Wells Fargo Reports Strong Q1 Earnings, Sees Margin Pressure Ahead

Bank cites broad-based revenue growth, loan and deposit gains, but warns of net interest margin contraction

Apr. 14, 2026 at 5:06pm by

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An extreme close-up of the intricate metal gears and levers of a large banking machine, conveying the complex, industrial nature of modern finance without using literal financial symbols.Wells Fargo's first quarter earnings report highlights the bank's continued investment in its operational infrastructure, even as it navigates margin pressures and regulatory changes.San Francisco Today

Wells Fargo & Company reported first quarter results that showed continued momentum, including higher earnings, broad-based revenue growth, and growth in both loans and deposits. However, executives warned of expected net interest margin compression in the coming quarter due to factors like growth in lower-margin Markets assets and higher interest-bearing deposits.

Why it matters

As one of the largest U.S. banks, Wells Fargo's performance and outlook provide insights into the broader financial sector and economic conditions. The bank's commentary on margin pressure, credit quality, and regulatory changes are closely watched by investors and analysts.

The details

Wells Fargo reported a 15% increase in diluted earnings per share and a 6% rise in revenue, driven by a 5% increase in net interest income and an 8% increase in non-interest income. Each operating segment posted revenue growth year-over-year. The bank returned $5.4 billion to shareholders during the quarter, including $4.0 billion of common stock repurchases. Capital levels remained strong, with a CET1 ratio of 10.3%.

  • Wells Fargo reported first quarter results on April 14, 2026.
  • The bank said it expected additional net interest margin compression in the next quarter.

The players

Wells Fargo & Company

A diversified, U.S.-based financial services company headquartered in San Francisco, California. Founded in 1852, the firm has evolved from its origins in express delivery and pioneer-era banking into one of the largest full-service banks in the United States.

Charlie Scharf

The chief executive officer of Wells Fargo & Company.

Mike Santomassimo

The chief financial officer of Wells Fargo & Company.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee

What’s next

The bank said it maintained its guidance of approximately $50 billion '±' of net interest income in 2026 and continued to expect net interest income to grow over the course of the year, though the outlook assumed two to three Federal Reserve cuts.

The takeaway

Wells Fargo's strong first quarter results highlight the bank's continued momentum, but the expected net interest margin compression signals challenges ahead as the company navigates a shifting economic and interest rate environment.