Charles Schwab posts record $7.2bn revenue as quarterly profit rises 23%

• Net interest revenue increased 14% to $3.48 billion with net interest margin widening to 3.04% from 2.88% in the previous quarter
• Daily average trades surged 44% year-over-year to 10.7 million, though revenue per trade declined 20% to $1.69
• Bank loan balances rose 35% to $72.3 billion and margin loan balances jumped 93% to $187.9 billion, reflecting strong lending activity

Charles Schwab Q3 2026 Results Summary

Financial Performance:

Charles Schwab (NYSE: SCHW) delivered record third-quarter revenue of $7.17 billion, up 17% year-over-year. Net income surged 23% to $2.91 billion, with diluted earnings per share showing strong growth. The company's GAAP pre-tax profit margin expanded to 52.7% from 49.2% in the prior year.

Client Growth and Assets:

The firm attracted a record $190.4 billion in core net new assets, representing 38% growth from Q3 2025. Total client assets reached $13.33 trillion, up 15% year-over-year. Schwab added 1.2 million new brokerage accounts during the quarter, bringing total accounts to 48.6 million.

Revenue Breakdown:

• Net interest revenue rose 14% to $3.48 billion, with net interest margin widening to 3.04% from 2.88% in the previous quarter
• Asset management and administration fees increased 14% to $1.91 billion
• Trading revenue climbed 16% year-over-year to $1.16 billion, though down 5% sequentially
• Daily average trades jumped 44% to 10.7 million, but revenue per trade declined 20% to $1.69

Balance Sheet Strength:

Bank loan balances increased 35% year-over-year to $72.3 billion. Margin loan balances surged 93% to $187.9 billion, reflecting robust client borrowing activity.

Cost Management:

Non-interest expenses rose 9% to $3.39 billion, growing slower than revenue and supporting margin expansion. The company repurchased 4.7 million shares during the quarter.

Market Implications:

Strong asset inflows and client growth demonstrate Schwab's competitive position in wealth management, while improved net interest margins benefit from the current rate environment.