Charles Schwab Q2 update highlights revenue growth, higher client assets, and stronger investor engagement.
Stock Earnings Results
July 21, 2026
Table of Contents
July 21, 2026
The Charles Schwab Corporation (NYSE: SCHW) reported second-quarter 2026 results above expectations, supported by record quarterly revenue, record earnings, higher client assets, strong trading activity, and major growth in core net new assets.
Charles Schwab is a financial services company that provides brokerage, wealth management, banking, asset management, custody, trading, retirement, and advisory services to individual investors and independent investment advisors.
The company reported adjusted EPS of $1.62, above estimates of $1.53, representing a 5.9% earnings surprise. Revenue came in at $7.07 billion, above estimates of $6.84 billion, with revenue growth of 20.9%.
Net revenues increased 21% to a record $7.1 billion.
GAAP net income increased 32% to $2.8 billion.
Adjusted net income increased 32% to $2.9 billion.
GAAP diluted EPS increased 43% to $1.54, while adjusted EPS increased 42% to $1.62.
GAAP pre-tax profit margin improved to 51.9%, compared with 47.9% a year earlier.
Adjusted pre-tax profit margin improved to 54.3%, compared with 50.1% a year earlier.
Total client assets increased 22% from a year earlier to $13.08 trillion.
Core net new assets totaled $119.8 billion during the quarter, up 49% from the prior-year period.
June core net new assets reached a record $62.7 billion, up 47% year-over-year.
Schwab opened 1.4 million new brokerage accounts during the quarter, bringing total client accounts to 48.0 million.
Managed Investing Solutions net flows increased 53%.
Daily average trades reached a record 11.9 million, up 57% from the prior-year quarter.
Trading revenue increased 28% to $1.2 billion.
Asset management and administration fees increased 16% to $1.8 billion, supported by organic growth and greater use of wealth and asset management solutions.
Net interest margin expanded 12 basis points from the prior quarter to 3.00%.
Client transactional sweep cash balances ended June at $485.7 billion, up $24.2 billion from the prior quarter.
Schwab launched Schwab Crypto, giving retail clients direct access to Bitcoin and Ethereum trading.
The company also introduced Portfolio Insights, a generative AI-powered feature designed to help investors understand portfolio performance.
Schwab repurchased 11.2 million shares for $1.0 billion during the quarter.
The company also redeemed $2.1 billion of Series I preferred stock and issued $1.5 billion of Series L preferred stock.
Capital ratios remained strong, with a preliminary consolidated Tier 1 leverage ratio of 8.7% and adjusted Tier 1 leverage ratio of 6.8%.
Charles Schwab delivered a strong quarter across brokerage, wealth management, trading, and banking.
Revenue reached a record level, adjusted EPS beat expectations, client assets topped $13 trillion, and core net new assets rose sharply. Trading activity also reached a record, showing that client engagement remained high.
The key question is whether Schwab can keep growing client assets and fee revenue while maintaining net interest margin and managing changes in client cash allocation.
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