Dec. 22, 2025 — Wells Fargo & Company (NYSE: WFC) is in focus heading into the final stretch of the year as investors weigh a new strategic move in markets, fresh deal-related headlines tied to big-ticket financing, and a still-shifting U.S. interest-rate backdrop.
Shares of Wells Fargo stock traded higher on Monday, hovering around $94 and up about 1% on the day at the time of reporting. With the stock near recent highs, attention is turning from the “cleanup and recovery” narrative toward what Wells can build now that its balance sheet is no longer constrained by the long-running regulatory asset cap—especially in capital-markets businesses where scale, funding, and risk infrastructure matter.
Below is a roundup of the most important news, forecasts, and analyses available as of Dec. 22, 2025, and what they could mean for WFC stock into 2026.
Wells Fargo stock price action: near highs as catalysts stack up
Wells Fargo shares have been trading close to their recent peak levels after a strong run through 2025. On Friday (Dec. 19), WFC closed at $93.01, and the stock was described as sitting just 1.33% below its 52-week high of $94.26 (reached Dec. 15), with trading volume notably above its recent average. [1]
By midday Monday (Dec. 22), WFC was again trading around the mid-$94 range. That proximity to the stock’s 12‑month high range matters because it changes the “setup” for investor expectations: when a stock is near highs, incremental headlines tend to be judged not just on whether they’re positive, but on whether they can extend growth and returns beyond what’s already priced in.
The headline move on Dec. 22: Wells Fargo targets the options-clearing market
The biggest stock-specific development on Dec. 22 is Wells Fargo’s push deeper into market plumbing: options clearing.
Multiple outlets reported that Wells Fargo is moving to enter/expand into the options-clearing business, a capital- and infrastructure-intensive area historically dominated by the largest U.S. dealers. [2]
Why this is a notable pivot for Wells Fargo
According to reporting cited by Bloomberg, Wells Fargo is aiming to become a player in options clearing, described as a business dominated by firms including Bank of America and Goldman Sachs. [3] Bloomberg Law’s coverage similarly framed the move as Wells Fargo stepping into a space with high barriers to entry—and significant strategic implications for client relationships. [4]
The timing is also important: Reuters has noted that Wells Fargo’s ambitions have accelerated after regulators lifted its long-standing asset cap in June 2025, freeing the bank to expand again. [5]
What “options clearing” means in plain English
Clearing is the post-trade process that helps ensure trades settle and counterparties perform. For options, clearing brokers and clearing members play a key role in margining, risk controls, and default protections. It’s typically:
- Operationally complex (systems, risk, client onboarding)
- Capital intensive (margin requirements, default-fund and liquidity planning)
- Sticky once clients are on board (high switching costs)
That “stickiness” is exactly why it can be strategically valuable—even if it isn’t instantly material to quarterly earnings.
What this could mean for WFC stock: upside potential, but also new risk questions
For Wells Fargo stock, the market is likely to interpret an options-clearing push through two lenses:
1) Revenue mix and wallet-share expansion
A clearing relationship can be a gateway to broader prime brokerage-style services, execution, financing, and derivatives-related client activity. In short: it can deepen institutional relationships and potentially expand fee opportunities over time.
This aligns with Wells Fargo’s broader push to rebuild and grow its markets and investment-banking footprint. Reuters recently documented the bank’s expanded hiring and pipeline-building efforts, arguing that Wells is no longer content to be “just” a traditional lender in corporate finance. [6]
2) Risk, capital, and “earnings quality”
Clearing can introduce new operational and tail-risk considerations. Even if these risks are well-managed, the equity market tends to demand clarity on:
- How much balance-sheet capacity the business consumes
- How margin and default risk are managed
- Whether returns meet the bank’s hurdle rates
As Wells Fargo pushes into more market-facing activities, investors will likely watch whether the bank can grow without trading away its “higher-quality earnings” perception.
