Updated: December 12, 2025 — Wells Fargo & Company (NYSE: WFC) closed Friday at $92.76, finishing a volatile but constructive week for U.S. bank stocks as investors digested a Federal Reserve rate cut, new company headlines, and shifting expectations for 2026 growth. [1]
Wells Fargo shares have also been supported by a bigger-picture narrative that has gained traction through 2025: the bank’s post–asset cap operating freedom, a push to expand investment banking, and a continued focus on expense discipline—even as AI adoption and additional job reductions remain part of the story. [2]
WFC stock performance this week
Wells Fargo ended Friday, Dec. 12 at $92.76, with this week’s price action marked by a sharp mid-week rebound after a Tuesday dip. [3]
Using Nasdaq’s closing data for the week: $90.06 (Mon. Dec. 8) → $92.76 (Fri. Dec. 12), WFC gained roughly +3.0% over the five sessions (a calculation based on those closing prices). [4]
How the week unfolded (closing prices):
- Mon (12/8): $90.06 [5]
- Tue (12/9): $88.89 [6]
- Wed (12/10): $90.69 [7]
- Thu (12/11): $92.59 [8]
- Fri (12/12): $92.76 [9]
WFC also traded up to an intraday high of $93.42 on both Thursday and Friday, placing the stock near fresh highs heading into next week. [10]
The biggest WFC headlines from the last few days
1) Wells Fargo’s investment-banking hiring spree is accelerating
A major stock narrative resurfaced on Friday: Wells Fargo is pressing harder into investment banking, with Corporate & Investment Banking CEO Fernando Rivas describing a continued pace of hiring “dozens” of managing directors annually and pointing to stronger pipelines and market-share gains. [11]
Reuters reported that Wells Fargo climbed to 8th in global M&A rankings by deal volume (preliminary Dealogic data), a jump from 17th in 2024, and its first top-10 placement since Dealogic began tracking in 1995. [12]
The same report highlighted Wells Fargo’s participation in large headline deals this year and cited LSEG estimates for potential advisory fees in the tens of millions of dollars on select transactions—illustrating why investors increasingly view fee businesses as a meaningful complement to traditional spread income. [13]
Why it matters for WFC stock: more consistent fee growth can help reduce dependence on net interest income (NII), which is sensitive to the rate cycle.
2) The Fed cut rates this week—changing the near-term rate backdrop for banks
On Dec. 10, the Federal Reserve cut the target range for the federal funds rate by 0.25 percentage point to 3.50%–3.75%. The statement also noted dissent among policymakers (including one preferring a 50-bp cut and others preferring no change). [14]
This matters to Wells Fargo investors because:
- Lower rates can pressure NII if asset yields reset faster than deposit costs fall.
- Lower rates can also help capital markets activity, refinancing, credit performance, and certain fee lines—especially if the economy stays resilient.
3) Wells Fargo Bank lowered its prime rate to 6.75%
Following the Fed decision, Wells Fargo Bank, N.A. said it would lower its prime rate to 6.75% from 7.00%, effective Dec. 11, 2025. [15]
Why it matters: Prime-rate changes ripple through many variable-rate consumer and commercial products. For WFC stock, investors typically translate this into updated expectations for loan yields, deposit pricing competition, and overall NII trajectory.
4) More job cuts in 2026—and AI is part of the productivity playbook
In comments reported this week, CEO Charlie Scharf said Wells Fargo expects headcount to be lower going into 2026, and Reuters also reported that severance costs are expected to be higher in the current quarter. [16]
Separately, Reuters also covered broader bank-industry commentary on AI-driven productivity gains, with Scharf describing how AI can enable the bank to do more without immediately cutting headcount—while still acknowledging that staffing levels are likely to trend down. [17]
What investors should watch: whether expense reductions come through cleanly without disrupting revenue momentum—especially as Wells Fargo simultaneously invests in growth areas like investment banking.
5) A new capital-markets headline: WFC plans to redeem floating-rate junior subordinated debentures
Wells Fargo announced it will redeem all of its Floating Rate Junior Subordinated Deferrable Interest Debentures due Jan. 15, 2027 on Jan. 15, 2026, paying 100% of principal plus accrued interest (to but excluding the redemption date). [18]
Why it matters: While not always a day-to-day stock catalyst, redemptions can signal active balance sheet and funding management—especially relevant in a shifting rate environment.
6) Regulatory backdrop: OCC “debanking” review includes Wells Fargo Bank
On Dec. 10, the OCC released preliminary findings from a supervisory review of “debanking” activities at the nine largest national banks it supervises, including Wells Fargo Bank. [19]
Why it matters for WFC stock: this is the type of headline that can elevate regulatory sensitivity, even if immediate financial impacts are uncertain. Investors will watch for follow-on actions, guidance changes, or enforcement posture as the OCC continues its work. [20]
The bigger driver investors still cite: life after the Fed asset cap
A key 2025 milestone remains Wells Fargo’s removal from the Federal Reserve’s asset growth restriction originating from the Board’s 2018 enforcement action.
- The Fed said on June 3, 2025 that Wells Fargo is no longer subject to the asset growth restriction, after determining the bank met required conditions; other provisions of the 2018 action remain until further requirements are satisfied. [21]
- Wells Fargo confirmed the Fed decision and described it as a “pivotal milestone,” noting required improvements included governance, compliance, operational risk work, and third-party review. [22]
Stock-market implication: investors tend to view the cap’s removal as a structural de-risking event that can expand strategic flexibility—supporting growth initiatives (like investment banking) and potentially improving valuation multiples over time. [23]
Fundamental snapshot: what Wells Fargo is guiding to (and why it matters now)
With the market increasingly looking ahead to 2026, Wells Fargo’s most recent guidance has become central to how investors frame upside versus risk.
