Wells Fargo & Company (NYSE:WFC) recently disclosed its financial results for the fourth quarter of 2025, surpassing market expectations and demonstrating solid growth in key earnings metrics. The bank's net income reached $5.4 billion, translating to $1.62 per diluted share, marking an increase from $5.1 billion, or $1.43 per share, reported during the corresponding period the previous year.
Adjusted earnings per share for the quarter stood at $1.76, exceeding analyst consensus forecasts of $1.67. Revenue for the quarter was reported at $21.3 billion, representing a 4% increase compared to the prior year. This gain in revenue was underpinned by advances in both net interest income and fee-related income streams. However, the reported revenue fell slightly short of the anticipated figure of $21.65 billion.
Looking forward to 2026, Wells Fargo projects growth in net interest income excluding its Markets division. This anticipated increase is expected to be driven by expansion in the bank’s balance sheet, favorable shifts in loan and deposit composition, and ongoing repricing of fixed-rate assets. The forward-looking guidance incorporates assumptions of two to three interest rate reductions by the Federal Reserve within the next year, alongside a relatively stable yield on the 10-year U.S. Treasury note.
Following the earnings release, Wells Fargo's stock price experienced a minor pullback, decreasing by 0.3% to close at $88.95 per share on the subsequent trading day. This modest decline came amid analysts updating their price targets and maintaining generally positive ratings.
John McDonald, an analyst at Truist Securities, retained his Buy rating on Wells Fargo shares but adjusted the price target downward from $104 to $100. Conversely, Stephen Biggar from Argus Research reaffirmed a Buy rating while increasing his price target from $94 to $101. Additionally, John Pancari at Evercore ISI Group continued to endorse an Outperform rating for the bank, albeit lowering his price target from $110 to $105.
The divergent revisions in price targets from these analysts reflect nuanced perspectives on Wells Fargo's near-term prospects following the quarterly performance. Nonetheless, the consistent Buy and Outperform ratings indicate sustained confidence in the bank's operational outlook and financial health.
Investors considering Wells Fargo stock should note that despite the slight dip in share price post-earnings, the firm’s financial results signal ongoing revenue growth supported by a diversified income base. The bank’s strategic emphasis on balance-sheet growth and asset repricing positions it to potentially benefit from forthcoming monetary policy changes.
Given the reported earnings momentum and updated guidance, market participants may weigh these factors alongside the analysts' revised price targets to assess the stock's potential trajectory in 2026. The coming periods will reveal how Wells Fargo navigates interest rate environments and manages loan and deposit portfolio shifts amid evolving economic conditions.