What Happened?
Shares of financial services giant Wells Fargo (NYSE: WFC) jumped 6.4% in the morning session after the company reported third-quarter 2025 results that topped Wall Street's revenue and profit expectations.
The company posted revenue of $21.44 billion, a 5.3% year-over-year increase that beat analyst estimates, while its earnings per share of $1.66 surpassed consensus forecasts by 7.4%. The positive results were tempered by a slight miss in net interest income, a key metric for bank profitability that measures the difference between what the bank earns on loans and pays on deposits. Despite some underlying weaknesses, the headline beats on revenue and earnings appeared to satisfy investors, sending the stock higher.
Is now the time to buy Wells Fargo? Access our full analysis report here.
What Is The Market Telling Us
Wells Fargo’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock dropped 6.1% on the news that the bank cut its full-year guidance for net interest income.
Despite beating Wall Street's second-quarter profit and revenue estimates, the bank's revised forecast is weighing on investor sentiment., Wells Fargo now expects its 2025 net interest income (NII) — the difference between what it earns on loans and pays for deposits — to be roughly flat compared to 2024's $47.7 billion. This, is a notable reduction from its previous guidance, which anticipated growth at the low end of a 1% to 3% range. The bank attributed the lowered NII outlook primarily to its Markets business. While second-quarter earnings per share of $1.60 and revenue of $20.82 billion both topped analyst expectations, the disappointing guidance for this key profitability metric overshadowed the otherwise solid results.
Wells Fargo is up 20.8% since the beginning of the year, and at $84.82 per share, it is trading close to its 52-week high of $85.16 from September 2025. Investors who bought $1,000 worth of Wells Fargo’s shares 5 years ago would now be looking at an investment worth $3,648.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free for active Edge members and will only take you a second.