SCHWAB DELIVERS RECORD NET NEW ASSETS & EARNINGS
SCHWAB CHARLES CORP (SCHW) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 SCHWAB DELIVERS RECORD NET NEW ASSETS & EARNINGS Record Quarterly Core Net New Assets of $190.4 Billion, Up 38% Year-Over-Year 3Q Net Revenues Reached a Record $7.2 Billion, Up 17% Year-Over-Year Record GAAP Earnings Per Share of $1.62; $1.69 Adjusted (1) – Up 29% ve
How this was made
The 30-second read
Why it matters
The disclosure combines a fresh earnings print with multiple growth indicators (record core net new assets, account openings, trading volume, and wealth advisory flows), which can shift expectations for near-term revenue and profitability.
Market read
For SCHW, the key tradable takeaway is the combination of record earnings and record client inflows, plus additional catalysts mentioned (AI assistant, Claude for advisors, and plans to expand digital assets).
What to watch
The release highlights margin and long/short-related balances and sweep cash; traders may want to monitor funding costs, credit risk, and whether transaction-related costs remain elevated or revert.
SCHWAB DELIVERS RECORD NET NEW ASSETS & EARNINGS
Record quarterly core net new assets, record net revenues, 17% year-over-year revenue growth, and 29% GAAP diluted EPS growth were accompanied by expanding pre-tax profit margin and a 1% sequential increase in net revenues.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| 3Q26 total net revenuesGAAP | $7.17B | 1% | 17% |
| 3Q26 net interest revenueGAAP | $3.48B | 4% | 14% |
| 3Q26 asset management and administration feesGAAP | $1.91B | 5% | 14% |
| 3Q26 trading revenueGAAP | $1.16B | (5)% | 16% |
| 3Q26 bank deposit account feesGAAP | $345M | 4% | 40% |
| 3Q26 other revenueGAAP | $279M | (18)% | 64% |
| 3Q26 interest revenueGAAP | $4.47B | – | – |
| 3Q26 interest expenseGAAP | −$997M | – | – |
| 3Q26 total expenses excluding interestGAAP | $3.39B | — | 9% |
| 3Q26 compensation and benefitsGAAP | $1.76B | (2)% | 6% |
| 3Q26 professional servicesGAAP | $325M | 6% | 11% |
| 3Q26 occupancy and equipmentGAAP | $316M | 5% | 13% |
| 3Q26 advertising and market developmentGAAP | $114M | 3% | 13% |
| 3Q26 communicationsGAAP | $172M | (13)% | 15% |
| 3Q26 depreciation and amortizationGAAP | $196M | (1)% | (8)% |
| 3Q26 amortization of acquired intangible assetsGAAP | $141M | (1)% | 11% |
| 3Q26 regulatory fees and assessmentsGAAP | $73M | 16% | 24% |
| 3Q26 other expensesGAAP | $301M | 3% | 25% |
| 3Q26 income before taxes on incomeGAAP | $3.78B | 3% | 25% |
| 3Q26 taxes on incomeGAAP | $871M | — | 31% |
| 3Q26 net incomeGAAP | $2.91B | 4% | 23% |
| 3Q26 adjusted net incomenon-GAAP | $3.02B | – | 23% |
| 3Q26 net income available to common stockholdersGAAP | $2.81B | 5% | 23% |
| 3Q26 diluted earnings per common shareGAAP | $ 1.62 | 5% | 29% |
| 3Q26 adjusted diluted EPSnon-GAAP | $ 1.69 | – | 29% |
| 3Q26 basic earnings per common shareGAAP | $ 1.63 | 5% | 29% |
| 3Q26 GAAP pre-tax profit marginGAAP | 52.7 % | – | – |
| 3Q26 adjusted pre-tax profit marginnon-GAAP | 54.8 % | – | – |
| 3Q26 net interest marginGAAP | 3.04% | expanded quarter-over-quarter | – |
| 3Q26 return on average common stockholders’ equity (annualized)GAAP | 25 % | — | (1)% |
| 3Q26 return on tangible common equity (annualized)non-GAAP | 44 % | – | – |
| Nine months ended September 30, 2026 total net revenuesGAAP | $20.73B | – | 18% |
| Nine months ended September 30, 2026 net incomeGAAP | $8.19B | – | 28% |
| Nine months ended September 30, 2026 adjusted net incomenon-GAAP | $8.54B | – | 28% |
| Nine months ended September 30, 2026 diluted earnings per common shareGAAP | $ 4.53 | – | 36% |
| Nine months ended September 30, 2026 adjusted diluted EPSnon-GAAP | $ 4.73 | – | 36% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Net interest revenueAverage interest-earning assets for the quarter equaled $451.5 billion, up 8% versus 3Q25; net interest margin expanded quarter-over-quarter to 3.04%. | $3.48B | 4% | 14% |
| Asset management and administration feesThe release cited organic growth and investors’ increased utilization of wealth and asset management solutions. | $1.91B | 5% | 14% |
| Trading revenueClients remained engaged with the market; daily average trading volume equaled 10.7 million. | $1.16B | (5)% | 16% |
| Bank deposit account feesNo separate driver was reported. | $345M | 4% | 40% |
| Other revenueNo separate driver was reported. | $279M | (18)% | 64% |
Capital returns
- Repurchased 4.7 million shares of our common stock for $0.5 billion during the quarter.
