Wells Fargo's Q1 Revenue Miss Triggers 5% Share Price Drop
SC
Sam Callahan
Wells Fargo credit card · Apr 14, 2026
Source: DojiDoji Data Terminal
Wells Fargo shares fell 4.92% in pre-market trading to $83.30 after the bank reported a first-quarter revenue miss. Total revenue of $21.4 billion fell short of the $21.76 billion consensus estimate, despite representing a 6% year-over-year increase.
The miss was primarily driven by net interest income, which reached $12.1 billion and missed the $12.3 billion Wall Street consensus. While net interest income grew 5% year-over-year, the bank's net interest margin compressed 13 basis points to 2.47%. This compression was primarily due to the impact of lower interest rates on floating-rate assets and growth in lower-yielding Markets assets.
Despite the revenue shortfall, the bank posted diluted earnings per share of $1.60, surpassing the $1.58 consensus estimate. Net income rose 15% year-over-year to $5.3 billion, with return on equity improving to 12.2% from 11.5%.
Across business segments, Wealth and Investment Management was the most profitable, posting 14% revenue growth to $3.88 billion. Consumer Banking and Lending revenue rose 7% to $10.0 billion, while Commercial Banking revenue increased 7% to $3.12 billion. Corporate and Investment Banking revenue grew 4% to $5.28 billion.
To maintain capital strength, the bank repurchased 46.3 million shares for $4.0 billion during the quarter, resulting in a Common Equity Tier 1 ratio of 10.3%.
Shares fell 4.81% to $82.47.
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