The bigger strategy: Wells Fargo’s post-asset-cap growth push is accelerating
If options clearing is the “today” headline, the “bigger picture” is Wells Fargo’s effort to compete more aggressively in capital markets and advisory.
Investment banking momentum and hiring spree
In a Reuters report published earlier this month, Wells Fargo said it plans to extend its investment-banking hiring pace after new recruits and market-share gains helped lift the bank’s standing in M&A activity. Reuters reported that Wells Fargo climbed to eighth in the global M&A league table by volume (from 17th in 2024), calling it the biggest jump among major banks and the first time Wells placed in the top ten since Dealogic began compiling the data in 1995. [7]
The same Reuters piece linked the effort to CEO Charlie Scharf’s goal of becoming a top-five investment bank, and highlighted Wells’ role on large, high-profile deals. [8]
The Wall Street Journal has likewise described 2025 as Wells Fargo’s best year in investment banking, pointing to stronger M&A league-table positioning and a more motivated internal culture around dealmaking. [9]
Why that matters for WFC stock: investors generally reward large banks when they can credibly add durable fee lines—especially if those businesses scale without outsized volatility.
The Fed backdrop: rate cuts change the math for bank earnings
Macro still matters for every U.S. bank stock, including Wells Fargo.
On Dec. 10, 2025, the Federal Reserve said it lowered the federal funds target range by 0.25 percentage point to 3.50%–3.75%, and emphasized that future adjustments depend on incoming data, the outlook, and risks. [10] Reuters coverage around the decision highlighted that the cut took the benchmark rate to that 3.50%–3.75% range. [11]
For Wells Fargo, falling rates can be a two-sided story:
- Pressure on net interest income (NII) if asset yields reset faster than deposit costs
- Potential tailwinds from improved loan demand, capital markets activity, and credit conditions—depending on the economy
Wells Fargo’s own outlook: what management has guided (and what investors will watch)
Investors don’t have to guess entirely about near-term direction—Wells Fargo has laid out key guideposts.
In its third-quarter 2025 investor presentation, Wells Fargo said it expects 2025 net interest income to be roughly in line with 2024 NII of $47.7 billion, and it projected 4Q25 NII of about $12.4–$12.5 billion. [12]
On the cost side, Wells Fargo guided to:
- 2025 noninterest expense of about $54.6 billion, reflecting higher severance and revenue-related compensation, and
- 4Q25 noninterest expense of about $13.5 billion [13]
Why this matters for WFC stock into earnings season: with the stock near highs, investors will likely be sensitive to any signal that NII is rolling over faster than expected—or that expense discipline is slipping. Conversely, reaffirmed guidance (or upside surprises) can be powerful late-cycle catalysts.
Workforce reductions and AI: efficiency remains a core part of the bull case
Cost control isn’t just an abstract line item: management is explicitly leaning into workforce efficiency—now with AI framed as a long-term lever.
Reuters reported this month that CEO Charlie Scharf said Wells Fargo expects more job cuts going into 2026 and likely higher severance expense in the fourth quarter, while rolling out AI gradually over the next year and beyond. Reuters added that Wells Fargo’s headcount declined from about 275,000 when Scharf joined in 2019 to a little over 210,000 as of Sept. 30, 2025. [14]
Market implication: efficiency is one of the clearest, most “bankable” levers for earnings growth if revenue is pressured by rates. But investors will also watch for execution risk—especially around service quality, regulatory controls, and operational resilience.
Capital and balance sheet headlines: debt redemption, rail-asset transaction, and mega-deal financing
Beyond strategy and macro, several “plumbing” items can influence how investors view capital flexibility and earnings durability.
