The Charles Schwab Stock Earnings Reports

Schwab reported a strong start to 2026 with record first-quarter client growth and financial results. Key operating highlights: 1. Client metrics — 1.3 million new brokerage accounts (up 10% YoY), $158B core net new assets (first-quarter record), total client assets $11.8T, and record daily average trades of 9.9M. 2. Revenue & profitability — Q1 revenue rose 16% YoY to $6.5B; adjusted EPS was a record $1.43 (up ~38% YoY) and adjusted pretax margin ~51.4%. 3. Asset-gathering trends — Managed investing flows set records (Wealth Advisory net flows $10B, +90% YoY); bank lending and pledged-asset lines grew (bank loan balances $61B, +29% YoY); client cash rose late in Q1 due to volatility and some long-short strategy flows. 4. Product & distribution initiatives — Continued branch hiring and adviser hiring, Forge acquisition closed to expand private/pre-IPO capabilities, Schwab Team Investor for ages 13–17 launched, structured asset line rollout to advisers, and imminent phased rollout of Schwab Crypto (bitcoin & ether initially). 5. AI adoption — Schwab is scaling AI broadly (client-facing assistants, portfolio insights, search, internal productivity tools, service transcription and coaching), positioning AI as a growth, efficiency and future monetization lever. 6. Balance sheet & capital — Adjusted Tier 1 leverage ratio ~6.8% (in target range), $2.4B of buybacks in Q1, dividend increased 19%; management says capital framework remains flexible to support growth and buybacks. 7. Outlook — Management expects to be tracking above the prior $5.70–$5.80 EPS scenario (which assumed cuts and excluded buybacks/Forge); full-year financial scenario update planned in July. Risks include market volatility, client cash seasonality (tax-related outflows in April), and evolving competitive and regulatory dynamics around crypto and cash monetization.