Charles Schwab Corp (The) (SCHW) Earnings Date & Reports

Key Takeaways

• Schwab posted record third-quarter net revenue of $7.17 billion, up 17% year over year.
• Adjusted earnings per share (EPS) came in at $1.69, beating the consensus estimate of $1.66 and rising 29% from a year earlier.
• Core net new assets hit a record $190.4 billion, up 38%, and total client assets reached $13.33 trillion, up 15%.
• The net interest margin (NIM) of 3.04% and bank deposits of $244.1 billion both fell short of analyst expectations.
• Despite the earnings beat, shares slipped roughly 5% in early trading as investors weighed softer deposit growth and conservative guidance.

Earnings Context and Why It Matters

Charles Schwab's quarterly results serve as a broad barometer for retail investing activity, wealth management flows, and the health of the U.S. brokerage and banking sector. Because Schwab earns revenue from interest on client cash, trading, and asset management, its report offers insight into investor engagement and interest-rate dynamics across the industry.

Heading into this release, the company had been riding strong momentum in asset gathering, driven by both individual investors and registered investment advisors (RIAs). Investors were watching whether Schwab could sustain record asset growth while defending its net interest margin against ongoing rate uncertainty and client cash-sorting behavior.

Reported Results

For the third quarter ended September 30, 2026, Charles Schwab reported record net revenue of $7.17 billion, a 17% increase from $6.14 billion a year earlier. On a GAAP (Generally Accepted Accounting Principles) basis, net income was $2.91 billion, or $1.62 per share, up from $2.36 billion, or $1.26 per share, in the prior-year quarter.

Excluding transaction-related costs of $151 million, adjusted net income was $3.02 billion, or $1.69 per share, a 29% year-over-year increase that surpassed the consensus estimate of roughly $1.66. Revenue was essentially in line with Wall Street's expectation of about $7.18 billion.

Net interest revenue rose 14% to $3.48 billion, supported by higher interest-earning assets and an improved NIM (net interest margin) of 3.04%, up from 2.88% a year ago. Asset management and administration fees grew 14% to $1.91 billion, while trading revenue increased 16% to $1.16 billion. Adjusted expenses rose 9% to $3.24 billion, and the adjusted pre-tax profit margin expanded to 54.8% from 51.3%.

On the client side, core net new assets totaled a record $190.4 billion, up 38% year over year, while total client assets climbed 15% to $13.33 trillion. Schwab added 1.2 million new brokerage accounts during the quarter, and daily average trading volume jumped 44% to approximately 10.7 million trades.

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Market Reaction and Investor Sentiment

The market's response to Schwab's results was muted despite the earnings beat. Shares fell roughly 5% in early trading on October 15, 2026, as investors focused on areas that disappointed rather than the record asset gathering. Bank deposits of $244.1 billion missed the roughly $250.7 billion analysts expected, and the 3.04% net interest margin came in slightly below the anticipated 3.09%.

Management's commentary added to the cautious tone, with Chief Financial Officer Mike Verdeschi indicating that full-year revenue growth and NIM expansion are trending toward the lower end of the company's previously provided ranges. The modest earnings surprise, combined with concerns about the sustainability of revenue growth in an uncertain rate environment, appeared to temper sentiment even as Schwab's underlying client and asset growth remained strong.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors will be watching whether Schwab can sustain its momentum in core net new assets while stabilizing its deposit base. Client cash-sorting behavior, in which clients shift funds between sweep accounts and higher-yielding alternatives, remains a key swing factor for the net interest margin and overall interest revenue.

Expense management will also be closely scrutinized. Management expects full-year expenses to land at the low end of its prior range, which supports positive operating leverage. Continued efficiency gains, including the roughly 25% improvement in developer productivity Schwab cited from its use of AI (artificial intelligence), could help offset rising activity-related costs.

Product expansion represents another important catalyst. Schwab's rollout of single stock futures, the expansion of Schwab Crypto, and the introduction of its AI-powered assistant provide new ways to deepen client engagement and diversify revenue. Growth in managed investing solutions, which reached a record $24 billion in net flows, underscores rising demand for advisory services.

Finally, capital allocation remains in focus. Schwab repurchased 4.7 million shares for approximately $500 million during the quarter, and its preliminary Tier 1 leverage ratio of 8.9% signals a strong capital position. How the company balances buybacks, lending growth, and balance-sheet positioning against a shifting rate backdrop will be central to the next several quarters.

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