Key Highlights
- Q1 adjusted earnings per share reached $1.43, surpassing analyst expectations by $0.04
- First quarter net revenue achieved an all-time high of $6.5B, representing a 16% annual increase
- Client assets under management expanded 19% to reach $11.77 trillion
- The firm executed $2.4B in share buybacks while increasing its dividend by 19%
- Average daily trading activity reached an all-time high of 9.9 million trades, climbing 34% compared to Q1 2025
Charles Schwab delivered impressive first-quarter results, with adjusted earnings per share reaching $1.43, exceeding the Street’s consensus forecast of $1.39 by four cents.
On a GAAP basis, earnings per share totaled $1.37. The brokerage giant posted record net revenue of $6.5 billion, marking a 16% jump from the prior-year quarter and slightly topping the analyst estimate of $6.47B.
GAAP net income for the period reached $2.48 billion, representing a 30% year-over-year improvement. On an adjusted basis, net income came in at $2.59 billion, reflecting a 29% increase versus Q1 2025.
The Charles Schwab Corporation, SCHW
The company’s pre-tax profit margin improved to 49.2% under GAAP accounting, up from 43.8% in the first quarter of last year. The adjusted pre-tax margin reached 51.4%.
The firm attracted $140 billion in core net new assets throughout the quarter. When excluding a scheduled mutual fund clearing deconversion that led to $17.5 billion in outflows, core net new assets totaled $157.5 billion.
Schwab added 1.3 million new brokerage accounts during the three-month period. The company now serves 39.1 million active brokerage accounts, while total client accounts across all platforms reached 47.2 million.
Trading Activity and Asset Management Surge
The brokerage platform saw average daily trading volume surge to a record 9.9 million trades in the quarter, up 34% from the same period in 2025. This elevated activity drove trading revenue 20% higher on a year-over-year basis.
Client assets under management climbed 19% annually to $11.77 trillion. Fees from asset management and administration services increased 15% to $1.8 billion.
Net flows into Managed Investing Solutions jumped 46% versus the first quarter of 2025. Bank loan balances grew 29% year-over-year, ending March at $60.9 billion.
Margin loan balances increased 13% from year-end 2025 levels to $126.7 billion, which incorporates $21.3 billion associated with long/short strategies employed by registered investment advisor clients.
The net interest margin for the quarter stood at 2.88%. Client transactional sweep cash balances concluded March at $461.5 billion, up $7.8 billion from the previous quarter.
Shareholder Rewards and Dividend Enhancement
Schwab bought back 24.3 million common stock units totaling $2.4 billion throughout the first quarter. Additionally, the company announced a 19% increase to its quarterly common stock dividend, raising it to $0.32 per share.
Return on average common stockholders’ equity reached 23% on an annualized basis, improving from 18% in the year-ago quarter. Return on tangible common equity hit 40%.
The firm completed its purchase of Forge Global in early March. Operating expenses under GAAP increased 5% year-over-year, while adjusted expenses similarly rose 5% after backing out $143 million in costs related to acquisitions and integration activities.
During the quarter, Schwab introduced the Schwab Teen Investor Account, designed for young investors between the ages of 13 and 17.
StockBrokers.com recognized the company as the top overall broker for the second consecutive year. March core net new assets of $79.7 billion ranked as the second-highest monthly total in company history.
