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olivLaw · US equity research

The Charles Schwab Corporation SCHW

Security Brokers, Dealers & Flotation Companies · SIC 6211 · Vertical: Security Brokers, Dealers & Flotation Companies (SIC 6211)

93.37USD+4.58% · 1 dayClose 04 Nov 2026

Schwab is one of the largest financial services firms in the US, offering brokerage, banking, asset management and custody to individual investors and independent registered investment advisors (RIAs). With client assets of 13.33 trillion USD at the end of the third quarter of 2026, the company shows how scale and diversified revenue can support profit growth in a changing rate environment.

At the close of 04 Nov 2026, The Charles Schwab Corporation (SCHW) stock was 93.37 USD (+4.58% on the day), with market capitalisation 161.5 bn USD, P/E 16.8 on diluted EPS of 5.55 USD over the last 12 months, dividend yield 1.26%, beta 0.76, 52-week range 85.35–113.65 USD. Latest reported quarter (Q2 2026): revenue of 7.1 bn USD (+20.9% YoY), net income of 2.8 bn USD (+31.7% YoY), diluted EPS 1.54 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
161.5 bn USD
shares as of 31 Jul 2026
P/E (TTM)
16.8
Diluted EPS TTM 5.55 · TTM to 30 Jun 2026
E/P (TTM)
5.95%
TTM to 30 Jun 2026
Dividend yield
1.26%
DPS 12m 1.18
Beta (2y)
0.76
Volatility (1y) 26%
52-week range
85.35113.65

Price history

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Technical reading

RSI (14)
49.5
neutral
Bollinger (20, 2)
85.86 – 98.17
in the upper half of the band · %B 0.61 · band width 13.4%
SMA 50 / 200
99.16 / 97.38
mixed trend
MACD (12, 26, 9)
-2.57 / -3.03
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−4.7%−1.1%−3.6 pp—
3 months−13.6%−0.5%−13.1 pp—
6 months+1.3%+4.4%−3.1 pp—
Year to date−6.5%+12.3%−18.9 pp—
1 year−0.5%+13.5%−14.0 pp−16.4%
3 years+67.2%+76.4%−9.2 pp+64.7%
5 years+15.1%+63.7%−48.6 pp—
Max drawdown (1y)
−22.5%
24 Aug 2026 → 30 Oct 2026
Max drawdown (5y)
−50.4%
14 Jan 2022 → 04 May 2023
Compound annual growth (5y)
+2.8%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
7.1 bn USD
+20.9% YoY
Net income
2.8 bn USD
+31.7% YoY
Diluted EPS
1.54
+42.6% YoY
net / operating
39.6% / unavailable

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue4.8 bn5.3 bn5.6 bn5.9 bn6.1 bn6.3 bn6.5 bn7.1 bn
Interest expense1.7 bn———————
Pre-tax income1.8 bn2.3 bn2.5 bn2.8 bn3.0 bn3.2 bn3.2 bn3.7 bn
Income tax434.0 m465.0 m546.0 m677.0 m663.0 m721.0 m709.0 m869.0 m
Net income1.4 bn1.8 bn1.9 bn2.1 bn2.4 bn2.5 bn2.5 bn2.8 bn
Diluted EPS0.711.00 ≈0.991.081.261.38 ≈1.371.54
Operating cash flow19.1 bn ≈-10.8 bn6.4 bn3.2 bn ≈538.0 m ≈-763.0 m7.3 bn4.3 bn ≈
Capex128.0 m ≈254.0 m117.0 m128.0 m ≈145.0 m ≈158.0 m140.0 m185.0 m ≈
Dividends paid563.0 m ≈575.0 m595.0 m608.0 m ≈562.0 m ≈564.0 m632.0 m643.0 m ≈
Share repurchases0 ≈01.5 bn333.0 m ≈——2.4 bn999.0 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 21 percentile of its own 43-quarter history (min 13.1, median 24.1, max 32.0; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue10.1 bn10.7 bn11.7 bn18.5 bn20.8 bn18.8 bn19.6 bn23.9 bn
Revenue YoY+17.6%+5.8%+9.0%+58.4%+12.1%−9.3%+4.1%+22.0%
Net income3.5 bn3.7 bn3.3 bn5.9 bn7.2 bn5.1 bn5.9 bn8.9 bn
Net income YoY+49.0%+5.6%−10.9%+77.5%+22.7%−29.5%+17.3%+49.0%
Diluted EPS2.452.672.122.833.502.542.994.65
Diluted EPS YoY+52.2%+9.0%−20.6%+33.5%+23.7%−27.4%+17.7%+55.5%
net %34.6%34.5%28.2%31.6%34.6%26.9%30.3%37.0%
Free cash flow11.9 bn8.6 bn6.2 bn1.2 bn1.1 bn18.9 bn2.1 bn8.8 bn

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
46.0 bn USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
49.4 bn USD
Total assets
491.0 bn USD
Debt / equity
unavailable
Current ratio
unavailable
ROE
18.1%
ROA
1.8%
FCF margin
36.6%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
18.8 bn
2024
19.6 bn
2025
23.9 bn

