Charles Schwab Corp. (SCHW)
NYSE:SCHW
Want to see SCHW full AI Analyst Report?
Top Page
Charles Schwab
(NYSE:SCHW)
Select Model
Select Model
Rating:70Outperform
Price Target:
$99.00
â–²(7.28% Upside)
Action:Upgraded
Date:05/22/26
The score is driven primarily by strong improving profitability and solid free cash flow, partially tempered by historical volatility and meaningful debt. Technicals are the main drag due to negative MACD and the stock trading below multiple longer-term moving averages, while valuation is reasonable and recent corporate actions are modestly supportive.
Positive Factors
High and Improving Profitability
Sustained high margins and a meaningful TTM profitability rebound indicate durable operating leverage from Schwab’s scale. Elevated EBIT and net margins support internal reinvestment, advisory product expansion, and sustained cash returns even through modest revenue fluctuations.
Negative Factors
Large Absolute Debt
While leverage has improved, a ~$33B absolute debt load constrains balance sheet flexibility and raises refinancing and interest-cost risk. In stress scenarios or rising rates, debt servicing can pressure capital returns and limit opportunistic investments or acquisitions.
Read all positive and negative factors
Positive Factors
Negative Factors
High and Improving Profitability
Sustained high margins and a meaningful TTM profitability rebound indicate durable operating leverage from Schwab’s scale. Elevated EBIT and net margins support internal reinvestment, advisory product expansion, and sustained cash returns even through modest revenue fluctuations.
Read all positive factors
Charles Schwab Key Performance Indicators (KPIs)
Charles Schwab (SCHW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$156.78B
Dividend Yield1.07%
Average Volume (3M)11.21M
Price to Earnings (P/E)16.5
Beta (1Y)0.89
Revenue Growth8.11%
EPS Growth53.31%
CountryUS
Employees32,100
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)5.06
Shares Outstanding1,739,135,500
10 Day Avg. Volume10,169,276
30 Day Avg. Volume11,210,884
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)3.58
Price to Sales (P/S)6.40
P/FCF Ratio20.20
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue5.11
Enterprise Value/Gross Profit5.84
Enterprise Value/Ebitda10.69
Forecast
1Y Price Target
$118.21Price Target Upside28.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)6.14
Revenue Forecast (FY)$27.07B
Charles Schwab Business Overview & Revenue Model
Company Description
The Charles Schwab Corporation, together with its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates in two segments, Investor Services and Advi...
How the Company Makes Money
Schwab generates revenue mainly from (1) net interest revenue, (2) asset-based fees, (3) trading revenue, and (4) other service fees.
1) Net interest revenue (interest earnings minus interest paid): Schwab’s largest economic driver is typically t...
Charles Schwab Earnings Call Summary
Earnings Call Date:Oct 16, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 21, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum with record revenue, EPS and client asset gathering, broad engagement across trading, lending and managed solutions, and notable progress in AI, crypto, and product innovation. The firm showed disciplined expense management and maintained a solid capital position while executing strategic M&A. Notable challenges include compressed revenue per trade from smaller, shorter-duration trades, sizable client cash build that raises questions around monetization and competitive dynamics, and the expected seasonal cash draw in Q2. Management presented clear plans for AI-enabled growth and multiple monetization levers, while acknowledging risks associated with crypto launch costs and evolving cash economics.Positive Updates
Record Client Growth and Account Openings
Clients opened 1.3 million brokerage accounts in 1Q26, up 10% year-over-year, driving strong engagement across the platform and making March the firm's second-highest month of net new assets (NNA) on record.
Negative Updates
Lower Revenue Per Trade Due to Market Behavior
Although daily average trades reached a record 9.9 million, traders have been taking smaller positions and holding them for shorter durations amid heightened uncertainty, compressing revenue per trade and limiting upside from volume.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Client Growth and Account Openings
Clients opened 1.3 million brokerage accounts in 1Q26, up 10% year-over-year, driving strong engagement across the platform and making March the firm's second-highest month of net new assets (NNA) on record.
