5 Revealing Analyst Questions From Wells Fargo’s Q4 Earnings Call

Wells Fargo’s fourth quarter was met with a significant negative market reaction, as revenue fell short of Wall Street’s expectations despite year-over-year growth. Management cited broad-based gains across consumer and commercial businesses, with CEO Charles Scharf highlighting momentum in fee-based revenue and expense discipline. Scharf pointed to ongoing headcount reductions and operational efficiencies as key contributors to positive operating leverage, while also acknowledging the impact of continued investments in digital channels and branch refurbishments. The company maintained strong credit performance, with net charge-offs declining and no meaningful shifts in consumer behavior.

Is now the time to buy WFC? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Wells Fargo’s Q4 Earnings Call

• Scott Siefers (Piper Sandler) asked about the drivers behind flat net interest income estimates for 2026, and CFO Michael Santomassimo explained that lower rates, growth in low-rate card balances, and deposit trends are the main factors.
• Kenneth Usdin (Autonomous Research) pressed on the trade-offs between growing balance sheet assets and capital returns, with Scharf clarifying that Wells Fargo now has flexibility to pursue both lending growth and stock buybacks due to improved capital levels.
• Ebrahim Poonawala (Bank of America) questioned the scalability of expense efficiency, to which Scharf and Santomassimo stressed ongoing opportunities for cost reduction and highlighted $15 billion already cut, with more tools available via automation.
• Betsy Graseck (Morgan Stanley) inquired about the impact of lower-return market assets on overall returns, and Santomassimo stated these do not dilute returns and are justified by the broader client relationship benefits.
• Steven Chubak (Wolfe Research) requested clarity on the timeline for reaching the 17–18% ROTCE target. Scharf responded that macroeconomic volatility prevents offering a specific timeframe, but underlying growth metrics will indicate progress.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will closely monitor (1) the pace of loan and deposit growth in consumer, commercial, and wealth management segments, (2) the realization of planned expense savings alongside technology investments, and (3) the impact of interest rate changes and regulatory developments on net interest income and capital allocation. Additional focus will be given to the company’s evolving business mix and progress in digital banking initiatives.

Wells Fargo currently trades at $86.85, down from $93.49 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

Our Favorite Stocks Right Now

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.