Charles Schwab (SCHW) Q4 2025 earnings summary

Executive summary

• Achieved record growth in 2025 with $519.4B in core net new assets, a 42% increase year-over-year, and 4.7M new brokerage accounts, up 13% from 2024.

• Total client accounts surpassed 46.5M, with nearly $12T in client assets, ranking first among peers in client assets, RIA custodial assets, and daily average trades.

• Expanded offerings in wealth, lending, trading, alternatives, and digital assets, including acquisitions and investments in Forge, Qapita, and Wealth.com.

• Leveraged AI and digital enhancements to improve client service and operational efficiency.

• Received industry recognition for customer service and trust, including Forbes Best Customer Service 2026 and improved client promoter scores.

Financial highlights

• Total net revenues reached a record $23.9B for 2025, up 22% year-over-year, with adjusted EPS of $4.87, up 50%, and GAAP EPS of $4.65, up 56%.

• Q4 revenue was $6.3B, up 19% year-over-year; net interest revenue rose 25% and trading revenue increased 22%.

• Adjusted pre-tax profit margin expanded to 50% for the year, with Q4 margin at 52%.

• Bank loan balances grew to $58B (up 28% YoY); client margin loan balances exceeded $112B (up 34% YoY).

• Return on average common equity was 22% for Q4 and 21% for the year; return on tangible common equity reached 39% for Q4.

Outlook and guidance

• 2026 scenario projects total revenue growth of 9.5%-10.5%, with net interest margin (NIM) of 2.85%-2.95%.

• Full-year adjusted EPS expected in the $5.70-$5.80 range, representing upper teens growth.

• Organic asset growth targeted at 5% for 2026, with potential for higher long-term growth as new initiatives mature.

• Expense growth planned at 5.5%-6.5%, aligned with strategic investments in branches, advisors, digital assets, and AI.

• Management expects continued growth in client base, engagement, and diversified revenue, but notes risks and uncertainties could impact results.