The Charles Schwab Corporation (SCHW)

Schwab reported record third-quarter 2026 results on 15 October, with net revenues of $7.2 billion, up 17 percent from a year earlier 1. Net income was $2.9 billion, or $1.62 a share, up 29 percent per share 1.

Clients brought in a record $190.4 billion of core net new assets, new client money not counting market gains, up 38 percent from the year before 1. Total client assets reached $13.33 trillion 1. Clients opened 1.2 million new brokerage accounts, bringing the total to 48.6 million client accounts 1.

The company says the growth came from several sources at once 1. Asset management and administration fees grew 14 percent to $1.9 billion, trading revenue rose 16 percent to $1.2 billion, and daily average trading volume was 10.7 million, up 44 percent 1. Bank loan balances reached $72.3 billion, up 35 percent 1.

On 2 March 2026 Schwab completed its purchase of Forge Global, a marketplace for shares of private companies, and said Forge will keep operating its business 3. The same release lists a partnership with Anthropic and plans to widen the digital assets offered in Schwab Crypto 1. Whether those projects add to revenue is not yet on file 1.

Charles Schwab founded the company nearly 55 years ago to give individual investors access to the financial markets at a highly competitive cost 2. Its main broker-dealer, Charles Schwab & Co., was incorporated in 1971, and the parent company has existed since 1986 2.

The biggest recent project was folding in Ameritrade, a rival brokerage Schwab bought 2. Over five client transition groups in 2023 and 2024, Schwab moved about $1.9 trillion in client assets across more than 17 million client accounts, including 7,000 independent advisors, onto its own platform 2.

The integration was completed as of 31 December 2024 2. Schwab says it realized annualized cost savings from combining the two firms of about $2.0 billion, plus about $500 million more from cutting positions and shrinking its real estate 2.

Revenue fell 9 percent in 2023 to $18.8 billion 2. Clients were moving cash out of low-paying sweep accounts into higher-yielding products, which the company calls cash realignment 2. Schwab filled the gap with extra borrowing, called bank supplemental funding, that peaked in May 2023 2.

Revenue rose 4 percent to $19.6 billion in 2024, and net income rose 17 percent to $5.9 billion 2. Fees on managed money and funds climbed 20 percent to $5.7 billion, helped by money market funds, stock market gains and managed investing 2. Schwab cut its extra borrowing by $29.7 billion, or 37 percent, during the year 2.

Revenue jumped 22 percent to $23.9 billion in 2025 2. Net interest revenue, what the firm earns on client cash and loans minus what it pays out, rose 28 percent to $11.8 billion as extra borrowing fell and rates paid on funding sources dropped 2. Trading revenue rose 20 percent to $3.9 billion on higher volume 2.

Fees on managed money and funds rose 14 percent to $6.5 billion, and net income reached $8.9 billion, up 49 percent 2. Return on average common equity, profit relative to shareholder equity, was 21 percent 2.

Leadership changed hands too 2. Walter Bettinger was chief executive from 2008 through December 2024, and Rick Wurster has held the job since January 2025 2. In July 2025 the board replaced its share repurchase authorization with one for up to $20.0 billion of common stock 2.

On 6 November 2025 Schwab announced a deal to buy Forge, a private-market platform, in a transaction valued at approximately $660 million 2. The deal closed on 2 March 2026 3.

Investor Services

Investor Services serves individual investors and employers, offering brokerage, advice, banking and trust services, plus retirement plan and stock plan services 2. It brought in $19.0 billion of 2025 revenue, up 22 percent, about 79 percent of the company total (computed) 2.

Its advice programs start at a $5,000 minimum, and the flagship Schwab Wealth Advisory gives a client a dedicated advisor 2. Net flows into Schwab Wealth Advisory rose 55 percent from a year earlier, and balances on Pledged Asset Line, a loan secured by a client's investments, grew to $37.3 billion, up 59 percent 1.

At the end of 2025 the company had 38.5 million active brokerage accounts, 5.7 million workplace plan participant accounts and 2.2 million banking accounts 2. Self-directed clients can trade equities, mutual funds, ETFs, fixed income, options, futures and forex 2.

Workplace Services runs retirement plans for employers and stock plan administration for companies that pay staff in equity 2. Mutual Fund Clearing Services settles fund trades for banks, brokerage firms and trust companies 2.

