What Happened?

Shares of financial services giant Wells Fargo (NYSE: WFC) fell 6.1% in the afternoon session after the bank cut its full-year guidance for net interest income. Despite beating Wall Street's second-quarter profit and revenue estimates, the bank's revised forecast is weighing on investor sentiment., Wells Fargo now expects its 2025 net interest income (NII) — the difference between what it earns on loans and pays for deposits — to be roughly flat compared to 2024's $47.7 billion. This, is a notable reduction from its previous guidance, which anticipated growth at the low end of a 1% to 3% range. The bank attributed the lowered NII outlook primarily to its Markets business. While second-quarter earnings per share of $1.60 and revenue of $20.82 billion both topped analyst expectations, the disappointing guidance for this key profitability metric overshadowed the otherwise solid results.

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What Is The Market Telling Us

Wells Fargo’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Wells Fargo is up 12.2% since the beginning of the year, and at $78.84 per share, it is trading close to its 52-week high of $83.60 from July 2025. Investors who bought $1,000 worth of Wells Fargo’s shares 5 years ago would now be looking at an investment worth $3,108.

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