The Charles Schwab Corporation Reports Record Q3 2026 Financial Results

Executive Summary

On October 15, 2026, The Charles Schwab Corporation (NYSE: SCHW) filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition), furnishing its financial results for the third quarter ended September 30, 2026 (Exhibit 99.1).

Schwab reported record core net new assets and earnings, supported by expanded client engagement, higher trading activity, and robust asset management inflows.

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Key Financial Highlights

• Net Revenues: Reached a record $7,171 million, up 17% from $6,135 million in Q3 2025 (and $20,725 million year-to-date, up 18%).
• GAAP Net Income & EPS: GAAP net income was $2,906 million, or $1.62 per diluted share, up 29% compared to $1.26 per share in Q3 2025.
• Adjusted Net Income & EPS: Adjusted net income was $3,021 million, or $1.69 per diluted share (excluding $151 million in pre-tax transaction/integration costs and intangible amortization), representing a 29% increase year-over-year.
• Profit Margins:
  • Pre-tax profit margin expanded to 52.7% (GAAP) and 54.8% (Adjusted), compared to 49.2% and 51.3% in Q3 2025, respectively.
• Returns on Equity:
  • Annualized return on average common stockholders' equity stood at 25% (vs. 21% in Q3 2025).
  • Annualized return on tangible common equity reached 44% (vs. 38% in Q3 2025).

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Operational & Balance Sheet Metrics

• Core Net New Assets: Surged 38% YoY to a quarterly record of $190.4 billion, representing an annualized growth rate of 5.8%.
• Total Client Assets: Reached $13.33 trillion, up 15% YoY.
• Client Accounts: Reached 48.6 million total accounts, driven by 1.2 million new brokerage accounts opened during Q3.
• Trading Volume: Daily average trading volume climbed 44% YoY to 10.7 million trades, driving trading revenues of $1.2 billion (+16% YoY).
• Net Interest Margin (NIM) & Sweep Cash: NIM expanded quarter-over-quarter to 3.04%; client transactional sweep cash balances rose $7.1 billion sequentially to $492.8 billion.
• Lending Growth: Bank loans rose 35% YoY to $72.3 billion, with Pledged Asset Lines up 59% YoY to $37.3 billion. Margin balances expanded to $187.9 billion.
• Capital Management: Tier 1 Leverage was preliminary at 8.9% (Adjusted: 7.0%). Schwab repurchased 4.7 million common shares for $0.5 billion during the quarter.