WFC · Q2 FY2026
WELLS FARGO & COMPANY/MN Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $22.62B | $20.82B (yr ago) | Beat |
| EPS | $2.00 | $1.60 (yr ago) | Beat |
| Free Cash Flow | $6.78B (not meaningful for a bank) | -$11.22B (yr ago; not meaningful) | Beat |
| Gross Margin | Not meaningful | Not meaningful (yr ago) | Miss |
| Operating Margin (pre-tax margin) | 35.6% | 30.9% (yr ago) | Beat |
What changed
Revenue rose 8.6% year over year to $22.62 billion, while EPS increased 25.0% to $2.00 and the pre-tax margin expanded 4.7 percentage points to 35.6%. Growth came from both net interest and fee income, expenses rose only 2.1%, and credit costs declined, although venture-capital gains and a $0.04-per-share tax benefit lifted the quarter.
Impact on the investment thesis
There is no prior SageNoodle fair value to revise. We establish fair value at $96 per share: the quarter supports an $8.00 normalized-EPS base case, but the nonrecurring gains and lower net interest margin argue against a higher multiple.