GET DAILY SIGNALSCharles Schwab (SCHW): Record Q1 Revenues +16% YoY Hit $6.5 Billion Amid Client Growth Surge
Key Takeaways
- Charles Schwab reported record net revenues of $6.5 billion for Q1 2026, up 16% year-over-year.
- GAAP diluted EPS rose 38% to $1.37, beating consensus estimates around $1.39 on an adjusted basis of $1.43.
- Total client assets reached $11.77 trillion at quarter-end, up 19% from Q1 2025, with core net new assets (NNAs, organic inflows excluding transfers) of $140 billion.
- Daily average revenue trades (DARTs) jumped 34% year-over-year to 9.9 million, boosting trading revenue 20% to $1.1 billion.
- Net interest revenue (NIR) increased 16% to $3.1 billion, though pre-tax profit margin expanded to 49.2%.
- Added 1.3 million new brokerage accounts, bringing total active brokerage accounts to 39.1 million.
Why Schwab's Q1 Results Stand Out
From what I see in SCHW's Q1 2026 earnings, the firm is maintaining strong momentum in client acquisition and engagement, even in a volatile market. As a major player in brokerage and wealth management, Schwab is capitalizing on growth across retail trading and advisory services. These numbers are particularly relevant for tracking the post-TD Ameritrade integration, sensitivity to interest rates through NIR, and organic expansion via NNAs. With client assets now over $11 trillion, it reinforces Schwab's position in a consolidating industry, which shapes views on profitability and share buybacks. The elevated DARTs point to active retail trading, and rising asset management fees indicate growing advisory interest.
Breaking Down the Reported Numbers
For the quarter ended March 31, 2026, Charles Schwab delivered net revenues of $6.5 billion—a record high and up 16% from $5.6 billion in Q1 2025, though only 2% higher sequentially from Q4 2025's $6.3 billion. This came in just shy of consensus expectations around $6.49 billion.
GAAP net income reached $2.5 billion, with diluted EPS at $1.37, a 38% increase from $0.99 the year before. Adjusted EPS of $1.43 topped the $1.39 consensus and prior-year $1.04. Key drivers were NIR of $3.1 billion (up 16% YoY), trading revenue of $1.1 billion (up 20%), and asset management fees of $1.8 billion (up 15%). DARTs climbed sharply to 9.9 million. I also checked this using Tickeron’s AI Screener to gauge how SCHW stacks up against industry peers.
Client metrics were impressive: end-of-period assets totaled $11.77 trillion (up 19% YoY), core NNAs hit $140 billion ($157.5 billion excluding a planned deconversion), and the firm added 1.3 million new brokerage accounts. Pre-tax profit margin rose to 49.2%. Management didn't offer specific numerical guidance but emphasized ongoing client growth and solid capital position.
Market Reaction and What It Signals
SCHW shares dropped sharply after the earnings release, closing at $92.62 on April 16, 2026, down about 7.6% from the previous day's $100.27. The sell-off stemmed from the slight revenue miss—$6.5 billion against $6.49 billion expected—and NIR growth that was softer than hoped, despite the EPS beat and strong client figures. Sentiment shifted cautious around deposit betas and margin pressures, though record DARTs and NNAs offered some balance. Pre-market trading extended the declines, highlighting concerns over interest rate challenges.
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Looking Ahead: Key Factors I'm Monitoring
One thing that stands out is Schwab's client growth path, where core NNAs and new accounts point to steady demand for brokerage and banking. The "through clients' eyes" approach, with branch expansions and AI efforts, should help drive further engagement.
NIR is crucial as rates fluctuate; the 16% YoY gain in Q1 hid some sequential weakness, so I'll be tracking deposit trends and funding costs closely. DARTs rode market volatility, but any normalization might hit revenues—equity and options volumes are worth watching.
Asset management fees rose 15% with higher assets; advisory inflows and RIA custody will be telling. Capital returns persist, including $2.4 billion in repurchases and a 19% dividend increase to $0.32 per share. The recent Forge Global deal bolsters private markets access. With a strong balance sheet (Tier 1 Leverage 8.9%), SCHW looks resilient, though macro factors like rates and equities will influence Q2.
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Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
SCHW's RSI Oscillator ascends from oversold territory
The RSI Oscillator for SCHW moved out of oversold territory on November 02, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 34 similar instances when the indicator left oversold territory. In 24 of the 34 cases the stock moved higher. This puts the odds of a move higher at 71%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 38 of 56 cases where SCHW's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 68%.
The Momentum Indicator moved above the 0 level on November 04, 2026. You may want to consider a long position or call options on SCHW as a result. In 52 of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 60%.
The Moving Average Convergence Divergence (MACD) for SCHW just turned positive on November 03, 2026. Looking at past instances where SCHW's MACD turned positive, the stock continued to rise in 31 of 47 cases over the following month. The odds of a continued upward trend are 66%.
Following a +5.25% 3-day Advance, the price is estimated to grow further. Considering data from situations where SCHW advanced for three days, in 185 of 319 cases, the price rose further within the following month. The odds of a continued upward trend are 58%.
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SCHW declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 60%.
SCHW broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for SCHW entered a downward trend on November 04, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 5 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 60 (best 1 - 100 worst), indicating steady price growth. SCHW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 67 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SCHW’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 77 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 88 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.644) is normal, around the industry mean (3.123). P/E Ratio (16.772) is within average values for comparable stocks, (6.767). Projected Growth (PEG Ratio) (0.832) is also within normal values, averaging (0.809). Dividend Yield (0.014) settles around the average of (9.201) among similar stocks. P/S Ratio (7.148) is also within normal values, averaging (16.899).
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