Why it matters
- Charles Schwab reported record third-quarter earnings of $1.62 a diluted share, or $1.69 adjusted, on Thursday, Oct. 15, up 29% from a year earlier, on record net revenues of $7.17 billion, up 17%, the company said.
- Clients brought in a record $190.4 billion of core net new assets, up 38%, but bank deposits fell to $244.1 billion at the end of September from $249.7 billion at the end of June.
- Schwab shares closed at $94.16, down 2.7% from Wednesday's close of $96.80, according to Yahoo Finance data, after the CFO said 2026 revenue growth would land toward the lower end of the company's ranges.
Charles Schwab reported record third-quarter earnings of $1.62 a diluted share on Thursday, Oct. 15, up 29% from $1.26 a year earlier, as clients brought in a record $190.4 billion of new assets. Net revenues rose 17% to a record $7.17 billion and net income rose 23% to $2.91 billion, the company said in its earnings release. Even so, Schwab shares closed at $94.16, down 2.7% from Wednesday's close of $96.80, according to Yahoo Finance data.
Excluding $151 million of pre-tax acquisition and integration costs, Schwab earned $1.69 a share on an adjusted basis. That topped the $1.66 consensus estimate, while revenue was roughly in line with forecasts, according to a StockStory report published on Yahoo Finance.
Why did Schwab stock fall after record results?
The outlook was cautious. On the earnings call, Chief Financial Officer Mike Verdeschi said Schwab expects full-year revenue and net interest margin "to grow towards the lower end of the ranges," according to a transcript published by The Motley Fool. Bank deposits also fell about 2% from the end of June, Schwab's figures show, while loans grew.
Schwab Q3 2026 results at a glance
| Measure | 3Q 2026 | 3Q 2025 |
|---|---|---|
| Net revenues | $7.17 billion | $6.14 billion |
| Net income | $2.91 billion | $2.36 billion |
| Diluted EPS (GAAP) | $1.62 | $1.26 |
| Adjusted EPS | $1.69 | $1.31 |
| Net interest margin | 3.04% | 2.88% |
| Total client assets | $13.33 trillion | $11.59 trillion |
Source: Charles Schwab third-quarter 2026 earnings release.
What drove the quarter?
Interest income and client activity. Net interest revenue rose 14% to $3.48 billion as the net interest margin widened to 3.04%. Asset management and administration fees rose 14% to $1.91 billion, and trading revenue rose 16% to $1.16 billion, Schwab said. Daily average trades rose 44% from a year earlier to 10.7 million.
Total client assets rose 15% to $13.33 trillion. Clients opened 1.2 million new brokerage accounts, and margin loan balances rose 14% from the second quarter to $187.9 billion, including $60.7 billion tied to long/short strategies. Bank loans rose 35% from a year earlier to $72.3 billion.
Chief Executive Rick Wurster said on the call that Schwab had changed the minimums for long/short strategies "and throttled growth to some extent," according to the transcript. Verdeschi said he expects net interest margin to keep expanding in the fourth quarter and in 2027.
Schwab bought back 4.7 million of its shares for $0.5 billion during the quarter. Its annualized return on equity was 25%, up from 21% a year earlier.
How have other financial firms reported?
Big banks also reported this week. Bank of America took a $1.2 billion charge; see Bank of America Q3 Profit Falls to $0.91 a Share on $1.2B Charge. Goldman Sachs beat estimates on trading; see Goldman Sachs Q3 Earnings Jump 39% to $17.01 a Share.
For more earnings coverage, see our companies section.
Sources
- Charles Schwab, Third quarter 2026 earnings release (Exhibit 99.1 to Form 8-K, Oct. 15, 2026)
- StockStory via Yahoo Finance, Why Charles Schwab (SCHW) Stock Is Falling Today (Oct. 15, 2026)
- The Motley Fool, Schwab (SCHW) Q3 2026 Earnings Call Transcript (Oct. 15, 2026)
- Yahoo Finance, chart data for Charles Schwab (SCHW)
