10% to 10.5%.
Intraday declines varied by session, from roughly 1.5% to 3%, and the stock traded well below its recent highs.
How Did Goldman Sachs and JPMorgan Compare?
Goldman Sachs delivered the strongest quarter of the group, while JPMorgan Chase (JPM) missed on EPS but saw its shares hold up. Goldman reported revenue of $18.68 billion against a $17.03 billion estimate and EPS of $17.01 against $13.65 expected. Equities revenue jumped 72% to $6.44 billion, advisory fees hit a record $1.65 billion and assets under supervision reached $4.1 trillion. Its shares rose between 1% and 3% in early trading.
JPMorgan earned $15.3 billion, or $5.57 per share, up from $5.07 a year earlier but below the $5.93 forecast, as fixed-income trading slowed and a securities loss weighed on results. Its shares were roughly flat to modestly higher near $334. Citigroup (C) reported a 40% jump in profit on investment banking and wealth management strength, though its shares dipped 0.7%.
The contrast reflects business mix. Goldman and JPMorgan have large trading and investment banking franchises that benefited from market volatility. Wells Fargo is built around lending, deposits and wealth management, and it has less exposure to the equities surge that lifted Goldman.
Strategic Context
Wells Fargo is growing again after years of regulatory limits. Removal of the Federal Reserve's asset cap has allowed the bank to expand loans and deposits at double-digit rates. The harder task is turning that balance sheet growth into revenue. Management said the fourth quarter is not a good baseline for 2027 expenses because efficiency work is continuing.
Executives at the four banks that reported on Tuesday each warned that elevated interest rates and persistent inflation could weigh on consumer spending and economic stability.
Outlook
Wells Fargo enters the fourth quarter with earnings momentum, a 10.0% CET1 ratio and an unchanged $50 billion net interest income outlook. The revenue miss raises the bar for fee income and markets activity in the coming quarter. The path of interest rates and trading volumes will shape whether the gap with Goldman narrows or widens.
Mentioned tickers: WFC, GS, JPM, C
