Wells Fargo & Company (WFC) delivered a solid Q4 performance on Wednesday, beating analyst expectations on the bottom line even as the market's reaction remained muted.

The banking giant posted fourth-quarter net income of $5.4 billion, or $1.62 per diluted share, climbing from $5.1 billion, or $1.43 per share, in the same period last year. On an adjusted basis, earnings hit $1.76 per share, comfortably ahead of the $1.67 consensus estimate.

Revenue rose 4% year over year to $21.3 billion, supported by gains in both net interest income and fee-based revenue. That figure fell slightly short of analyst expectations of $21.65 billion, but the overall picture showed strength across the bank's core operations.

Looking forward to 2026, Wells Fargo offered an upbeat outlook. The bank expects net interest income (excluding Markets) to grow from 2025 levels, powered by balance sheet expansion, improved loan and deposit mix, and ongoing repricing of fixed-rate assets. Management's forecast assumes the Federal Reserve will cut rates two to three times during the year while the 10-year Treasury yield stays relatively stable.

Despite the earnings beat, Wells Fargo shares dipped 0.3% to $88.95 on Thursday, reflecting some caution about what lies ahead.

Following the earnings release, several analysts adjusted their outlook on the stock. Truist Securities analyst John McDonald kept his Buy rating but trimmed his price target from $104 to $100. Argus Research analyst Stephen Biggar also maintained a Buy rating while raising his target from $94 to $101. Meanwhile, Evercore ISI Group analyst John Pancari stuck with his Outperform rating but lowered his price target from $110 to $105.

The mixed analyst moves suggest the Street is weighing solid fundamentals against broader concerns about the banking sector's trajectory in a shifting rate environment.