Live Updates on Wells Fargo (NYSE: WFC) and BlackRock (NYSE: BLK) Earnings

Earnings season kicked off this morning with a group of powerful financial companies. Wells Fargo (NYSE: WFC | WFC Price Prediction), and BlackRock (NYSE: BLK) each reported earnings before the bell. 

As of 10:00 a.m., both stocks were down.

• Wells Fargo: Down 4.5% 
• BlackRock: Down 6.4% 

The morning has generally been unkind to stocks in the financial space. JPMorgan (NYSE: JPM) also reported earnings and is down about .6%. Citigroup (NYSE: C) is the lone bright spot in the financial space this morning, up 1.4%. 

We’ve compiled the main need-to-know information about each company’s earnings below and will be updating this live article with earnings analysis throughout the morning. 

Wells Fargo Q2’25 Earnings Highlights:

• Adj. EPS: $1.60 ✅; UP +20% YoY
• Revenue: $20.822B ✅; UP +1% YoY
• Net Income: $5.494B ✅; UP +12% YoY

Q2’25 Outlook:
– The company is focused on maintaining consistent revenue growth driven by fee-based income and managing expenses effectively.
– Continued investment in business segments is expected to support organic growth.

Q2 Segment Performance:
• Consumer Banking and Lending Revenue: $9.228B ✅; UP +2% YoY
• Commercial Banking Revenue: $2.933B ✅; DOWN -6% YoY
• Corporate and Investment Banking Revenue: $4.673B ✅; DOWN -3% YoY
• Wealth and Investment Management Revenue: $3.898B ✅; UP +1% YoY

Other Key Q2 Metrics:
• Adj. Operating Expenses: $13.379B ✅; UP +1% YoY
• Effective Tax Rate: 14.2% (vs. 20.3% YoY)
• Net Interest Income: $11.708B ✅; DOWN -2% YoY
• Noninterest Income: $9.114B ✅; UP +4% YoY
• Provision for Credit Losses: $1.005B ✅; UP +8% YoY
• Noninterest Expense: $13.379B ✅; UP +1% YoY
• Return on Equity (ROE): 12.8% (vs. 11.5% YoY)
• Return on Average Tangible Common Equity (ROTCE): 15.2% (vs. 13.7% YoY)
• Net Loan Charge-offs: $997M; DOWN -23% YoY
• Total Nonaccrual Loans: $7.757B; DOWN -8% YoY
• Total Nonperforming Assets: $7.964B; DOWN -8% YoY

CEO Commentary:
– Charlie Scharf: “Our second quarter results reflect the progress we are making to consistently produce stronger financial results with net income and diluted earnings per share up from both the first quarter and a year ago. Our efforts to increase fee-based income drove revenue growth and both net interest income and noninterest income grew from the first quarter. We are investing in our businesses but remain focused on expense management. While there continue to be risks as we look forward, activity levels have remained consistent and our strong credit performance continues to point to the strength of our commercial and consumer customers’ financial position.”

Strategic Updates:
– The lifting of the asset cap in the second quarter marked a pivotal milestone in Wells Fargo’s ongoing transformation, allowing for more aggressive growth strategies to serve consumers, businesses, and communities. The company has also terminated thirteen consent orders since 2019, including seven this year alone, indicating significant progress in regulatory compliance and operational strength.

Analyst Estimates:
– EPS Estimate: $1.41
– Analyst Price Target: $82.72
– Analyst Ratings: 6 Strong Buy, 11 Buy, 7 Hold, 0 Sell

BlackRock Q2’25 Earnings Highlights:

• Adj. EPS: $12.05 ✅; UP +16% YoY
• Revenue: $5.423B (Est. $10.81) ✅; UP +13% YoY
• Adj. Operating Income: $2.099B ✅; UP +12% YoY
• Net Income: $1.593B ✅; UP +7% YoY
• Diluted EPS: $10.19 ✅; UP +2% YoY

Q2 Segment Performance:
• Equity Revenue: $1.908B ✅; UP +6.6% YoY
• Fixed Income Revenue: $0.853B ✅; UP +5.7% YoY
• Alternatives Revenue: $0.656B ✅; UP +71.7% YoY
• Cash Management Revenue: $0.304B ✅; UP +23.0% YoY

Other Key Q2 Metrics:
• Adj. Operating Expenses: $3.692B ✅; UP +22.9% YoY
• Effective Tax Rate: 26.9% (vs. 24.2% YoY)
• Total AUM: $12.528T; UP +18% YoY
• Total Net Flows: $67.737B; DOWN -17% YoY
• Share Repurchases: $375M

CEO Commentary:
– Laurence D. Fink: “For many years, BlackRock has worked to serve the ambitions of each and every client around the world – from the largest asset owners to individuals just getting their start with investing. We design and deliver strategies and products that fit their unique long-term needs and aspirations. We deliver in the way that best serves each client, whether it’s through whole portfolio solutions, opportunistic investments, or customized models and SMAs. Our expanding client relationships are resonating in higher, more diversified organic base fee growth. We generated 6% organic base fee growth for the second quarter and the first half of 2025, and 7% over the last twelve months.”

CFO Commentary:
– Martin S. Small: “Our financial results reflect the strength of our diversified business model and the successful integration of our recent acquisitions. The growth in our technology services and subscription revenue is particularly encouraging, as it demonstrates our commitment to innovation and client service.”

Strategic Updates:
– Closed acquisition of HPS Investment Partners on July 1st, adding $165 billion of client AUM and $118 billion of fee-paying AUM.
– Surpassed fundraising target for GIP’s fifth flagship, raising $25.2 billion, marking the largest-ever client capital raise in a private infrastructure fund.
– Development of a custom target date fund glidepath that strategically allocates across public and private markets.

Analyst Estimates:
– EPS Estimate: $10.81
– Analyst Price Target: $1069.96
– Analyst Ratings: 7 Strong Buy, 9 Buy, 1 Hold, 0 Sell