SEC (XBRL)· 25 Feb 2026verified

Depreciation & amortisation
2023
804.0 m
2024
—
2025
—

SEC (XBRL)· 23 Feb 2024verified

Interest expense
2023
6.7 bn
2024
—
2025
—

SEC (XBRL)· 23 Feb 2024verified

Pre-tax income
2023
6.4 bn
2024
7.7 bn
2025
11.5 bn

SEC (XBRL)· 25 Feb 2026verified

Income tax
2023
1.3 bn
2024
1.8 bn
2025
2.6 bn

SEC (XBRL)· 25 Feb 2026verified

Net income
2023
5.1 bn
2024
5.9 bn
2025
8.9 bn

SEC (XBRL)· 25 Feb 2026verified

Diluted EPS
2023
2.54
2024
2.99
2025
4.65

SEC (XBRL)· 25 Feb 2026verified

Weighted average diluted shares
2023
1.8 bn
2024
1.8 bn
2025
1.8 bn

SEC (XBRL)· 25 Feb 2026verified

Dividend per share
2023
1.00
2024
1.00
2025
1.08

SEC (XBRL)· 25 Feb 2026verified

Balance sheet · USD

Cash
2023
43.3 bn
2024
42.1 bn
2025
46.0 bn

SEC (XBRL)· 25 Feb 2026verified

Property, plant & equipment, net
2023
—
2024
—
2025
—

SEC (XBRL)· 08 May 2023verified

Goodwill
2023
12.0 bn
2024
12.0 bn
2025
12.0 bn

SEC (XBRL)· 25 Feb 2026verified

Intangibles (excl. goodwill)
2023
8.3 bn
2024
7.7 bn
2025
7.2 bn

SEC (XBRL)· 25 Feb 2026verified

Total assets
2023
493.2 bn
2024
479.8 bn
2025
491.0 bn

SEC (XBRL)· 25 Feb 2026verified

Short-term debt
2023
—
2024
—
2025
—

SEC (XBRL)· 24 Feb 2023verified

Long-term debt
2023
—
2024
—
2025
—

SEC (XBRL)· 24 Feb 2022verified

Total liabilities
2023
452.2 bn
2024
431.5 bn
2025
441.6 bn

SEC (XBRL)· 25 Feb 2026verified

Equity
2023
41.0 bn †
2024
48.4 bn †
2025
49.4 bn †

SEC (XBRL)· 25 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
19.6 bn
2024
2.7 bn
2025
9.3 bn

SEC (XBRL)· 25 Feb 2026verified

Capex
2023
700.0 m
2024
620.0 m
2025
548.0 m

SEC (XBRL)· 25 Feb 2026verified

Free cash flow
2023
18.9 bn ≈
2024
2.1 bn ≈
2025
8.8 bn ≈

SEC (XBRL)· 25 Feb 2026derived

Investing cash flow
2023
57.4 bn
2024
35.4 bn
2025
24.5 bn

SEC (XBRL)· 25 Feb 2026verified

Financing cash flow
2023
-61.2 bn
2024
-47.1 bn
2025
-29.7 bn

SEC (XBRL)· 25 Feb 2026verified

Dividends paid
2023
2.3 bn
2024
2.3 bn
2025
2.3 bn

SEC (XBRL)· 25 Feb 2026verified

Share repurchases
2023
2.8 bn
2024
0
2025
7.3 bn

SEC (XBRL)· 25 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
22.0%
computed by olivLawFY 2025
Revenue CAGR 3Y
4.8%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
15.4%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
input data missing
Net income growth (YoY)
49.0%
computed by olivLawFY 2025
Net income CAGR 3Y
7.2%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
21.8%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
55.5%
computed by olivLawFY 2025
EPS CAGR 3Y
9.9%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
17.0%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
327.5%
computed by olivLawFY 2025

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
unavailable
input data missing
EBIT margin
unavailable
input data missing
Net margin
38.8%
computed by olivLawTTM to 30 Jun 2026
FCF margin
41.5%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
20.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
2.1%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
input data missing
ROCE
unavailable
input data missing
Payout ratio (EPS)
21.2%
computed by olivLawTTM to 30 Jun 2026
Payout ratio (FCF)
22.3%
computed by olivLawTTM to 30 Jun 2026

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
unavailable
the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used

Liquidity

Current ratio
unavailable
input data missing
Quick ratio
unavailable
input data missing
Cash ratio
unavailable
input data missing

Cash

Operating cash flow
11.4 bn USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
628.0 m USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
10.8 bn USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
106.9%
computed by olivLawTTM to 30 Jun 2026
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
161.5 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
16.0x
computed by olivLawTTM to 30 Jun 2026
P/E (TTM)
16.8x
computed by olivLawTTM to 30 Jun 2026
Earnings yield
5.9%
computed by olivLawTTM to 30 Jun 2026
P/B
3.2x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
6.2x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
15.0x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
FCF yield
6.7%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
1.3%
computed by olivLawTTM to 30 Jun 2026
Shareholder yield (distributions)
7.0%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 58.3% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

