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

Charles Schwab (NYSE:SCHW) issued its quarterly earnings results on Thursday. The financial services provider reported $1.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.66 by $0.03, Zacks reports. The business had revenue of $7.17 billion during the quarter, compared to analysts’ expectations of $7.18 billion. Charles Schwab had a return on equity of 24.53% and a net margin of 38.79%. The firm’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 Trading Down 2.5%

SCHW opened at $94.42 on Friday. Charles Schwab has a fifty-two week low of $83.96 and a fifty-two week high of $114.53. The firm has a market capitalization of $163.28 billion, a PE ratio of 16.83, a P/E/G ratio of 0.82 and a beta of 0.79. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.64 and a quick ratio of 0.64. The company’s 50-day moving average is $104.81 and its 200 day moving average is $98.19.

Charles Schwab Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 14th were issued a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date was Friday, August 14th. Charles Schwab’s dividend payout ratio (DPR) is currently 23.27%.

Insider Transactions at Charles Schwab

In other news, Chairman Walter W. Bettinger sold 74,388 shares of the stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $110.91, for a total value of $8,250,373.08. Following the completion of the sale, the chairman owned 610,360 shares in the company, valued at $67,695,027.60. This represents a 10.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Nigel J. Murtagh sold 24,778 shares of the company’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $109.01, for a total value of $2,701,049.78. Following the completion of the transaction, the insider directly owned 57,972 shares of the company’s stock, valued at approximately $6,319,527.72. This represents a 29.94% 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. Over the last quarter, insiders sold 645,582 shares of company stock valued at $69,553,935. Corporate insiders own 6.30% of the company’s stock.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the company. Argus lifted their target price on Charles Schwab from $108.00 to $114.00 and gave the company a “buy” rating in a research report on Thursday, July 23rd. TD Cowen increased their target price on Charles Schwab from $128.00 to $129.00 and gave the company a “buy” rating in a research report on Monday. Raymond James Financial reiterated an “outperform” rating on shares of Charles Schwab in a research report on Thursday. Citigroup restated a “market outperform” rating on shares of Charles Schwab in a report on Wednesday, July 22nd. Finally, Compass Point started coverage on Charles Schwab in a research note on Monday, August 3rd. They issued a “buy” rating and a $135.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $119.00.

Trending Headlines about 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, above the $1.66 consensus estimate, while revenue rose 16.9% year over year to a record $7.17 billion. Net income increased 23% to approximately $2.9 billion. Schwab Delivers Record Net New Assets & Earnings
• Positive Sentiment: Core net new assets reached a record $190.4 billion, up 38% year over year, lifting total client assets to $13.33 trillion. Schwab also added roughly 1.2 million brokerage accounts, bringing its total to 48.6 million. Charles Schwab Pulls in Record $190 Billion in New Assets
• Positive Sentiment: Higher trading activity, lending growth and net interest revenue supported the quarter. Trading activity reportedly increased 44%, while net interest margin improved to 3.04%, indicating continued benefits from stronger markets and client engagement. Schwab Trading Activity Jumps 44%
• Positive Sentiment: Management sees cryptocurrency as a potential new revenue engine after completing retail bitcoin and ether trading access, with transfers and additional cryptocurrencies planned. Charles Schwab CEO Sees Crypto as a New Revenue Engine
• Neutral Sentiment: Schwab is blocking unauthorized third-party artificial-intelligence agents from accessing client accounts and directing customers to its in-house “Charley” assistant. The move may reduce security risks but could limit some external AI integrations. Schwab blocks unauthorized AI agents
• Negative Sentiment: Revenue of $7.17 billion was slightly below estimates near $7.18 billion. The modest miss appears to have outweighed the EPS beat, particularly after strong expectations heading into the report. Schwab Q3 Earnings Beat on Higher NIR, Stock Slides on Revenue Miss
• Negative Sentiment: Schwab indicated that 2026 revenue and net-interest-margin growth may land at the lower end of its previous outlook range, raising concerns about the durability of growth as market conditions and interest-rate benefits normalize. Schwab sees 2026 revenue and NIM growth at lower end
• Negative Sentiment: Some analysts have trimmed fair-value estimates or price targets, reflecting debate over whether Schwab’s strong asset gathering and trading growth can continue at the current valuation. Charles Schwab Fair Value Trim

About Charles Schwab

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.