Charles Schwab Stock Surges on Blowout Q3 Results, Analysts Eye More Upside

16 October 2025

Q3 beat: Schwab reported record Q3 results on Oct. 16, with net revenue $6.14 billion (up 27% YoY) and adjusted EPS of $1.31 (versus ~$1.25 expected) ^[1] ^[2]. Net income was $2.36 billion (67% YoY growth) ^[3]. Management highlighted “client-driven growth” – total client assets hit $11.59 trillion (up 17% YoY) and core net new asset inflows were $137.5 billion ^[4]. New brokerage accounts topped 1 million (4th straight quarter) ^[5].
Stock action: SCHW shares jumped after hours. The stock closed around $94 on Oct 15 ^[6] and traded near $98 pre-market Oct 16 on the earnings beat ^[7]. (One-year range is $65.88–$99.59 ^[8].) Year-to-date the stock is well above last winter’s lows. Schwab also buys back stock ($20 billion authorized in July ^[9], $2.7 billion repurchased in Q3 ^[10]) and pays a $0.27 quarterly dividend ($1.08 annual, ~1.1% yield) ^[11].
Analysts bullish: Before the report analysts had forecast ~$1.25 EPS on $6.02B revenue ^[12], so the beat is significant. Major brokerages range from Neutral to Bullish: BMO Capital initiated an Outperform (Buy) on SCHW with a $110 12‑month target ^[13]; Morgan Stanley reiterates an Overweight with ~$130 target ^[14]; Barclays just hiked its target to $114 ^[15]. In short, price targets span roughly $110–$130 ^[16], reflecting confidence in Schwab’s “bank-lite” model.
Peer and macro context: Competitors also posted strong results. Morgan Stanley’s wealth-management arm saw revenue of $8.2B (+13% YoY) in Q3 ^[17], and Interactive Brokers’ customer assets jumped 40% YoY ^[18]. (Robinhood and other retail brokers have also rallied on booming trading activity.) At the same time, Fed Chair Powell’s Oct.14 speech spurred a bond rally – the 10-year U.S. yield fell toward ~4.02% ^[19] – a positive for banks/brokers. Charles Schwab strategist Collin Martin notes long-term yields “can still hold above 4%” even if the Fed cuts rates ^[20], which could help Schwab’s net interest income.
Outlook: Analysts expect Schwab’s momentum to continue. Consensus Q4 2025 estimates are roughly $6.18B revenue and $1.28 EPS ^[21] (versus Q4 2024’s $4.47B/$0.87). Schwab will hold a Fall Business Update on Oct.16 with CEO Rick Wurster ^[22], where management will discuss strategy. Industry forecasts remain broadly positive – for example, Wall Street firms have lifted their S&P 500 year-end targets (citing dovish policy and resilient earnings) ^[23]. If Schwab sustains its client growth and manages expenses, many experts say more upside is likely.

Schwab’s Q3 results illustrate a strong growth cycle: client assets are growing at a record pace and fee & trading revenues are robust. As Wurster put it, this reflects “strengthening organic growth trends” and “favorable macroeconomic tailwinds” powering another “quarter of record revenue and earnings per share” ^[24]. With analysts updating ratings upward (as detailed by Benzinga and Capital.com) and the stock trading near multi-year highs, the near-term outlook for SCHW is widely seen as upbeat ^[25] ^[26]. Investors will watch closely how this wealth-gathering momentum holds up if market conditions change.

Sources: Company filings and press release (Oct. 16 2025) ^[27] ^[28]; MarketBeat and Benzinga earnings news ^[29] ^[30]; Capital.com and Reuters analysis ^[31] ^[32]; Nasdaq Earnings Calendar ^[33]; Schwab investor communications ^[34] ^[35].

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