Wells Fargo (NYSE: WFC) Posts Q2 2026 Net Income of $6.4B, EPS of $2.00 on Higher Revenue

Wells Fargo & Company (NYSE: WFC) posted second-quarter 2026 net income of $6.4 billion, up 16% from $5.5 billion in the same period a year ago, as total revenue climbed 9% year-over-year to $22.6 billion. Diluted earnings per common share came in at $2.00, a 25% increase from $1.60 in Q2 2025.

Q2 2026 Results

• Total revenue: $22.6 billion in Q2 2026, up 9% from $20.8 billion in Q2 2025 and up 6% from $21.4 billion in Q1 2026.
• Net income applicable to common stock: $6.16 billion, up 18% year-over-year from $5.21 billion.
• Pre-tax pre-provision profit (PTPP): $8.96 billion, up 20% from $7.44 billion in Q2 2025 and up 26% sequentially from Q1 2026.
• Provision for credit losses: $914 million, down 9% from $1.005 billion in Q2 2025 and down 19% from $1.135 billion in Q1 2026.
• Noninterest expense: $13.66 billion, up 2% year-over-year but down 5% from $14.33 billion in Q1 2026, producing an efficiency ratio of 60% versus 64% in Q2 2025.

What Drove the Results

Revenue growth was supported by expansion across the balance sheet. Average loans reached $1.026 trillion in Q2 2026, up 12% from $916.7 billion in Q2 2025, while average deposits grew 10% year-over-year to $1.466 trillion. Period-end total assets reached $2.282 trillion, up 15% from $1.981 trillion a year earlier.

The decline in the provision for credit losses to $914 million, compared to $1.005 billion in Q2 2025, contributed to the improvement in net income. The allowance for credit losses for loans stood at $14.41 billion at period end, essentially flat versus the prior quarter and modestly below the $14.57 billion recorded a year ago.

Return on average equity (ROE) reached 15.0% in Q2 2026, up from 12.8% in Q2 2025. Return on average tangible common equity (ROTCE) was 17.7%, compared with 15.2% in the year-ago quarter. Return on average assets was 1.15%, up from 1.14% in Q2 2025.

Capital and Balance Sheet

Wells Fargo's Common Equity Tier 1 (CET1) ratio under the Standardized Approach was 10.3% at June 30, 2026, down from 11.1% a year ago, reflecting growth in risk-weighted assets, which expanded 9% year-over-year to $1.342 trillion. Tangible book value per common share increased 7% year-over-year to $46.13. The company declared dividends of $0.45 per common share in Q2 2026, up 12.5% from $0.40 in Q2 2025, and has since flagged plans for a further increase to $0.50 per share, an additional 11% step-up, according to GuruFocus. Period-end headcount fell to 197,466, down 7% from 212,804 a year ago.

Wall Street View

Analyst sentiment on Wells Fargo heading into the report leaned constructive, with the most recent consensus reflecting 14 Buy ratings and 7 Strong Buy ratings among covering firms, against 8 Hold ratings and no Sell recommendations.

Investor Takeaway

The Q2 results show Wells Fargo generating materially higher profitability on a larger asset base, with the PTPP of $8.96 billion representing the highest quarterly figure in the five-quarter data set provided. The combination of lower credit loss provisions and controlled expense growth, with noninterest expense declining 5% sequentially to $13.66 billion, drove the efficiency ratio to 60%, a level the bank had not achieved in the prior four quarters. Investors will likely focus on whether the balance sheet expansion, particularly the 12% year-over-year growth in average loans, can be sustained while CET1 capital ratios remain near regulatory minimums at 10.3%.