Charles Schwab (NYSE:SCHW) Issues Earnings Results

Charles Schwab (NYSE:SCHW) announced its quarterly earnings data on Tuesday. The financial services provider reported $1.62 earnings per share for the quarter, topping the consensus estimate of $1.56 by $0.06, Briefing.com reports. Charles Schwab had a net margin of 37.99% and a return on equity of 23.05%. The company had revenue of $7.07 billion during the quarter, compared to analyst estimates of $6.90 billion. During the same period last year, the business earned $1.14 EPS. The firm’s revenue for the quarter was up 20.9% compared to the same quarter last year.

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

• Schwab reported record second-quarter results, with total revenue of $7.1 billion and adjusted EPS of $1.62, both up sharply year over year. Management also highlighted strong operating leverage and a 54.3% adjusted pre-tax profit margin.
• Client growth remained strong, with 1.4 million new brokerage accounts and $120 billion of core net new assets in the quarter. Management said these trends support its view that 5%+ long-term NNA growth is achievable.
• Trading activity and lending were major drivers of the quarter, with daily average trades reaching 11.9 million and bank loan balances rising to $67 billion, up 33% year over year. Schwab said demand for PAL and other lending products is deepening client relationships and improving economics.
• The company raised its full-year 2026 outlook, now expecting revenue growth of 17.5% to 18.5% and annual expense growth of 9.5% to 10.5%. Management said the updated scenario implies stronger positive operating leverage and supports confidence in mid-teen earnings growth through the cycle.
• Management emphasized several longer-term growth initiatives, including crypto transfers, private markets via the Forge acquisition, AI tools, tokenization infrastructure, and prediction markets tied to financial events. While these could expand the platform over time, many are still early-stage and not expected to materially affect 2026 results.

Charles Schwab Price Performance

Shares of NYSE:SCHW opened at $100.19 on Wednesday. The firm’s 50 day moving average is $93.27 and its two-hundred day moving average is $95.34. The firm has a market capitalization of $174.25 billion, a P/E ratio of 19.88, a PEG ratio of 0.85 and a beta of 0.77. The company has a current ratio of 0.62, a quick ratio of 0.62 and a debt-to-equity ratio of 0.48. Charles Schwab has a 52 week low of $83.96 and a 52 week high of $107.50.

Charles Schwab Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, May 22nd. Shareholders of record on Friday, May 8th were given a $0.32 dividend. The ex-dividend date was Friday, May 8th. This represents a $1.28 annualized dividend and a yield of 1.3%. Charles Schwab’s dividend payout ratio is 25.40%.

Key Stories Impacting Charles Schwab

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

• Positive Sentiment: Schwab beat Wall Street expectations with EPS of $1.62 versus $1.56 expected and revenue of $7.07 billion versus $6.90 billion expected, highlighting solid quarterly execution. Article Title
• Positive Sentiment: Record 11.9 million daily average revenue trades and a 57% jump in trading activity show that retail investors are using Schwab heavily during volatile markets, boosting trading revenue. Article Title
• Positive Sentiment: Trading revenue rose 28% to $1.2 billion, while total revenue increased 20.9% year over year, underscoring strong demand from active traders and higher client engagement. Article Title
• Positive Sentiment: Management said clients are trusting the platform not only for investing, but also for broader financial needs, suggesting Schwab may deepen customer relationships and expand wallet share. Article Title
• Neutral Sentiment: Some coverage noted that rising expenses could be tempering enthusiasm even after the earnings beat, which may be why the market reaction has not been uniformly positive. Article Title
• Neutral Sentiment: Schwab also updated FY2026 guidance with revenue outlook of $28.1 billion to $28.3 billion, which appears to support the long-term outlook, though the guidance details in the feed were incomplete. Article Title
• Negative Sentiment: Despite the strong quarter, one report said the stock slipped after the earnings release, suggesting investors may be taking profits or focusing on cost concerns rather than just the beat. Article Title
• Negative Sentiment: BMO reportedly downgraded Schwab to Market Perform after the stock’s recent rally, which could cap near-term upside sentiment. Article Title

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the stock. Wolfe Research reaffirmed an “outperform” rating and issued a $127.00 price target on shares of Charles Schwab in a report on Tuesday. Raymond James Financial increased their price objective on shares of Charles Schwab from $126.00 to $137.00 and gave the stock an “outperform” rating in a research note on Friday, May 15th. BMO Capital Markets cut shares of Charles Schwab from an “outperform” rating to a “market perform” rating and set a $105.00 target price on the stock. in a report on Monday. Truist Financial decreased their target price on Charles Schwab from $122.00 to $120.00 and set a “buy” rating for the company in a research note on Wednesday, April 1st. Finally, Morgan Stanley upped their target price on Charles Schwab from $125.00 to $133.00 and gave the company an “overweight” rating in a report on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $118.41.

Insider Buying and Selling

In other Charles Schwab news, Director Frank C. Herringer sold 2,520 shares of Charles Schwab stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $90.60, for a total transaction of $228,312.00. Following the sale, the director owned 177,508 shares of the company’s stock, valued at $16,082,224.80. The trade was a 1.40% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Jonathan S. Beatty sold 2,000 shares of the business’s stock in a transaction on Monday, July 6th. The stock was sold at an average price of $100.01, for a total value of $200,020.00. Following the transaction, the insider owned 13,738 shares of the company’s stock, valued at $1,373,937.38. This trade represents a 12.71% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 6,520 shares of company stock valued at $622,392 over the last three months. Corporate insiders own 6.30% of the company’s stock.

Hedge Funds Weigh In On Charles Schwab

A number of institutional investors and hedge funds have recently bought and sold shares of SCHW. Brighton Jones LLC lifted its position in Charles Schwab by 380.5% in the fourth quarter. Brighton Jones LLC now owns 24,240 shares of the financial services provider’s stock worth $1,794,000 after purchasing an additional 19,195 shares during the period. Pinnacle Financial Partners Inc. boosted its stake in Charles Schwab by 10.7% during the 3rd quarter. Pinnacle Financial Partners Inc. now owns 95,607 shares of the financial services provider’s stock valued at $9,128,000 after purchasing an additional 9,244 shares in the last quarter. Sivia Capital Partners LLC increased its position in shares of Charles Schwab by 21.6% during the 2nd quarter. Sivia Capital Partners LLC now owns 4,553 shares of the financial services provider’s stock valued at $415,000 after purchasing an additional 809 shares during the period. MUFG Securities EMEA plc acquired a new position in shares of Charles Schwab during the 2nd quarter valued at $460,000. Finally, Aberdeen Wealth Management LLC raised its stake in shares of Charles Schwab by 3.7% in the 4th quarter. Aberdeen Wealth Management LLC now owns 4,355 shares of the financial services provider’s stock worth $435,000 after buying an additional 156 shares in the last quarter. Institutional investors own 84.38% of the company’s stock.

Charles Schwab Company Profile

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.