Charles Schwab (SCHW) simply posted its largest quarter ever. Income hit a file $7.1 billion, up 21% from a 12 months in the past, beating Wall Road forecasts. Adjusted earnings of $1.62 per share additionally topped the consensus close to $1.55.
The dealer additionally opened direct Bitcoin (BTC) and Ethereum (ETH) buying and selling for retail purchasers. Nonetheless, SCHW shares barely moved, buying and selling close to $102.91 after the report.
Why Charles Schwab Earnings Beat Wall Road Estimates
Virtually each quantity got here in sturdy. Internet revenue rose 32% to $2.8 billion. Shopper property grew 22% to a file $13.08 trillion.
Shoppers did the heavy lifting. They positioned a file 11.9 million trades a day, up 57% from final 12 months. Margin balances practically doubled to $165.1 billion, an indication purchasers are taking larger swings.
There’s one catch. Schwab earned 19% much less per commerce than a 12 months in the past, at $1.64. Sheer quantity, not pricing, drove the 28% bounce in buying and selling income.
Curiosity revenue improved too. Internet curiosity margin climbed to three.00% from 2.66%, as Schwab retains recovering from the money crunch that damage it by 2023.
“Schwab’s main worth proposition continued to resonate in 2Q26, as buyers opened 1.4 million new brokerage accounts and introduced $120 billion in core internet new property to the agency,” Rick Wurster, CEO since January 2025, credited the agency’s asset gathering within the earnings launch.
Rivals are watching. Analysts simply raised rival brokerage value targets earlier than Robinhood reviews on July 29. Schwab has now set the tone for different firms to observe this quarter.
Schwab Crypto Arrives With Bitcoin Down 43% in a Yr
Till now, Schwab purchasers might solely contact crypto by funds and futures. Schwab Crypto adjustments that. It provides direct BTC and ETH buying and selling for the primary time.
The timing is daring. Bitcoin trades close to $66,690, down 43% over the previous 12 months. ETH value motion tells an identical story, with the token close to $1,927, down 49%.
Schwab can be late to the get together. Robinhood has supplied retail crypto since 2018. Interactive Brokers and Constancy adopted in 2021 and 2022.
There’s extra within the pipeline. Portfolio Insights, a brand new synthetic intelligence (AI) instrument, now summarizes every day portfolio strikes for purchasers. Entry to Cboe’s prediction markets is slated for the approaching months.
So why the flat inventory? Buyers noticed the information coming and priced them in. The actual check is whether or not crypto and AI can ship the subsequent shock.
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