The Charles Schwab Stock Earnings Reports

Schwab reported a strong start to 2026 driven by its "Through Clients' Eyes" strategy: record Q1 client growth, engagement and financial results. Key highlights include 1.3 million new brokerage accounts (up 10% YoY), $158 billion in core net new assets (a Q1 record) and total client assets of $11.8 trillion. Client activity was robust: record 9.9 million daily average trades, record flows into managed investing (Wealth Advisory net flows up 90% YoY to $10 billion) and strong growth in lending products (bank lending balances up 29% YoY; margin loans up 13% since year-end). Revenue was a Q1 record of $6.5 billion (up 16% YoY) and adjusted EPS was a record $1.43 (up 38% YoY). Adjusted expenses grew modestly (5% YoY) and adjusted pretax margin was 51.4%. Capital position remains strong (adjusted Tier 1 leverage ~6.8% within target), with $2.4 billion of buybacks in Q1 and a 19% common dividend increase. Strategic priorities emphasized: accelerating AI deployments (client-facing AI assistants, portfolio insights, AI tools for employees and advisors), the launch of Schwab Crypto (spot bitcoin/ether rollout to clients soon at competitive pricing), completion of Forge acquisition for private share access, expansion of advisor-facing capabilities (structured asset line, alternatives support), and continued branch and FC hiring. Management emphasized flexibility in balance sheet and monetization options (including future ETF monetization and potential fee-based AI/advisory products), active cash management tools, and confidence that AI will enhance scale, client experience and future monetization. They will provide an updated full-year financial scenario in July and will demonstrate AI capabilities at Institutional Investor Day on May 14.