On January 29, 2026, Wells Fargo reaffirmed its Overweight rating on Annaly Capital Management and increased its 12-month price target from $23 to $25. The upgrade reflects Wells Fargo’s positive outlook on Annaly’s ability to benefit from a steeper yield curve and ongoing portfolio repositioning. Analysts cited the company’s disciplined capital deployment and resilient net interest margin as key drivers supporting this more optimistic valuation.

For the quarter ended December 31, 2025, Annaly reported earnings available for distribution (EAD) of $0.74 per share, outperforming the Zacks Consensus Estimate of $0.72 by 3.25%. GAAP net income reached $1.40 per average common share, up from $0.78 in the year-ago period. The company delivered an economic return of 8.6% for Q4, contributing to a full-year economic return of 20.2% in 2025, underlining the strength of its diversified mortgage strategy.

Annaly generated quarterly revenues of $366.6 million, a 96% increase year-over-year but falling 21.8% short of consensus forecasts. The company’s total portfolio grew to $104.7 billion, including a 6% increase in the Agency segment to $92.9 billion and a 16% rise in Residential Credit to $8.0 billion. Management highlighted record correspondent channel activity and the closing of eight securitizations totaling $4.6 billion during the quarter as drivers of portfolio expansion.

Annaly ended Q4 with a book value of $20.21 per share and economic leverage of 5.6x, down from 5.7x in the prior quarter. The company maintained a GAAP leverage ratio of 7.2x and held $9.4 billion of total assets available for financing, representing 58% of equity. The board declared a fourth-quarter cash dividend of $0.70 per share, supporting a dividend yield above 14% based on recent share valuations and underscoring the REIT’s commitment to returning capital to investors.