Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Schwab's second quarter of fiscal 2026 showcased broad-based strength, with client assets reaching a record $13.1 trillion and pre-tax margins expanding to 51.9%. Growth was underpinned by higher net interest revenue from expanding lending and record asset management fees, even as the company invested in the Forge integration and crypto platform. The annualized return on common equity rose to 25%, and the firm increased its dividend by 19% while repurchasing shares, signaling confidence in sustained momentum.
Revenue
$7.07B
+20.87% YoY
EPS (Diluted)
$1.54
+42.59% YoY
Source: SEC XBRL
Schwab Charles (SCHW) reported Q2 FY2026 revenue of $7.07B, up 20.9% year over year. SCHW's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.62 | 1.58 | Beat +2.5% |
| Mar 2026 | 1.43 | 1.42 | Beat +0.5% |
| Dec 2025 | 1.39 | 1.42 | Miss -2.3% |
| Sep 2025 | 1.31 | 1.27 | Beat +3.0% |
Adjusted (non-GAAP) EPS of $1.62 versus the $1.58 analyst consensus — a +2.5% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.54.
2 reported segments · SEC XBRL
Segment revenue totals $7.07B, which is the $7.07B of consolidated revenue on the income statement. The profit column adds up to the consolidated figure as well.
Profit above is reported as pre-tax income, the measure SCHW itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Net interest revenue increased 19% to $3,357 million in Q2 FY2026, driven by growth in margin and bank lending, lower average wholesale borrowings, and lower funding costs, despite lower yields on floating-rate assets.
Source: 10-Q Item 2 MD&A
Total client assets reached $13.08 trillion at quarter end, up 22% year-over-year, with core net new assets of $119.8 billion, a 49% increase, reflecting strong organic growth and market appreciation.
Source: 10-Q Item 2 MD&A
Schwab completed the acquisition of Forge, a private market platform, in March 2026, and began a phased rollout of spot crypto trading (Schwab Crypto™) in May 2026, expanding its investment offerings.
Source: 10-Q Item 2 MD&A
Adjusted total expenses rose 11% to $3,233 million, driven by strategic investments in new products, headcount growth (including financial consultants and wealth advisors), and the inclusion of Forge, partially offset by ongoing scale and efficiency efforts.
Source: 10-Q Item 2 MD&A
The company repurchased $1.0 billion of common stock in Q2 FY2026 and increased its quarterly dividend by 19% to $0.32 per share, while maintaining a consolidated Tier 1 Leverage Ratio of 8.7%.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 4 high, 1 medium, 0 low
Any operational failure, cybersecurity incident, fraud, or disruption at the sub-custodian could result in theft or loss of clients' cryptocurrency, which may not be recoverable, exposing Schwab to remediation costs, regulatory scrutiny, and reputational damage.
Source: 10-Q Item 1A Risk Factors
In a receivership, conservatorship, or bankruptcy of the sub-custodian or intermediaries, clients could experience delays or losses in accessing their cryptocurrency due to legal ambiguity, potentially leading to claims against Schwab and increased regulatory attention.
Source: 10-Q Item 1A Risk Factors
Evolving accounting standards and regulatory expectations for cryptocurrency activities could cause volatility in reported results, impact key metrics and regulatory capital calculations, and heighten scrutiny from auditors and investors.
Source: 10-Q Item 1A Risk Factors
Loss or compromise of private keys or wallets—through error, misconduct, or cyberattack—could impair clients' ability to access their cryptocurrency, requiring Schwab to undertake remediation and potentially incurring financial and reputational harm.
Source: 10-Q Item 1A Risk Factors
The sub-custodian is contractually liable for losses, but may lack sufficient financial resources to cover a significant loss, potentially leaving Schwab to bear uncovered amounts and adversely affecting its business.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 7.07 $B | 5.85 $B | +20.87% |
Net Income $B | 2.80 $B | 2.13 $B | +31.70% |
EPS (Basic) $ | 1.55 $ | 1.09 $ | +42.20% |
EPS (Diluted) $ | 1.54 $ | 1.08 $ | +42.59% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
Charles Schwab delivered a strong FY2025 with revenue surging 22% to $23.9B and net income skyrocketing to $8.85B, driven by robust operating cash flow of $9.3B and the resumption of share buybacks totaling $7.35B.
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