Read all positive updates
Company Guidance
Schwab said Q1 momentum gives upside to prior plans, reporting record revenue of $6.5B (+16% YoY), adjusted EPS $1.43 (+38%), an adjusted pretax margin of 51.4% and adjusted expenses up 5% YoY; management said they are tracking above the prior $5.70–$5.80 FY EPS scenario and will refresh the financial outlook in July. Client metrics were strong: core net new assets $158B (Q1 record), 1.3M brokerage accounts opened (+10% YoY), ~47M client accounts and total client assets ~$11.8T (≈$12T); March produced $25B of cash inflows and was the second‑highest NNA month ever. Engagement/operational stats included 9.9M daily average trades (600M+ trades Q1), 570M digital log‑ins (+12% YoY), >7.8M service calls with sub‑30 second entry, managed investing flows +46% (Schwab Wealth Advisory net flows $10B, +90%), bank loan balances $61B (+29% YoY), margin loans ≈$127B (+13% vs YE), $2.4B of share repurchases in Q1, a 19% dividend increase and an adjusted Tier‑1 leverage ratio of 6.8% (target 6.75–7%); they expect a typical Q2 cash drawdown for taxes.Charles Schwab Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.32B | 27.68B | 26.00B | 25.52B | 22.31B | 19.00B |
| Gross Profit | 24.80B | 23.92B | 19.61B | 18.84B | 20.76B | 18.52B |
| EBITDA | 13.54B | 12.82B | 9.13B | 7.72B | 10.64B | 8.88B |
| Net Income | 9.42B | 8.85B | 5.94B | 5.07B | 7.18B | 5.86B |
Balance Sheet | ||||||
| Total Assets | 493.32B | 491.00B | 479.84B | 493.18B | 551.77B | 667.27B |
| Cash, Cash Equivalents and Short-Term Investments | 67.33B | 108.11B | 124.70B | 149.25B | 188.03B | 453.03B |
| Total Debt | 32.97B | 30.95B | 45.13B | 59.08B | 37.88B | 23.77B |
| Total Liabilities | 444.08B | 441.57B | 431.47B | 452.22B | 515.16B | 611.01B |
| Stockholders Equity | 49.23B | 49.42B | 48.38B | 40.96B | 36.61B | 56.26B |
Cash Flow | ||||||
| Free Cash Flow | 9.72B | 8.76B | 2.05B | 18.89B | 1.09B | 1.20B |
| Operating Cash Flow | 10.29B | 9.31B | 2.67B | 19.59B | 2.06B | 2.12B |
| Investing Cash Flow | 14.06B | 24.54B | 35.43B | 57.41B | 32.05B | -75.66B |
| Financing Cash Flow | -13.05B | -29.70B | -47.06B | -61.24B | -68.72B | 96.32B |
Charles Schwab Technical Analysis
Negative
92.28
Price Trends
92.39
Negative
95.52
Negative
94.77
Negative
Market Momentum
-0.53
Negative
46.38
Neutral
44.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCHW, the sentiment is Negative. The current price of 92.28 is above the 20-day moving average (MA) of 90.57, below the 50-day MA of 92.39, and below the 200-day MA of 94.77, indicating a bearish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 44.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SCHW.
Charles Schwab Risk Analysis
Charles Schwab disclosed 19 risk factors in its most recent earnings report. Charles Schwab reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Charles Schwab Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $36.24B | 27.97 | 19.89% | 0.46% | 12.92% | 28.20% | |
73 Outperform | $317.08B | 11.46 | 16.38% | 2.14% | 16.32% | 29.43% | |
71 Outperform | $29.52B | 13.05 | 17.21% | 1.26% | 5.83% | 1.44% | |
70 Outperform | $156.78B | 16.55 | 19.08% | 1.07% | 8.11% | 53.31% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $294.04B | 11.41 | 14.58% | 1.55% | 2.63% | 26.98% | |
62 Neutral | $22.86B | 16.91 | 17.04% | 0.32% | 38.08% | -22.75% |
* Financial Sector Average
SCHW
Charles Schwab
90.15
3.84
4.46%
IBKR
Interactive Brokers
81.35
29.96
58.30%
LPLA
LPL Financial
285.78
-85.07
-22.94%
MS
Morgan Stanley
201.03
77.93
63.31%
RJF
Raymond James Financial
151.46
8.06
5.62%
GS
Goldman Sachs Group
996.73
410.34
69.98%
Charles Schwab Corporate Events
Private Placements and Financing
Charles Schwab Raises $2.2 Billion Through Senior Notes
Positive
May 21, 2026
On May 21, 2026, The Charles Schwab Corporation issued $1.0 billion of 4.744% fixed-to-floating rate senior notes due 2030 and $1.25 billion of 5.493% fixed-to-floating rate senior notes due 2037, raising approximately $2.236 billion in net procee...
Private Placements and FinancingRegulatory Filings and Compliance
Charles Schwab Issues New Series L Preferred Stock
Positive
Apr 22, 2026
In April 2026, Charles Schwab Corp. established a new Series L Preferred Stock by filing a Certificate of Designations in Delaware, detailing its dividend, voting, redemption and liquidation rights, and making these terms effective upon filing. Ho...
Business Operations and StrategyM&A Transactions
Charles Schwab Completes Forge Global Acquisition to Expand Alternatives
Positive
Mar 2, 2026
On March 2, 2026, Charles Schwab completed its acquisition of Forge Global Holdings, Inc., a platform that provides eligible investors with access to pre-IPO company shares via direct private share purchases and specialized funds. The all-cash dea...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.