Schwab Posts Record Q2: $1.62 Adjusted EPS, $7.1B Revenue, $120B Core Net New Assets

summarizeSummary

Schwab reported record Q2 2026 earnings with adjusted EPS of $1.62 on $7.1 billion in revenue, fueled by record client asset inflows and trading activity.

check_boxKey Events · Earnings and Guidance · SCHW

• Record Earnings Beat

  Q2 GAAP net income of $2.8B ($1.54 per share) and adjusted net income of $2.9B ($1.62 per share) exceeded the $1.56 consensus estimate. Revenue reached a record $7.1B, up 21% year-over-year.

• Massive Client Asset Inflows

  Core net new assets totaled $119.8B for the quarter, up 49% from Q2 2025. June alone brought in a record $62.7B, representing a 5.8% annualized organic growth rate. Total client assets rose to $13.08T, up 22% year-over-year.

• Record Trading Activity

  Daily average trades hit a record 11.9 million, up 57% year-over-year, driving trading revenue of $1.2B (up 28%). Margin loan balances surged 30% sequentially to $165.1B.

• Capital Return and Balance Sheet Strength

  Repurchased 11.2 million shares for $1.0B during the quarter. Redeemed $2.1B of Series I Preferred Stock and issued $1.5B of Series L Preferred Stock. Preliminary Tier 1 Leverage ratio stood at 8.7%.

auto_awesomeAnalysis · SCHW · Finance

A standout quarter for Schwab delivered record revenue and earnings, fueled by surging client engagement and asset gathering. Net income jumped 32% to $2.8 billion, while adjusted EPS of $1.62 handily beat the $1.56 consensus. Core net new assets hit $119.8 billion for the quarter, with June alone setting a record $62.7 billion—an annualized organic growth rate of 5.8%. Trading revenue surged 28% on record daily average trades of 11.9 million. The balance sheet strengthened further with $1.0 billion in share repurchases and a preferred stock refinancing. These results underscore the firm's ability to monetize its massive client base across rising markets and volatile trading environments, reinforcing its position as a premier wealth management franchise.