Charles Schwab delivered record third-quarter revenue and stronger-than-expected adjusted earnings, but its shares fell as investors focused on a small revenue shortfall and a more cautious full-year outlook.
The US brokerage reported adjusted earnings of $1.69 per share, up 29% year over year and above analysts’ consensus estimate of $1.65–$1.66. Revenue climbed 17% to $7.17 billion, narrowly missing forecasts of approximately $7.2 billion.
Client Growth Hits Records
Schwab attracted $190.4 billion in core net new assets during the quarter, a 38% increase from a year earlier. Total client assets rose 15% to $13.33 trillion, while the company opened 1.2 million new brokerage accounts. Daily average trading volume surged 44% to 10.7 million trades, reflecting strong investor activity.
Growth extended across the business. Net interest revenue increased 14% to $3.48 billion, trading revenue rose 16% to approximately $1.16 billion, and asset-management and administration fees climbed 14% to $1.91 billion. Adjusted pre-tax profit margin expanded to 54.8%, up roughly 3.5 percentage points year over year.
Why Shares Fell
Despite the strong operating performance, the revenue miss gave investors reason to look beyond the headline earnings beat. Management also indicated that full-year 2026 revenue and net interest margin growth were likely to land toward the lower end of previously issued guidance. Questions about client cash balances and future net interest income added to the cautious reaction.
Schwab’s results highlight a recurring challenge for financial companies: rising client assets and trading volumes do not automatically translate into results that exceed market expectations. Investors are also assessing how sustainable earnings growth will be as funding costs, cash balances and lending activity evolve.
