Schwab Posts Record Q3 EPS as Net New Assets Reach $190.4 Billion

The Charles Schwab Corporation (SCHW ) reported record third-quarter 2026 results on October 15, 2026, with net revenues of $7.2 billion, up 17% year-over-year, and core net new assets of $190.4 billion, up 38%. The Westlake, Texas-based company earned GAAP net income of $2.9 billion, or a record $1.62 per diluted share, up 29% from $1.26 a year earlier, according to its third-quarter earnings release. Excluding $151 million of pre-tax transaction-related costs, adjusted net income totaled $3.0 billion, or $1.69 per share, also up 29%.

GAAP pre-tax profit margin was 52.7%, compared with 49.2% in the third quarter of 2025, while adjusted pre-tax margin reached 54.8% versus 51.3%. Annualized return on average common stockholders’ equity was 25%, up from 21%, and annualized return on tangible common equity, a non-GAAP measure, was 44% versus 38%.

Client Assets and Account Growth

Total client assets rose 15% year-over-year to $13.33 trillion, or $13,333.2 billion at quarter end, compared with $11,593.9 billion a year earlier. Clients opened 1.2 million new brokerage accounts during the quarter, 1,243 thousand on the company’s count and up 9% year-over-year, bringing total client accounts to 48.6 million. Active brokerage accounts reached 40,260 thousand, up 6%.

The $190.4 billion core net new asset figure was a quarterly record, Schwab said. Total net new assets, a measure that includes flows from off-platform Schwab Bank retail certificates of deposit, were $192.4 billion, split between $72.3 billion at Investor Services and $120.1 billion at Advisor Services. “During the third quarter, clients opened 1.2 million new brokerage accounts and entrusted Schwab with $190.4 billion in core net new assets – an annualized growth rate of 5.8%,” President and CEO Rick Wurster said, adding that the company’s leading value proposition continues to resonate with investors and RIAs.

Wurster reported that net flows into Schwab Wealth Advisory increased 55% versus the third quarter of 2025, while Pledged Asset Line balances grew to $37.3 billion, up 59% year-over-year. Managed Investing Solutions net flows grew 22% versus the year-ago quarter.

Bank loan balances equaled $72.3 billion at September month-end, up 35% year-over-year. Margin loan balances increased 14% quarter-over-quarter to $187.9 billion at quarter end, including $60.7 billion related to long/short strategies used by RIAs. Daily average trading volume was 10.7 million, up 44% versus the third quarter of 2025, while revenue per trade fell 20% to $1.69.

Revenue Detail, Expenses and Capital

Net interest revenue was $3,476 million, up 14% from $3,050 million, and net interest margin expanded quarter-over-quarter to 3.04%, compared with 2.88% in the year-ago quarter. Average interest-earning assets totaled $451.5 billion, up 8% versus the third quarter of 2025. Client transactional sweep cash ended September at $492.8 billion, an increase of $7.1 billion from the prior quarter-end, which Schwab attributed to continued demand for long/short strategies and organic growth, partially offset by client asset allocation decisions.

Asset management and administration fees grew 14% year-over-year to $1,913 million from $1,673 million. Schwab attributed the increase to the firm’s organic growth and investors’ increased utilization of its wealth and asset management solutions. Within that line, Schwab money market funds averaged $699,067 million in client assets and generated $481 million of revenue at a 0.27% average fee, while fee-based managed investing solutions averaged $801,949 million in client assets at a 0.38% average fee. Total mutual funds, ETFs, collective trust funds and alternatives averaged $2,826,449 million at a 0.15% average fee.

Trading revenue was $1,158 million, up 16% from $995 million. Bank deposit account fees rose 40% to $345 million, and other revenue rose 64% to $279 million. Chief Financial Officer Mike Verdeschi said deeper client engagement across the platform “continues to broaden and strengthen our revenue model, helping our third quarter revenue increase 17% year-over-year to a record $7.2 billion.”

GAAP expenses excluding interest rose 9% year-over-year to $3,394 million. Excluding the $151 million of acquisition and integration-related costs and amortization of acquired intangibles, adjusted total expenses were $3,243 million, also up 9% relative to the third quarter of 2025.

Schwab’s preliminary consolidated Tier 1 Leverage Ratio was 8.9%, and its adjusted Tier 1 Leverage Ratio was 7.0%; at Charles Schwab Bank, SSB, the corresponding ratios were 10.6% and 7.3%. The company repurchased 4.7 million shares of its common stock for $0.5 billion during the quarter and declared dividends of $0.32 per common share, up 19% year-over-year.

For the nine months ended September 30, 2026, net revenues were $20,725 million, up 18%, GAAP net income was $8,185 million, up 28%, and GAAP diluted earnings per share were $4.53, up 36% from $3.33. Adjusted diluted EPS was $4.73, compared with $3.49 in the prior-year period. Total assets stood at $520.7 billion, up 12% year-over-year, and full-time equivalent employees numbered 33.9 thousand, up 4%.

Schwab’s September 2026 monthly activity report, included in the release, showed core net new assets of $67.5 billion for the month, up 46% year-over-year, and total client assets down 1% month-over-month after $144.4 billion of net market losses. The Schwab Trading Activity Index registered 58.9 for September, up 28% year-over-year.

During the quarter Schwab announced Single Stock Futures on the thinkorswim trading platform and plans to expand the digital assets available in Schwab Crypto. The company also introduced Charley, an AI-powered assistant that provides U.S. retail clients conversational access to Schwab’s tools and insights, and partnered with Anthropic to bring Claude for Financial Advisors to the independent RIAs Schwab serves. Schwab said it would host its Fall Business Update for institutional investors on the morning of the release, from 7:30 a.m. to 8:30 a.m. Central Time.