Charles Schwab raises FY 2026 revenue growth guidance to 17.5%-18.5%
The Charles Schwab Corporation delivered record financial results for the second quarter of 2026, with net revenues rising 21% year-over-year to $7.1 billion and adjusted earnings per share increasing 42% to $1.62. Driven by robust asset gathering and record trading activity, the firm attracted $119.8 billion in core net new assets and 1.4 million new brokerage accounts. Based on this momentum, the company updated its full-year 2026 guidance, projecting total revenue growth of 17.5% to 18.5% and adjusted expense growth of 9.5% to 10.5%.
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The Charles Schwab Corporation reported record quarterly revenue and earnings for the second quarter of 2026, driven by strong client engagement, robust asset gathering, and diversified revenue growth across all major business lines. Total client assets increased 22% year-over-year to $13.08 trillion, reflecting sustained investor confidence and market participation. The company issued updated financial guidance for the full fiscal year, projecting total revenue growth of 17.5% to 18.5% for 2026.
Record Revenue and Earnings Performance
Schwab posted record net revenues of $7.1 billion in the second quarter of 2026, representing a 21% increase year-over-year from $5.9 billion in the second quarter of 2025. GAAP net income for the quarter totaled $2.8 billion, or $1.54 per diluted share — a record — up 43% versus the second quarter of 2025. Excluding $170 million of pre-tax transaction-related costs, adjusted net income and earnings per share equaled $2.9 billion and $1.62, respectively, up 42% year-over-year.
The following table summarizes key financial highlights for the three and six months ended June 30:
| Metric: | Q2 2026 | Q2 2025 | Change | H1 2026 | H1 2025 | Change |
|---|---|---|---|---|---|---|
| Net revenues (in millions): | $7,072 | $5,851 | +21% | $13,554 | $11,450 | +18% |
| Net income — GAAP (in millions): | $2,800 | $2,126 | +32% | $5,279 | $4,035 | +31% |
| Net income — Adjusted (in millions): | $2,930 | $2,222 | +32% | $5,518 | $4,230 | +30% |
| Diluted EPS — GAAP: | $1.54 | $1.08 | +43% | $2.91 | $2.07 | +41% |
| Diluted EPS — Adjusted: | $1.62 | $1.14 | +42% | $3.05 | $2.17 | +41% |
| Pre-tax profit margin — GAAP: | 51.9% | 47.9% | — | 50.6% | 45.9% | — |
| Pre-tax profit margin — Adjusted: | 54.3% | 50.1% | — | 52.9% | 48.2% | — |
| Return on avg. common equity (annualized): | 25% | 19% | — | 23% | 18% | — |
| Return on tangible common equity (annualized): | 44% | 35% | — | 41% | 34% | — |
Revenue Breakdown
Revenue growth was broad-based across all major categories. Asset management and administration fees grew 16% year-over-year to $1.8 billion, powered by organic growth and increased utilization of wealth and asset management solutions. Record client trading activity drove trading revenue of $1.2 billion, up 28% year-over-year. Net interest revenue rose 19% year-over-year to $3.4 billion, with net interest margin expanding 12 basis points quarter-over-quarter to 3.00%.
| Revenue Category (in millions): | Q2 2026 | Q2 2025 |
|---|---|---|
| Net interest revenue: | $3,357 | $2,822 |
| Asset management and administration fees: | $1,825 | $1,570 |
| Trading revenue: | $1,215 | $952 |
| Bank deposit account fees: | $333 | $247 |
| Other: | $342 | $260 |
| Total net revenues: | $7,072 | $5,851 |
Strong Client Growth and Asset Gathering
Client-driven growth remained a key highlight of the quarter. Schwab reported the following second quarter of 2026 client and business highlights:
- Total client assets increased 22% year-over-year to $13.08 trillion
- Core net new assets totaled $119.8 billion, up 49% versus the second quarter of 2025
- New brokerage account openings equaled 1.4 million, helping bring total client accounts to 48.0 million
- Managed Investing Solutions net flows grew 53% versus the second quarter of 2025
- Bank loan balances equaled $67.0 billion at June month-end, up 33% year-over-year
- Margin loan balances increased 30% quarter-over-quarter to $165.1 billion at quarter-end
- Daily average trading volume reached a record 11.9 million — up 57% versus the second quarter of 2025
- June core asset gathering totaled a record $62.7 billion, representing an annualized organic growth rate of 5.8%
- Net flows into Schwab Wealth Advisory™ increased 80% year-over-year
- Pledged Asset Line™ balances equaled $33.4 billion — up 59% from the second quarter of 2025
President and CEO Rick Wurster noted that investors opened 1.4 million new brokerage accounts and brought $120 billion in core net new assets to the firm during the quarter.
Financial Outlook
The company provided updated guidance for the full fiscal year. Schwab sees FY revenue to increase by 17.5%-18.5% versus the prior year. Additionally, the firm sees FY adjusted expenses to grow by 9.5%-10.5% versus 2025. This outlook implies the FY adjusted pre-tax margin will move further into the low 50% range. The full-year net interest margin is expected to expand to a range of 3% to 3.10%, with average 4Q 2026 net interest margin expected to finish in the 3.25% to 3.30% range.
Innovation and Recognition
During the second quarter of 2026, Schwab launched Schwab Crypto™, providing direct access to Bitcoin and Ethereum trading for retail clients. The company also introduced Portfolio Insights, a generative AI-powered capability that helps investors understand portfolio performance. Schwab was recognized as the Best Investing Platform by U.S. News for the 4th consecutive year.
How will the launch of Schwab Crypto™ impact competitive dynamics with specialized crypto exchanges in the second half of 2026?
Can Schwab maintain the projected net interest margin expansion of 3.25%-3.30% in Q4 if the Federal Reserve shifts its monetary policy stance?
Will the surge in margin loan balances and trading activity sustain if market volatility decreases in the upcoming quarters?
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