Charles Schwab Corporation reported a strong first quarter with record revenues and significant year-over-year growth in net income and EPS, driven by robust client engagement across its diversified business segments. The company also demonstrated opportunistic capital return through share repurchases and dividend increases, reflecting a solid financial position.
Record net revenues of $6.5 billion, up 16% year-over-year.
positiveGAAP net income increased 30% year-over-year to $2.5 billion.
positiveGAAP diluted EPS of $1.37, up 38% year-over-year.
positiveTotal client assets increased 19% year-over-year to $11.77 trillion.
positiveCore net new assets totaled $140.0 billion, with $157.5 billion excluding a planned deconversion.
positiveManaged Investing Solutions net flows grew 46% year-over-year.
positiveBank loan balances increased 29% year-over-year to $60.9 billion.
positiveQuarterly common stock dividend increased by 19% to $0.32 per share.
positiveRepurchased 24.3 million shares for $2.4 billion during the quarter.
positiveNet interest margin decreased to 2.88% from 3.52% in the prior year, although it increased from 2.53% in Q4 2025.
attentionClient transactional sweep cash balances increased by $7.8 billion versus the prior quarter-end, potentially indicating a shift from higher-yielding assets.
attentionAverage interest-earning assets for the quarter were up only 2% versus 1Q25, a deceleration from prior periods.
attentionTrading revenue per trade decreased by 12% year-over-year.
attentionThere was a planned mutual fund clearing deconversion resulting in a $17.5 billion outflow from core net new assets.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Schwab’s strong business momentum continued into 2026 as investors opened 1.3 million new brokerage accounts and brought $140 billion of core net new assets to the firm during the first quarter.
Clients continue to turn to us for more of their financial lives, helping wealth and banking solutions reach record levels in 1Q.
Schwab’s diversified model delivered record results within an increasingly uncertain macroeconomic environment.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.