Schwab Reports Record Quarterly Revenue and Earnings
The Charles Schwab Corporation reported net income for the second quarter totaling $2.8 billion, or earnings per share of $1.54. Excluding $170 million of pre-tax transaction-related costs, adjusted (...
Record June Core Net New Assets Grew 47% Year-Over-Year to $62.7 Billion
2Q Net Revenues Reached a Record $7.1 Billion, Up 21% Year-Over-Year
Record GAAP Earnings Per Share of $1.54; $1.62 Adjusted (1) – up 42% versus 2Q25
WESTLAKE, Texas: The Charles Schwab Corporation reported net income for the second quarter totaling $2.8 billion, or earnings per share of $1.54. Excluding $170 million of pre-tax transaction-related costs, adjusted (1) net income and earnings per share equaled $2.9 billion and $1.62, respectively.
Client Driven Growth |
| $120B Net New Assets | “Schwab’s leading value proposition continued to resonate in 2Q26, as investors opened 1.4 million new brokerage accounts and brought $120 billion in core net new assets to the firm. June core asset gathering totaled a record $62.7 billion – an annualized organic growth rate of 5.8%.” |
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Deepen Client Relationships |
| 53% Net Flows Growth | “Investors continued to engage with Schwab’s expanding set of solutions during 2Q as daily average trades reached a record 11.9 million, net flows into Schwab Wealth Advisory™ increased 80% year-over-year, and Pledged Asset Line™ balances equaled $33.4 billion – up 59% from 2Q25.” President & CEO Rick Wurster |
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Diversified Revenue Growth |
| 21% Growth vs. 2Q25 | “Our ability to do more for clients throughout their financial lives enables Schwab to deliver robust results across a range of environments. During the second quarter, strong client engagement helped drive year-over-year revenue growth of 21% to a record $7.1 billion.” |
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Strong Earnings Momentum |
| 43% Growth vs. 2Q25 | “During 2Q26, the strength of Schwab’s diversified business model, our industry-leading scale, and opportunistic capital return in multiple forms combined to deliver year-over-year GAAP earnings growth of 43% to a record $1.54 per share, or $1.62 on an adjusted (1) basis.” |
2Q26 Client and Business Highlights
- Total client assets increased 22% year-over-year to $13.08 trillion
- Core net new assets totaled $119.8 billion, up 49% versus 2Q25
- New brokerage account openings equaled 1.4 million, helping bring total client accounts to 48.0 million
- Managed Investing Solutions net flows grew 53% versus 2Q25
- Bank loan balances equaled $67.0 billion at June month-end, up 33% year-over-year
- Margin loan balances increased 30% quarter-over-quarter to $165.1 billion at quarter-end
- Long/short strategy interest remained strong amongst RIA clients (2), with margin loan debits and short cash credits equaling $42.1 billion and $43.7 billion, respectively, as of June 30, 2026
- Daily average trading volume reached a record 11.9 million – up 57% versus 2Q25
- Launched Schwab Crypto™, providing direct access to Bitcoin and Ethereum trading for retail clients
- Introduced Portfolio Insights, a generative AI-powered capability that helps investors understand portfolio performance (3)
- Schwab recognized as the Best Investing Platform by U.S. News for the 4th consecutive year (4)
| Three Months Ended |
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| Six Months Ended |
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Financial Highlights | 2026 |
| 2025 |
| Change |
| 2026 |
| 2025 |
| Change | |||||||||||
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Net revenues (in millions) | $ | 7,072 |
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| $ | 5,851 |
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| 21 | % |
| $ | 13,554 |
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| $ | 11,450 |
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| 18 | % | |
Net income (in millions) |
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GAAP | $ | 2,800 |
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| $ | 2,126 |
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| 32 | % |
| $ | 5,279 |
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| $ | 4,035 |
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| 31 | % | |
Adjusted | $ | 2,930 |
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| $ | 2,222 |
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| 32 | % |
| $ | 5,518 |
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| $ | 4,230 |
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| 30 | % | |
Diluted earnings per common share |
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GAAP | $ | 1.54 |
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| $ | 1.08 |
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| 43 | % |
| $ | 2.91 |
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| $ | 2.07 |
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| 41 | % | |
Adjusted | $ | 1.62 |
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| $ | 1.14 |
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| 42 | % |
| $ | 3.05 |
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| $ | 2.17 |
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| 41 | % | |
Pre-tax profit margin |
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GAAP |
| 51.9 | % |
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| 47.9 | % |
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| 50.6 | % |
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| 45.9 | % |
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Adjusted |
| 54.3 | % |
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| 50.1 | % |
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| 52.9 | % |
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| 48.2 | % |
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Return on average common stockholders’ equity (annualized) |
| 25 | % |
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| 19 | % |
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| 23 | % |
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| 18 | % |
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Return on tangible common equity (annualized) |
| 44 | % |
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| 35 | % |
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| 41 | % |
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| 34 | % |
