Wells Fargo said fourth-quarter profit came in above Wall Street estimates, but the stock fell in premarket trading after interest income missed expectations.
Net income for the quarter was $5.36 billion, or $1.62 per share, compared with $5.08 billion, or $1.43 per share, a year earlier. On an adjusted basis, the bank earned $1.76 per share, ahead of expectations of $1.67.
Net Interest Income
Net interest income rose 4% from a year earlier to $12.33 billion. Analysts had been looking for $12.46 billion. The bank had already cut its interest income outlook twice last year, keeping focus on the shortfall.
For 2026, Wells Fargo said it expects interest income of around $50 billion, slightly below the $50.33 billion consensus estimate from analysts tracked by LSEG.
Shares were down about 1.7% before the open, after gaining more than 30% in 2025.
Expenses
The bank recorded $612 million in severance costs during the quarter related to ongoing job cuts.
Regulatory Update
The results follow a strong year for Wells Fargo after regulators lifted the long-standing $1.95 trillion asset cap in June. The restriction, imposed after the fake-accounts scandal, had limited growth for years. With the cap removed, total assets moved past $2 trillion in 2025.
Wells Fargo also closed seven consent orders last year tied to regulatory issues, leaving one remaining order from 2018.
Management Commentary
Chief executive Charlie Scharf said cost savings have allowed the bank to increase spending on infrastructure and growth, adding that signs of growth are showing across the business.
Workforce
The bank continues to reduce headcount. Wells Fargo ended 2025 with 205,198 employees, down from 210,821 at the end of September. Management has said workforce reductions will continue as it focuses on efficiency, with artificial intelligence expected to support productivity gains.
