TLDR
- Q1 adjusted earnings per share reached $1.43, surpassing analyst predictions by $0.04
- First quarter revenue achieved an all-time high of $6.5B, representing 16% annual growth
- Client assets under management expanded 19% to reach $11.77 trillion
- The firm executed $2.4B in share buybacks and increased its dividend by 19%
- Average daily trades reached an unprecedented 9.9 million, climbing 34% compared to Q1 2025
Charles Schwab delivered impressive first quarter results, with adjusted earnings per share reaching $1.43, surpassing analyst expectations of $1.39 by four cents.
CHARLES SCHWAB $SCHW EARNINGS ARE OUT!
🟢 EPS: $1.43 | Est. $1.39
🔴 REV: $6.49B | Est. $6.48B
IMPLIED MOVE TODAY: ±3.91%!! pic.twitter.com/Xyy6DLgdyt— Schaeffer's Investment Research (@schaeffers) April 16, 2026
On a GAAP basis, earnings per share totaled $1.37. The company’s net revenue achieved an all-time quarterly high of $6.5 billion, marking a 16% increase from the year-ago period and narrowly exceeding the analyst consensus of $6.47 billion.
Net income on a GAAP basis for the three-month period totaled $2.48 billion, representing a 30% year-over-year jump. On an adjusted basis, net income reached $2.59 billion, climbing 29% compared to the first quarter of 2025.
The Charles Schwab Corporation, SCHW
The firm’s pre-tax profit margin widened to 49.2% under GAAP accounting standards, versus 43.8% in the prior-year quarter. The adjusted pre-tax margin came in at 51.4%.
The brokerage attracted $140 billion in core net new assets throughout the quarter. When excluding a scheduled mutual fund clearing deconversion that led to $17.5 billion in outflows, net new assets totaled $157.5 billion.
During the first quarter, 1.3 million new brokerage accounts were established. The company now serves 39.1 million active brokerage accounts, with overall client accounts reaching 47.2 million.
Record Trading and Asset Growth
Average daily trading activity reached an all-time quarterly high of 9.9 million trades, representing a 34% surge versus the first quarter of 2025. This elevated activity drove trading revenue 20% higher on a year-over-year basis.
Client assets under management climbed 19% annually to $11.77 trillion. Revenue from asset management and administration services increased 15% to $1.8 billion.
Net inflows into Managed Investing Solutions accelerated 46% compared to the year-earlier quarter. Bank loan balances grew 29% year-over-year, reaching $60.9 billion at the end of March.
Margin loan balances climbed 13% from year-end 2025 levels to $126.7 billion, which encompasses $21.3 billion associated with long/short strategies employed by registered investment advisor clients.
The net interest margin for the period stood at 2.88%. Client transactional sweep cash balances concluded March at $461.5 billion, increasing $7.8 billion from the previous quarter.
Capital Returns and Dividend Hike
Schwab bought back 24.3 million shares of common stock for a total of $2.4 billion throughout the first quarter. The company simultaneously boosted its quarterly common stock dividend 19% to $0.32 per share.
Annualized return on average common stockholders’ equity came in at 23%, improving from 18% in the first quarter of 2025. Return on tangible common equity reached 40%.
The brokerage completed its purchase of Forge Global in early March. GAAP-based operating expenses increased 5% year-over-year, while adjusted expenses similarly rose 5% when excluding $143 million in costs related to acquisitions and integration activities.
The company introduced the Schwab Teen Investor Account during the quarter, designed for users between ages 13 and 17.
StockBrokers.com awarded the firm its top overall broker ranking for the second consecutive year. Core net new assets in March totaled $79.7 billion, representing the second-highest monthly total in company history.
