The Charles Schwab Corporation — Third Quarter 2026 Earnings Summary

Financial Performance

• Net revenues reached a record $7.2 billion for the quarter, a 17% increase year-over-year; for the nine months ended September 30, 2026, net revenues were $20.7 billion, up 18% year-over-year.
• GAAP net income totaled $2.9 billion ($1.62 per diluted share), a 23% increase year-over-year; adjusted net income was $3.0 billion ($1.69 per diluted share), also up 29% year-over-year.
• For the nine months ended September 30, 2026, GAAP net income was $8.2 billion ($4.53 per diluted share), up 28% year-over-year; adjusted net income was $8.5 billion ($4.73 per diluted share), up 36% year-over-year.
• GAAP pre-tax profit margin was 52.7% for the quarter (up from 49.2% in 3Q25); adjusted pre-tax profit margin was 54.8% (up from 51.3% in 3Q25).
• Net interest margin expanded to 3.04% quarter-over-quarter.
• Asset management and administration fees grew 14% year-over-year to $1.9 billion.
• Trading revenue increased 16% year-over-year to $1.2 billion.
• GAAP expenses increased 9% year-over-year; adjusted total expenses also increased 9% year-over-year.
• Return on average common stockholders' equity was 25% (annualized), up from 21% in 3Q25.
• Return on tangible common equity was 44% (annualized), up from 38% in 3Q25.
• Capital ratios remained strong with a preliminary consolidated Tier 1 Leverage Ratio of 8.9% and an adjusted Tier 1 Leverage Ratio of 7.0%.
• The company repurchased 4.7 million shares of common stock for $0.5 billion during the quarter.

Business Segments and Product Lines

• Core net new assets totaled $190.4 billion, up 38% year-over-year, representing an annualized growth rate of 5.8%.
• Schwab Wealth AdvisoryTM net flows increased 55% year-over-year.
• Managed Investing Solutions net flows grew 22% versus 3Q25.
• Bank loan balances reached $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.
• Pledged Asset LineTM balances grew to $37.3 billion, up 59% year-over-year.
• Client transactional sweep cash balances ended September at $492.8 billion, an increase of $7.1 billion versus the prior quarter-end.
• Total client assets increased 15% year-over-year to $13.33 trillion.
• New brokerage account openings equaled 1.2 million, bringing total client accounts to 48.6 million.
• Daily average trading volume equaled 10.7 million, up 44% versus 3Q25.
• Announced Single Stock Futures on the thinkorswim® trading platform.
• Plans to expand digital assets available in Schwab CryptoTM.
• Introduced Charley, a new AI-powered assistant for U.S. retail clients.
• Partnered with Anthropic to bring Claude for Financial Advisors to independent RIAs.

Other Key Points

• Schwab was recognized as one of Fortune's 2026 Most Innovative Companies.
• The company will host its Fall Business Update for institutional investors.
• Full-time equivalent employees increased 4% year-over-year to 33.9 thousand.
• Capital expenditures for the quarter were $319 million.
• The company excluded $151 million of pre-tax transaction-related costs from adjusted results.
• Dividends declared per common share were $0.32.