New York, Jan 22, 2026, 19:59 (EST) — After-hours
- Schwab shares remained steady following a solid session, with investors zeroing in on earnings and the company’s outlook.
- A shareholder vote cleared one hurdle for Schwab’s planned Forge Global deal, eliminating a closing step. Regulators, however, remain a key obstacle.
- Rate expectations ahead of next week’s Federal Reserve meeting are drawing traders’ attention.
Charles Schwab shares climbed 2.2% Thursday, finishing at $104.05 in after-hours trading. Investors remained steady on the stock after the broker’s quarterly report.
Schwab’s shares gained after the firm posted a jump in fourth-quarter profits, driven by stronger interest income and robust trading revenue as clients adjusted to shifting rate forecasts. Net revenue increased 19% to $6.34 billion, just shy of the $6.37 billion analysts expected, while net income hit $2.46 billion, or $1.33 per share, Reuters reported. Reuters
Rates are the key factor right now. Schwab pulls a big part of its profit from client cash parked in interest-bearing accounts, so shifts in Fed policy and bond yields can quickly squeeze that margin. With money moving between stocks, bonds, and cash, investors are watching to see if this profit driver holds up heading into 2026.
CEO Rick Wurster highlighted Schwab’s strong performance in 2025, noting growth across the board. The firm ended the year with 46.5 million client accounts and a record $11.90 trillion in client assets. Quarterly daily average trading volume hit 8.3 million shares. Schwab also bought back 29.2 million shares, spending $2.7 billion. pressroom.aboutschwab.com
On Jan. 21, Schwab submitted an 8-K that featured the quarterly results release as an exhibit, per the SEC filing. SEC
Forge Global announced Thursday that stockholders have greenlit proposals related to Schwab’s earlier acquisition plan, with roughly 70% of votes in favor of the merger agreement. The company expects the deal to wrap up in the first half of 2026, pending standard closing conditions and regulatory sign-offs. Business Wire
Analysts pushed estimates upward again. Barclays lifted its price target on Schwab from $120 to $125, maintaining an Overweight rating. The firm pointed to “inline” results and a 2026 outlook it called conservative. TipRanks
Schwab projects fiscal 2026 revenue growth of 9.5% to 10.5% over the previous year. Adjusted expenses are expected to rise between 5.5% and 6.5%, while the net interest margin is forecasted at 2.85% to 2.95%. The company clarified that its outlook does not factor in the pending Forge acquisition. TipRanks
There are obvious risks, though. If rate cuts come faster or deeper than anticipated, interest margins could tighten. On the other hand, quieter markets might drag down trading volumes and asset-based fees. Plus, the Forge deal still faces hurdles in the approvals process.
Coming soon: the Federal Reserve’s Jan. 27–28 meeting, with the policy decision set for Jan. 28 and a press conference that afternoon. For Schwab holders, the key focus is the rate trajectory and its impact on margins in the short term.
