Wells Fargo Shares Lag Dow Amid Mixed Q1 Earnings and Rising Credit Costs

Wells Fargo shares have significantly underperformed the broader market, rising just 5.2% over the past 52 weeks compared to the Dow Jones Industrial Average’s 21.2% gain. The San Francisco-based financial services giant, which operates through consumer banking, commercial banking, corporate and investment banking, and wealth management segments, has seen its stock decline 20.7% from its 52-week high of $97.76. Year-to-date, the stock is down 16.8%, while the Dow is up 6.2%.

In the first quarter of 2026, the bank reported earnings per share of $1.60, beating analyst estimates. However, it missed consensus forecasts for revenue, which stood at $21.45 billion, and net interest income, which came in at $12.10 billion. Investor sentiment was further dampened by a 21.8% year-over-year increase in the provision for credit losses to $1.14 billion and a decline in the CET1 capital ratio to 10.3%. The company also reaffirmed its 2026 net interest income guidance at approximately $50 billion, which was below consensus expectations.

The market reaction was swift, with shares falling 5.7% on April 14 despite the earnings per share beat. This decline was driven by concerns over the weaker revenue and net interest income figures. Since January, the stock has traded below its 50-day moving average, and it has fallen below its 200-day moving average since early February. Over the past three months, Wells Fargo shares have declined 4.8%, lagging behind the Dow’s 4.2% gain.

Compared to its peers, Wells Fargo has struggled. Citigroup stock has soared 7.9% year-to-date and 67.8% over the past 52 weeks, significantly outperforming Wells Fargo. Despite these mixed results and underperformance relative to rivals, Wall Street analysts maintain a "Moderate Buy" consensus based on coverage from 25 analysts. The mean price target of $97.81 represents a premium of 26.1% to current levels.

Wells Fargo, with a market capitalisation of $234.6 billion, remains one of the largest financial services companies in the United States. It provides a wide range of banking, investment, mortgage, and consumer and commercial finance products and services both domestically and internationally. Companies valued at $200 billion or more are generally considered “mega-cap” stocks, and Wells Fargo fits this criterion perfectly.