TLDR
- Wells Fargo reported Q3 2025 revenue of $21.44 billion, up 5.3% year-over-year, beating analyst estimates
- Earnings per share came in at $1.66, surpassing consensus forecasts by 7.4% or 11 cents
- Net income reached $5.6 billion for the quarter, with return on equity improving to 12.8% from 11.7% year ago
- Average loans grew to $928.7 billion from $910.3 billion, showing expansion in consumer and corporate lending
- Shares jumped 7% in early trading, with stock up 20.8% year-to-date and trading near its 52-week high
Wells Fargo reported third quarter 2025 earnings that topped Wall Street forecasts on both the top and bottom lines. The bank posted net income of $5.6 billion, translating to $1.66 per diluted share.
That earnings figure beat consensus estimates by 11 cents. Revenue came in at $21.44 billion, marking a 5% increase from the same period last year.
The results sent shares up about 7% in early Tuesday trading. The stock has gained 20.8% since the start of the year.
Trading at $84.82 per share, Wells Fargo sits close to its 52-week high of $85.16 from September. Investors who bought $1,000 worth of stock five years ago would now have holdings worth $3,648.
The quarterly results beat expectations despite including about $296 million in severance expenses. Those costs reduced earnings by roughly 7 cents per share.
Corporate and investment banking helped drive the revenue growth. The bank saw stronger performance across its core segments during the quarter.
Average loans grew to $928.7 billion from $910.3 billion a year earlier. The increase reflects expansion in both consumer and corporate lending activities.
Deposits remained stable at approximately $1.34 trillion. The flat deposit base suggests the bank maintained its funding position despite competitive pressures.
Return on Equity Shows Improvement
The bank’s return on equity climbed to 12.8% from 11.7% in the prior year period. Return on tangible common equity rose even more, reaching 15.2%.
These profitability metrics indicate the bank is generating better returns for shareholders. The improvements come as Wells Fargo continues working on efficiency initiatives.
CEO Charlie Scharf said the company is making progress on those efficiency goals. He expects the bank to maintain its current momentum through the end of the year.
Recent Guidance Cut Created Headwinds
The positive quarterly results follow a challenging period three months ago. Back in July, Wells Fargo cut its full-year net interest income guidance despite beating second quarter estimates.
The bank revised its 2025 net interest income forecast to roughly flat compared to 2024’s $47.7 billion. That represented a reduction from previous guidance anticipating growth of 1% to 3%.
Wells Fargo attributed the lowered outlook primarily to its Markets business. Net interest income measures the difference between what banks earn on loans and pay on deposits.
The guidance cut sent shares down 6.1% at the time. Tuesday’s strong third quarter results appear to have restored some investor confidence.
The bank disclosed its quarterly performance in a Monday filing with the U.S. Securities and Exchange Commission. Third quarter earnings per share of $1.66 surpassed consensus forecasts by 7.4%.
Net interest income came in slightly below expectations for the quarter. But the headline beats on revenue and earnings were enough to satisfy investors.
