Charles Schwab (NYSE:SCHW) Releases Earnings Results, Beats Expectations By $0.03 EPS

Charles Schwab (NYSE:SCHW) posted its earnings results on Thursday. The financial services provider reported $1.69 EPS for the quarter, topping analysts’ consensus estimates of $1.66 by $0.03, Zacks reports. The business had revenue of $7.17 billion for the quarter, compared to analysts’ expectations of $7.18 billion. Charles Schwab had a net margin of 39.33% and a return on equity of 25.79%. The business’s revenue for the quarter was up 16.9% compared to the same quarter last year. During the same period in the previous year, the company 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 Performance

NYSE:SCHW opened at $89.64 on Tuesday. Charles Schwab has a twelve month low of $83.96 and a twelve month high of $114.53. The stock has a market cap of $155.01 billion, a P/E ratio of 15.00, a price-to-earnings-growth ratio of 0.81 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. The firm’s fifty day simple moving average is $104.13 and its 200 day simple moving average is $98.15.

Charles Schwab Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 14th were given a dividend of $0.32 per share. The ex-dividend date of this dividend was Friday, August 14th. This represents a $1.28 annualized dividend and a yield of 1.4%. Charles Schwab’s dividend payout ratio is presently 21.84%.

Analyst Ratings Changes

Several research analysts have commented on SCHW shares. Truist Financial set a $115.00 target price on Charles Schwab in a research note on Friday. UBS Group cut their price target on shares of Charles Schwab from $113.00 to $109.00 and set a “buy” rating on the stock in a research report on Friday. Raymond James Financial reiterated an “outperform” rating and issued a $145.00 target price (up from $137.00) on shares of Charles Schwab in a report on Thursday. Wells Fargo & Company dropped their price objective on shares of Charles Schwab from $105.00 to $103.00 and set an “equal weight” rating on the stock in a report on Friday. Finally, Rothschild & Co Redburn upped their price target on Charles Schwab from $114.00 to $120.00 and gave the stock a “neutral” rating in a research note on Monday, September 21st. Eighteen research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $120.82.

Key Charles Schwab News

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

• Positive Sentiment: Schwab recently reported record revenue of approximately $7.17 billion, up 16.9% year over year, while adjusted earnings of $1.69 per share exceeded consensus estimates of $1.66. The results support expectations for continued growth in client assets, trading activity and net interest revenue. Schwab reports record revenue
• Positive Sentiment: Citizens JMP reaffirmed its “market outperform” rating, indicating that the brokerage sees further appreciation potential for SCHW despite recent weakness. Citizens JMP rating
• Positive Sentiment: A bullish Seeking Alpha analysis called Charles Schwab one of its best ideas in financials, highlighting the company’s earnings momentum and long-term positioning. Charles Schwab: One of My Best Ideas in Financials
• Neutral Sentiment: Schwab added an international bond ETF, expanding its investment-product lineup. The move may modestly support asset gathering, but its near-term financial impact is likely limited. Schwab adds an international bond ETF
• Negative Sentiment: Evercore lowered its price target from $107 to $104, while BMO cut its target from $105 to $97 and assigned a “market perform” rating. JPMorgan also reduced its target. The revisions signal more cautious near-term expectations, even though the new targets remain above the recent share price. Evercore price-target change JPMorgan price-target change
• Negative Sentiment: CEO Rick Wurster remains skeptical of autonomous AI agents trading stocks, and Schwab has restricted third-party agents over security and liability concerns. The stance limits near-term AI monetization potential, although it may reduce operational and compliance risks. Schwab CEO discusses AI trading agents

Insiders Place Their Bets

In other news, insider Dennis Howard sold 2,198 shares of the stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $110.00, for a total transaction of $241,780.00. Following the transaction, the insider directly owned 6,980 shares of the company’s stock, valued at $767,800. This represents a 23.95% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paula Sneed sold 5,263 shares of the business’s stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $107.15, for a total transaction of $563,930.45. Following the sale, the director owned 91,711 shares of the company’s stock, valued at $9,826,833.65. This trade represents a 5.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 639,529 shares of company stock worth $68,923,436. 6.30% of the stock is owned by corporate insiders.

Charles Schwab Company Profile

The Charles Schwab Corporation (NYSE: SCHW) is a financial services company that provides investment, wealth management, banking and related services to individual investors, financial professionals and institutional clients. Through its brokerage business, Schwab offers trading and custody services for stocks, exchange-traded funds, mutual funds, options, fixed-income securities and other investments, along with retirement accounts and investment research tools.

The company also provides advisory and wealth management services, including managed portfolios, financial planning and support for registered investment advisors.