AI Takeaway
Charles Schwab delivered a strong Q1 FY2026 with revenue rising 15.8% YoY to $6.48B and net income surging 29.9% to $2.48B, driven by robust operating cash flow and accelerated share buybacks.
Revenue
$6.48B
++15.77% YoY
EPS (Basic)
$1.37
++38.38% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue grew 15.8% year-over-year to $6.48B in Q1 FY2026, compared to $5.60B in the prior-year period, reflecting broad-based business momentum across Schwab's brokerage and banking operations.
Source: Source: 10-Q Income Statement, Q1 FY2026
Net income increased 29.9% YoY to $2.48B, with basic and diluted EPS both rising 38.4% to $1.37 from $0.99, indicating significant operating leverage and improved profitability relative to revenue growth.
Source: Source: 10-Q Income Statement, Q1 FY2026
Operating cash flow reached $7.34B, up 15.5% YoY from $6.36B, demonstrating strong cash generation capability that comfortably covers dividends of $632M and supports capital return programs.
Source: Source: 10-Q Cash Flow Statement, Q1 FY2026
2 more insights available
Upgrade to unlockSchwab's debt-to-equity ratio stands at approximately 9.0x, with total liabilities of $444.1B against stockholders' equity of $49.2B. While typical for large financial institutions, this level of leverage amplifies sensitivity to credit market disruptions or unexpected asset quality deterioration.
Source: Source: 10-Q Balance Sheet, Q1 FY2026
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.43 versus the $1.42 analyst consensus — a +0.5% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.48B | $5.6B | +15.77% |
Net Income | $2.48B | $1.91B | +29.86% |
EPS (Basic) | $1.37 | $0.99 | +38.38% |
EPS (Diluted) | $1.37 | $0.99 | +38.38% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $493.32B | $462.9B | +6.57% |
Total Liabilities | $444.08B | $413.39B | +7.42% |
Stockholders' Equity | $49.23B | $49.51B | -0.56% |
Cash & Equivalents | $44.98B | $35.01B | +28.47% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $7.34B | $6.36B | +15.46% |
Investing Cash Flow | $-10M | $10.47B | -100.10% |
Financing Cash Flow | $-3.71B | $-20.36B | +81.77% |
Dividends Paid | $632M | $595M | +6.22% |
Share Buybacks | $2.38B | $1.5B | +58.53% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 38.2% | — | — |
ROE | 5.0% | — | — |
ROA | 0.5% | — | — |
Debt to Equity | $9.02 | — | — |
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Based on the filing data, Schwab reported EPS of $1.37 in Q1 FY2026, up 38.4% from $0.99 in the prior year, and net income of $2.48B, up 29.9% YoY. Whether this beat Wall Street consensus estimates would require comparison to analyst forecasts, which are not included in the filing itself.
Schwab's total revenue grew 15.8% year-over-year to $6.48B in Q1 FY2026, compared to $5.60B in Q1 FY2025. This growth reflects broad-based strength across the company's brokerage, banking, and asset management businesses.
The key takeaways include strong revenue growth of 15.8% to $6.48B, net income surging 29.9% to $2.48B, and EPS jumping 38.4% to $1.37. Additionally, Schwab accelerated share buybacks by 58.5% to $2.38B and generated robust operating cash flow of $7.34B, signaling financial confidence.
The primary risks identifiable from the financial data include Schwab's high financial leverage with a debt-to-equity ratio of approximately 9.0x, significant interest rate sensitivity given its banking and brokerage model, and a dramatic reversal in investing cash flows from +$10.47B to -$10M YoY. Equity market risk also remains a concern as client asset levels directly affect fee revenues.
Schwab's financial health appears solid, with total assets of $493.3B, cash and equivalents of $45.0B (up 28.5% YoY), and operating cash flow of $7.34B. However, the debt-to-equity ratio of 9.0x and a slight 0.6% decline in stockholders' equity to $49.2B are areas to monitor, particularly given the pace of capital returns.