Charles Schwab (NYSE:SCHW) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Charles Schwab (NYSE:SCHW) posted its quarterly earnings data on Thursday. The financial services provider reported $1.43 earnings per share for the quarter, beating the consensus estimate of $1.39 by $0.04, Briefing.com reports. Charles Schwab had a return on equity of 23.03% and a net margin of 37.99%.The company had revenue of $6.48 billion during the quarter, compared to analysts’ expectations of $6.39 billion. During the same period in the prior year, the business earned $1.04 earnings per share. Charles Schwab’s revenue for the quarter was up 15.8% compared to the same quarter last year. Charles Schwab updated its FY 2026 guidance to 5.700-5.800 EPS.

Here are the key takeaways from Charles Schwab’s conference call:

• Record Q1 results: Clients opened 1.3M brokerage accounts, core net new assets were a Q1 record of $158B (ex‑one‑time outflow), total client assets $11.8T, revenues +16% to $6.5B and adjusted EPS a record $1.43 (+38% y/y).
• AI is a material strategic accelerator: Schwab is rolling out Portfolio Insights next month, an Investor AI Assistant in June, generative search this year, and has equipped ~33,000 employees with AI tools to boost productivity, lower cost‑to‑serve and create potential fee‑based offers.
• Product expansion into crypto and private markets: Employee pilot for Schwab Crypto (BTC/Ether) is underway with a phased client rollout at 75 bps per trade, and the Forge acquisition plus Private Issuer Equity Services will give clients access to pre‑IPO shares and cap‑table services.
• Strong balance‑sheet and capital management: Bank loan balances rose 29% to $61B, margin loans near $127B, Adjusted Tier‑One Leverage at 6.8% (within target), $2.4B of buybacks in Q1 and a 19% dividend increase, and management now expects 2026 EPS to track above its prior scenario.
• Trading revenue mix pressure: Despite record engagement (9.9M daily average trades), revenue per trade weakened as clients took smaller, shorter‑duration positions in volatile markets, which could cap trading revenue even with higher volumes.

Charles Schwab Stock Down 0.2%

Shares of SCHW stock opened at $92.40 on Friday. The stock has a market cap of $160.60 billion, a P/E ratio of 18.33, a price-to-earnings-growth ratio of 0.76 and a beta of 0.90. Charles Schwab has a one year low of $73.76 and a one year high of $107.50. The stock has a fifty day moving average price of $94.83 and a 200 day moving average price of $96.36. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.62 and a quick ratio of 0.62.

Charles Schwab Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Friday, February 13th were given a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 1.4%. This is an increase from Charles Schwab’s previous quarterly dividend of $0.27. The ex-dividend date of this dividend was Friday, February 13th. Charles Schwab’s dividend payout ratio (DPR) is 27.47%.

More Charles Schwab News

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Q1 beat on EPS and strong trading/revenue momentum — Schwab reported $1.43 adjusted EPS and record quarterly revenue driven by elevated trading volumes and net new assets; that print supports underlying business strength. Charles Schwab (NYSE:SCHW) Posts Q1 CY2026 Sales In Line With Estimates
• Positive Sentiment: Launch of Schwab Crypto — the firm announced phased retail roll‑out of spot Bitcoin and Ether trading (competitive pricing vs. peers); this expands addressable trading revenue and could increase client engagement if adoption scales. Charles Schwab Announces Details of Spot Crypto Trading Launch
• Positive Sentiment: Analyst price‑target boosts and upgrades — major banks raised targets/ratings after the quarter, signaling renewed conviction that earnings leverage and product initiatives can drive upside. Charles Schwab Gets Dual Price Target Boosts From Deutsche Bank and JPMorgan
• Positive Sentiment: Tech initiatives — Schwab will roll out client‑facing AI agents in June, which could improve service efficiency and client retention over time. Schwab Makes AI Push, With Client-Facing Agents To Roll Out in June
• Neutral Sentiment: Record client growth and engagement — Schwab added ~1.3M accounts and reported ~$11.7T in client assets with record trading activity; positive for long‑term revenue but not an immediate fix for margin concerns. Charles Schwab Adds 1.3 Million Accounts, Reports Record Client Assets
• Neutral Sentiment: Earnings materials/transcript available — investors will parse management commentary for detail on cash‑sweep dynamics, margin outlook and crypto rollout cadence. SCHW Q1 2026 Earnings Call Transcript
• Negative Sentiment: FY‑2026 EPS guidance below Street — Schwab set FY‑26 EPS at $5.70–$5.80, under the ~$5.93 consensus; guidance shortfall is the main driver of the intra‑day weakness as it reduces near‑term valuation support.
• Negative Sentiment: Net interest income (NII) and cash‑sorting risk — analysts flagged weaker‑than‑expected NII and sensitivity to clients moving sweep cash into higher‑yield alternatives, which can pressure future margins. Charles Schwab stock dips as Q1 revenue disappoints on weaker-than-expected net-interest-income
• Negative Sentiment: Options activity and insider selling add near‑term volatility — elevated put buying ahead of the print and recent Rule‑10b5‑1 insider sales have amplified downside pressure and uncertainty. Traders Purchase High Volume of Charles Schwab Put Options (NYSE:SCHW) Nigel Murtagh Form 4

