Wells Fargo earned $1.87 per share in Q3 2026 as net interest income rose 5%. At $80.82 the stock prices modest growth, while buybacks and new lending support $92.45.
Key points
- $12.52 billion of net interest income rose 5% from last year on loan growth and repricing.
- $2.50 billion of buybacks cut shares to 3.00 billion, lifting per share profit 13% in the quarter.
- 10.0% capital ratio sits at the low end of the range after a rate driven valuation hit.
The call
The market is too gloomy. At $80.82, the stock trades at about 11 times this year profit. That implies loan growth after the cap removal adds little. It also treats the 10.0% capital ratio last quarter as a brake on buybacks.
Quarterly net income is climbing after the asset cap ended ($ billions)Company supplements and 8-Ks; Q4 FY26E is author's estimate. As of Oct 13, 2026.
I see faster profit ahead. I forecast $7.70 per share in 2027. Revenue reaches $90.0 billion on loan and fee growth. Interest income of $52.0 billion plus steady costs drive the gain.
What Wells Fargo is worth at different bank multiples ($ per share)Author's 2027 estimates; multiples applied to $7.70 EPS. As of Oct 13, 2026.
Valuation
| 2027 revenue | $90.0 billion |
| 2027 common profit | $22.42 billion |
| 2027 profit per share | $7.70 per share |
| Bank multiple | 12 times |
| Target | $92.45 per share |
Twelve times profit, the price paid for each dollar of yearly profit, fits a bank earning near 15% on tangible equity. It matches peers growing after regulatory relief. Upside to 13 times is 24% while downside to 10 times is 5%.
Risks
- Deposit costs stay high and margin, the gap between loan yields and funding costs, stays near 2.43%. Watch quarterly net interest income and noninterest bearing deposits.
- Credit losses rise in commercial and auto loans beyond the current 0.18% and 0.70% charge off pace. Watch nonaccrual loans and provisions each quarter.
- Capital stays tight near 10.0% if long rates stay near 7.40% on mortgages. Watch AOCI, buyback dollars and the CET1 ratio, the core safety buffer.
What would change my mind
Loan growth fails to lift net interest income in the next two quarters while buybacks slow to rebuild capital.