Wells Fargo (Wells Fargo (WFC)) reported better-than-expected second-quarter results on Tuesday, and CEO Charlie Scharf had a simple message: the American consumer is still spending, and the economy is holding up well.

The bank posted adjusted earnings of $1.96 per share, easily topping the Wall Street consensus of $1.72. Revenue came in at $22.62 billion, up 8.6% from a year ago and above the $21.82 billion analysts were looking for. On a GAAP basis, net income rose 17% to $6.41 billion, and diluted earnings per share climbed to $2.00 from $1.60. Return on equity improved to 15% from 12.8%, and return on tangible common equity hit 17.7%, up from 15.2%.

“We saw broad-based revenue growth, with all of our operating segments generating strong revenue growth,” Scharf said.

Net Interest Income and Fee Revenue Both Rose

Net interest income increased 5% to $12.32 billion, helped by lower deposit costs, higher loan and investment securities balances, and growth in the Markets business. That was partly offset by lower income on floating-rate assets and a modest decline in noninterest-bearing deposits. Noninterest income jumped 13% to $10.31 billion, driven by strong venture capital investment performance, higher investment advisory fees, and increased investment banking fees.

The bank set aside $914 million for credit losses, down 9% from a year ago, while noninterest expense rose 2% to $13.66 billion, reflecting higher incentive compensation, technology spending, and advertising costs.

All Business Segments Delivered Growth

Corporate and Investment Banking revenue rose 16%, with banking revenue up 20% and markets revenue up 24%. Wealth and Investment Management revenue increased 13%, while Consumer Banking and Lending and Commercial Banking each posted 6% growth.

During the quarter, Wells Fargo repurchased $3 billion of common stock and said it expects to increase its third-quarter dividend by 11% to $0.50 per share, subject to board approval.

CEO: Strong Economy, Cautious Optimism

Scharf said the bank is benefiting from broad-based economic strength in the U.S., but also from its own investments and improved operating discipline. “We are clearly benefitting from the broad-based economic strength we see in the U.S., but the investments we are making and our improved operating discipline also drove strong momentum in our key business metrics across all operating segments again this quarter,” he said.

Looking ahead, Scharf said both consumers and businesses remain financially healthy. Consumer spending continues to increase, delinquencies and charge-offs remain low, and savings and investment balances are growing. Businesses are cautious, but strong balance sheets and cash flows support credit quality. While affordability and inflation remain concerns, a strong labor market and wage growth continue to support the economy. Scharf added that Wells Fargo is taking a measured approach to growth, aiming to generate sustainable returns that can withstand future economic cycles and market volatility.

Wells Fargo reaffirmed its 2026 outlook, expecting net interest income excluding Markets of about $48 billion, with Markets net interest income of around $2 billion. The bank also maintained its noninterest expense forecast of approximately $55.7 billion.

WFC Price Action: Wells Fargo shares were down 2.29% at $85.66 at the time of publication on Tuesday.