Advisor Services

Advisor Services is a custodian for independent registered investment advisors, the firms that manage money for clients but keep it held at Schwab 2. It supplied $4.9 billion of 2025 revenue, also up 22 percent 2. Schwab says it does not charge the advisor or end client a custody fee 2.

In the third quarter Schwab partnered with Anthropic to bring Claude for Financial Advisors to the independent advisors it serves 1.

Banking, lending and cash

Schwab earns money on the cash clients leave with it 2. Net interest margin, the spread between what it earns and pays, widened to 3.04 percent in the quarter 1. Client sweep cash ended September at $492.8 billion 1.

Margin loans, borrowing against a client's portfolio, rose 14 percent from the prior quarter to $187.9 billion, including $60.7 billion tied to long/short strategies 1. Bank loans stood at $72.3 billion 1.

Cash swept to TD Bank also pays Schwab a fee, which came to $977 million in 2025, up 34 percent 2.

Trading, crypto and technology

Clients trade stocks, options, futures and forex, including on the thinkorswim platform that came with Ameritrade 2. Schwab announced Single Stock Futures on thinkorswim in the third quarter 1.

Digital assets today are crypto exchange-traded products, options on some of them and crypto futures 2. Schwab also introduced Charley, an AI-powered assistant giving U.S. retail clients conversational access to its tools 1.

Private markets: Forge

Forge gives eligible investors access to shares of companies not yet listed 3. Schwab says Forge's products will be introduced to more individual investors and advisors over time 3.

People, sites and competition

Schwab had the equivalent of about 33,000 full-time employees at the end of 2025, and its headquarters is in Westlake, Texas 2. Rick Wurster is president and chief executive, and Mike Verdeschi is chief financial officer 2.

In Investor Services Schwab competes with brokerage, wealth management and asset management firms, banks, trust companies and fintech firms 2. In Advisor Services it competes with institutional custodians, wirehouses and independent broker-dealers 2.

Current problems

A class action alleged the Ameritrade deal hurt competition in handling retail orders 2. The court granted final approval of a settlement on 24 November 2025, and certain objectors have appealed to the Fifth Circuit 2.

The umbrella, in words

The Charles Schwab Corporation is a savings and loan holding company 2. Its main subsidiaries are Charles Schwab & Co., the broker-dealer, Charles Schwab Bank, and Charles Schwab Investment Management, which runs Schwab Funds and Schwab ETFs 2.

The annual report's subsidiary list also names Charles Schwab Premier Bank, Charles Schwab Trust Bank, Schwab Wealth Advisory, Inc., Schwab Retirement Plan Services, Inc. and Charles Schwab Futures and Forex LLC 4. It omits smaller subsidiaries 4.

Forge Global Holdings was bought outright in March 2026 for $45 in cash per Forge common share 3. The company's co-chairmen are Charles R. Schwab, 88, and Walter W. Bettinger II, 65 2.

In its annual report, filed in February, the company said it expects 2026 expenses excluding interest to increase approximately 5.5% to 6.5% from 2025 2. Costs of running and integrating Forge would be added to that 2.

Schwab's long-term operating objective for its adjusted leverage ratio, a capital cushion measure, is 6.75% to 7.00% 2. The ratio was 7.0% at the end of the third quarter 1.

The board's share repurchase authorization is up to $20.0 billion with no expiration date 2. In the third quarter Schwab repurchased 4.7 million shares for $0.5 billion 1.

Schwab plans to expand the digital assets available in Schwab Crypto, according to its third-quarter release 1. Its annual report said expanded access to select cryptocurrencies was expected beginning in 2026 2.

Schwab said on 2 March 2026 that it will introduce Forge's products and capabilities to more individual investors and advisors over time, with more details to come 3.

Federal banking agencies proposed capital rules in July 2023 that would require the company to include accumulated other comprehensive income, a measure of unrealized gains and losses, in regulatory capital 2. The annual report says the Department of Labor withdrew its appeal in November 2025 of a stay on its fiduciary rule, and the stay remains in place 2.

The annual report warns that Schwab may not realize the anticipated benefits of the Forge acquisition in a timely manner or at all 2.

Schwab also named a Fall Business Update for institutional investors on the morning of its results, a webcast where management spoke about its plans 1. The release says its forward-looking statements reflect management's expectations as of the date of the release and carry risks that could cause actual results to differ materially 1.

Regulators have proposals pending 2. The comment period for the long-term debt proposal ended on 16 January 2024, and the annual report says the rule is subject to further modification 2. The Fifth Circuit appeal of the antitrust settlement is also pending 2.