Wells Fargo (WFC) Stock After Hours on December 10, 2025: Prime-Rate Cut, AI Job Cuts and 2026 Outlook

Wells Fargo & Company (NYSE: WFC) heads into Thursday’s U.S. session sitting near record highs, just as the Federal Reserve cuts rates again and the bank itself trims its prime lending rate. At the same time, management is signaling more AI‑driven job cuts in 2026 and regulators are still tidying up legacy legal issues.

Here’s a structured look at what happened to Wells Fargo stock after the bell on December 10, 2025, and what traders and long‑term investors should know before the market opens on December 11, 2025.

1. How Wells Fargo Stock Traded on December 10, 2025

Closing action

Last price (regular session): about $90.69
Change on the day:+$1.80 (+2.02%)
Previous close:$88.89 ^[1]
Day’s range:$88.19 – $90.87, with the close near the top of the range. ^[2]
52‑week range: roughly $58.42 – $91.11, putting Wednesday’s close within a few percentage points of the 52‑week high. ^[3]

Trading volume came in at about 19.6 million shares, versus a three‑month average near 14.7 million, signaling heavier‑than‑usual interest as investors digested both Fed policy and Wells Fargo‑specific headlines. ^[4]

Context: Fed cut fuels a bank rally

The move in WFC didn’t happen in a vacuum. On December 10, the Federal Reserve cut its benchmark rate by 25 basis points to a new target range of 3.5%–3.75%, its third consecutive cut, and hinted it may pause after this move. ^[5]

Equity markets responded positively, with major U.S. indices closing higher as traders priced in easier financial conditions, even while acknowledging deep divisions inside the Fed about the path forward. ^[6]

Banks like Wells Fargo tend to be rate‑sensitive: lower short‑term rates can compress net interest margins over time, but they also support loan demand and improve credit quality. Wednesday’s move looked like the market leaning toward the bullish interpretation — at least for now.

2. After-Hours and Early Read-Through for December 11

In after‑hours trading on December 10, Wells Fargo’s stock barely budged:

After‑hours last trade: around $90.85, up about 0.18% from the regular close. ^[7]

That modest uptick suggests that the bulk of the reaction to both the Fed decision and Wells Fargo’s own news was already priced in during the cash session.

Overnight pre‑market indications for Thursday show WFC quoted around the high‑$80s, slightly below Wednesday’s close, implying a mild pullback as traders reassess the impact of lower rates and the bank’s prime‑rate cut. (Pre‑market quotes are thinly traded and can change quickly once regular trading begins.)

3. Big Story #1 – Wells Fargo Cuts Its Prime Rate to 6.75%

The most concrete company‑specific headline after the bell was Wells Fargo’s move to adjust the rate many of its loans are tied to.

3.1 What changed?

On the afternoon of December 10, Wells Fargo Bank, N.A. announced that it is decreasing its prime rate from 7.00% to 6.75%, effective Thursday, December 11, 2025. ^[8]

This 25‑basis‑point cut closely follows the Fed’s quarter‑point move and lines up with similar decisions by other major U.S. banks.

The prime rate is a benchmark for:

Many variable‑rate consumer loans, such as some credit cards and home equity lines of credit.
Commercial lines of credit and small‑business borrowing.

3.2 Why it matters for WFC stock

Short term, the prime‑rate cut has mixed implications:

Pressure on net interest margin (NIM):
– Loans tied to prime will reprice downward relatively quickly.
– Deposit costs often adjust more slowly, so Wells Fargo may see slight near‑term margin compression.
Supportive for credit quality and loan demand:
– Lower borrowing costs can help stressed borrowers stay current, reducing credit losses.
– Over time, cheaper credit tends to support loan growth, especially in consumer and small‑business segments.

Given that WFC is now trading at roughly 15x earnings and about 1.7x book value with a dividend yield near 2%, investors appear to be betting that a healthier economy and stronger loan growth will offset some of the margin squeeze from lower rates. ^[9]

4. Big Story #2 – 2026 Macro Outlook from Wells Fargo Investment Institute

The macro backdrop now has a fresh in‑house forecast from Wells Fargo’s own strategists.

On December 10, Wells Fargo Investment Institute (WFII) released its 2026 outlook, “Trendlines over headlines,” expecting a constructive but bumpy environment for risk assets. TechStock²+1

Key WFII assumptions for 2026:

U.S. GDP growth: about 2.4%
Inflation (CPI): around 2.8%
Fed funds rate:3.00%–3.25%
S&P 500 target range:7,400–7,600, implying roughly 10% upside from current levels. TechStock²+1

The outlook highlights:

A transition from restrictive to more neutral policy, as rate cuts work through the system.
Ongoing AI and data‑center investment as major earnings drivers. ^[10]
A preference for U.S. large‑ and mid‑cap equities, industrials and precious metals as key opportunity areas. ^[11]

4.1 What this means for Wells Fargo

For a large lender like WFC, WFII’s base case suggests:

Reasonable loan growth in a 2%‑plus GDP environment.
Manageable credit risk, with inflation moderating but not collapsing.
A more benign backdrop for capital markets, which supports investment banking and wealth‑management fees.

