Strong client growth and trading activity fail to lift stock
Charles Schwab Corporation (NYSE:SCHW) reported record second-quarter revenue and earnings on Tuesday, exceeding Wall Street expectations as client assets, account growth and trading activity continued to accelerate.
Despite the stronger-than-expected results, shares fell nearly 3% in pre-market trading.
Adjusted earnings came in at $1.62 per share, ahead of the analyst consensus estimate of $1.54. Revenue reached a record $7.1 billion, up 21% from a year earlier and above market expectations of $6.85 billion.
Client assets and trading volumes reach new highs
Total client assets increased 22% year over year to $13.08 trillion.
Core net new assets climbed 49% from the second quarter of 2025 to $119.8 billion, while investors opened 1.4 million new brokerage accounts during the quarter.
Daily average trading volume also reached a record 11.9 million trades, representing a 57% increase from a year earlier.
“Schwab’s leading value proposition continued to resonate in 2Q26, as investors opened 1.4 million new brokerage accounts and brought $120 billion in core net new assets to the firm. June core asset gathering totaled a record $62.7 billion – an annualized organic growth rate of 5.8%,” said President and CEO Rick Wurster in the press release.
Profitability continues to improve
Net interest margin expanded by 12 basis points from the previous quarter to 3.00%, reflecting continued improvement in the company’s earnings profile.
Schwab generated an annualised return on average common shareholders’ equity of 25%, while return on tangible common equity reached 44% on an annualised basis, highlighting strong profitability despite a mixed market environment.
Charles Schwab stock price
