Wells Fargo (WFC) Posts $1.76 EPS Beat in Q4, Revenue Comes Up Short

Wells Fargo (WFC) recently announced its financial results for the fourth quarter of 2025, showcasing a mixed performance. While the company exceeded earnings per share (EPS) expectations, it fell short of its revenue target. This article delves into the details of the company’s quarterly performance and provides insights into its future guidance.

Earnings Beat Highlights Strong Execution Despite Sales Miss

Wells Fargo’s fourth-quarter performance for 2025 showed a notable achievement in terms of earnings per share (EPS), which came in at $1.76, surpassing the expected $1.66. This 6% increase from the previous year highlights the company’s ability to manage its expenses and optimize its operations effectively. The EPS beat can be attributed to strong financial performance across various segments, with a particular emphasis on cost management and strategic investments.

However, the company faced challenges on the revenue front, reporting $21.29 billion compared to the expected $21.64 billion. This shortfall in revenue is a reflection of the evolving market dynamics and the impact of external factors on the company’s core banking and investment operations. Despite this, Wells Fargo managed to maintain a robust net income of $5.4 billion, demonstrating its capacity to navigate through economic uncertainties while still delivering value to its shareholders.

In comparison to the previous year, Wells Fargo’s total revenue increased by 4%, driven by higher loan and investment securities balances. The company also benefited from improved results in its Markets business and fixed-rate asset repricing. Nonetheless, the revenue miss indicates that there is room for growth and improvement in capturing market opportunities and optimizing its revenue streams.

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Wells Fargo Targets Higher Returns as Growth Investments Ramp Up

Looking ahead, Wells Fargo has set its sights on achieving a return on tangible common equity (ROTCE) target of 17-18% in the medium term, up from the 15% achieved in 2025. This ambitious target underscores the company’s commitment to enhancing shareholder value through strategic investments and operational efficiencies. The company plans to leverage its strong capital position to fuel growth, having repurchased $5 billion worth of common stock in the fourth quarter alone.

CEO Charlie Scharf expressed confidence in the company’s foundation and its ability to compete on a level playing field following the removal of the asset cap imposed by the Federal Reserve. Wells Fargo aims to dedicate more resources to growth initiatives, particularly in its consumer and commercial businesses. The company has also highlighted its efforts to balance short-term performance with long-term success, funding significant investments in infrastructure and business growth through cost savings.

Wells Fargo’s guidance for the future includes a focus on expanding its consumer banking and lending operations, as well as enhancing its investment banking capabilities. The company is optimistic about the opportunities ahead and is committed to driving sustainable growth while managing risks effectively. As it enters 2026, Wells Fargo is poised to capitalize on its momentum and pursue strategic initiatives that align with its long-term objectives.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.