Charles Schwab (NYSE:SCHW) Announces Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Charles Schwab (NYSE:SCHW) announced its quarterly earnings data on Thursday. The financial services provider reported $1.69 earnings per share for the quarter, beating the consensus estimate of $1.66 by $0.03, Zacks reports. The business had revenue of $7.17 billion for the quarter, compared to analyst estimates of $7.18 billion. Charles Schwab had a net margin of 38.79% and a return on equity of 24.53%. Charles Schwab’s revenue was up 16.9% compared to the same quarter last year. During the same period in the prior year, the business posted $1.31 earnings per share.

Here are the key takeaways from Charles Schwab’s conference call:

• Positive Sentiment: Schwab reported record third-quarter results, with revenue up 17% year over year to $7.2 billion, adjusted EPS up 29% to $1.69, and an adjusted pre-tax margin of 54.8%. Management expects strong full-year revenue growth, net interest margin expansion, and approximately 800 basis points of positive operating leverage.
• Positive Sentiment: Client and asset momentum remained strong, including 1.2 million new brokerage accounts, $190 billion of core net new assets, record $24 billion of managed-investing net flows, and bank lending growth of 35% year over year to $72.3 billion.
• Positive Sentiment: Management views AI as a growth and efficiency accelerator, citing higher trading engagement, wealth-planning opportunities, 25% greater developer productivity, and fewer client-service calls. Schwab is expanding its AI capabilities through Charlie, thinkorswim tools, and controlled connections between client-selected large language models and Schwab systems.
• Positive Sentiment: Schwab sees substantial longer-term opportunities in wealth management, trading, lending, crypto, prediction markets, and proprietary long/short investing solutions. The company also returned capital through dividends, preferred-stock redemption, and nearly $4 billion of common-share repurchases during the first nine months of 2026.
• Negative Sentiment: Loan growth has outpaced deposit growth, increasing Schwab’s reliance on diversified and wholesale funding sources, while management acknowledged that the rapidly growing long/short program had to be throttled to ensure operational and capacity sustainability. The company also expects 2026 revenue and net interest margin growth toward the lower end of its previously provided ranges.

Charles Schwab Stock Down 2.5%

Charles Schwab stock opened at $94.42 on Friday. The firm has a 50 day moving average price of $104.81 and a 200-day moving average price of $98.19. Charles Schwab has a twelve month low of $83.96 and a twelve month high of $114.53. The company has a market capitalization of $163.28 billion, a P/E ratio of 17.17, a P/E/G ratio of 0.82 and a beta of 0.79. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 0.52.

Charles Schwab Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 14th were paid a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date was Friday, August 14th. Charles Schwab’s payout ratio is presently 23.27%.

Key Headlines Impacting Charles Schwab

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Schwab reported adjusted third-quarter earnings of $1.69 per share, ahead of the $1.66 analyst consensus, while revenue rose 16.9% year over year to a record $7.17 billion. Net income increased 23% to approximately $2.91 billion. Charles Schwab earnings report
• Positive Sentiment: Client growth remained a major strength: record core net new assets reached $190.4 billion, up 38% year over year, total client assets climbed to $13.33 trillion, and the firm added roughly 1.2 million brokerage accounts. Higher trading activity, lending and net interest revenue supported results. Schwab delivers record net new assets and earnings
• Positive Sentiment: Management highlighted potential long-term growth from artificial intelligence and cryptocurrency. Schwab is developing its own AI assistant, while direct bitcoin and ether trading has been rolled out to eligible retail clients and additional cryptocurrencies are planned. Charles Schwab CEO sees crypto as a new revenue engine
• Neutral Sentiment: Schwab is blocking unauthorized AI agents from logging into customer accounts while permitting controlled chatbot access and promoting its own tools. The policy may reduce security risks but could limit near-term third-party automation. Schwab blocks unauthorized AI agents
• Negative Sentiment: Revenue of $7.17 billion came just below the roughly $7.18 billion consensus, producing a mixed earnings reaction despite the EPS beat. Investors also appeared disappointed that management expects 2026 revenue and net-interest-margin growth toward the lower end of its prior range. Schwab sees 2026 revenue and NIM growth at lower end of range
• Negative Sentiment: Analysts have trimmed some valuation estimates, while reported insider activity has been dominated by sales. These factors may have added pressure after the stock’s strong run into earnings.

Insider Activity at Charles Schwab

In other Charles Schwab news, Director Paula Sneed sold 5,263 shares of the stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $107.15, for a total transaction of $563,930.45. Following the completion of the transaction, the director owned 91,711 shares in the company, valued at $9,826,833.65. This trade represents a 5.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Nigel Murtagh sold 32,947 shares of Charles Schwab stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $104.01, for a total transaction of $3,426,817.47. Following the completion of the transaction, the insider owned 57,972 shares of the company’s stock, valued at $6,029,667.72. This represents a 36.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 645,582 shares of company stock worth $69,553,935 in the last three months. Corporate insiders own 6.30% of the company’s stock.

Wall Street Analysts Forecast Growth

SCHW has been the topic of a number of research analyst reports. Morgan Stanley raised their price target on Charles Schwab from $136.00 to $141.00 and gave the stock an “overweight” rating in a research report on Friday, October 9th. Bank of America boosted their price objective on Charles Schwab from $91.00 to $95.00 and gave the stock an “underperform” rating in a research report on Monday, October 5th. TD Cowen increased their price target on Charles Schwab from $128.00 to $129.00 and gave the company a “buy” rating in a research note on Monday. UBS Group dropped their price objective on Charles Schwab from $128.00 to $113.00 and set a “buy” rating on the stock in a research note on Wednesday, October 7th. Finally, Barclays cut their price objective on shares of Charles Schwab from $125.00 to $118.00 and set an “overweight” rating on the stock in a research report on Wednesday, October 7th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $119.00.

Charles Schwab Company Profile

Charles Schwab Corporation (NYSE:SCHW) is a financial services company that provides brokerage, investment, banking and wealth management services to individual investors, employers, institutions and independent investment advisors. Its offerings include online and mobile trading, securities brokerage, retirement accounts, financial planning, portfolio management, banking products, research and access to mutual funds and exchange-traded funds.

The company operates through businesses including Schwab Brokerage, Schwab Wealth Advisory, Schwab Asset Management and Charles Schwab Bank.