Key Highlights
- First quarter adjusted EPS of $1.43 exceeded analyst expectations by $0.04
- Net revenue reached an all-time high of $6.5B, marking a 16% annual increase
- Client assets under management expanded 19% to reach $11.77 trillion
- Company executed $2.4B in share buybacks while increasing dividend by 19%
- Average daily trading volume reached record 9.9 million trades, representing 34% growth versus prior year
The brokerage giant delivered impressive first quarter results, with adjusted earnings per share landing at $1.43—surpassing the analyst consensus estimate of $1.39 by four cents.
On a GAAP basis, earnings per share registered at $1.37. The firm’s net revenue climbed to an unprecedented $6.5 billion, representing a 16% jump from the comparable quarter one year earlier and narrowly topping the $6.47B forecast.
GAAP-based net income for the period totaled $2.48 billion, reflecting a 30% year-over-year surge. On an adjusted basis, net income came in at $2.59 billion, up 29% compared to the first quarter of 2025.
The Charles Schwab Corporation, SCHW
The pre-tax profit margin widened to 49.2% under GAAP accounting, versus 43.8% in the year-ago quarter. Using adjusted figures, the margin reached 51.4%.
The company attracted $140 billion in core net new assets throughout the quarter. When adjusting for a scheduled mutual fund clearing deconversion that led to $17.5 billion in outflows, net new assets totaled $157.5 billion.
Customers opened 1.3 million new brokerage accounts during the three-month period. Active brokerage accounts now total 39.1 million, while overall client accounts have reached 47.2 million.
Trading Volumes and Assets Reach New Peaks
Average daily trading activity soared to a record-setting 9.9 million transactions in the quarter, climbing 34% compared to the first quarter of 2025. This surge drove trading revenue up 20% on an annual basis.
Overall client assets jumped 19% year-over-year to $11.77 trillion. Revenue from asset management and administration fees climbed 15% to $1.8 billion.
Net flows into Managed Investing Solutions accelerated 46% versus the first quarter of 2025. Bank loan balances grew 29% year-over-year, reaching $60.9 billion at the end of March.
Margin loan balances increased 13% from year-end 2025 levels to $126.7 billion, incorporating $21.3 billion associated with long/short strategies deployed by RIA clients.
The quarterly net interest margin stood at 2.88%. Client transactional sweep cash balances concluded March at $461.5 billion, climbing $7.8 billion from the previous quarter.
Shareholder Returns and Dividend Enhancement
Schwab bought back 24.3 million common stock units totaling $2.4 billion throughout the first quarter. Additionally, the firm announced a 19% increase to its quarterly common stock dividend, raising it to $0.32 per share.
Annualized return on average common stockholders’ equity measured 23%, improving from 18% in the first quarter of 2025. Return on tangible common equity reached 40%.
The firm finalized its acquisition of Forge Global in early March. GAAP expenses increased 5% year-over-year, with adjusted expenses similarly rising 5% after backing out $143 million in costs related to acquisition and integration activities.
During the quarter, Schwab introduced the Schwab Teen Investor Account, designed specifically for users between the ages of 13 and 17.
The brokerage received recognition as the top-ranked overall broker by StockBrokers.com for the consecutive second year. Core net new assets in March alone totaled $79.7 billion, marking the second-highest monthly figure ever recorded.
