Charles Schwab Corporation (NYSE:SCHW) Quarterly Earnings Preview

Charles Schwab (NYSE:SCHW) reported strong second-quarter results, topping analyst expectations for both earnings and revenue as client asset growth and improved interest margins fueled performance. Shares rose more than 3% intra-day today following the announcement.

The company posted adjusted earnings per share of $1.14, surpassing the consensus estimate of $1.09. Revenue reached a record $5.85 billion, beating the $5.7 billion forecast and marking a 25% increase from the same quarter last year.

Core net new assets totaled $80.3 billion for the quarter, representing a 31% year-over-year increase. Total client assets hit an all-time high of $10.76 trillion, up 14% from the previous year. Schwab also added over 1 million new brokerage accounts, reflecting an 11% rise from the prior-year period.

Sweep cash balances grew sequentially to $412.1 billion, while net interest margin expanded by 12 basis points to 2.65%, supported by reduced funding costs and a rebound in securities lending activity. The company also trimmed its Bank Supplemental Funding by $10.4 billion, bringing the total to $27.7 billion by quarter-end.

The results underscore Schwab’s ability to drive growth through asset accumulation and margin management, reinforcing its leadership position in retail brokerage and wealth management.

• Wells Fargo analyst sets a price target of $102 for NYSE:SCHW, indicating a potential upside of 9.56%.
• Expected earnings of $1.07 per share for the second quarter, up from 73 cents per share year-over-year.
• Projected quarterly revenue of $5.64 billion, demonstrating significant business expansion.

Charles Schwab Corporation, trading on the NYSE under the symbol SCHW, is a leading financial services company known for its brokerage and banking services. On July 18, 2025, Michael Brown from Wells Fargo set a price target of $102 for NYSE:SCHW. At that time, the stock was trading at $93.10, suggesting a potential upside of about 9.56%.

The anticipation surrounding Charles Schwab's second-quarter earnings release is high. Analysts expect earnings of $1.07 per share, a notable increase from the 73 cents per share reported in the same period last year. This growth reflects the company's strong performance and potential for future gains, aligning with the positive outlook set by Wells Fargo.

Charles Schwab's projected quarterly revenue is expected to reach $5.64 billion, up from $4.69 billion a year earlier. This increase in revenue demonstrates the company's ability to expand its business and generate higher returns, which supports the optimistic price target set by Michael Brown.

Ahead of the earnings release, Charles Schwab's shares rose by 2%, closing at $93.10. The stock experienced a change of $1.84, an increase of approximately 2.02%. This positive movement indicates investor confidence in the company's upcoming financial results and its potential to meet or exceed market expectations.

The company's market capitalization stands at approximately $169.16 billion, with a trading volume of 10.92 million shares. This substantial market cap and active trading volume highlight Charles Schwab's significant presence in the financial sector, further supporting the positive sentiment surrounding its stock.

• Analysts have raised the consensus price target for NYSE:SCHW from $82.38 to $102, reflecting a positive outlook on the company's future performance.
• Anticipated earnings growth is significant, with a 51% year-over-year increase in EPS and a 22% rise in revenue expected.
• The merger with TD Ameritrade and favorable market conditions, such as elevated interest rates, are key drivers of Schwab's strong performance and optimistic future projections.

The Charles Schwab Corporation (NYSE:SCHW) is a leading financial services company offering a wide range of services, including wealth management, securities brokerage, banking, asset management, and financial advisory services. It operates through two main segments: Investor Services and Advisor Services, catering to both retail and institutional clients. Schwab's strong presence in the U.S. and international markets positions it as a key player in the financial services industry.

Over the past year, analysts have become increasingly optimistic about Schwab's stock, as evidenced by the rise in the consensus price target from $82.38 to $102. This optimism is supported by Schwab's anticipated earnings growth, with analysts expecting a 51% year-over-year increase in earnings per share (EPS) and a 22% rise in revenue. The company's ability to capitalize on favorable market conditions, such as elevated interest rates and increased asset management fees, contributes to this positive outlook.

Schwab's recent merger with TD Ameritrade has strengthened its investment thesis, focusing on fundamental growth. The company is expected to report significant increases in Q2 earnings, driven by robust trading activity and higher net interest income. Analyst Chris Allen from Compass Point has set a price target of $98 for the stock, reflecting confidence in Schwab's future performance and its ability to enhance revenue streams.

