Charles Schwab (NYSE:SCHW) Posts Earnings Results, Beats Estimates By $0.07 EPS

Charles Schwab (NYSE:SCHW) announced its quarterly earnings data on Wednesday. The financial services provider reported $1.39 earnings per share for the quarter, topping the consensus estimate of $1.32 by $0.07, Zacks reports. Charles Schwab had a return on equity of 22.07% and a net margin of 37.01%.The company had revenue of $6.34 billion during the quarter, compared to analyst estimates of $6.19 billion. During the same quarter last year, the firm posted $1.01 EPS. The firm’s revenue for the quarter was up 18.9% on a year-over-year basis. Charles Schwab updated its FY 2026 guidance to 5.700-5.800 EPS.

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

• Record 2025 results: Schwab reported $519 billion of core net new assets (+42%), 4.7 million new brokerage accounts, $23.9 billion in net revenue and adjusted EPS of $4.87 (+50%), driving strong momentum into 2026.
• 2026 financial scenario targets roughly 9.5%–10.5% revenue growth, NIM of 2.85%–2.95%, expense growth of 5.5%–6.5%, and implied adjusted EPS of about $5.70–$5.80, reflecting continued operating leverage and margin expansion.
• Strategic investments and product expansion — including the planned Forge acquisition, a stake in Carta, Advisor ProDirect, expanded wealth and lending offers, spot crypto trading planned H1, and broader AI deployment — are intended to deepen client relationships and diversify revenue.
• Stronger balance sheet and capital return: high‑cost bank funding was reduced to $5 billion, bank loan balances hit an all‑time high of $58 billion, the adjusted Tier‑1 leverage ratio finished at 7.1%, and Schwab returned $11.8 billion to shareholders in 2025.
• Execution and the outlook remain sensitive to market and interest‑rate assumptions (scenario assumes ~225 bps of Fed cuts to 3.25% and 6.5% equity returns), and management models a possible pullback in trading volumes to ~7.4M daily trades that would pressure trading revenue if realized.

Charles Schwab Price Performance

NYSE SCHW opened at $104.07 on Friday. The company’s 50 day moving average is $97.68 and its two-hundred day moving average is $95.81. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.47. The stock has a market cap of $184.93 billion, a price-to-earnings ratio of 22.33, a PEG ratio of 0.69 and a beta of 0.94. Charles Schwab has a 12 month low of $65.88 and a 12 month high of $105.81.

Insider Buying and Selling

In other Charles Schwab news, insider Jonathan S. Beatty sold 3,072 shares of the company’s stock in a transaction that occurred on Wednesday, November 12th. The stock was sold at an average price of $98.00, for a total value of $301,056.00. Following the completion of the transaction, the insider directly owned 11,923 shares in the company, valued at $1,168,454. This represents a 20.49% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Corporate insiders own 6.30% of the company’s stock.

Hedge Funds Weigh In On Charles Schwab

Institutional investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd grew its position in shares of Charles Schwab by 910.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 404 shares of the financial services provider’s stock valued at $39,000 after purchasing an additional 364 shares in the last quarter. Advisory Services Network LLC raised its holdings in Charles Schwab by 17.8% during the 3rd quarter. Advisory Services Network LLC now owns 26,162 shares of the financial services provider’s stock valued at $2,498,000 after buying an additional 3,954 shares during the period. Hancock Whitney Corp boosted its stake in Charles Schwab by 42.7% during the third quarter. Hancock Whitney Corp now owns 19,761 shares of the financial services provider’s stock worth $1,887,000 after buying an additional 5,909 shares during the period. Morningstar Investment Management LLC bought a new position in Charles Schwab during the third quarter valued at $8,952,000. Finally, NewEdge Advisors LLC boosted its stake in shares of Charles Schwab by 55.8% during the 3rd quarter. NewEdge Advisors LLC now owns 155,095 shares of the financial services provider’s stock worth $14,807,000 after purchasing an additional 55,534 shares during the period. 84.38% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Charles Schwab

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

• Positive Sentiment: Schwab reported record full‑year and Q4 2025 results with revenue and net income up; management highlighted rising client activity and net new assets — a core reason sentiment is positive. Schwab Delivers Record 2025 Results as Asset Growth, Trading Activity, and Revenues Surge
• Positive Sentiment: Q4 EPS beat consensus ($1.39 vs ~$1.32) and quarterly revenue topped estimates, underscoring stronger trading revenue and net interest income. Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised FY‑2026 EPS guidance to $5.70–$5.80 (above Street consensus ~5.37) and gave higher revenue guidance — a major catalyst supporting the rally. Schwab Reports Record 4Q and Full Year 2025 Results
• Positive Sentiment: Assets under custody/administration reached roughly $11.9T and trading volumes jumped ~31%, showing meaningful client engagement that drives fee, trading and interest income. Charles Schwab Hits $11.9 Trillion In Assets, Trading Volumes Jump 31%
• Positive Sentiment: TD Cowen boosted its price target to $138 and reiterated a Buy rating, providing additional analyst support for upside. Benzinga
• Positive Sentiment: Schwab plans to expand RIA lending capabilities — a strategic initiative that could grow fee and lending income over time. Schwab Plans to Ramp Up, Expand RIA Lending Capabilities
• Neutral Sentiment: Corporate philanthropy and outreach: Schwab funded the Aggie Financial Planning Clinic — positive PR but not material to near‑term earnings. Charles Schwab financial gift to help Aggie Financial Planning Clinic open doors in 2026
• Neutral Sentiment: Management commentary and the CEO interview expand on strategic priorities; useful for long‑term investors but not a discrete earnings catalyst. Charles Schwab CEO on Q4 earnings
• Negative Sentiment: Some outlets noted net‑revenue nuances and higher operating expenses that dented parts of the results, creating headline risk and short‑term volatility. Schwab Net Revenue Misses Estimates
• Negative Sentiment: Several reports highlighted that rising expenses trimmed some of the earnings beat, which could temper margin optimism and lead to short‑term profit‑taking. Q4 Earnings Beat — Shares Down on Expenses

Analyst Ratings Changes

Several research firms recently commented on SCHW. Weiss Ratings restated a “hold (c+)” rating on shares of Charles Schwab in a research report on Wednesday, October 8th. BMO Capital Markets started coverage on shares of Charles Schwab in a research report on Friday, October 3rd. They set an “outperform” rating and a $110.00 target price for the company. Wolfe Research set a $120.00 price objective on shares of Charles Schwab in a report on Monday, January 12th. Bank of America upped their price target on shares of Charles Schwab from $88.00 to $91.00 and gave the company an “underperform” rating in a research report on Wednesday, December 10th. Finally, Piper Sandler boosted their target price on Charles Schwab from $100.00 to $105.00 and gave the company a “neutral” rating in a research note on Wednesday, January 14th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $115.60.

About Charles Schwab

Charles Schwab Corporation (NYSE: SCHW) is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.