- Dividends declared per common share: $ .32.
What drove it
- Core net new assets totaled $190.4 billion, up 38% versus 3Q25, representing an annualized growth rate of 5.8%.
- Clients opened 1.2 million new brokerage accounts; total client accounts reached 48.6 million.
- Total client assets increased 15% year-over-year to $13.33 trillion.
- Managed Investing Solutions net flows grew 22% versus 3Q25.
- Pledged Asset Line balances grew to $37.3 billion, up 59% year-over-year, while net flows into Schwab Wealth Advisory increased 55%.
- Margin loan balances increased 14% quarter-over-quarter to $187.9 billion at quarter-end.
- Client transactional sweep cash balances ended September at $492.8 billion, an increase of $7.1 billion versus the prior quarter-end.
Concerns
- Trading revenue declined (5)% versus the second quarter despite a 16% year-over-year increase.
- Other revenue declined (18)% versus the second quarter.
- Cash and cash equivalents declined (10)% versus the second quarter to $ 36.7 billion.
- Bank deposits declined (2)% versus the second quarter to $ 244.1 billion.
- Long-term debt increased 18% year-over-year to $ 23.8 billion, while other short-term borrowings increased 118% year-over-year to $ 14.2 billion.
- Total expenses excluding interest increased 9% year-over-year, including a 25% increase in other expenses and a 24% increase in regulatory fees and assessments.
What to watch
- The pace of core net new assets after $190.4 billion in 3Q26 and total net new assets of $192.4 billion.
- Net interest margin following its expansion to 3.04% and the movement in transactional sweep cash balances.
- Margin loan balances after reaching $187.9 billion, including $60.7 billion related to long/short strategies.
- Sequential trading activity and trading revenue, following 10.7 million daily average trades and a sequential decline in trading revenue.
- Expense growth relative to revenue growth and the progression of acquisition and integration-related costs and amortization of acquired intangible assets.
Balance sheet and cash flow
- Cash and cash equivalents were $ 36.7 billion at quarter end, compared with $ 40.6 billion in the second quarter and $ 30.6 billion in the third quarter of 2025.
- Total assets were $ 520.7 billion at quarter end, compared with $ 517.3 billion in the second quarter and $ 465.3 billion in the third quarter of 2025.
- Bank deposits were $ 244.1 billion at quarter end, compared with $ 249.7 billion in the second quarter and $ 239.1 billion in the third quarter of 2025.
- Bank loans — net were $ 72.3 billion at quarter end, compared with $ 67.0 billion in the second quarter and $ 53.6 billion in the third quarter of 2025.
- Long-term debt was $ 23.8 billion at quarter end, compared with $ 22.7 billion in the second quarter and $ 20.2 billion in the third quarter of 2025.
- Other short-term borrowings were $ 14.2 billion at quarter end, compared with $ 13.9 billion in the second quarter and $ 6.5 billion in the third quarter of 2025.
- Federal Home Loan Bank borrowings were $ 2.0 billion at quarter end, compared with $ 0.5 billion in the second quarter and $ 0.9 billion in the third quarter of 2025.
- Capital expenditures — purchases of equipment, office facilities, and property, net were $ 319 million, compared with $ 792 million in the second quarter and $ 152 million in the third quarter of 2025.
- Preliminary consolidated Tier 1 Leverage Ratio was 8.9%; adjusted Tier 1 Leverage Ratio was 7.0 %.