1) Wells Fargo debenture redemption
Wells Fargo announced it will redeem all of its floating rate junior subordinated debentures due Jan. 15, 2027 on Jan. 15, 2026 at 100% of principal plus accrued interest. The company also noted that this redemption is expected to remove certain covenant conditions related to the repurchase or redemption of its Series BB preferred stock. [15]
2) Rail assets: regulatory clearances for acquisition of Wells Fargo’s portfolio
On Dec. 22, GATX said it and Brookfield Infrastructure received all required regulatory clearances to complete the acquisition of Wells Fargo’s rail operating lease portfolio, to be completed via a joint venture. [16]
This is not the kind of headline that usually moves WFC shares by itself—but it can matter for investors tracking balance-sheet optimization, capital release, and focus on core franchises.
3) Netflix financing: Wells Fargo named in new credit facility headline
Deal financing continues to place Wells Fargo alongside the biggest banks. A Reuters headline circulated Monday noted Netflix entered a $5 billion revolving credit agreement with Wells Fargo, citing an SEC filing. [17]
Separately, Reuters reported Netflix refinanced part of a bridge loan tied to its Warner Bros. Discovery-related transaction path, including a $5 billion revolving credit facility and delayed-draw term loans. [18]
Why WFC investors care: even when fees are not disclosed, repeated appearances on marquee financings reinforce the story that Wells Fargo’s corporate and investment bank is winning larger mandates—supporting a longer-run mix shift toward fee revenues.
Wells Fargo stock forecast: what analysts’ targets imply as of Dec. 22, 2025
With WFC near highs, forecasts are mixed—not necessarily on direction, but on how much upside remains.
Consensus targets look “tight” versus the current price
MarketBeat’s compilation of analyst targets shows:
- Average 12-month price target:$92.04
- High target:$107.00
- Low target:$73.50
- Consensus described as “Moderate Buy” (more buys than holds), but with the average target implying modest downside from around $94. [19]
MarketScreener, using widely followed data providers, shows a different aggregated snapshot:
- Mean consensus listed as Outperform
- Average target price:$95.79
- Last close price referenced:$93.01
- And it lists Jan. 14 as the next earnings release date for Q4 2025 [20]
Recent target changes (examples)
Benzinga’s analyst-ratings feed shows recent updates including:
- Truist raising its target to $100 while maintaining Buy (Dec. 18)
- Keefe, Bruyette & Woods raising its target to $101 while maintaining Market Perform (Dec. 17) [21]
How to interpret this for WFC stock: the spread of targets suggests analysts generally see Wells Fargo as competitively positioned—but with the stock already up strongly, many forecasts reflect a “good company, not unlimited upside” stance unless earnings power expands meaningfully in 2026.
Bull case vs. bear case for Wells Fargo stock in 2026
Here’s what the market is likely to debate next—especially with WFC near its 12-month range.
What could drive WFC stock higher
- Successful expansion in capital markets (including options clearing) that increases fee and trading-related revenues without outsized volatility [22]
- Continued investment-banking momentum, supported by hiring and larger mandates [23]
- Efficiency gains from continued workforce reductions and gradual AI rollout [24]
- Stronger-than-feared NII performance, within or above management’s guideposts [25]
What could pressure the stock
- Rate-cut headwinds to net interest income if margin compression outpaces any improvement in demand or fees [26]
- Execution risk as Wells expands in complex, risk-sensitive businesses like clearing [27]
- Cost creep (severance, compensation, operational spending) that blunts operating leverage [28]
References
1. www.marketwatch.com, 2. ng.investing.com, 3. www.bloomberg.com, 4. news.bloomberglaw.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.wsj.com, 10. www.federalreserve.gov, 11. www.reuters.com, 12. www.wellsfargo.com, 13. www.wellsfargo.com, 14. www.reuters.com, 15. newsroom.wf.com, 16. www.businesswire.com, 17. www.tradingview.com, 18. www.reuters.com, 19. www.marketbeat.com, 20. www.marketscreener.com, 21. www.benzinga.com, 22. www.bloomberg.com, 23. www.reuters.com, 24. www.reuters.com, 25. www.wellsfargo.com, 26. www.federalreserve.gov, 27. www.bloomberg.com, 28. www.wellsfargo.com
