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Schwab Shocks: Strong Earnings, Stock Falls
21 Jul
Summary
- Schwab reported record revenue of $7.1 billion, up 21% year-over-year.
- Second-quarter earnings per share reached $1.62, exceeding estimates.
- Client assets grew 22% to $13.08 trillion, with strong new asset inflows.
Charles Schwab posted record-breaking financial results for the second quarter of 2026. The brokerage firm announced a revenue of $7.1 billion, marking a 21% year-over-year increase and exceeding consensus estimates. Earnings per share came in at $1.62, surpassing the anticipated $1.54.
This strong performance was further evidenced by a 22% surge in total client assets, which reached $13.08 trillion. The company also attracted $119.8 billion in core net new assets, a 49% increase compared to the previous year's second quarter. Daily average trading volume hit a new record of 11.9 million, up 57% year-over-year.
Despite these impressive figures, Charles Schwab's shares experienced a decline of nearly 3% in U.S. premarket trading on Tuesday. President and CEO Rick Wurster highlighted the firm's "leading value proposition" resonating with investors, leading to 1.4 million new brokerage accounts opened and substantial asset gathering. The net interest margin expanded by 12 basis points to 3.00% quarter-over-quarter.
