Key Takeaways for Schwab Stock as of July 2026
- Revenue of $7.1 billion beat Street estimates by 2.51% and climbed 21% year over year, with adjusted EPS of $1.62 topping consensus by 4.55% and rising 42% versus last year’s second quarter.
- Raising its full-year revenue growth outlook to a range of 18% to 19%, management now expects expense growth of 10% to 11%, up from January’s underlying view, largely because of the Forge acquisition and stronger client engagement.
- PAL originations up 60%. That pushed bank loan balances to $67 billion, up 33% year over year, the fastest-growing line on Schwab’s balance sheet.
- CFO Mike Verdeschi told the call that operating leverage guidance had doubled since Investor Day: “When we started the year in our financial scenario, that operating leverage in that first scenario was 400 basis points. The updated scenario has operating leverage of 800 basis points.”
Schwab Stock Crushes Q2 Estimates as Lending Growth Outpaces Everything Else
Charles Schwab (SCHW) posted the strongest quarter in its history for the period ended June 30, 2026, with revenue of $7.1 billion, up 21% year over year and 2.51% above Street estimates of $6.9 billion. Adjusted earnings per share reached $1.62, a 42% jump from last year’s second quarter and 4.55% ahead of consensus. The quarter capped a first half that saw 2.7 million new brokerage accounts and $260 billion in core net new assets, up nearly 20% from a year earlier.
The strength ran through nearly every line of the business. Net interest revenue climbed 19% as clients borrowed more against their portfolios. Asset management and administration fees rose 16% to $1.8 billion on stronger markets and asset gathering, and trading revenue jumped 28% to $1.2 billion on daily average trades of 11.9 million. Bank lending balances reached $67 billion, up 33% year over year, with pledged asset line originations climbing 60% as clients increasingly borrowed against concentrated stock positions rather than sell them.
That lending surge came at a cost on the margin line. EBIT of $3.67 billion missed Street’s estimate by 0.94%, and EBIT margin slipped 181 basis points versus consensus to 51.88%, even as EBITDA margin expanded 314 basis points year over year to 59.09%. Adjusted expenses grew 11% year over year, reflecting client engagement costs and the first full quarter after closing the Forge acquisition, which management said added roughly 100 basis points to expense growth.
Management used the print to raise its full-year outlook. CFO Mike Verdeschi told investors on the Q2 earnings call that operating leverage had doubled since the scenario laid out at May’s Investor Day: “When we started the year in our financial scenario, that operating leverage in that first scenario was 400 basis points. The updated scenario has operating leverage of 800 basis points.” Total revenue growth guidance moved to 18% to 19%, with expense growth guided to 10% to 11%, both wider than the initial scenario because of Forge and stronger client activity.
The Fed backdrop offers more room to run. Verdeschi said the scenario embeds one rate hike late in the year, with fourth-quarter net interest margin guided to 325 to 330 basis points, unchanged from the prior forecast because the hike lands too late to move 2026 numbers. Full-year net interest margin is expected to expand to 300 to 310 basis points. CEO Rick Wurster added that new-client growth remains on track for 5% or higher annually, with advisor services growing better than 6% over the last four quarters. That expanding earnings power is exactly what’s underpinning Schwab stock’s valuation heading into the back half of 2026.
TIKR Values Schwab Stock at $164, Pricing In Sustained Lending Growth
TIKR’s mid-case model values Charles Schwab at $164 by December 2030, implying a 64% total return from the current price of $100, or 12% annualized over the next 4.4 years.
A 12% annualized return through 2030 would rank Schwab stock among the more attractive compounders in financial services, rewarding investors willing to look past near-term margin noise for sustained earnings growth.
That target is reachable because the drivers behind this quarter’s results are structural, not one-time. Record net new assets, accelerating lending penetration and a raised full-year revenue guide all point to earnings power compounding well beyond 2026, even as expenses catch up to Forge and other strategic investments.
Should You Invest in The Charles Schwab Corporation?
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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 The Charles Schwab Corporation 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.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
