Charles Schwab (SCHW) · Financial Services
Charles Schwab Q2 2026 earnings: summary, key numbers & outlook
Results filed 21 Jul 2026 · Quarter ended 30 Jun 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Schwab reported record net revenues of $7.1 billion, up 21% year-over-year, and record GAAP earnings per share of $1.54 ($1.62 adjusted).
Schwab had a record second quarter. Net revenues rose 21% to $7.1 billion, and net income was $2.8 billion, or $1.54 per diluted share ($1.62 adjusted). Clients opened 1.4 million new brokerage accounts and added $119.8 billion of core net new assets. Record trading activity lifted trading revenue 28% to $1.2 billion. Net interest margin widened to 3.00%, and Schwab repurchased 11.2 million shares for $1.0 billion.
The release gave no numerical guidance for coming quarters, so there is no official outlook to measure against. The main tension is that growth leans on conditions that can reverse: record trading volumes, margin loans of $165.1 billion and elevated market levels. Expenses also rose 12%. The adjusted Tier 1 Leverage ratio of 6.8% is well below the reported 8.7%, so capital returns need watching.
Key numbers
- Net revenues · GAAP
- $7.1 billion
- Net income · GAAP
- $2.8 billion
- Diluted earnings per share · GAAP
- $1.54
- Adjusted diluted earnings per share · non-GAAP
- $1.62
- Pre-tax profit margin · GAAP
- 51.9%
up 21% from a year ago
up 32% from a year ago
up 43% from a year ago
up 42% versus 2Q25
up from 47.9% a year ago
| Segment or metric | Value | Change |
|---|---|---|
| Core net new assets | $119.8 billion | up 49% versus 2Q25 |
| Total client assets | $13.08 trillion | up 22% year-over-year |
| New brokerage accounts | 1.4 million | |
| Daily average trades | 11.9 million | up 57% versus 2Q25 |
| Bank loan balances | $67.0 billion | up 33% year-over-year |
| Margin loan balances | $165.1 billion | up 30% quarter-over-quarter |
| Net interest margin | 3.00% | up 12 basis points quarter-over-quarter |
| Asset management and administration fees | $1.8 billion | up 16% year-over-year |
Where each number comes from
- Net revenues: “2Q Net Revenues Reached a Record $7.1 Billion, Up 21% Year-Over-Year”
- Net income: “The Charles Schwab Corporation reported net income for the second quarter totaling $2.8 billion, or earnings per share of $1.54.”
- Diluted earnings per share: “The Charles Schwab Corporation reported net income for the second quarter totaling $2.8 billion, or earnings per share of $1.54.”
- Adjusted diluted earnings per share: “Excluding $170 million of pre-tax transaction-related costs, adjusted (1) net income and earnings per share equaled $2.9 billion and $1.62, respectively.”
- Pre-tax profit margin: “Pre-tax profit margin GAAP | 51.9% | 47.9% | 50.6% | 45.9% Adjusted | 54.3% | 50.1% | 52.9% | 48.2%”
- Core net new assets: “Core net new assets totaled $119.8 billion, up 49% versus 2Q25”
- Total client assets: “Total client assets increased 22% year-over-year to $13.08 trillion”
- New brokerage accounts: “New brokerage account openings equaled 1.4 million, helping bring total client accounts to 48.0 million”
- Daily average trades: “Daily average trading volume reached a record 11.9 million – up 57% versus 2Q25”
- Bank loan balances: “Bank loan balances equaled $67.0 billion at June month-end, up 33% year-over-year”
- Margin loan balances: “Margin loan balances increased 30% quarter-over-quarter to $165.1 billion at quarter-end”
- Net interest margin: “Net interest margin for the quarter expanded 12 basis points quarter-over-quarter to 3.00%”
- Asset management and administration fees: “Asset management and administration fees grew by 16% year-over-year to $1.8 billion, powered by the firm’s organic growth”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $7.1B | +20.9% | +9.1% |
| Net income | $2.8B | +31.7% | +12.9% |
| Diluted EPS | $1.54 | +42.6% | +12.4% |
| Free cash flow | $4.1B | +35.0% | −42.9% |
Calculated by code from XBRL, not by the model.
Key takeaways
Revenue hit a record on broad growth
Net revenues grew 21% to a record $7.1 billion. Trading revenue of $1.2 billion was up 28%, and asset management and administration fees were $1.8 billion, up 16%.
Net interest margin widened to 3.00%
Net interest margin expanded 12 basis points quarter-over-quarter to 3.00%. Client transactional sweep cash ended June at $485.7 billion.
Asset gathering stayed very strong
Core net new assets totaled $119.8 billion, up 49% versus 2Q25, with a record $62.7 billion in June. Total client assets reached $13.08 trillion.
Margin lending and trading surged
Margin loan balances increased 30% quarter-over-quarter to $165.1 billion. Daily average trades reached a record 11.9 million, up 57% versus 2Q25.
Buybacks continued with capital ratios intact
Schwab repurchased 11.2 million shares of our common stock for $1.0 billion. Tier 1 Leverage was 8.7% and adjusted Tier 1 Leverage was 6.8%.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $5.3B * |
| Q1 2025 | $5.6B |
| Q2 2025 | $5.9B |
| Q3 2025 | $6.1B |
| Q4 2025 | $6.3B * |
| Q1 2026 | $6.5B |
| Q2 2026 | $7.1B |
| Q3 2026 | $7.2B |
Data
| Q1 2025 | $0.99 |
| Q2 2025 | $1.08 |
| Q3 2025 | $1.26 |
| Q1 2026 | $1.37 |
| Q2 2026 | $1.54 |
| Q3 2026 | $1.62 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | -$11.1B |
| Q1 2025 | $6.2B |
| Q2 2025 | $3.0B |
| Q3 2025 | $393.0M |
| Q4 2025 | -$921.0M |
| Q1 2026 | $7.2B |
| Q2 2026 | $4.1B |
| Q3 2026 | $1.3B |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Schwab's headline results for Q2 2026?
Net revenues were a record $7.1 billion, up 21% year-over-year. GAAP net income was $2.8 billion, or $1.54 per diluted share, and adjusted EPS was $1.62.
How much new client money did Schwab bring in?
Core net new assets totaled $119.8 billion, up 49% versus 2Q25, including a record $62.7 billion in June. Total client assets reached $13.08 trillion, up 22% year-over-year.
What drove revenue growth in the quarter?
Net interest revenue rose to $3,357 million, trading revenue grew 28% to $1.2 billion, and asset management and administration fees grew 16% to $1.8 billion. Net interest margin expanded to 3.00%.
Did Schwab give guidance for next quarter or the full year?
No. The release contains no numerical guidance for future periods, only general forward-looking statements.
How is Schwab returning capital and how strong are its capital ratios?
It repurchased 11.2 million shares for $1.0 billion, redeemed $2.1 billion of Series I Preferred and issued $1.5 billion of Series L Preferred. Tier 1 Leverage was 8.7% and adjusted Tier 1 Leverage was 6.8%.
Documents
SEC filing