What was the primary driver of Schwab's revenue growth in Q2 2026?

Schwab's revenue growth was primarily driven by a 21% increase in total net revenues to $7.1 billion. This was supported by strong performance across multiple categories, including a 19% rise in net interest revenue due to increased margin and bank lending, a 16% increase in asset management and administration fees reflecting higher client assets, and a 28% increase in trading revenue.

How did client asset growth impact the company's financial performance?

Client asset growth was a significant contributor to Schwab's financial performance. Total client assets grew by 22% year-over-year to $13.1 trillion. This increase in assets under management directly boosted asset management and administration fees and also supported growth in net interest revenue through increased margin lending and other client services.

What is the company's outlook on expenses, considering the Forge acquisition and strategic investments?

Total expenses excluding interest increased by 12% in the second quarter of 2026, driven by strong client engagement, the inclusion of Forge Global Holdings, and investments in strategic initiatives. Management expects total expenses excluding interest for the full year 2026 to increase approximately 10% to 11%, inclusive of volume-related expenses and costs associated with Forge.

How did Schwab manage its capital and shareholder returns during the quarter?

Schwab demonstrated a commitment to capital management and shareholder returns. The company repurchased $1.0 billion of its common stock and increased its common dividend by 19% to $0.32 per share. Its consolidated Tier 1 Leverage Ratio remained strong at 8.7%, and its adjusted Tier 1 Leverage Ratio was 6.8%, aligning with its long-term operating objectives.

SCHW 10-Q Quarterly Report Q2 FY2026 — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-Q filed August 7, 2026. Cited figures are marked; the original filing is the authoritative source.

Charles Schwab Corporation (SCHW) reported a strong second quarter of 2026, demonstrating robust growth across key client and financial metrics.

The company saw a significant 21% increase in total net revenues to $7.1 billion^a, driven by a broad-based improvement across its business segments. Net income rose by an impressive 32% year-over-year to $2.8 billion, translating to diluted Earnings Per Share (EPS) of $1.54, a 43% increase. This performance was fueled by substantial asset gathering, with client assets reaching $13.1 trillion, up 22% year-over-year.

Net new client assets surged by 61% to $118.7 billion^b in the quarter, indicating strong client engagement and trust. The company also highlighted improved profitability metrics, including a pre-tax profit margin of 51.9% and a return on average common stockholders' equity of 25%, both up from the prior year. Management's strategy of "Through Clients' Eyes" appears to be driving both client acquisition and financial success, supported by continued expense discipline despite investments in strategic initiatives and the integration of Forge Global Holdings.

Financially, Schwab benefited from higher net interest revenue, up 19%^c, due to growth in margin and bank lending, coupled with lower funding costs. Asset management and administration fees also saw a healthy 16% increase, driven by higher client asset balances and growth in managed investing solutions. Trading revenue and bank deposit account fees also showed considerable year-over-year growth.

On the capital management front, the company continued to return capital to shareholders through dividends and share repurchases while maintaining a strong regulatory capital position, with its consolidated Tier 1 Leverage Ratio at 8.7%^d. The introduction of the spot crypto trading offer (Schwab CryptoTM) marks an expansion into new digital asset services for retail clients.

02—Key points

Key Highlights

Total net revenues increased 21% to $7.1 billion, driven by broad-based growth.
Net income grew 32% to $2.8 billion, with diluted EPS rising 43% to $1.54.
Client assets reached $13.1 trillion, a 22% increase year-over-year.
Net new client assets surged 61% to $118.7 billion, signaling strong client acquisition.
Net interest revenue increased 19% to $3.4 billion, benefiting from lending growth and lower funding costs.
Return on average common stockholders' equity (annualized) improved to 25% from 19% in the prior year.
The company repurchased $1.0 billion of common stock and increased its common dividend by 19% to $0.32 per share.

03—Questions

Frequently Asked Questions

What was the primary driver of Schwab's revenue growth in Q2 2026?
Schwab's revenue growth was primarily driven by a 21% increase in total net revenues to $7.1 billion. This was supported by strong performance across multiple categories, including a 19% rise in net interest revenue due to increased margin and bank lending, a 16% increase in asset management and administration fees reflecting higher client assets, and a 28% increase in trading revenue.
How did client asset growth impact the company's financial performance?
Client asset growth was a significant contributor to Schwab's financial performance. Total client assets grew by 22% year-over-year to $13.1 trillion. This increase in assets under management directly boosted asset management and administration fees and also supported growth in net interest revenue through increased margin lending and other client services.
What is the company's outlook on expenses, considering the Forge acquisition and strategic investments?
Total expenses excluding interest increased by 12% in the second quarter of 2026, driven by strong client engagement, the inclusion of Forge Global Holdings, and investments in strategic initiatives. Management expects total expenses excluding interest for the full year 2026 to increase approximately 10% to 11%, inclusive of volume-related expenses and costs associated with Forge.
How did Schwab manage its capital and shareholder returns during the quarter?
Schwab demonstrated a commitment to capital management and shareholder returns. The company repurchased $1.0 billion of its common stock and increased its common dividend by 19% to $0.32 per share. Its consolidated Tier 1 Leverage Ratio remained strong at 8.7%, and its adjusted Tier 1 Leverage Ratio was 6.8%, aligning with its long-term operating objectives.

04—Continue

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