Key Highlights
- Adjusted earnings per share reached $1.43, surpassing projections by $0.04
- First quarter net revenue achieved a historic high of $6.5B, representing a 16% annual increase
- Client assets expanded 19% to reach $11.77 trillion
- The firm bought back $2.4B worth of shares and increased its dividend by 19%
- Average daily trading volume reached an all-time high of 9.9 million, climbing 34% compared to Q1 2025
Charles Schwab delivered impressive first-quarter results, with adjusted earnings per share reaching $1.43, exceeding the Street consensus of $1.39 by four cents.
GAAP earnings per share registered at $1.37. The company’s net revenue climbed to an unprecedented $6.5 billion, marking a 16% gain from the corresponding quarter a year earlier and slightly topping the $6.47B projection.
GAAP net income for the three-month period totaled $2.48 billion, representing a 30% year-over-year advancement. Adjusted net income stood at $2.59 billion, reflecting a 29% rise from the first quarter of 2025.
The Charles Schwab Corporation, SCHW
The pre-tax profit margin widened to 49.2% on a GAAP basis, up from 43.8% during Q1 2025. When adjusted, the margin reached 51.4%.
Investors deposited $140 billion in core net new assets throughout the quarter. When accounting for a scheduled mutual fund clearing deconversion that generated a $17.5 billion outflow, the adjusted total climbs to $157.5 billion.
The quarter saw 1.3 million new brokerage accounts opened. Active brokerage accounts now total 39.1 million, while overall client accounts have reached 47.2 million.
Trading Activity and Asset Expansion Reach New Heights
Average daily trading volume achieved a record 9.9 million transactions during the quarter, marking a 34% surge versus the first quarter of 2025. Trading revenue climbed 20% on an annual basis as a direct result.
Total client assets expanded 19% year-over-year to $11.77 trillion. Asset management and administration fees advanced 15% to $1.8 billion.
Managed Investing Solutions net flows surged 46% when compared to the first quarter of 2025. Bank loan balances grew 29% year-over-year, reaching $60.9 billion at the end of March.
Margin loan balances increased 13% from year-end 2025 to $126.7 billion, incorporating $21.3 billion associated with long/short strategies employed by RIA clients.
The net interest margin for the quarter measured 2.88%. Client transactional sweep cash balances concluded March at $461.5 billion, climbing $7.8 billion from the previous quarter.
Shareholder Rewards and Dividend Enhancement
Schwab bought back 24.3 million common stock units valued at $2.4 billion throughout Q1. The firm simultaneously elevated its quarterly common stock dividend by 19% to $0.32 per share.
Return on average common stockholders’ equity measured 23% on an annualized basis, advancing from 18% in Q1 2025. Return on tangible common equity reached 40%.
The firm finalized its acquisition of Forge Global during early March. GAAP expenses increased 5% year-over-year, with adjusted expenses similarly rising 5% after removing $143 million in acquisition and integration-related costs.
Schwab introduced the Schwab Teen Investor Account during this quarter, designed for users between the ages of 13 and 17.
StockBrokers.com recognized the company as the top-ranked overall broker for the second consecutive year. Core net new assets in March totaled $79.7 billion, marking the second-highest monthly figure in company history.