In other words, the bank’s own strategists are laying out a scenario in which earnings growth remains plausible even as rates drift lower — a narrative that fits with Wells Fargo’s post‑turnaround story.

5. Big Story #3 – AI, Job Cuts and Efficiency in 2026

Another crucial storyline hanging over the stock is workforce restructuring and the role of artificial intelligence.

5.1 CEO Scharf’s message: fewer people, more AI

On December 9, ahead of Wednesday’s session, CEO Charlie Scharf told investors at Goldman Sachs’ U.S. Financial Services Conference that Wells Fargo: ^[12]

Expects additional headcount reductions in 2026, even before fully factoring in AI.
Anticipates higher severance expenses in Q4 2025, as the bank restructures operations.
Is seeing 30%–35% efficiency gains among engineers using generative‑AI tools for coding, though it has not yet reduced headcount in that area. ^[13]
Plans to roll out AI “gradually over the next year and beyond,” emphasizing changes in how work is done rather than a simple replacement of people. ^[14]

The message is clear: Wells Fargo is leaning into AI to cut costs and boost productivity, and that will likely mean fewer employees over time.

5.2 How markets interpret this

For investors, this is a classic short‑term pain, long‑term gain scenario:

Near term:
– Severance charges in Q4 2025 could inflate expenses, muting quarterly profits.
Medium term:
– Sustainable cost savings could lift return on equity (ROE) and support higher valuation multiples.
Long term:
– Execution risk remains: AI projects can overrun on cost, and aggressive job cuts can hurt morale or service quality if mismanaged.

So far, markets seem comfortable with the strategy: WFC shares are hovering just below record territory as of December 10, reflecting investor confidence that the efficiency drive will pay off. TechStock²+1

6. Big Story #4 – Legal and Regulatory Overhangs: 401(k) Settlement and “Debanking” Scrutiny

Wells Fargo’s multi‑year clean‑up is not completely over. Two recent developments are worth having on your radar before Thursday’s open.

6.1 $84 million 401(k) stock settlement progresses

On December 9, a federal judge in Minnesota gave preliminary approval to an $84 million class settlement for Wells Fargo employees over how stock dividends in the company’s 401(k) plan were handled. ^[15]

Key details:

The deal covers about 425,000 plan participants who held Wells Fargo stock in their retirement accounts between September 2016 and December 2022. ^[16]
Plaintiffs alleged that dividend income from preferred stock was improperly used to satisfy the bank’s own contribution obligations instead of going directly to workers. ^[17]
A fairness hearing is scheduled for March 17, 2026. ^[18]

Financially, $84 million is small relative to Wells Fargo’s annual net income (over $5.6 billion in Q3 2025 alone). ^[19] But it underscores that legacy conduct issues are still winding through the courts, which can influence how regulators and some investors perceive the bank.

6.2 OCC “debanking” review adds compliance risk

A separate storyline highlighted in December 10 analysis is a new Office of the Comptroller of the Currency (OCC) review indicating that Wells Fargo and several other large banks engaged in so‑called “debanking” of certain lawful industries, potentially raising further questions about compliance processes and risk controls. TechStock²

For now, this is more of a reputational and compliance issue than a direct earnings hit, but it’s another reminder that:

Regulatory expectations for big banks remain high.
Wells Fargo is judged not just on earnings, but on its ability to avoid new scandals as it emerges from the asset‑cap era.

7. Earnings Momentum, Buybacks and the Post–Asset Cap Story

Behind the day‑to‑day headlines, the medium‑term investment case for Wells Fargo remains anchored in three pillars: earnings growth, regulatory normalization, and capital returns.

7.1 Q3 2025 results: broad‑based strength

In Q3 2025, Wells Fargo delivered results that most analysts saw as decidedly strong: ^[20]

Earnings per share (EPS):$1.66, beating consensus estimates around $1.55.
Net income: about $5.6 billion, up 9% year‑on‑year.
Total revenue: roughly $21.4 billion, up about 5% from the prior year.
Non‑interest income: up about 9%, helped by a 25% jump in investment banking fees, showing progress in diversifying revenue beyond traditional lending.
Net interest income: grew about 2%, supported by careful asset repricing.
Provision for credit losses: around $681 million, down from more than $1.0 billion a year earlier, signaling improved credit quality.

