Wells Fargo reported $5.253 billion in net income for the first quarter of 2026, up from $4.894 billion a year earlier. Diluted earnings per share increased to $1.60 from $1.39, while total revenue reached $21.446 billion. The April 14 results show that stronger lending and interest income supported growth, but they also reflect higher noninterest revenue and a one-time tax benefit.
Wells Fargo’s earnings release covers the quarter ended March 31, 2026.
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What Wells Fargo reported
| Measure | Q1 2026 | Q1 2025 | Year-over-year change |
|---|---|---|---|
| Net income | $5.253 billion | $4.894 billion | Higher |
| Diluted EPS | $1.60 | $1.39 | Higher |
| Total revenue | $21.446 billion | $20.149 billion | Higher |
| Net interest income | Not stated as a company-wide dollar comparison in the release | Not stated | Up 5% |
| Loans | Not stated as a dollar balance in the cited summary | Not stated | Up 11% |
| Noninterest income | Not stated as a dollar balance in the cited summary | Not stated | Up 8% |
The company said every operating segment increased revenue from the year-earlier quarter. Reuters separately reported net interest income of approximately $12.1 billion, also a 5% increase, while the company’s release remains the preferred source for the official comparisons. Reuters coverage reprinted by MarketScreener described the result as profit rising on an interest-income boost.
How loan growth and interest income lifted profit
Loans grew faster than net interest income
Wells Fargo reported an 11% year-over-year increase in loans and a 5% increase in net interest income (NII). More loans can generate additional interest revenue, but NII does not move in lockstep with loan balances because the bank must also pay for the deposits and other funding used to make those loans.
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What net interest income means
NII is the interest earned on assets such as loans and securities minus interest paid on deposits and debt. Its level and margin depend on the amount and mix of earning assets, the rates those assets earn, and the cost of funding them. Consequently, an 11% increase in loans does not by itself explain the entire 5% NII increase or establish how profitable each new loan was. Wells Fargo discusses these relationships in its 2025 annual report.
Interest income was not the whole revenue story
Total revenue rose 6%. Management attributed that increase to NII growth of 5% and an 8% increase in noninterest income. Noninterest revenue can include activities outside the lending spread, so the quarter’s broader revenue gain cannot be credited to loan growth alone.
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Other factors affecting the quarter’s earnings
A discrete tax benefit
Wells Fargo recorded a $135 million discrete tax benefit, equal to $0.04 per share, from resolving prior-period matters. It increased reported first-quarter earnings, but it is not a recurring operating contribution and should be separated from the underlying lending and revenue trends.
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Credit quality remained stable in the reported measure
Chief Executive Officer Charlie Scharf said net loan charge-offs were stable at 45 basis points. That figure provides credit-quality context for the loan expansion: growth occurred without a reported increase in this charge-off measure during the quarter.
Management’s explanation
“We saw continued positive impacts from the investments we have been making with diluted earnings per share increasing 15%, revenue increasing 6%, loans increasing 11%, and deposits increasing 7% compared to a year ago,” Scharf said in the company’s April 14 release.
The statement links the quarter’s performance to investments and identifies a 7% increase in deposits alongside loan growth. Deposits are important because they are a major source of bank funding; their pricing affects how much of the interest earned on loans remains as NII.
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Why funding costs and asset mix matter
Wells Fargo’s 2025 annual report reported full-year NII of $47.5 billion, broadly flat compared with $47.7 billion in 2024. It said lower rates on floating-rate assets and changes in deposit mix had offsetting effects, while higher securities and loan balances, lower deposit costs, fixed-rate asset repricing and better Markets results provided support. The report also said an asset cap constrained growth in deposits, loans and other assets during the first half of 2025.
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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsThat history helps explain why analysts look beyond a loan-growth headline. A larger balance sheet can raise interest revenue, yet the result depends on loan yields, securities holdings, deposit pricing, wholesale funding and the credit cost attached to those assets.
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How to read the result as an investor or depositor
- Reported profitability improved: net income and diluted EPS were both above the first-quarter 2025 levels.
- Lending momentum was strong: loans increased 11% year over year.
- NII improved, but less than loan balances: NII rose 5%, showing the role of funding costs and asset mix.
- Revenue was diversified: noninterest income increased 8%, and each operating segment reported year-over-year revenue growth.
- Reported EPS included a tax item: the $0.04-per-share benefit came from prior-period matters and should not be projected as recurring.
- Credit losses were measured as stable: net loan charge-offs were 45 basis points according to management.
What this report does—and does not—show
The results establish that Wells Fargo was more profitable in the first quarter of 2026 and that loan growth, NII and noninterest income all contributed to higher revenue. They do not show that loan growth alone produced the entire profit increase, nor do they provide a forecast for subsequent quarters. The company’s investor-relations calendar listed a third-quarter 2026 earnings release for October 13 at 10 a.m. Eastern; that later report is outside the results covered here. The schedule is available at Wells Fargo’s quarterly earnings calendar.
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