Key Highlights
- Second-quarter adjusted earnings per share reached $1.62, surpassing the $1.56 consensus estimate and significantly above last year’s $1.14
- Quarterly revenue achieved an all-time high of $7.1 billion, representing a 21% year-over-year increase and exceeding the $6.9 billion projection
- Net income jumped 32% to reach $2.8 billion; client assets under management expanded 22% to $13.1 trillion
- Core net new assets totaled $120 billion, a substantial increase from the $74 billion recorded in Q2 2025
- Average daily trading volume reached an unprecedented 11.9 million trades, reflecting a 57% year-over-year surge
Charles Schwab delivered impressive second-quarter performance, with adjusted earnings per share of $1.62 exceeding the Street’s consensus of $1.56. This represents a significant improvement from the $1.14 reported during the comparable quarter last year.
The brokerage giant achieved record quarterly revenue of $7.1 billion, surpassing analyst expectations of $6.9 billion. This marks a notable increase from the $5.9 billion generated in the prior-year period. Net income experienced a robust 32% increase, reaching $2.8 billion.
Shares climbed approximately 2.4% during premarket hours on the back of these results. The stock finished Monday’s session at $102.54, still trading below its 52-week peak of $107.50. Over the trailing 12-month period, shares have appreciated 7.5%.
The Charles Schwab Corporation, SCHW
Chief Executive Officer Rick Wurster highlighted that the company’s value proposition continues gaining traction among investors, evidenced by robust account expansion and impressive asset accumulation metrics.
The firm added 1.4 million new brokerage accounts throughout the quarter, pushing total client accounts to 48 million. Client assets under management increased 22% year over year, reaching $13.1 trillion.
Core net new assets totaled $120 billion, marking a significant jump from the $74 billion recorded in Q2 2025. This achievement came despite seasonal challenges in April, when clients typically withdraw funds for tax payment obligations.
Trading Volume Reaches All-Time High
Average daily trading volume during the quarter reached an all-time high of 11.9 million, marking a 57% year-over-year increase. These figures demonstrate robust client activity and engagement across the platform.
Schwab has been actively expanding its lending operations to complement its traditional brokerage services. Bank loan balances increased 33% year over year, reaching $67 billion.
A significant portion of the company’s revenue comes from net interest income, which represents the margin between interest earned on assets such as loans and interest paid on customer deposits.
Wall Street’s Perspective
J.P. Morgan analyst Kenneth Worthington upgraded his December 2026 price target for Schwab to $137 from $131 on July 15, pointing to improved market dynamics. His rating remains at Overweight.
Worthington noted that Schwab’s interest-earning assets are projected to expand as the firm moves through the second half of the year, a period he characterized as “more seasonally favorable.”
During the earnings call, analysts are anticipated to inquire about Schwab’s internal artificial intelligence implementation and what AI-powered tools the company plans to offer retail investors. Rival platforms such as Robinhood and Interactive Brokers have already launched features enabling customers to integrate AI agents with their trading accounts.
As of Monday’s close, Schwab shares are up 2.7% year to date, trailing the S&P 500’s 8.7% advance during the same timeframe.
Diluted earnings per share for the quarter totaled $1.54, representing a 43% year-over-year increase, per the company’s official earnings announcement.
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