Charles Schwab Beats Q2 Earnings Estimates, Shares Up 3%

Charles Schwab (NYSE:SCHW) reported strong second-quarter results, topping analyst expectations for both earnings and revenue as client asset growth and improved interest margins fueled performance. Shares rose more than 3% intra-day today following the announcement.

The company posted adjusted earnings per share of $1.14, surpassing the consensus estimate of $1.09. Revenue reached a record $5.85 billion, beating the $5.7 billion forecast and marking a 25% increase from the same quarter last year.

Core net new assets totaled $80.3 billion for the quarter, representing a 31% year-over-year increase. Total client assets hit an all-time high of $10.76 trillion, up 14% from the previous year. Schwab also added over 1 million new brokerage accounts, reflecting an 11% rise from the prior-year period.

Sweep cash balances grew sequentially to $412.1 billion, while net interest margin expanded by 12 basis points to 2.65%, supported by reduced funding costs and a rebound in securities lending activity. The company also trimmed its Bank Supplemental Funding by $10.4 billion, bringing the total to $27.7 billion by quarter-end.

The results underscore Schwab’s ability to drive growth through asset accumulation and margin management, reinforcing its leadership position in retail brokerage and wealth management.