Wells Fargo Q2 Earnings Beat Estimates but Stock Dips on NII Concerns

Wells Fargo & Co. (NYSE: WFC) delivered stronger-than-expected Q2 2025 earnings, with adjusted EPS of $1.54 surpassing the $1.41 consensus. Net income jumped 12% year-over-year to $5.49B, buoyed by a 4% rise in non-interest income from wealth management and investment banking fees.

Despite the beat, shares tumbled 6.5% as net interest income declined 2% to $11.71B, reflecting margin pressure from floating-rate assets and deposit mix changes. Credit quality improved markedly, with provisions falling 19% to $1B and charge-offs declining.

The market's reaction highlights growing sensitivity to banking sector profitability challenges, even as Wells Fargo maintains a 12% YTD gain and 38% annual return. Fee-based revenue growth now appears critical to offset NII headwinds in the current rate environment.