Charles Schwab (SCHW) stock soared on Thursday after the financial services company released its Q1 2025 earnings report. It posted adjusted earnings per share of $1.04, beating Wall Street’s estimate of $1.01 for the quarter. This also represented year-over-year growth of 41% compared to 74 cents.
Charles Schwab also reported revenue of $5.6 billion during the quarter. Yet again, that was above analysts’ revenue estimate of $5.53 billion. It’s also marks an 18% increase from the $4.74 billion reported in the first quarter of 2024. Its revenue growth was driven by “robust organic growth, increased trading volumes, strong Managed Investing net inflows, and sustained bank lending momentum.”
SCHW stockholders are pleased with the company’s Q1 beats, pushing shares 3.71% higher in pre-market trading today. That’s despite the fact the stock fell 1.93% on Wednesday. Traders will also note that Charles Schwab shares are up 2.63% year-to-date.
Charles Schwab CEO Comments
Rick Wurster, President and CEO of Charles Schwab, spoke about the effects of the economy on the company’s earnings. He said, “Investors turned to Schwab to navigate an increasingly uncertain environment in 1Q25, entrusting us with $138 billion in core net new assets.” He attributes this 44% increase in year-over-year assets to the company’s focus on serving client needs in Retail, Advisor Services, and Workplace Financial Services.
Is SCHW Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Charles Schwab is Strong Buy, based on 18 Buy, one Hold, and one Sell ratings over the last three months. With that comes an average price target of $89.26, representing a potential 17.91% upside for SCHW stock. These ratings and price targets will likely change as analysts update their coverage after today’s earnings.
