Wells Fargo (NYSE:WFC) Falls Short of Q4 CY2025 Revenue Projections

Wells Fargo Q4 2025 Earnings Overview

Wells Fargo (NYSE:WFC), a major player in the financial services sector, reported fourth-quarter 2025 results that failed to meet market revenue forecasts. The company posted $21.29 billion in sales, marking a 4.1% increase compared to the same period last year. However, adjusted earnings per share came in at $1.76, surpassing analyst expectations by 4.4%.

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Highlights from Wells Fargo’s Q4 2025 Results

• Net Interest Margin: 2.6%, slightly below the 2.7% anticipated by analysts (a shortfall of 5.5 basis points)
• Total Revenue: $21.29 billion, missing the $21.65 billion estimate (4.1% year-over-year growth, 1.6% below expectations)
• Efficiency Ratio: 64%, higher than the 62.7% forecast (missed by 133 basis points)
• Adjusted EPS: $1.76, beating the $1.69 consensus (4.4% above estimates)
• Tangible Book Value per Share: $45.02, outpacing the $44.62 estimate (9.4% annual growth, 0.9% above expectations)
• Market Cap: $293.7 billion

About Wells Fargo

Established in 1852 during the California Gold Rush, Wells Fargo began by offering banking and express delivery services to miners and merchants. Today, the company is a diversified financial institution, providing a broad array of banking, lending, investment, and wealth management solutions to both individuals and businesses.

Revenue Trends

Banks typically generate income from two main sources: net interest income (the difference between interest earned on loans and investments and interest paid on deposits) and non-interest income (fees from services like credit cards, wealth management, and trading). Over the past five years, Wells Fargo’s annualized revenue growth has been a modest 2.5%, falling short of industry benchmarks and signaling underwhelming performance.

At StockStory, we prioritize long-term growth, but it’s important to note that recent shifts in interest rates and market conditions can impact financial institutions. For Wells Fargo, revenue has remained largely unchanged over the past two years, indicating a slowdown in demand.

This quarter, Wells Fargo’s revenue increased by 4.1% year over year to $21.29 billion, but still fell short of Wall Street’s projections.

Over the last five years, net interest income has accounted for 56.4% of Wells Fargo’s total revenue, reflecting a balanced mix between lending and other financial services.

While banks have multiple revenue streams, net interest income is often seen as the most reliable and stable, in contrast to the more volatile nature of non-interest income.

Tangible Book Value Per Share (TBVPS)

The strength of a bank’s balance sheet is crucial for profitability, as earnings are driven by the spread between borrowing and lending rates. As a result, investors often focus on capital adequacy and the ability to grow equity sustainably.

Among various metrics, tangible book value per share (TBVPS) stands out for banks. TBVPS strips out intangible assets, providing a clearer picture of a company’s real per-share value, whereas earnings per share can be skewed by mergers or changes in loan loss provisions.

Wells Fargo’s TBVPS has grown at an average annual rate of 6.3% over the past five years. In the last two years, TBVPS rose from $39.21 to $45.02 per share, representing a 7.2% annual increase.

Looking ahead, analysts expect Wells Fargo’s TBVPS to rise by 4.2% over the next year to $46.90, which is considered a modest growth rate.

Summary of Q4 Performance

Wells Fargo managed to slightly exceed expectations for tangible book value per share this quarter, but revenue results were disappointing. Overall, the quarter was lackluster, with shares dropping 1.1% to $92.51 following the earnings release.

Although this wasn’t Wells Fargo’s strongest quarter, investors may wonder if this presents a buying opportunity. When evaluating the stock, it’s essential to consider its valuation, business fundamentals, and the latest financial results.

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