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what it is
Schwab is the giant platform where people invest, park cash, get advice, and where advisors custody client money.
how it gets paid
Last year Schwab made $23.9B in revenue. net interest revenue was the main engine at $14.4B, or 60% of sales.
why it's growing
Revenue grew 22.0% last year. The gain came from robust client growth and stronger engagement.
what just happened
Schwab's latest report showed earnings per share jumping 77% vs. prior year as revenue rose 27% in the September period.
At a glance
A balance sheet — strong enough to weather a downturn
70/100 earnings predictability — reasonably predictable
22.0x trailing p/e — priced about right
1.1% dividend yield — cash in your pocket every quarter
11.5% return on capital — nothing to write home about
xvary composite: 75/100 — average
What they do
Schwab is the giant platform where people invest, park cash, get advice, and where advisors custody client money.
Schwab wins on scale and habit. It has 36.5 million active brokerage accounts and $10.1 trillion in client assets as of 12/24. When your investing account, cash, advisor, and bank all live in one place, leaving is a paperwork project.
How they make money
$23.9B
annual revenue · their business grew +22.0% last year
net interest revenue
$14.4B
asset management and administration fees
$5.4B
trading revenue
$3.0B
bank deposit account fees and other
$1.1B
The products that matter
brokerage, advice, and banking platform
client account platform
$23.9B revenue · ~37.5% net margin
the page data lumps the business together rather than breaking out segments. thin, yes. but the main point still lands: the whole $23.9B platform grew 22.0% last year and kept roughly a 37.5% net margin (aligned with the KPI card below).
one integrated model
Key numbers
$10.1T
client assets
This is the whole point. More client money on platform means more fees, more cash balances, and more ways for Schwab to get paid.
36.5M
active accounts
Scale matters in brokerage. Schwab has a huge installed base to cross-sell advice, banking, and trading services.
44%
asset growth
Net new assets jumped 44% in the September period. That tells you client momentum, not just market luck, drove the rebound.
37.5%
profit margin
A 37.5% net profit margin means Schwab keeps roughly 38 cents of every revenue dollar after expenses.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 45 / 100
- long-term debt $20.2B (10% of capital)
- net profit margin 37.5% — keeps 38 cents of every dollar in revenue
- return on equity 16% — $0.16 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in SCHW 3 years ago → it's now worth $13,110.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Schwab's latest report showed earnings per share jumping 77% vs. prior year as revenue rose 27% in the September period.
The gain came from robust client growth and stronger engagement. Net new assets were up 44% from the year-ago period, which pushed results to record levels.
$17.6B
quarter revenue
$3.33
quarter EPS
n/a
n/a
the number that mattered
The 44% jump in net new assets mattered most because it tells you clients were still bringing fresh money, not just riding a market bounce.
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charles schwab probably gained a lot of ground in 2025.
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during the september period, earnings per share soared 77% vs. prior year, on a 27% revenue advance.
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the showing was supported by robust client growth, with net new assets up 44% from the year-ago period.
-
overall, a dynamic market backdrop, better business execution, and deeper client engagement led to record results.
-
for the full year, the top and bottom lines likely rose 23% and 54%, respectively.
source: company earnings report, 2026
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What could go wrong
the #1 risk is net new assets cooling after a rebound year.
med
client asset growth slows
february 2026 core net new assets were $32.5B, down 32.3% from the prior period. for schwab, slower client inflows mean less fuel for fee growth and weaker momentum.
if that $32.5B pace keeps slipping, last year's 22.0% revenue growth starts to look like rebound math, not a new normal.
med
earnings stay tied to market activity
the stock fell 3.8% in the february 2026 period. that is the reminder: schwab is profitable, but it is still plugged into trading activity, client cash behavior, and asset values.
a softer market tape does not just move the stock. it pressures the revenue engine that just posted $6.1B in the latest quarter.
med
the recovery multiple can compress
at $101.41, SCHW sits near the top of its $60–$102 range. when a recovery stock trades near the high end of its range, misses get punished faster.
if EPS growth cools after last year's 54% jump, a 22.0x trailing multiple stops looking harmless.
the combined risk picture is simple: if asset gathering cools from february's $32.5B pace and revenue growth falls back from 22.0%, the stock loses both earnings momentum and valuation support.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
net new assets
core net new assets were $32.5B in february 2026, down 32.3% from the prior period. that is the cleanest read on whether client momentum is cooling or just catching its breath.
trend
earnings growth versus revenue growth
full-year EPS rose 54% while revenue grew 22%. if that gap stays wide, margins are doing more work than the headline revenue number suggests.
calendar
the next quarter's revenue line
the latest quarter printed $6.1B of revenue. if the next report stays near that level with margin around 37.0%, the rebound story stays intact.
risk
stock sensitivity near the top of the range
SCHW trades at $101.41 against a $102 52-week high. when you are this close to the ceiling, the market usually expects clean execution.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they still like the setup.
risk profile
average
stability score 3 — this is not a low-volatility utility and not a casino chip either.
chart momentum
average
technical score 3 — the chart is constructive, but there is no special signal hiding here.
earnings predictability
70 / 100
better than many financials, still exposed to activity-driven swings. you should expect some noise.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 1,069 buyers vs. 857 sellers in 3q2025. total institutional holdings: 1.5B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$82
$159
$101
current price
$121
target midpoint · +19% from current · 3-5yr high: $180 (+75% · 16% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
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