New York, July 21, 2026, 10:09 EDT
- Schwab forecasts revenue will increase by 17.5% to 18.5% in 2026, while adjusted expenses are projected to climb between 9.5% and 10.5%.
- An initial estimate suggests that daily trades in the second half are close to 10.3 million, roughly 14% less than the record set in the second quarter.
- Adjusted earnings were $1.62 per share, surpassing the FactSet consensus of $1.56.
The Charles Schwab Corporation NYSE:SCHW projected revenue growth of about 18% in its 2026 outlook. The company’s trading forecasts suggest a slower pace in the second half.
Margin delivery becomes the primary test for investors. At the midpoints, revenue rises by eight percentage points more than adjusted costs. Schwab anticipates its adjusted pretax margin will advance deeper into the low-50% range.
Shares slipped 0.3% to $102.25 as of 9:54 a.m. EDT, with U.S. cash markets open. The stock traded between $98.20 and $105.11.
Schwab’s full-year scenario factored in approximately 10.6 million daily trades. An initial projection, based on a comparable number of trading days, indicates about 10.3 million daily trades in the second half. This figure is 14% lower than the second quarter’s record 11.9 million daily trades.
Based on company data, trading accounted for just 22% of yearly revenue increase, while net interest income and asset fees represented roughly 65%. The breakdown of the quarter’s operations is below.
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Net revenue | $7.072 billion | $5.851 billion | +21% |
| Net interest revenue | $3.357 billion | $2.822 billion | +19% |
| Asset management and administration fees | $1.825 billion | $1.570 billion | +16% |
| Trading revenue | $1.215 billion | $952 million | +28% |
| Adjusted earnings per share | $1.62 | $1.14 | +42% |
| GAAP pretax margin | 51.9% | 47.9% | +4.0 points |
| Daily average trades | 11.920 million | 7.571 million | +57% |
| Revenue per trade | $1.64 | $2.03 | -19% |
Adjusted earnings exceeded FactSet expectations by six cents. Revenue reached $7.07 billion, surpassing the $6.9 billion projection. GAAP net income increased 32% to $2.8 billion.
The surge in trading led to lower income generated per transaction. Revenue per trade fell by 19% to $1.64, even as trading volume climbed by 57%. As a result, trade counts by themselves do not fully reflect earnings performance.
Net interest revenue climbed, driven by increased client borrowing and a reduction in wholesale funding. Asset fees benefited from incoming funds, managed portfolios, and stronger markets. Both were outpaced by growth in trading revenue.
As of the end of June, transactional sweep cash totaled $485.7 billion, an increase of $24.2 billion since March. Bank loans totaled $67 billion, reflecting a 33% rise from a year earlier. Margin balances climbed 30% from March to stand at $165.1 billion.
Schwab’s Chief Financial Officer Mike Verdeschi said the company could “deliver robust results across a range of environments.”
Schwab bought back 11.2 million shares, spending $1 billion. The company’s diluted share count dropped by 5% compared to a year ago, which supported earnings-per-share growth outpacing net income gains.
Client assets rose 22% to $13.08 trillion. Core net new assets climbed to $119.8 billion, an increase of 49%. Those inflows help underpin fee revenue if trading activity declines.
Interactive Brokers Group NASDAQ:IBKR is set to announce its results after the market closes on Tuesday, providing an immediate read on brokerage trading activity. The stock rose 3.0% during early trading hours.
Risks: Schwab projects just a modest dip in trading activity in its scenario. According to the company, a 25-basis-point shift in rates impacts annualized net interest revenue by roughly $250 million to $300 million. The firm’s preliminary Tier 1 leverage ratio declined to 8.7%, compared to 9.8% one year ago.
