Charles Schwab is experiencing a powerful earnings inflection, with net interest income up 35.2% year-over-year to $3.8B in 2Q26 and the efficiency ratio improving to 40.0%, reflecting strong operating leverage and robust client inflows of $120B in core net new assets.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth accelerated sharply with NII surging 35.2% year-over-year to $3.8B in 2Q26, while the efficiency ratio improved to 40.0% from 45.7% in 2Q24, though a $830M provision for loan losses after eight quarters of zero provisions raises questions about earnings quality.
A significant majority of Wall Street analysts have a 'Strong Buy' rating on SCHW, with a median price target of $117.50, implying a potential upside of around 29-33%.
Analysts anticipate a 'Great Rotation' in 2026, benefiting Schwab as capital shifts from overvalued tech stocks to financial services.
Schwab's acquisition of Forge Global and the ongoing benefits from TD Ameritrade are expected to drive future growth.
Schwab faces persistent increases in operating expenses due to investments in growth, which could pressure profitability.
The company remains sensitive to funding mix and rate dynamics, which could negatively impact earnings if conditions shift.
The financial services industry is subject to market volatility and competition, which could adversely affect Schwab's performance.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 15, 2026 | $1.69+2.4% vs $1.65 | $7.2B-0.1% vs $7.2B |
Q3 2026 Jul 21, 2026 | $1.62+3.8% vs $1.56 | $7.1B+2.6% vs $6.9B |
Q2 2026 Apr 16, 2026 | $1.43+2.1% vs $1.40 | $6.5B-0.3% vs $6.5B |
Q1 2026 Jan 21, 2026 | $1.39+2.2% vs $1.36 | $6.3B-0.7% vs $6.4B |
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Benchmark SCHW against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for The Charles Schwab Corporation (SCHW)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $91.49 | $159.11B | 14.90 | 22.01% | 38.16% | 21.29% | 1.43% | |
| $181.44 | $286.18B | 13.84 | 14.48% | 25.97% | 17.7% | 2.28% | |
| $162.81 | $31.28B | 13.45 | 12.27% | 14.63% | 23.43% | — | |
| $11.63 | $2.17M | 0.07 | 9.41% | — | — | — | |
| $2.54 | $2.54B | -6.02 | -3.03% | -2.34% | -7.48% | — | |
| $865.82 | $260.7B | 11.76 | 8.92% | 31.81% | 17.9% | 1.92% |
The Charles Schwab Corporation (SCHW) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
The Charles Schwab Corporation (SCHW) SEC filings — annual & quarterly reports (10-K, 10-Q)
Oct 15, 2026·SEC
Aug 12, 2026·SEC
Jul 21, 2026·SEC
Feb 25, 2026·SEC
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The Charles Schwab Corporation (SCHW) stock FAQ — growth, dividends, profitability & financials explained
The Charles Schwab Corporation (SCHW) grew revenue by 21.7% over the trailing twelve months, compared with the twelve months before.
Yes. The Charles Schwab Corporation (SCHW) earned $10.64B in net income over the trailing twelve months (a 38.2% net margin).
Yes. The Charles Schwab Corporation (SCHW) pays a dividend that yields 1.43% at the current price, a moderate yield.
The Charles Schwab Corporation (SCHW) had a return on equity (ROE) of 21.3% over the trailing twelve months. That is well above the market's typical 10-15%.
The Charles Schwab Corporation (SCHW) has a net interest margin (NIM) of 2.4%. NIM has been under pressure due to interest rate environment.
The Charles Schwab Corporation (SCHW) has an efficiency ratio of 52.1%. This is excellent, indicating strong cost control.