Analyst Ratings Changes

Several equities research analysts have recently weighed in on SCHW shares. Raymond James Financial reissued an “outperform” rating and issued a $114.00 price objective on shares of Charles Schwab in a research report on Monday, January 5th. Truist Financial reduced their price objective on Charles Schwab from $122.00 to $120.00 and set a “buy” rating for the company in a research report on Wednesday, April 1st. Jefferies Financial Group reduced their price objective on Charles Schwab from $122.00 to $118.00 and set a “buy” rating for the company in a research report on Monday, April 6th. Piper Sandler raised their target price on Charles Schwab from $100.00 to $105.00 and gave the stock a “neutral” rating in a research report on Wednesday, January 14th. Finally, UBS Group reduced their target price on Charles Schwab from $125.00 to $119.00 and set a “buy” rating for the company in a research report on Wednesday, April 8th. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Charles Schwab has a consensus rating of “Moderate Buy” and an average target price of $114.30.

Insider Transactions at Charles Schwab

In related news, Director Christopher V. Dodds sold 11,825 shares of the firm’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $104.55, for a total value of $1,236,303.75. Following the completion of the transaction, the director directly owned 449,406 shares of the company’s stock, valued at $46,985,397.30. This trade represents a 2.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Chairman Walter W. Bettinger sold 162,462 shares of the firm’s stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $103.90, for a total value of $16,879,801.80. Following the completion of the transaction, the chairman directly owned 529,346 shares of the company’s stock, valued at approximately $54,999,049.40. This trade represents a 23.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 470,748 shares of company stock valued at $48,095,857 over the last 90 days. Corporate insiders own 6.30% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Walter & Keenan Wealth Management LLC IN ADV lifted its holdings in shares of Charles Schwab by 0.8% during the fourth quarter. Walter & Keenan Wealth Management LLC IN ADV now owns 14,559 shares of the financial services provider’s stock valued at $1,455,000 after acquiring an additional 114 shares during the period. Invenio Wealth Partners LLC lifted its holdings in shares of Charles Schwab by 5.4% during the third quarter. Invenio Wealth Partners LLC now owns 2,584 shares of the financial services provider’s stock valued at $247,000 after acquiring an additional 132 shares during the period. Hohimer Wealth Management LLC lifted its holdings in shares of Charles Schwab by 1.6% during the fourth quarter. Hohimer Wealth Management LLC now owns 9,395 shares of the financial services provider’s stock valued at $939,000 after acquiring an additional 145 shares during the period. Quadrant Capital Group LLC lifted its holdings in shares of Charles Schwab by 0.4% during the fourth quarter. Quadrant Capital Group LLC now owns 41,406 shares of the financial services provider’s stock valued at $4,137,000 after acquiring an additional 145 shares during the period. Finally, Haverford Trust Co lifted its holdings in shares of Charles Schwab by 6.7% during the fourth quarter. Haverford Trust Co now owns 2,345 shares of the financial services provider’s stock valued at $234,000 after acquiring an additional 147 shares during the period. 84.38% of the stock is owned by institutional investors.

About Charles Schwab

Charles Schwab Corporation (NYSE: SCHW) is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.