Upside case
Bull case
$228+147.9%
SCHW would need investors to value it at roughly 38x earnings — about 23x more generous than today's 15x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
The Charles Schwab Corporation (SCHW) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
50
analysts
29 bullish · 3 bearish · 50 covering SCHW
Strong Buy
0
Buy
29
Hold
18
Sell
3
Strong Sell
0
Consensus Target
$119
+29.3% vs today
Scenario Range
$84 – $228
Model bear to bull value window
Coverage
50
Published analyst ratings
Valuation Context
15.3x
Forward P/E · Market cap $163.7B
SCHW price targets
Three scenarios for where SCHW stock could go
Current
~$92
Confidence
63 / 100
Updated
May 1, 2026
Where we are now
Current · $92
Bear
$84
Base
$150
Bull
$228
Market caseClosest to today
Base case
$150+63.0%
At 25x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$84-8.4%
If investor confidence fades or macro conditions deteriorate, a 1x multiple contraction could push SCHW down roughly 8% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
The Charles Schwab Corporation
SCHW · NYSEFinancial ServicesFinancial - Capital MarketsDecember year-end
Charles Schwab is a major financial services firm that operates as a discount brokerage, wealth manager, and bank for individual investors and financial advisors. It generates revenue primarily from net interest income on client cash balances (roughly 50%), asset management fees on its proprietary funds and advisory services, and trading commissions. The company's key competitive advantage is its massive scale in client assets—over $8 trillion—which creates a powerful network effect and allows it to offer low-cost services while maintaining profitability.
Market Cap
$163.7B
Net Income TTM
$8.9B
SCHW Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
91%Exceptional
12 quarters tracked
Revenue Beat Rate
70%Exceptional
vs consensus estimates
Avg EPS Surprise
+3.7%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$1.14/$1.10
Revenue
$5.9B/$5.7B
Q4 2025
EPS
$1.31/$1.25
Revenue
$6.1B/$6.0B
Q1 2026
EPS
$1.39/$1.36
Revenue
$6.3B/$6.4B
Q2 2026
EPS
$1.43/$1.40
Revenue
$6.5B/$6.5B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $1.14/$1.10 | +3.6% | $5.9B/$5.7B | +2.0% |
| Q4 2025 | $1.31/$1.25 | +4.8% | $6.1B/$6.0B | +2.1% |
| Q1 2026 | $1.39/$1.36 | +2.2% | $6.3B/$6.4B | -0.7% |
| Q2 2026 | $1.43/$1.40 | +2.1% | $6.5B/$6.5B | -0.3% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$26.6B
+2.3% YoY
FY2
$27.9B
+4.8% YoY
EPS Outlook
FY1
$4.70
-5.7% YoY
FY2
$4.87
+3.8% YoY
Trailing FCF (TTM)$9.7B
Next Earnings
—
Expected EPS
—
Expected Revenue
—
SCHW beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
SCHW Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2024
Total disclosed revenue $19.6B
Product Mix
Latest annual revenue by segment or product family
Investor Services
79.4%
+8.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Investor Services is the largest disclosed segment at 79.4% of FY 2024 revenue, up 8.0% YoY.
SCHW Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Overvalued
Fair value est. $69 — implies -24.4% from today's price.
