Key Stats for Charles Schwab Stock
- Past-Week Performance: -2.4%
- 52-Week Range: $65.9 to $107.5
- Current Price: $94
What Happened?
Charles Schwab (SCHW), the largest U.S. retail brokerage by client assets, posted record adjusted earnings of $4.87 per share in 2025, up 50% year over year, as $519 billion in core net new assets lifted total client assets to $11.90 trillion while the stock trades at $93.98, well off its 52-week high of $107.50.
The Q4 2025 earnings release confirmed full-year net revenues of $23.9 billion, up 22%, driven by net interest revenue of $11.8 billion, which measures the spread Schwab earns between what it collects on client cash and loans versus what it pays depositors, expanding 28% as the firm aggressively paid down $9.7 billion in high-cost supplemental bank borrowings in Q4 alone.
Net interest margin also hit 2.90% in Q4, up 57 basis points from Q4 2024, while bank loan balances, including pledged asset lines that allow clients to borrow against their portfolios, reached a record $58 billion, up 28% year over year, outpacing reported competitor UBS, which posted $14.1 billion in net outflows from its U.S. wealth division over the same period.
On March 2, Schwab completed its acquisition of Forge Global Holdings at $45 per share in cash, bringing Forge’s private markets platform, which allows individual and RIA clients to buy and sell shares in pre-IPO companies, directly onto the Schwab ecosystem and expanding its alternatives offer to a client base where fewer than 40% of RIAs currently allocate to private markets.
President and CEO Rick Wurster stated on the Q4 2025 earnings call that “Clients are conducting more of their financial lives at Schwab, with record engagement across wealth management, trading, and banking. Net inflows into our Managed Investing solutions grew by 36% versus 2024, while bank loan originations achieved another record year,” anchoring a wealth deepening strategy that management expects to lift adjusted EPS to $5.70 to $5.80 in 2026.
Schwab’s $11.8 billion in total 2025 capital return, a 5% expense growth ceiling, the Forge integration now underway, a planned spot Bitcoin and Ethereum trading launch in the first half of 2026, and a Spring Business Update scheduled for April 16 collectively position the firm to sustain earnings growth through the cycle even if the Fed cuts rates toward 2%, a scenario management says still supports at least 10% year-over-year earnings growth.
Wall Street’s Take on SCHW Stock
The record $519 billion in core net new assets Schwab gathered in 2025, combined with the aggressive paydown of high-cost supplemental bank borrowings, sets up a durable NIM expansion cycle that directly lifts net interest revenue, the firm’s single largest revenue line at $11.8 billion in 2025.
Charles Schwab grew revenue from $19.6 billion in 2024 to $23.9 billion in 2025, a 22% increase, and as TIKR estimates, the firm will reach $26.5 billion in 2026 and $28.8 billion in 2027, driven by NIM expanding to a 2.85% to 2.95% range as the remaining $5.1 billion in supplemental funding rolls off, PAL originations sustain their 85% growth momentum, managed investing net flows compound at 36% annually, and Forge’s private markets platform adds fee-based alternatives revenue across 46.5 million client accounts.
EBITDA margins also expanded from 49.8% in 2024 to 55.7% in 2025, and is also estimated to reach 59.4% in 2026 and 60.2% in 2027, powered by management’s 5.5% to 6.5% expense growth ceiling set against double-digit revenue growth, AI-driven service efficiency across 220 deployed use cases, and cost-per-account declining 20% over the last five years.
Eleven analysts rate SCHW a buy, seven an outperform, and just two a hold, with a mean price target of $120.32 implying 29.3% upside from the March 30 close of $93.06, as the Street increasingly prices in sustained EPS compounding rather than a one-year recovery bounce.
The spread between the Street’s $94 low target and $148 high reflects a genuine fork: bears anchoring near current levels watch NIM trajectory closely, while bulls targeting $148 assume the Forge integration accelerates alternatives asset flows and fee-based revenue diversification beyond what consensus currently models.
What Does the Valuation Model Say?
The TIKR mid-case model targets $152.80 per share by December 2030, implying a 64.2% total return at an 11% IRR, underpinned by a mid-case EPS CAGR of 11.1% from 2025 through 2030 and net income margins expanding from 36.8% in 2025 to 38.5% in the mid-case forecast.
At $93.98, SCHW trades at approximately 16x TIKR’s 2026 normalized EPS estimate of $5.86, a discount to its 5-year historical forward P/E average despite a 2025-to-2027 EPS CAGR of roughly 18%, making the current multiple look compressed relative to the earnings trajectory: undervalued.
The operational justification for TIKR’s model is straightforward: PAL originations grew 85% in 2025, managed investing net flows grew 36%, and Forge’s private markets platform now sits inside a 46.5 million account ecosystem where fewer than 40% of RIAs currently allocate to alternatives.
Management explicitly stated that even if the Fed funds rate drops to 2%, Schwab still delivers at least 10% year-over-year earnings growth, a rare downside floor for a rate-sensitive financial that most investors have not fully priced into the current multiple.
The primary risk is a faster-than-expected client cash redeployment out of sweep accounts into higher-yielding instruments, which would compress NIM below the 2.85% floor and undercut the core revenue assumption in the TIKR model.
The April 16 Spring Business Update, where CEO Rick Wurster and CFO Mike Verdeschi will address institutional investors, is the nearest confirmation event; watch Q1 NIM and core net new asset pace against the 5% full-year organic growth target.
Should You Invest in The Charles Schwab Corporation?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up SCHW stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
You can build a free watchlist to track The Charles Schwab Corporation alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.
Access Professional Tools to Analyze SCHW stock on TIKR for Free →
