TLDR:
- Charles Schwab reported Q3 earnings above analyst estimates
- Adjusted EPS was $0.77, beating the $0.75 forecast
- Total client assets reached a record $9.92 trillion
- Transactional cash sweep balances increased to $384 billion
- The company’s shares rose over 8% following the earnings report
Charles Schwab, the financial services giant, has reported better-than-expected third-quarter results for 2024, showcasing robust growth in client assets and earnings. The company’s performance has impressed investors, leading to a significant boost in its stock price.
According to the latest financial report, Charles Schwab posted adjusted earnings per share (EPS) of $0.77, surpassing the average analyst estimate of $0.75. This represents a solid beat on the bottom line, indicating the company’s ability to manage costs effectively while growing its business.
The firm’s revenue for the quarter came in at $4.85 billion, also exceeding the consensus estimate of $4.77 billion. This top-line growth demonstrates Schwab’s success in expanding its client base and increasing the services utilized by existing customers.

One of the most notable achievements in the report was the record-breaking total client assets, which reached an impressive $9.92 trillion. This figure represents a substantial 27% increase compared to the same period last year and surpassed analyst expectations of $9.75 trillion. The growth in client assets is a key indicator of Schwab’s ability to attract and retain customers in a competitive financial services landscape.
The company also reported total net new assets of $90.8 billion for the quarter, highlighting its continued appeal to investors seeking a reliable platform for their financial needs.
This influx of new assets contributes to Schwab’s overall growth strategy and positions the company well for future expansion.
Another positive development was the increase in transactional cash sweep balances, which reached $384 billion by the end of September. This represents a nearly 5% increase from August levels and includes $17 billion in net inflows for September alone. The growth in cash balances occurred despite strong customer buying activity during the month, suggesting that clients are maintaining significant cash positions on the Schwab platform.
Walt Bettinger, co-chairman and CEO of Charles Schwab, expressed satisfaction with the company’s performance, stating,
“Our momentum with clients continues to build following the successful completion of the Ameritrade conversion earlier this year.”
This comment highlights the smooth integration of Ameritrade’s operations, which has likely contributed to the company’s strong results.
The firm’s adjusted operating expenses for the quarter totaled $2.85 billion, slightly higher than estimated but still resulting in an adjusted operating margin of 41.2%.
This margin exceeded management’s guidance of at least 40%, demonstrating Schwab’s ability to maintain profitability while investing in growth initiatives.
Charles Schwab’s stock price surged by more than 8% in early trading. This significant increase reflects investor confidence in the company’s financial health and growth prospects.
Financial analysts have reacted favorably to Schwab’s quarterly results. Citi analysts noted, “Overall, it was a better-than-expected quarter, and given the Sept. trajectory for cash balances/ST funding, we expect the stock to react positively.”
Similarly, Piper Sandler analysts highlighted the solid growth in transactional sweep cash balances and better-than-expected progress in supplemental borrowing paydowns as particularly encouraging signs.
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