From its third-quarter 2025 materials, Wells Fargo reported (among other items) net income of $5.6 billion and $1.66 diluted EPS, with revenue of $21.4 billion, net interest income of $12.0 billion, and average loans of $928.7 billion (up 2%) with average deposits of $1.3 trillion (down slightly). [24]
On profitability and spread dynamics, the same materials showed net interest margin (NIM) of 2.61% in 3Q25 (down 7 bps), with commentary pointing to mix effects (including growth in lower-yielding trading assets). [25]
Guidance highlights investors are anchoring to:
- 2025 net interest income (NII) expected to be roughly in line with 2024 NII of $47.7 billion
- 4Q25 NII expected around $12.4–$12.5 billion
- 2025 noninterest expense expected around $54.6 billion, with noted drivers including severance and compensation
- 4Q25 noninterest expense expected around $13.5 billion [26]
Why that matters for WFC stock next week: any macro data that shifts rate expectations (and therefore NII expectations) can move bank stocks quickly—especially when shares are near highs and positioning is optimistic.
Analyst forecasts: what Wall Street expects for WFC stock
Analyst views remain broadly constructive, but not one-sided.
MarketWatch’s compilation of analyst targets shows a high target of $101, a low target of $84, and an average target around $95.59 (with a median shown around $96.50). [27]
Against Friday’s close of $92.76, the average target implies only modest upside (roughly ~3% by simple arithmetic), which often signals that the market already reflects a meaningful portion of the bullish case—especially after the stock’s strong run. [28]
On earnings expectations, Zacks highlighted a positive rating view in late November and cited a consensus FY2025 EPS estimate of $6.28, noting estimate revisions higher over the prior three months. [29]
A quick valuation lens (simple math, not a forecast): using the Dec. 12 close ($92.76) and a $6.28 EPS estimate implies roughly ~14.8x price-to-estimated-earnings. That multiple will ultimately depend on the final reported results and forward guidance. [30]
Week-ahead outlook: what could move WFC stock next week (Dec. 15–19)
With the Fed decision behind the market, next week’s biggest drivers for Wells Fargo shares are likely to be interest-rate expectations and macro growth signals—because they feed directly into bank NII assumptions, credit outlook, and capital markets activity.
A Wells Fargo Investment Institute “Looking Ahead” note dated Dec. 12 flagged a busy calendar, including:
- Jobs data (including a November jobs report and October payrolls data)
- Retail sales
- S&P Global PMIs
- CPI for November
- University of Michigan consumer sentiment / inflation expectations [31]
The same outlook also pointed to several central bank events (including the ECB, Bank of England, and Bank of Japan) that can influence global yields and risk appetite—important for financials broadly. [32]
Two practical “week ahead” scenarios for WFC stock:
- Hotter CPI / stronger jobs → yields up → banks can catch a bid if markets shift toward fewer rate cuts and higher-for-longer policy.
- Softer CPI / weaker jobs → yields down → mixed impact: potentially supportive for credit and deal sentiment, but challenging for near-term NII expectations.
Key risks investors are watching
Even with upbeat narratives around investment banking momentum and post-cap flexibility, investors continue to watch several risks closely:
- Rate-path uncertainty: the Fed’s December statement highlighted elevated uncertainty and showed dissent among policymakers—often a recipe for higher rate volatility. [33]
- Execution risk in expansion: scaling investment banking is competitive and expensive; progress is real, but the bank still lags top peers in certain revenue league tables, per Reuters reporting. [34]
- Expense discipline vs. growth investment: job reductions can help efficiency, but investors will want evidence that cuts don’t impair franchise momentum—especially in client-facing areas. [35]
- Regulatory and political scrutiny: the OCC’s debanking review brings added attention to policy and supervisory practices at large banks, including Wells Fargo Bank. [36]
Bottom line for WFC stock into next week
Wells Fargo stock enters the week ahead near the top of its recent range after a week that combined: a Fed cut, prime rate adjustment, investment banking expansion headlines, AI/efficiency commentary, and balance sheet actions. [37]
For investors, the near-term setup is straightforward: macro data that moves yields and Fed expectations can swing WFC day-to-day, while the bigger thesis remains tied to whether Wells Fargo can convert post–asset cap flexibility into durable fee growth and improved returns—without letting expenses or regulatory headlines erode the story. [38]
One more catalyst is approaching on the calendar: Wells Fargo lists Q4 2025 earnings on Jan. 14, 2026, which is likely to become the next major company-specific reset point for guidance and sentiment. [39]
References
1. www.nasdaq.com, 2. www.reuters.com, 3. www.nasdaq.com, 4. www.nasdaq.com, 5. www.nasdaq.com, 6. www.nasdaq.com, 7. www.nasdaq.com, 8. www.nasdaq.com, 9. www.nasdaq.com, 10. stockanalysis.com, 11. www.reuters.com, 12. www.reuters.com, 13. www.reuters.com, 14. www.federalreserve.gov, 15. newsroom.wf.com, 16. www.reuters.com, 17. www.reuters.com, 18. newsroom.wf.com, 19. www.occ.gov, 20. www.occ.gov, 21. www.federalreserve.gov, 22. newsroom.wf.com, 23. www.reuters.com, 24. www.wellsfargo.com, 25. www.wellsfargo.com, 26. www.wellsfargo.com, 27. www.marketwatch.com, 28. www.nasdaq.com, 29. www.nasdaq.com, 30. www.nasdaq.com, 31. www.wellsfargoadvisors.com, 32. www.wellsfargoadvisors.com, 33. www.federalreserve.gov, 34. www.reuters.com, 35. www.reuters.com, 36. www.occ.gov, 37. www.federalreserve.gov, 38. www.reuters.com, 39. www.wellsfargo.com
