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

Charles Schwab (NYSE:SCHW) issued its earnings results on Thursday. The financial services provider reported $1.69 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.66 by $0.03, Zacks reports. Charles Schwab had a net margin of 39.33% and a return on equity of 25.79%. The company had revenue of $7.17 billion for the quarter, compared to analysts’ expectations of $7.18 billion. During the same period in the prior year, the firm earned $1.31 EPS. Charles Schwab’s quarterly revenue was up 16.9% compared to the same quarter last year.

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

SCHW stock traded down $2.35 during trading hours on Friday, hitting $91.81. 13,885,748 shares of the stock were exchanged, compared to its average volume of 9,080,431. Charles Schwab has a 12 month low of $83.96 and a 12 month high of $114.53. The company has a current ratio of 0.64, a quick ratio of 0.64 and a debt-to-equity ratio of 0.52. The firm has a market capitalization of $158.77 billion, a P/E ratio of 15.67, a P/E/G ratio of 0.80 and a beta of 0.79. The company has a 50-day simple moving average of $104.50 and a two-hundred day simple moving average of $98.15.

Charles Schwab Announces Dividend

The business also recently disclosed 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 was Friday, August 14th. This represents a $1.28 annualized dividend and a yield of 1.4%. Charles Schwab’s dividend payout ratio (DPR) is 23.27%.

Insider Buying and Selling

In related news, insider Dennis Howard sold 2,198 shares of the company’s stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $110.00, for a total value of $241,780.00. Following the transaction, the insider directly owned 6,980 shares in the company, valued at approximately $767,800. This represents a 23.95% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Walter Bettinger sold 74,388 shares of the company’s stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $110.91, for a total transaction of $8,250,373.08. Following the completion of the transaction, the chairman owned 610,360 shares in the company, valued at $67,695,027.60. This trade represents a 10.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 645,582 shares of company stock valued at $69,553,935 in the last 90 days. 6.30% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of equities analysts recently commented on the company. Deutsche Bank Aktiengesellschaft set a $125.00 price target on Charles Schwab in a report on Friday. Argus upped their price objective on Charles Schwab from $108.00 to $114.00 and gave the company a “buy” rating in a research note on Thursday, July 23rd. JPMorgan Chase & Co. cut their price objective on Charles Schwab from $150.00 to $147.00 and set an “overweight” rating for the company in a research report on Friday. Citigroup reaffirmed a “market outperform” rating on shares of Charles Schwab in a research report on Friday. Finally, Citizens Jmp reiterated a “market outperform” rating and set a $120.00 target price on shares of Charles Schwab in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $118.95.

Charles Schwab News Roundup

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

• Positive Sentiment: Schwab reported adjusted third-quarter EPS of $1.69, exceeding 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 Stock Is Falling Friday: What’s Going On?
• Positive Sentiment: Client momentum remained a major strength: core net new assets reached a record $190.4 billion, up 38% year over year, total client assets climbed to $13.33 trillion, and the company added roughly 1.2 million brokerage accounts. Higher trading activity, lending, and net interest revenue supported the quarter. Schwab Delivers Record Net New Assets & Earnings
• Positive Sentiment: Analysts remain broadly constructive. JPMorgan reaffirmed an “overweight” rating with a $147 price target, while Citizens JMP maintained “market outperform” with a $120 target. Schwab is also expanding AI tools, tax-aware products, cryptocurrency services, and prediction-market capabilities, potentially creating additional engagement and revenue opportunities.
• Neutral Sentiment: Management said clients using AI-enabled trading tools are holding more cash rather than withdrawing funds, which could support Schwab’s deposit and lending franchise. However, the long-term financial impact of these new products remains unproven.
• Negative Sentiment: Revenue of $7.17 billion was slightly below the approximately $7.18 billion consensus estimate. Analysts characterized the quarter as “somewhat low quality,” citing less impressive net-interest-revenue trends and the possibility that strong market activity, rather than purely organic improvement, drove results. Charles Schwab’s Q3 Print was Somewhat Low Quality
• Negative Sentiment: Schwab indicated that full-year 2026 revenue and net-interest-margin growth could land at the lower end of its previous ranges. Truist reduced its price target, and some investors appear to be taking profits after the stock’s earlier gains.

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.