Charles Schwab Corporation (The)
SCHW · NYSE
Next quarter
Expected to report Jan 20, 2027 — estimated from last year’s reporting date.
Consensus is $1.72 EPS for Dec 2026 across 11 estimates, ranging $1.67 to $1.78.
SCHW Sep 2026
- 1.81%
- $1.66
- $1.69
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Highlights
- Adjusted EPS: $1.69, 1.8% above the $1.66 consensus; GAAP diluted EPS was $1.62, up 29% year over year and 5% from Q2.
- Record revenue and earnings: Net revenue reached $7.17 billion, up 17% year over year and 1% sequentially; GAAP net income was $2.91 billion, up 23% year over year and 4% sequentially.
- Client asset gathering: Core net new assets were $190.4 billion, up 38% year over year, with a 5.8% annualized growth rate; total client assets rose 15% year over year to $13.33 trillion.
- Net interest income: Net interest revenue increased 14% year over year to $3.48 billion, while net interest margin expanded to 3.04%.
- Trading and lending activity: Daily average trades rose 44% year over year to 10.7 million; margin balances reached $187.9 billion, up 14% sequentially and 93% year over year.
- Broader fee growth: Asset management and administration fees increased 14% year over year to $1.91 billion; bank deposit account fees rose 40% to $345 million.
- Costs and capital returns: Expenses excluding interest increased 9% year over year to $3.39 billion; Schwab repurchased 4.7 million shares for $0.5 billion and reported a preliminary 8.9% consolidated Tier 1 leverage ratio.
Analysis
Schwab delivered a record third quarter, with adjusted diluted EPS of $1.69 beating the $1.66 consensus by 1.8%. GAAP EPS was $1.62, up from $1.26 a year earlier and $1.54 in Q2. Revenue of $7.17 billion grew 17% year over year and 1% sequentially; GAAP net income increased 23% year over year to $2.91 billion and 4% from Q2. Adjusted net income was $3.02 billion, excluding $151 million of pre-tax transaction-related costs and acquired-intangible amortization.
The print was defined by strong client inflows alongside improving revenue across interest and fee businesses. Core net new assets of $190.4 billion were up 38% year over year, supporting total client assets of $13.33 trillion, up 15%. Net interest revenue rose 14% to $3.48 billion as net interest margin reached 3.04%; asset management fees grew 14% and trading revenue rose 16%. Activity was especially strong, although trading revenue fell 5% sequentially and revenue per trade was down 20% year over year. Expenses rose 9% year over year, slower than revenue growth, lifting the GAAP pre-tax margin to 52.7% from 49.2% a year ago. Sequentially, net interest margin expanded and earnings advanced, while trading revenue declined.
Earnings and revenue
Revenue reached $7.171 billion, up from $6.135 billion in Q3 2025 and $7.072 billion in Q2 2026. GAAP net income rose to $2.906 billion from $2.358 billion a year earlier and $2.800 billion in Q2. Diluted GAAP EPS of $1.62 compares with $1.26 a year ago and $1.54 last quarter. Adjusted EPS was $1.69 versus $1.31 a year ago; the adjustment excluded $151 million of pre-tax transaction-related costs, including $141 million of acquired-intangible amortization and $10 million of acquisition and integration costs. The GAAP pre-tax margin improved to 52.7% from 49.2% a year earlier and 51.9% in Q2.
Client asset gathering
- Core flows: Core net new assets totaled $190.4 billion, 38% above Q3 2025 and equivalent to a 5.8% annualized growth rate. Total net new assets were $192.4 billion, including $2.0 billion of inflows from off-platform Schwab Bank retail CDs.
- Assets and accounts: Total client assets ended the quarter at $13.33 trillion, up 15% year over year and 2% sequentially. Clients opened 1.2 million brokerage accounts; active brokerage accounts reached 40.26 million, up 6% year over year.
- Advice and lending relationships: Managed Investing Solutions net flows grew 22% year over year and Schwab Wealth Advisory net flows increased 55%. Pledged Asset Line balances reached $37.3 billion, up 59% year over year.
Interest and lending
- Net interest revenue: Increased 14% year over year to $3.476 billion and 4% sequentially. Net interest margin widened to 3.04%; average interest-earning assets were $451.5 billion, up 8% from a year earlier.
- Cash balances: Transactional sweep cash ended September at $492.8 billion, up $7.1 billion from Q2-end and 16% year over year. Management attributed the quarter’s increase to organic growth and demand related to long/short strategies, partly offset by client asset-allocation decisions.
- Loans: Bank loans were $72.3 billion at quarter-end, up 35% year over year. Margin balances reached $187.9 billion, up 14% sequentially; $60.7 billion related to long/short strategies.
Trading and fee growth
- Trading activity: Daily average trades averaged 10.7 million, up 44% year over year but down 10% sequentially. Trading revenue rose 16% year over year to $1.158 billion, but declined 5% from Q2; revenue per trade was $1.69, down 20% year over year.
- Asset-based fees: Asset management and administration fees increased 14% year over year to $1.913 billion, including growth in managed investing solutions and mutual fund, ETF and collective trust assets.
- Other revenue lines: Bank deposit account fees rose 40% year over year to $345 million. Other revenue increased 64% to $279 million, though it fell 18% sequentially.
Costs and capital
- Expenses: GAAP expenses excluding interest were $3.394 billion, up 9% year over year and essentially flat sequentially. Adjusted expenses were $3.243 billion after excluding acquired-intangible amortization and acquisition and integration costs; adjusted expenses also increased 9% year over year.
- Capital and buybacks: Preliminary consolidated Tier 1 leverage was 8.9%, while adjusted Tier 1 leverage was 7.0%. Schwab repurchased 4.7 million shares for $0.5 billion during the quarter.
- Platform developments: Schwab introduced Charley, an AI-powered assistant for U.S. retail clients, and partnered with Anthropic to offer Claude for Financial Advisors to independent RIAs. It also announced Single Stock Futures for thinkorswim and plans to expand digital assets available through Schwab Crypto.