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Note: | Items labeled “adjusted” are non-GAAP financial measures; further details are included on pages 10-12 of this release. All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding. |
2Q26 Financial Commentary
- Quarterly net revenues grew year-over-year by 21% to a record $7.1 billion
- Net interest margin for the quarter expanded 12 basis points quarter-over-quarter to 3.00%
- Client transactional sweep cash balances ended June at $485.7 billion, an increase of $24.2 billion versus the prior quarter-end, reflecting typical 2Q tax seasonality, organic growth, and client asset allocation decisions
- Average interest-earning assets for the quarter equaled $445.0 billion, up 5% versus 2Q25
- Asset management and administration fees grew by 16% year-over-year to $1.8 billion, powered by the firm’s organic growth and investors’ increased utilization of our wealth and asset management solutions
- Record client trading activity drove trading revenue of $1.2 billion, up 28% year-over-year
- GAAP expenses for the quarter increased 12% year-over-year; excluding acquisition and integration-related costs and the amortization of acquired intangibles of $170 million, adjusted total expenses (1) were up 11% relative to 2Q25
- Capital ratios across the firm remained strong – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) equaling 8.7% and 6.8%, respectively
- Redeemed $2.1 billion Series I Preferred Stock and issued $1.5 billion Series L Preferred Stock
- Repurchased 11.2 million shares of our common stock for $1.0 billion during the quarter
(1) | Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-12 of this release. | |
(2) | Client margin loans and short credits related to certain long/short strategies utilized by RIAs are excluded from interest-earning assets and company funding sources. | |
(3) | Portfolio Insights (Insights) is a generative artificial intelligence feature designed to provide: (1) a narrative snapshot of a client’s Portfolio’s Day Change performance as of now versus the prior trading day’s close; (2) a recap of recent news about the top S&P 500® equity movers (up to five securities) most affecting the value of a client’s portfolio; and (3) snippets of the day’s Schwab Center for Financial Research and other Schwab expert content related to a client’s portfolio. The summaries can be refreshed throughout the day. Insights into specific securities are not necessarily representative of a client’s portfolio. The securities referenced to prepare each Insight vary and certain asset types are excluded. Insights should not be construed as investment advice or recommendations and are for informational and educational purposes only. Generative AI output may be inaccurate, containing hallucinated, stale, or incomplete information. Clients should consult their Account Statement(s) for complete account information. For more information about Schwab Portfolio Insights, please visit https://www.schwab.com/legal/portfolio-insights-disclosure. | |
(4) | U.S. News & World Report’s Best Investing Platforms awards were given on 04/16/2026. The criteria, evaluation, and ranking were determined by U.S. News & World Report. See https://money.usnews.com/investing/best-brokers/methodology for more information. Schwab paid a licensing fee to U.S. News & World Report for use of the award and logos. |
Summer Business Update
The company will host its Summer Business Update for institutional investors this morning from 7:30 a.m. - 8:30 a.m. CT, 8:30 a.m. - 9:30 a.m. ET.
Registration for this Update webcast is accessible at https://www.aboutschwab.com/schwabevents.
Forward-Looking Statements
This press release contains forward-looking statements relating to the company’s diversified business model, scale, solutions, client engagement, and capital return. These forward-looking statements reflect management’s expectations as of the date hereof. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations. Important factors that may cause such differences are described in the company’s most recent reports on Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company’s website (https://www.aboutschwab.com/financial-reports) and on the Securities and Exchange Commission’s website (https://www.sec.gov). The company makes no commitment to update any forward-looking statements.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 39.8 million active brokerage accounts, 5.9 million workplace plan participant accounts, 2.4 million banking accounts, and $13.08 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services™. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.
THE CHARLES SCHWAB CORPORATION | ||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
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| Three Months Ended |
| Six Months Ended | ||||||||||||
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| 2026 |
| 2025 |
| 2026 |
| 2025 | ||||||||
Net Revenues |
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Interest revenue | $ | 4,432 |
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| $ | 3,787 |
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| $ | 8,394 |
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| $ | 7,544 |
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Interest expense |
| (1,075 | ) |
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| (965 | ) |
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| (1,893 | ) |
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| (2,016 | ) | |
Net interest revenue |
| 3,357 |
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| 2,822 |
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| 6,501 |
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| 5,528 |
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Asset management and administration fees |
| 1,825 |
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| 1,570 |
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| 3,584 |
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| 3,100 |
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Trading revenue |
| 1,215 |
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| 952 |
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| 2,304 |
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| 1,860 |
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Bank deposit account fees |
| 333 |
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| 247 |
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| 628 |
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