Premium to Fair Value
24.4%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
SCHW
30.8x
vs
S&P 500
25.2x
+22% premium
vs Financial Services Trailing P/E
SCHW
30.8x
vs
Financial Services
13.4x
+131% premium
vs SCHW 5Y Avg P/E
Today
30.8x
vs
5Y Average
26.1x
+18% premium
Forward PE
15.3x
S&P 500
19.1x
-20%
Financial Services
10.5x
+46%
5Y Avg
—
—
Trailing PE
30.8x
S&P 500
25.2x
+22%
Financial Services
13.4x
+131%
5Y Avg
26.1x
+18%
PEG Ratio
13.46x
S&P 500
1.75x
+671%
Financial Services
1.03x
+1213%
5Y Avg
—
—
EV/EBITDA
18.3x
S&P 500
15.3x
+20%
Financial Services
11.4x
+60%
5Y Avg
14.4x
+27%
Price/FCF
79.9x
S&P 500
21.3x
+274%
Financial Services
10.6x
+651%
5Y Avg
72.6x
+10%
Price/Sales
6.3x
S&P 500
3.1x
+101%
Financial Services
2.3x
+180%
5Y Avg
6.4x
-1%
Dividend Yield
1.35%
S&P 500
1.88%
-28%
Financial Services
2.68%
-50%
5Y Avg
1.53%
-12%
| Metric | SCHW | S&P 500 | Financial Services | 5Y Avg SCHW |
|---|---|---|---|---|
| Forward PE | 15.3x | 19.1x-20% | 10.5x+46% | — |
| Trailing PE | 30.8x | 25.2x+22% | 13.4x+131% | 26.1x+18% |
| PEG Ratio | 13.46x | 1.75x+671% | 1.03x+1213% | — |
| EV/EBITDA | 18.3x | 15.3x+20% | 11.4x+60% | 14.4x+27% |
| Price/FCF | 79.9x | 21.3x+274% | 10.6x+651% | 72.6x+10% |
| Price/Sales | 6.3x | 3.1x+101% | 2.3x+180% | 6.4x |
| Dividend Yield | 1.35% | 1.88% | 2.68% | 1.53% |
SCHW trades above S&P 500 benchmarks on 5 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolSCHW Financial Health
Verdict
Exceptional
SCHW generates 291.4% ROE and 232.8% return on assets — the two primary signals for banking profitability. FCF-based metrics are not applicable to financial companies.
Earnings Engine
Revenue, profitability, and return on capital
Revenue (TTM)
Trailing-twelve-month sales base
—
Revenue Growth
TTM vs prior year
—
Operating Margin
Operating income divided by revenue
—
Net Margin
Net income divided by revenue
—
EPS (TTM)
Diluted earnings per share, trailing twelve months
$4.98
ROE
Return on equity — the primary profitability signal for banks
291.4%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
6.0%
ROA
Return on assets, trailing twelve months
232.8%
Cash & Equivalents
Liquid assets on the balance sheet
$42.1B
Net Debt
Total debt minus cash
$3.1B
FCF Analysis
Traditional FCF and debt/FCF ratios are not meaningful for financial companies. Focus on ROE and ROA above.
ROE
Return on equity — the headline bank profitability metric
291.4%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
1.3%
Dividend
1.3%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$1.24
Payout Ratio
Share of earnings distributed as dividends
38.3%
Shares Outstanding
Current diluted share count
1.8B
All figures from the trailing twelve months. For financial companies, ROE and ROA are the primary health signals — FCF-based metrics are not applicable.
Open full ratios pageSCHW Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Interest Rate Sensitivity
SCHW’s profitability is heavily tied to interest rate movements. Declining rates can erode net interest revenue and fee income, while rising rates increase funding costs and have already triggered unrealized losses on investment securities portfolios.
Medium
Liquidity Risk
Fluctuations in client cash or deposit balances, market conditions, or regulatory changes can strain the firm’s liquidity. A liquidity shortfall could erode client confidence and prompt asset transfers.
Medium
Credit Risk
The company’s investment portfolio is exposed to credit risk, with potential price fluctuations in securities. Adverse credit events could reduce asset values and impact earnings.
Medium
Unrealized Losses
Increases in unrealized losses on investment securities or other assets can diminish client confidence and hinder the attraction of new assets, potentially leading to client asset transfers.
Medium
Market Downturns
A broad market downturn can expose Schwab’s portfolios to losses, affecting investment values and potentially reducing fee income.
Medium
Operational Failures
Failures in internal processes, systems, or external events can disrupt operations, including online trading, and may impact client service and revenue.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why SCHW Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
Cash‑Sorting Headwind Resolved
The temporary cash‑sorting headwind has dissipated, allowing Schwab to stabilize funding, pay down debt and lift net interest margins back toward the 3% range. With a healthier funding base, analysts project annual EPS growth exceeding 20%.
TD Ameritrade Integration Upside
The ongoing integration of TD Ameritrade is set to expand Schwab’s market share and scale, generating incremental earnings once fully completed. The combined platform creates cross‑selling opportunities across brokerage, advisory and banking services.
Robust Client Money and Account Growth
Schwab is seeing strong inflows of new client money, a significant rise in new brokerage accounts and higher daily average trades, indicating deeper client engagement and fee‑related revenue expansion.
Crypto Market Entry via EDX
As an initial investor in EDX, a crypto‑trading exchange, Schwab positions itself to capture growth in the cryptocurrency market, allowing clients to hold crypto alongside traditional assets and potentially open a new fee stream.
