Charles Schwab (SCHW) investor relations material

Executive summary

• Achieved record financial results in Q2 2026, with net revenues of $7.1 billion, up 21% year-over-year, and adjusted EPS of $1.62 (+42% YoY), driven by strong client growth, innovation, and diversified business lines.

• Opened 1.4 million new brokerage accounts, bringing total client accounts to 48 million, and core net new assets totaled $120 billion, up 49% year-over-year.

• Expanded digital, AI, and product offerings, including crypto and fractional trading, and launched new client experiences such as Portfolio Insights and Schwab Assistant.

• Maintained industry leadership in client assets, RIA custodial assets, and daily average trades, with robust trading activity and high client satisfaction.

• Received top industry awards for best investing platform and world's best bank.

Financial highlights

• Total revenue/net revenues grew 21% year-over-year to $7.1 billion in Q2 2026.

• Adjusted earnings per share reached $1.62, up 42% year-over-year; GAAP EPS was $1.54, up 43% year-over-year.

• Adjusted pre-tax profit margin was 54.3% for the quarter; GAAP margin at 51.9%.

• Trading revenue grew 28% year-over-year to $1.2 billion; asset management and administration fees rose 16% to $1.8 billion.

• Net income reached $2.8 billion (GAAP) and $2.9 billion (adjusted), both up 32% year-over-year.

Outlook and guidance

• Full-year 2026 revenue growth expected at 17.5%-18.5%, with NIM projected to expand to 3%-3.10% for the year.

• Annual expense growth anticipated at 9.5%-10.5%, with underlying expenses in line with prior guidance.

• Organic asset growth target reaffirmed at 5% for 2026.

• Scenario planning reflects Fed Funds rate finishing 2026 between 3.25% and 4.00%, and S&P 500 appreciation of 6.5–13%.

• Scenario excludes impact from opportunistic share repurchases in H2 2026.