Schwab earnings
Schwab's next results are expected on January 20, 2027. Watch whether client cash funds growth without pushing up borrowing costs.
What has Schwab guided for 2026?
Schwab’s revenue-growth range remains 17.5%–18.5%, although Mike Verdeschi said growth should land toward the lower end. Adjusted expense growth should also finish near the bottom of its 9.5%–10.5% range. “Adjusted” removes specified items such as acquisition costs and acquired-intangible amortization, making recurring operations easier to compare, but Schwab still incurs those costs.
Net interest margin is the interest Schwab keeps after paying depositors and other funders. In the first half of 2026, Schwab reported a 3.54% yield on interest-earning assets. Its funding cost was 0.60%, leaving a 2.94% margin. Management expects a full-year margin of 3.0%–3.1%, with the lower end now more likely, but its fourth-quarter range is 3.2%–3.3%.
| Period guided | Low | High | Date given | |
|---|---|---|---|---|
| Revenue growth | Year to Dec 2026 | 17.5% | 18.5% | Jul 21, 2026 |
| Net interest margin | Year to Dec 2026 | 3.0% | 3.1% | Jul 21, 2026 |
| 4Q26 net interest margin | Quarter to Dec 2026 | 3.2% | 3.3% | Jul 21, 2026 |
| Adjusted expenses growth | Year to Dec 2026 | 9.5% | 10.5% | Jul 21, 2026 |
| Operating leverage (basis points) | Year to Dec 2026 | 800 | 800 | Oct 15, 2026 |
| Capital expenditures, % of total net revenues | Year to Dec 2026 | 5.0% | Aug 7, 2026 |
What this means. A basis point is one hundredth of a percentage point, so 800 basis points means 8 percentage points.
Has Schwab kept its past promises?
Management also has a record of keeping promises. It said the Ameritrade client transition would produce approximately US$500 million of additional annual savings beyond acquisition synergies. The final conversion finished in May 2024, and later reporting said those savings were realized. In 2025, core net new assets reached US$519.4 billion, showing growth after the technology migration.
How have Schwab's revenue and profit trended?
September 2026 extended Schwab’s earnings recovery. Revenue rose 16.9% year over year. Pretax profit rose 25.0%, while diluted EPS also increased strongly.
| Sep 2026 | Jun 2026 | Mar 2026 | Dec 2025 | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 7,171 | 7,072 | 6,482 | 6,336 | 6,135 | 5,851 | 5,599 | 5,329 |
| Operating income | 3,777 | 3,669 | 3,188 | 3,180 | 3,021 | 2,803 | 2,455 | 2,305 |
| Net income | 2,906 | 2,800 | 2,479 | 2,459 | 2,358 | 2,126 | 1,909 | 1,840 |
| EPS, diluted | 1.62 | 1.54 | 1.37 | 1.33 | 1.26 | 1.08 | 0.99 | 0.94 |
What this means. The operating income row is not the usual operating profit: it uses Schwab's reported income before taxes because that is the closest figure for this financial company.
What should I watch in Schwab's next results?
The December quarter comes first. Compare revenue growth, net interest margin and adjusted expenses with management’s ranges, then ask whether the promised operating leverage appeared. Year-end client cash inflows could help fund lending, but if loans grow faster than deposits, more expensive borrowing may absorb part of the interest benefit.