Despite Schwab's operational strength and robust growth, the stock's recent outperformance and valuation, which are near decade-highs, may make it less appealing for new buyers at current levels. However, Schwab's strong track record of surpassing earnings expectations and its resilience in the current higher-rate environment highlight its potential for continued success. The company's disciplined cost management and core asset growth contribute to strong EPS growth and margin expansion, surpassing most of its peers.

In comparison, Interactive Brokers (Nasdaq: IBKR) has also shown strong performance, with a 31% rise in shares this year, slightly outpacing Schwab's 25% year-to-date returns. Interactive Brokers reported a 14.6% year-over-year increase in adjusted EPS and an 18.7% rise in revenue in Q1 2025. Investors will be keen to see if Schwab can maintain its growth trajectory and continue to outperform expectations.

Charles Schwab Corporation (NYSE:SCHW) is a leading financial services company known for its brokerage, banking, and financial advisory services. As a major player in the financial industry, Schwab competes with firms like Fidelity and E*TRADE. The company is set to release its quarterly earnings on July 15, 2025, with analysts estimating an earnings per share (EPS) of $1.06 and projected revenue of $5.64 billion.

Charles Schwab has a history of surpassing earnings expectations, as highlighted by its recent performance. Over the past two quarters, Schwab has delivered an average earnings surprise of 8.11%. In the most recent quarter, the company was expected to report earnings of $1.04 per share but delivered $1 per share. This consistent performance suggests a potential for another earnings beat in the upcoming report.

The company's financial metrics provide insight into its valuation and financial health. Schwab's price-to-earnings (P/E) ratio is approximately 25.85, indicating how much investors are willing to pay for each dollar of earnings. Its price-to-sales ratio stands at about 6.40, while the enterprise value to sales ratio is around 6.59. These ratios help investors assess the company's market value relative to its revenue.

Schwab's debt-to-equity ratio of approximately 0.81 indicates a moderate level of debt compared to its equity, suggesting a balanced approach to financing. The current ratio, which measures the company's ability to cover short-term liabilities with short-term assets, is around 0.52. This figure suggests that Schwab may rely on its operational cash flow to meet its short-term obligations.

The 2025 Modern Wealth Survey conducted by Charles Schwab reveals that Americans now believe it requires $839,000 to feel "financially comfortable," up from $778,000 last year. This increase reflects changing perceptions of financial security, which may influence Schwab's client base and demand for its financial services. Additionally, the survey indicates that Americans think it takes an average of $2.3 million to be considered "wealthy," highlighting the evolving financial landscape.

Charles Schwab (NYSE:SCHW) delivered a strong first-quarter performance, outpacing Wall Street expectations on both earnings and revenue as rising client assets and elevated trading activity powered results. The stock climbed over 2% intra-day today following the release.

The company reported adjusted earnings of $1.04 per share, beating the $0.99 consensus. Revenue grew 18% year-over-year to a record $5.6 billion, topping estimates of $5.46 billion.

Core net new assets surged to $137.7 billion, up 44% from the prior year, as Schwab benefited from heightened investor demand amid growing market uncertainty. Total client assets increased 9% year-over-year to $9.93 trillion.

Net interest margin widened by 20 basis points to 2.53%, while daily average trades rose 17% quarter-over-quarter, reflecting a pickup in market volatility.

Schwab continued to strengthen its balance sheet, reducing supplemental bank funding by $11.8 billion to $38.1 billion by the end of March. The company also returned capital to shareholders, boosting its quarterly dividend by 8% to $0.27 per share and executing $1.5 billion in stock buybacks during the period.

Charles Schwab (NYSE:SCHW) delivered a strong first-quarter performance, outpacing Wall Street expectations on both earnings and revenue as rising client assets and elevated trading activity powered results. The stock climbed over 2% intra-day today following the release.

The company reported adjusted earnings of $1.04 per share, beating the $0.99 consensus. Revenue grew 18% year-over-year to a record $5.6 billion, topping estimates of $5.46 billion.

Core net new assets surged to $137.7 billion, up 44% from the prior year, as Schwab benefited from heightened investor demand amid growing market uncertainty. Total client assets increased 9% year-over-year to $9.93 trillion.

Net interest margin widened by 20 basis points to 2.53%, while daily average trades rose 17% quarter-over-quarter, reflecting a pickup in market volatility.

Schwab continued to strengthen its balance sheet, reducing supplemental bank funding by $11.8 billion to $38.1 billion by the end of March. The company also returned capital to shareholders, boosting its quarterly dividend by 8% to $0.27 per share and executing $1.5 billion in stock buybacks during the period.