These results, combined with the Fed’s earlier removal of Wells Fargo’s $1.95 trillion asset cap in June 2025, have reinforced the view that the bank has moved from “repair mode” to growth mode. ^[21]

7.2 Asset‑cap removal: growth is back on the table

The Fed’s decision in June 2025 to lift the asset cap — imposed after the 2016 fake‑accounts scandal — was a pivotal milestone:

It removes a major growth constraint, allowing Wells Fargo once again to expand its balance sheet.
Regulators acknowledged “substantial progress” in governance and risk‑management reforms. ^[22]
Analysts see this as eliminating a big valuation overhang, enabling the bank to compete more aggressively in credit cards, wealth management and commercial banking. ^[23]

7.3 Capital returns: $40 billion buyback and dividends

Wells Fargo has also been returning large amounts of capital to shareholders:

The board approved a $40 billion share‑repurchase program in 2025, following a prior $30 billion authorization. TechStock²
In Q3 2025 alone, the bank repurchased roughly $6.1 billion of stock, shrinking shares outstanding by about 6% versus a year earlier. ^[24]
The quarterly dividend currently stands at roughly $1.80 annually, a yield just under 2% at current prices. ^[25]

For investors looking ahead to Thursday’s session and beyond, these capital‑return policies provide a buffer against volatility — and help explain why WFC has kept grinding higher even after a multi‑year rally.

8. Valuation Check: What Analysts and Models Say on December 10

With the stock near all‑time highs, the obvious question is whether there’s still upside from here.

8.1 Street price targets

According to the latest Investing.com consensus data:

Average 12‑month price target: about $94 per share
High estimate: around $101
Low estimate: around $83
The stock carries an overall “Buy” rating from the analyst cohort tracked there, with the average target implying modest upside versus Wednesday’s $90‑plus close. ^[26]

On top of that, Piper Sandler recently raised its WFC target from $93 to $100 and kept an “Overweight” rating, joining Bank of America among the more bullish houses on the name. TechStock²

8.2 Independent fair‑value models

Valuation models outside Wall Street are, if anything, even more optimistic:

Simply Wall St’s “Excess Returns” model estimates an intrinsic value around $110.58 per share, implying Wells Fargo is roughly 19.6% undervalued versus current levels. ^[27]

By traditional metrics, WFC doesn’t look stretched:

P/E ratio: ~14.9x trailing earnings.
Price‑to‑book: about 1.7x.
Return on equity: a bit above 12%, with management targeting 17–18% ROTCE over the medium term. ^[28]

If the bank can deliver on those return targets, there is a case for further multiple expansion — though much of the easy re‑rating may already be behind it.

9. Key Things to Watch Before the December 11, 2025 Open

Heading into Thursday’s session, here’s what stands out for Wells Fargo shareholders and short‑term traders:

Reaction to the prime‑rate cut
- Watch how the broader banking sector trades on day two of the Fed/prime‑rate narrative.
- Any fresh commentary from management or analysts about margin guidance will be important.
Follow‑through on Fed news
- Futures and bond yields will shape the tone: if markets start to question the Fed’s ability to continue cutting, rate‑sensitive stocks like WFC could see volatility in both directions. ^[29]
Updates on AI and headcount plans
- Look for transcripts or additional color from the Goldman Sachs conference and future management appearances. Investors will be parsing whether cost savings outweigh the severance drag expected in Q4. ^[30]
Ongoing regulatory headlines
- Any new details or enforcement actions around OCC “debanking” findings or other consent‑order resolutions could move sentiment. TechStock²+1
Technical levels
- With WFC trading near $90–91, it’s only a short hop to recent record highs. Many chart watchers see support in the mid‑$80s and potential resistance in the mid‑$90s up toward $100, based on technical projections cited in recent analyses. TechStock²

10. Bottom Line

After the bell on December 10, 2025, Wells Fargo stock is:

Near record highs, boosted by a friendlier rate environment and strong recent earnings. ^[31]
Adjusting its prime rate down to 6.75%, aligning with the Fed’s latest cut and signaling slightly cheaper borrowing costs for customers. ^[32]
Deepening its AI‑driven efficiency push, with more job cuts likely in 2026 and higher severance expenses in the near term. ^[33]
Still untangling legacy legal and regulatory issues, like the $84 million 401(k) settlement and fresh scrutiny over “debanking” practices. ^[34]
Viewed by many analysts and valuation models as having some upside left, though the easy part of the recovery rally may already be in the rear‑view mirror. ^[35]

For anyone watching WFC into the December 11 open, the trade‑off is clear: you’re looking at a bank that has largely repaired its balance sheet and reputation, is now free to grow again, and is using AI and buybacks to push returns higher — but also one that faces margin pressure from lower rates and must navigate the final stages of its regulatory clean‑up without missteps.

References

Wells Fargo (WFC) Stock After Hours on December 10, 2025: Prime-Rate Cut, AI Job Cuts and 2026 Outlook – What to Know Before the December 11 Open