Charles Schwab profit rises 23% to $2.9 billion as record revenue reaches $7.2 billion

The Charles Schwab Corporation (SCHW) reported record third-quarter net revenues of $7.2 billion and net income of $2.9 billion, the company said Thursday in a press release attached to a Form 8-K filing. The quarter ended Sept. 30, 2026.

Here's how the company did:

• Net income: $2.906 billion vs. $2.358 billion a year earlier
• Diluted earnings per share: $1.62 vs. $1.26 a year earlier
• Adjusted diluted earnings per share: $1.69 vs. $1.31 a year earlier
• Net revenues: $7.171 billion vs. $6.135 billion a year earlier

Net income rose 23% and GAAP earnings per share rose 29% from the year-earlier quarter.

Excluding $151 million of pre-tax acquisition and integration-related costs and amortization of acquired intangible assets, adjusted net income was $3.021 billion, or $1.69 per share, the company said.

Net revenues rose 17% from a year earlier. Net interest revenue rose 14% to $3.476 billion, and asset management and administration fees rose 14% to $1.9 billion.

Trading revenue rose 16% to $1.2 billion. Bank deposit account fees climbed 40% to $345 million, and other revenue rose 64%.

Revenue per trade fell 20% to $1.69, while clients' daily average trades rose 44% to 10.7 million.

“We are delivering new capabilities and solutions, while our leading value proposition continues to resonate with investors and RIAs,” President and CEO Rick Wurster said.

Core net new assets totaled $190.4 billion in the quarter, up 38% from a year earlier, an annualized growth rate of 5.8%. Total client assets rose 15% to $13.33 trillion, and total client accounts reached 48.6 million.

Bank loan balances rose 35% to $72.3 billion at the September month-end. Margin loan balances increased 14% from the prior quarter to $187.9 billion, including $60.7 billion related to long/short strategies.

Pledged Asset Line balances grew 59% to $37.3 billion. Net flows into Schwab Wealth Advisory rose 55% from a year earlier.

Net interest margin expanded from the prior quarter to 3.04%, up from 2.88% a year earlier. Average interest-earning assets were $451.5 billion, up 8%.

Expenses excluding interest rose 9% to $3.394 billion. Compensation and benefits rose 6% to $1.756 billion.

Acquisition and integration-related costs were $10 million in the quarter. The release did not identify the acquisition behind those costs.

The pre-tax profit margin was 52.7%, up from 49.2%. Return on average common stockholders' equity was 25%, up from 21%, and return on tangible common equity was 44%, up from 38%.

The company repurchased 4.7 million shares of common stock for $0.5 billion during the quarter. It declared a dividend of $0.32 per common share, up 19% from $0.27 a year earlier.

The preliminary consolidated Tier 1 Leverage Ratio was 8.9%, and the adjusted Tier 1 Leverage Ratio was 7.0%, the company said.

“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 basis,” Chief Financial Officer Mike Verdeschi said.

The company said it announced single stock futures on the thinkorswim trading platform and plans to expand digital assets available in Schwab Crypto. It also introduced Charley, an AI-powered assistant that gives U.S. retail clients conversational access to Schwab's tools and insights.

The company said it partnered with Anthropic to bring Claude for Financial Advisors to the independent registered investment advisers (RIAs) Schwab serves.

For the first nine months, net income was $8.185 billion, up from $6.393 billion. Diluted earnings per share were $4.53, compared with $3.33 a year earlier.

Net revenues for the nine months were $20.725 billion, compared with $17.585 billion a year earlier.

Full-time equivalent employees were 33.9 thousand at quarter end, up 4% from a year earlier.

The release did not include new financial guidance. The company will host a Fall Business Update for institutional investors on Thursday morning, from 7:30 a.m. to 8:30 a.m. Central time.