Analysis
Schwab reported a record third quarter, with GAAP net revenues of $ 7,171 million, up 17% year over year and 1% sequentially. Core net new assets totaled $190.4 billion, up 38% versus 3Q25, while total client assets reached $13.33 trillion. New brokerage accounts, managed-investing flows, daily average trading volume, and bank loan balances all increased year over year, indicating broad client engagement across brokerage, advisory, trading, and banking activities.
Revenue growth was diversified. Net interest revenue rose 14% year over year and 4% sequentially to $ 3,476 million, while the net interest margin expanded quarter over quarter to 3.04%. Asset management and administration fees increased 14% to $ 1,913 million, supported by organic growth and greater use of wealth and asset management solutions. Trading revenue rose 16% year over year to $ 1,158 million, although it declined 5% from the second quarter. Bank deposit account fees and other revenue grew 40% and 64%, respectively, from the prior-year period.
Profitability improved faster than revenue. GAAP net income increased 23% to $ 2,906 million and diluted EPS increased 29% to $ 1.62, aided by a decline in weighted-average diluted shares outstanding. GAAP pre-tax profit margin increased to 52.7 % from 49.2 %, while adjusted pre-tax profit margin reached 54.8 %. Expenses excluding interest increased 9%, below revenue growth, despite higher compensation and benefits, professional services, occupancy and equipment, regulatory fees, and other expenses.
Balance-sheet trends show expanding client credit and funding activity. Bank loans — net increased 35% year over year to $ 72.3 billion, and margin loans outstanding increased 93% year over year and 14% sequentially to $187.9 billion. Transactional sweep cash ended September at $492.8 billion, up $7.1 billion from the prior quarter-end. Bank deposits fell 2% sequentially, while long-term debt, other short-term borrowings, and Federal Home Loan Bank borrowings were higher year over year. The company repurchased 4.7 million shares for $0.5 billion during the quarter and declared a $ .32 dividend per common share.
The filing provides no forward financial guidance. Near-term reported indicators are the sustainability of client asset flows, the 3.04% net interest margin, evolving sweep cash and deposit balances, margin-loan growth, trading activity, and the ability to maintain expense growth below revenue growth. Preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage ratios were 8.9% and 7.0 %, respectively.
Management, verbatim
During the third quarter, clients opened 1.2 million new brokerage accounts and entrusted Schwab with $190.4 billion in core net new assets – an annualized growth rate of 5.8%. We are delivering new capabilities and solutions, while our leading value proposition continues to resonate with investors and RIAs.
Rick Wurster, President & CEO
Deeper client engagement across Schwab's platform continues to broaden and strengthen our revenue model, helping our third quarter revenue increase 17% year-over-year to a record $7.2 billion.
Mike Verdeschi, CFO
Our diversified business model, continued focus on meeting clients’ evolving needs, and industry leading scale combined to drive year-over-year GAAP earnings growth of 29% to a record $1.62, or $1.69 on an adjusted (1) basis.
Mike Verdeschi, CFO
Not in the filing
stated, not guessed- Forward guidance for revenue, gross margin, operating expenses, tax rate, EPS, capital expenditures, or other financial metrics was not provided.
- Previous-release outlook was not provided.
- Gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- A cash-flow statement was not provided.
- A consolidated tax rate was not reported.
- Segment operating income or segment profitability was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The Charles Schwab Corporation furnished its 8-K (Item 2.02) with a quarterly results release (Exhibit 99.1) covering 3Q26 financial performance and client activity metrics.
Ticker impact
Charles Schwab reported 3Q26 record net revenues of $7.2B (+17% YoY) and GAAP EPS of $1.62 (+29% YoY) in its 8-K.
Likely upward bias as investors price in continued client-driven growth and higher earnings power.
The filing provides fresh, company-specific quarterly results (revenue, EPS, net new assets) plus detailed growth drivers (core net new assets, margin loans, trading volume).
Market effects
Reinforces strength in retail brokerage and wealth-management demand, potentially supporting sentiment across large-cap broker-dealers.
Primarily US-focused financials sentiment; limited direct regional spillover beyond US broker-dealers.
Low direct global impact, but contributes to broader confidence in US capital markets activity.
Counterpoint
Strong inflows and trading activity may be partially cyclical; if market volumes or client risk appetite fade, the earnings trajectory could normalize.
Key entities
- companyCharles Schwab Corporation
Reported 3Q26 record net revenues, GAAP and adjusted EPS, and record core net new assets in an SEC 8-K.
- executiveRick Wurster
CEO quoted on client-driven growth and platform value proposition.
- executiveMike Verdeschi
CFO quoted on diversified revenue growth and earnings momentum.
