Schwab Guides 2026 Revenue and NIM to Low End of Range, Shares Slip 2.6%
SCHW is trading near its 52-week low of $83.96 (13% above the low).
Summary
On the Q3 earnings call, CFO Mike Verdeschi guided full-year 2026 revenue growth and net interest margin expansion to the lower end of the ranges given in the summer update — 17.5%-18.5% revenue growth and NIM of 3.00%-3.10%. Expenses are also expected at the lower end of the prior 9.5%-10.5% range, and management still targets mid-teens EPS growth through the cycle plus roughly 800 basis points of operating leverage. For Q4, Verdeschi expects about 25 basis points of NIM expansion year-over-year, with lending balances now exceeding the securities portfolio supporting margin. The stock fell 2.6% in Thursday midday trading, following the earlier Q3 revenue miss. The lower-end guidance is the key negative — it trims the upside case even as the expense offset softens the blow.
At the time of this announcement, SCHW was trading at $94.54 on NYSE in the Finance sector, with a market capitalization of approximately $163.5B. The 52-week trading range was $83.96 to $114.53. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.