Barclays Turns More Bullish on The Charles Schwab Corporation (SCHW) After Q4

The Charles Schwab Corporation (NYSE:SCHW) is among the most profitable financial stocks to invest in. According to a January 22 report from The Fly, Barclays analyst Benjamin Budish reaffirmed his bullish view on The Charles Schwab Corporation (NYSE:SCHW) with an Overweight rating. The analyst also raised his price target to $125 from $120, following the Q4 results. According to the analyst, the results were in line with expectations, and the company provided a conservative outlook.

In its Q4 results a day earlier, The Charles Schwab Corporation (NYSE:SCHW) reported revenue of $6.34 billion, modestly below the $6.39 billion consensus. With core net new assets of $163.9 billion in Q4, total client assets rose 18% year-over-year to a record $11.9 trillion. Net interest margin (NIM) performance remained solid, with Q4 NIM coming in at around 2.9%, a 57 basis points improvement year over year.

For FY 2026, management guided to an NIM of 2.85%-2.95%, supported by modest expansion in average interest-earning assets relative to FY25. With FY26 adjusted expenses expected to increase by 5.5%-6.5% year over year, Schwab expects adjusted pre-tax margins to expand further into the low-50% range. Management noted that Forge Global (its recent acquisition) is not included in the FY26 guidance.

Encouraged by the results, President & CEO Rick Wurster stated,

Clients are conducting more of their financial lives at Schwab, with record engagement across wealth management, trading, and banking. Net inflows into our Managed Investing solutions grew by 36% versus 2024, while bank loan originations achieved another record year.

The Charles Schwab Corporation (NYSE:SCHW) is a Texas-based savings and loan holding company providing a range of financial services. Founded in 1971, the company operates in two segments: Investor Services and Advisor Services.

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