Insider Buying Signals Confidence
Recent insider activity includes a $5 million share purchase by a senior executive, underscoring management’s confidence in the company’s outlook and supporting the bullish narrative.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
SCHW Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$92.15
52W Range Position
39%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$82.40
+11.8% from the low
52-Week High
$107.50
-14.3% from the high
1 Month
-0.90%
3 Month
-12.30%
YTD
-9.3%
1 Year
+11.3%
3Y CAGR
+24.6%
5Y CAGR
+5.2%
10Y CAGR
+12.9%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
SCHW vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
15.3x
vs 14.6x median
+5% above peer median
Revenue Growth
+2.3%
vs -3.0% median
+174% above peer median
Net Margin
—
vs 0.9% median
Peer median unavailable
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
SCH SCHW The Charles Schwab Corporation | $163.7B | 15.3x | +2.3% | — | Buy | +29.3% |
MS MS Morgan Stanley | $307.5B | 16.3x | -5.3% | — | Buy | +6.5% |
RJF RJF Raymond James Financial, Inc. | $31.4B | 13.4x | +5.2% | — | Hold | +6.0% |
AMT AMTD AMTD IDEA Group | $7M | — | — | — | — | — |
LPL LPL LG Display Co., Ltd. | $4.5B | 0.0x | -0.8% | 0.9% | Hold | — |
GS GS The Goldman Sachs Group, Inc. | $291.2B | 15.8x | -23.1% | — | Hold | +6.2% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
SCHW Dividend and Capital Return
SCHW returns 1.3% total yield, led by a 1.35% dividend.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
1.3%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
1.35%
Payout Ratio
38.3%
How SCHW Splits Its Return
Div 1.35%
Dividend 1.35%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$1.24
Growth Streak
Consecutive years of dividend increases
1Y
3Y Div CAGR
8.7%
5Y Div CAGR
8.4%
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
5 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
1.8B
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.64 | — | — | — |
| 2025 | $1.08 | +8.0% | — | — |
| 2024 | $1.00 | 0.0% | 0.0% | 1.7% |
| 2023 | $1.00 | +19.0% | 2.3% | 4.1% |
| 2022 | $0.84 | +16.7% | 2.2% | 3.5% |
FAQ
7 questionsSCHW Investor Questions
Common questions answered from live analyst data and company financials.
01Is The Charles Schwab Corporation (SCHW) stock a buy or sell in 2026?
The Charles Schwab Corporation (SCHW) is rated Buy by Wall Street analysts as of 2026. Of 50 analysts covering the stock, 29 rate it Buy or Strong Buy, 18 rate it Hold, and 3 rate it Sell or Strong Sell. The consensus 12-month price target is $119, implying +29.3% from the current price of $92. The bear case scenario is $84 and the bull case is $228.
02What is the SCHW stock price target for 2026?
The Wall Street consensus price target for SCHW is $119 based on 50 analyst estimates. The high-end target is $127 (+37.8% from today), and the low-end target is $105 (+13.9%). The base case model target is $150.
03Is The Charles Schwab Corporation (SCHW) stock overvalued in 2026?
SCHW trades at 15.3x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for The Charles Schwab Corporation (SCHW) stock in 2026?
The primary risks for SCHW in 2026 are: (1) Interest Rate Sensitivity — SCHW’s profitability is heavily tied to interest rate movements. (2) Liquidity Risk — Fluctuations in client cash or deposit balances, market conditions, or regulatory changes can strain the firm’s liquidity. (3) Credit Risk — The company’s investment portfolio is exposed to credit risk, with potential price fluctuations in securities. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is The Charles Schwab Corporation's revenue and earnings forecast?
Analyst consensus estimates SCHW will report consensus revenue of $26.6B (+2.3% year-over-year) and EPS of $4.70 (-5.7% year-over-year) for the upcoming fiscal year. The following year, analysts project $27.9B in revenue.
06When does The Charles Schwab Corporation (SCHW) report its next earnings?
A confirmed upcoming earnings date for SCHW is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does The Charles Schwab Corporation generate?
The Charles Schwab Corporation (SCHW) generated $9.7B in free cash flow over the trailing twelve months. SCHW returns capital to shareholders through dividends (1.3% yield) and share repurchases ($0 TTM).