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Research Alert: Wfc Q1 2026 Results: Earnings Miss On Weaker-than-expected Net Interest Income

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

WFC posted mixed Q1 2026 results with operating EPS of $1.56 vs. $1.28 the prior year, missing consensus by $0.04 due to weaker-than-expected 5% Y/Y net interest income growth and 20 bps margin contraction to 2.47%. Balance sheet activity was excellent with loan growth accelerating to 10% Y/Y reaching $996B and deposits rising 6% Y/Y to $1.415B, capitalizing on post-asset cap removal opportunities. We expect this loan growth momentum to continue through 2026, noting balances rose just 1% per quarter in 2025. Fee income grew healthy 8% Y/Y due to investment advisory fees (+11%) and modest investment banking growth (+3%). Credit quality remained stable with net charge-offs at 0.45% despite 22% Y/Y increase in provisions to $1.1B, primarily reflecting higher loan balances rather than deteriorating trends. Operational efficiency improved with the efficiency ratio reaching 67% vs 69% prior year, while capital deployment continued with $4.0B in share repurchases, though the CET1 ratio declined to 10.3% from 11.1%.

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