TLDR
Q2 adjusted EPS came in at $1.62, beating Wall Street’s estimate of $1.56, up from $1.14 a year ago
Revenue hit a record $7.1 billion, up 21% year over year, topping forecasts of $6.9 billion
Net income surged 32% to $2.8 billion; total client assets rose 22% to $13.1 trillion
Core net new assets reached $120 billion, up from $74 billion in Q2 2025
Daily average trading volume hit a record 11.9 million, up 57% year over year
Charles Schwab posted a strong second quarter, with adjusted earnings per share of $1.62 beating Wall Street’s estimate of $1.56. That compares to $1.14 in the same period last year.
Revenue came in at a record $7.1 billion for the quarter, topping analyst forecasts of $6.9 billion. A year ago, Schwab reported $5.9 billion in revenue. Net income climbed 32% to $2.8 billion.
The stock rose around 2.4% in premarket trading following the results. It closed Monday at $102.54, below its 52-week high of $107.50. The stock is up 7.5% over the past 12 months.
The Charles Schwab Corporation, SCHW
CEO Rick Wurster said the firm’s value proposition continued to resonate with investors, pointing to strong account growth and asset-gathering numbers.
Customers opened 1.4 million new brokerage accounts during the quarter, bringing total client accounts to 48 million. Total client assets rose 22% year over year to $13.1 trillion.
Core net new assets came in at $120 billion, up sharply from $74 billion in Q2 2025. That result came despite tax-season headwinds in April, when clients typically pull funds to pay tax bills.
Record Trading Activity
Daily average trading volume hit a record 11.9 million during the quarter, up 57% year over year. The result reflects strong client engagement on the platform.
Schwab has been pushing to grow its lending business alongside its core brokerage operations. Bank loan balances rose 33% year over year to $67 billion.
The company earns a chunk of revenue from net interest income, the spread between what it earns on assets like loans and what it pays out on deposits.
Analyst Outlook
J.P. Morgan analyst Kenneth Worthington raised his December 2026 price target on Schwab to $137 from $131 on July 15, citing better market conditions. He rates the stock Overweight.
Worthington wrote that Schwab’s interest-earning assets are expected to grow as the company enters the second half of the year, which he described as “more seasonally favorable.”
On the earnings call, analysts are expected to ask about Schwab’s use of AI internally and what tools it is offering to retail clients. Competitors including Robinhood and Interactive Brokers have already rolled out features allowing customers to connect AI agents to their accounts.
Schwab is up 2.7% year to date as of Monday, compared to an 8.7% gain for the S&P 500.
Diluted EPS for the quarter came in at $1.54, up 43% year over year, according to the company’s earnings release.
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