Wells Fargo Q2 2026 earnings beat on wealth, investment banking

Wells Fargo reported second-quarter net income of $6.4 billion, or $2.00 per diluted share, up 17% from $5.49 billion, or $1.60 per share, a year earlier. Analysts had expected earnings of $1.72 per share on revenue of $21.9 billion, according to Barron's.

Total revenue rose 9% to $22.6 billion. Noninterest income climbed 13% to $10.3 billion, topping the $9.44 billion average analyst estimate, according to Bloomberg. Net interest income rose 5% to $12.3 billion, in line with analyst expectations.

Investment banking fees reached $939 million, a 35% increase from a year earlier, with debt and equity underwriting both contributing to the gain. Among the quarter's notable mandates, the bank took a joint bookrunner role on SpaceX's $86 billion IPO and provided advisory services to NextEra Energy on its $67 billion acquisition of Dominion Energy. Wells Fargo also advised Apollo on a $35 billion financing package for AI lab Anthropic, Reuters said.

Wealth and Investment Management revenue grew 13% to $3.89 billion, with net interest income in that segment up 17% and noninterest income up 12% on higher investment advisory fees tied to rising market valuations. Total client assets in the segment grew 15% from a year ago to $2.69 trillion, the company said.

Corporate and Investment Banking revenue rose 16% to $5.43 billion. Markets revenue within that segment jumped 24% to $2.21 billion, while Banking revenue increased 20%, driven by higher investment banking fees and loan growth.

Average loans across the company rose 12% from a year ago to $1.03 trillion, and average deposits grew 10% to $1.47 trillion. Net loan charge-offs declined to 0.34% of average total loans on an annualized basis, down from 0.44% a year earlier.

Return on tangible common equity rose to 17.7% from 15.2% a year ago. Wells Fargo repurchased $3.0 billion of common stock during the quarter and said it plans to raise its third-quarter dividend to $0.50 per share from $0.45, pending board approval.

"We are clearly benefitting from the broad-based economic strength we see in the U.S., but the investments we are making and our improved operating discipline also drove strong momentum in our key business metrics across all operating segments," Chief Executive Officer Charlie Scharf said in a statement.

Shares of Wells Fargo were up roughly 1.5% in early Tuesday trading.