Wells Fargo is finally back. For years, the bank was basically stuck in a regulatory penalty box, unable to grow its assets or compete with the big guys. It was a mess. But as we head into 2026, the vibe has shifted. The handcuffs are off.
Honestly, the Wells Fargo company stock story used to be just about surviving the next fine. Not anymore. After the Federal Reserve officially lifted that infamous $1.95 trillion asset cap last June, the company has started to look like a real growth play again. CEO Charlie Scharf just dropped the Q4 2025 earnings report on January 14, 2026, and the numbers tell a story of a bank that is aggressively making up for lost time.
The Numbers Most People Miss
The stock closed at $88.37 on Friday, January 16, 2026. If you've been watching the charts, you know the stock had a monster run in 2025—up about 34%. That beat the pants off the broader banking sector. But even with that rally, the recent earnings call caused a bit of a "sell the news" reaction.
Why?
The bank beat earnings expectations ($1.76 adjusted EPS versus $1.66 predicted), but revenue was a tiny bit light. Investors are picky. They saw $21.29 billion in revenue when they wanted $21.64 billion. But if you look under the hood, the growth engine is humming. Total assets grew by 11% year-over-year. That's what happens when you're finally allowed to expand your balance sheet.
What happened in Q4 2025?
- Net Income: $5.4 billion.
- Credit Cards: New accounts spiked 21%. They are finally being aggressive here.
- Auto Loans: Up 19%. This used to be a shrinking business for them.
- Wealth Management: Client assets hit $2.5 trillion.
Scharf basically said the company is now on a "level playing field." For the first time in nearly a decade, Wells Fargo doesn't have to fight with one hand tied behind its back.
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Why Wells Fargo Company Stock is Different Now
There’s a massive misconception that Wells Fargo is just a "boring dividend stock." It’s not. It’s a turnaround story that is pivoting into an investment banking powerhouse. They actually jumped from 12th to 8th in the U.S. M&A rankings last year. That's a huge leap in the world of high-finance ego and fees.
The bank is projecting about $50 billion in Net Interest Income (NII) for 2026. That’s a massive number. Management is targeting a Return on Tangible Common Equity (ROTCE) of 17% to 18% in the medium term. They hit 15% in 2025, so they are moving fast.
The AI and Efficiency Factor
Efficiency is the new obsession. Scharf has been cutting headcount for 22 consecutive quarters. They are down to about 210,000 employees from 275,000 a few years ago.
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Now, they are leaning into AI. They aren't just talking about chatbots; they are using GenAI to write code 30% faster and automate back-office tasks. They spent $612 million on severance in Q4 2025 alone to prepare for more cuts in 2026. It’s brutal, but from a purely financial perspective, it’s making the bank much leaner.
What’s the Catch?
Nothing is ever perfect. The 2026 guidance assumes the Fed will cut rates two or three times. If rates stay higher for longer, it might help their interest margins but hurt loan demand.
Also, they are slowing down on stock buybacks. In 2025, they returned $23 billion to shareholders, including $18 billion in repurchases. For 2026, they want to keep that cash to fund organic loan growth. Some investors who love buybacks might find that annoying, but it’s a signal that management sees better returns in lending than in buying back their own shares.
Practical Steps for Investors
If you're looking at Wells Fargo company stock right now, don't just stare at the daily price fluctuations. The market is currently digesting a lot of growth.
- Watch the 10-Year Treasury: The bank's 2026 NII projection depends on this staying relatively stable. If it spikes or crashes, the $50 billion target might shift.
- Monitor the Consent Orders: They closed seven last year, but one big one from 2018 is still hanging around. When that last one drops, it's a huge psychological win for the stock.
- Analyze Segment Growth: Keep an eye on the "Wells Fargo Premier" offering. They grew those affluent deposits by 14% last year. If they can keep stealing high-net-worth clients from competitors, the fee income will stay strong.
- Check the Dividends: The current quarterly dividend is $0.45, with a yield around 2.02%. The next ex-dividend date is February 9, 2026.
The bank is no longer just a legal liability with a stagecoach logo. It's a $224 billion machine that's finally allowed to move forward. The era of "fixing" Wells Fargo is ending, and the era of "growing" it is starting.