Dear Charles Schwab Stock Fans, Mark Your Calendars for October 15
The Charles Schwab Corporation (SCHW) investors have a key date to mark on their calendars as the financial services giant prepares to report its third-quarter 2026 results on Oct. 15, before the market opens. About Schwab Wall Street expects another quarter of strong growth, with consensus estimates calling for adjusted EPS of $1.67 and revenue of roughly $7.2 billion, representing about 17% year-over-year (YoY) growth.
Meanwhile, the upcoming report will give investors a fresh look at Schwab’s net interest income, trading activity, client asset growth, and new-account momentum. The company delivered record $7.1 billion in second-quarter revenue, up 21% YoY, while adjusted EPS jumped 42% to $1.62. With expectations running high heading into the report, let’s see whether Schwab can once again beat estimates and provide a bullish outlook for the remainder of 2026.
About Charles Schwab Stock
Charles Schwab is a leading U.S. financial services company providing brokerage, wealth management, banking, and investment services to retail and institutional clients. Headquartered in Westlake, Texas, Schwab has built a large client-focused platform spanning investing, trading, and wealth management services. The company had a market cap of $165.9 billion, making it one of the largest financial services firms in the U.S.
Charles Schwab's stock has struggled to build momentum in 2026, with shares down around 4% year-to-date (YTD) and up only 2.7% over the past 52 weeks. The stock closed at $95.94 on Oct. 13, about 16.2% below its 52-week high of $114.53, reached on Aug. 24. Shares have also fallen 10.6% over the past month, highlighting a sharp deterioration in investor sentiment heading into the company’s third-quarter earnings report.
SCHW stock has declined in 2026 amid concerns over interest-rate uncertainty, margin pressure, and growing AI-driven competition in wealth management. Moreover, the Federal Reserve’s September rate hike and hawkish outlook heightened concerns about Schwab’s rate-sensitive net interest revenue and client cash-sorting trends.
More recently, investors have also worried that AI-powered financial-planning platforms could disrupt traditional advisory models, triggering a sharp selloff in Schwab shares in September.
With shares now well below their August peak, the Oct. 15 earnings report could be an important catalyst for determining whether SCHW can regain its upward momentum or face further pressure.
The stock is currently trading at 14.96 times forward earnings, which is a premium to industry peers but below its own historical average.
Steady Q2 Performance
Charles Schwab delivered a strong second-quarter 2026 performance, with results released on Jul. 21, before the market opened. The company reported record quarterly net revenue of $7.1 billion, up 21% YoY, while net income climbed 32% to $2.8 billion. Moreover, its adjusted EPS increased 42% to a record $1.62 from $1.14, beating the consensus estimate.
The quarter benefited from broad-based growth across Schwab’s businesses. Net interest revenue increased 19% to $3.4 billion, supported by growth in margin and bank lending, while asset management and administration fees rose 16% to $1.8 billion as average client assets increased. Trading revenue was particularly strong, climbing 28% to $1.2 billion, as daily average trades surged 57% to a record 11.9 million. Bank deposit account fees increased 35% to $333 million. At the same time, total expenses excluding interest rose a more modest 12% to $3.4 billion, allowing the adjusted pre-tax profit margin to expand to 54.3% from 50.1% in Q2 2025.
Schwab also continued to show strong client and asset-gathering momentum. Total client assets reached $13.1 trillion, up 22% YoY, while core net new assets jumped 49% to $119.8 billion. The company opened 1.4 million new brokerage accounts during the quarter, taking total client accounts to approximately 48 million. Bank loan balances increased 33% to $67 billion, while pledged asset line balances surged 59% to $33.4 billion. These trends demonstrate that Schwab’s growth is being driven not only by market appreciation but also by stronger client engagement, lending demand, and asset gathering.
Importantly for investors heading into the Oct. 15 third-quarter report, management raised its full-year 2026 revenue-growth outlook to 17.5%-18.5%, from the previous 14%-15% range. The improved outlook reflected stronger-than-expected client activity, asset gathering, and trading momentum. Schwab also indicated that it continues to target 5% or better long-term organic core net new asset growth, supported by its expanding client base and broader wealth-management offerings.
Meanwhile, analysts remain upbeat, projecting EPS of $6.46 for fiscal 2026, up 32.7% YoY, and anticipating a further 22.9% annual increase to $7.94 in fiscal 2027. Plus, the consensus EPS estimate of $1.67 for Q3 indicates a 27.5% YoY rise.
What Do Analysts Expect for SCHW Stock?
On Oct. 13, Truist Securities analyst David Smith maintained a “Buy” rating on SCHW stock but lowered the price target to $125 from $130.
On the other hand, Evercore ISI initiated coverage of Charles Schwab with an “In-Line” rating and a $107 price target. While Evercore has confidence in Schwab’s earnings outlook, the firm is less certain about how Schwab’s business mix will adapt to changing client preferences.
Overall, SCHW stock has a consensus “Moderate Buy” rating. Of the 26 analysts covering the stock, 13 advise a “Strong Buy,” four suggest a “Moderate Buy,” eight analysts recommend a “Hold” rating, and one offers a “Moderate Sell.”
The average analyst price target for SCHW is $120.92, indicating a potential upside of 26%. The Street-high target price of $150 suggests that the stock could rally as much as 56%.
On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.