93.37 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 161.5 bn USD

Key indicators

Market capitalisation
161.5 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
16.8x
computed by olivLawTTM to 30 Jun 2026
P/B
3.2x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
ROE
20.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
38.8%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
22.0%
computed by olivLawFY 2025
Dividend yield
1.3%
computed by olivLawTTM to 30 Jun 2026

Coverage and freshness

25/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 31 Jul 2026
Source: SEC (XBRL)published 07 Aug 2026
verified 2569derived 197

Score by group

58% · Insufficient data

Estimated value range

Low
58.04
USD per share
Mid
81.57
USD per share
High
108.42
USD per share
Price: 93.37 USD
The price is within the range
Potential to the central value: -12.6% (value / price − 1)
Margin of safety: -14.5% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 58.04 – 108.42 USD.

Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/E58.04 – 108.42 (Mid 81.57)
    17 companies used · median multiple 14.7x · quartiles 10.4x – 19.5x
    BLK, COHN, ETOR, HOOD, IBKR, JEF, MIAX, MKTX, MS, OPY, PIPR, RJF, SEIC, SF, TIGR, VIRT, WT
  • Dividend discount (DDM)outside the aggregate14.19 – 19.09 (Mid 16.28)
    a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Multiple comparisons use the SIC vertical: Security Brokers, Dealers & Flotation Companies (SIC 6211)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 58.3% of at least 60%

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality38.8%85 (vs peers)11%
FCF conversion · Quality106.9%100 (on a fixed band)11%
Revenue CAGR 3Y · Growth4.8%40 (on a fixed band)14%
EPS CAGR 3Y · Growth9.9%66 (on a fixed band)14%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheetunavailableunavailable—
P/E (TTM) · Valuation16.8x47 (vs peers)18%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation6.7%84 (on a fixed band)14%
Shareholder yield (distributions) · Returns7.0%100 (on a fixed band)11%
Payout ratio (FCF) · Returns22.3%100 (on a fixed band)7%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partialunavailable · 0/3 factors with a value
  • Growth53/100 · 2/2 factors with a value
  • Quality92/100 · 2/3 factors with a value
  • Returns100/100 · 2/2 factors with a value
  • Valuation63/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

SCHWAB CHARLES CORP (SCHW). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 23.9 bn USD in 2025; YoY growth 22.0%; net margin 38.8%; ROE 20.3%.

The estimated value range is 58.04–108.42 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 81.57 USD, the price of 93.37 USD leaves a potential of -12.6% (value / price − 1) and a margin of safety of -14.5% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 58.3% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 38.8%
  • FCF conversion: 106.9%
  • FCF yield: 6.7%
  • Shareholder yield (distributions): 7.0%
  • Payout ratio (FCF): 22.3%

What contradicts it

No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.

Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, Current ratio, EV/EBITDA.

Versus the vertical median

Security Brokers, Dealers & Flotation Companies (SIC 6211) · same industry (4-digit SIC) · compared with 29 companies

The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.

Multiples and returns vs the median

P/E
16.8x
vertical median 15.6x
above median (+8.0%)
EV/EBITDA
—
vertical median 14.1x
P/S
6.2x
vertical median 1.9x
above median (+232.1%)
P/B
3.2x
vertical median 1.6x
above median (+103.9%)
ROE
20.3%
vertical median 18.0%
above median (+12.9%)
Net margin
38.8%
vertical median 13.4%
above median (+189.9%)
EBIT margin
—
vertical median 22.1%
Revenue YoY
22.0%
vertical median 15.4%
above median (+42.6%)
Net debt/EBITDA
—
vertical median -0.3x
Dividend yield
1.3%
vertical median 1.9%
below median (−34.0%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
MSMorgan Stanley304.6 bn15.618.0%—unavailable+14% / +144%
BLKBlackRock, Inc.189.7 bn28.112.2%24.2%+89.3%+17% / +63%
SCHWSchwab Charles Corp161.5 bn16.820.3%38.8%+22.0%−1% / +67%
RJFRaymond James Financial, Inc.32.4 bn14.718.5%13.6%+6.6%+8% / +60%
SEICSei Investments Company12.9 bn18.928.9%28.1%+8.1%+34% / +85%
FRHCFreedom Holding Corp.11.9 bn73.811.2%6.5%+9.3%+42% / +129%
JEFJefferies Financial Group Inc.10.5 bn11.58.6%7.5%+2.9%−11% / +44%
MKTXMarketaxess Holdings Inc5.8 bn19.523.3%35.2%+3.6%+1% / −31%
SFStifel Financial Corp5.1 bn5.216.5%14.6%+6.7%−10% / +79%
IBKRInteractive Brokers Group, Inc.5.0 bn17.191.3%179.4%+23.4%+20% / +300%
PIPRPiper Sandler Companies5.0 bn6.023.6%14.5%+24.3%−16% / +82%
MIAXMiami International Holdings, Inc.3.5 bn12.528.9%19.8%+19.6%−23% / unavailable
WTWisdomTree, Inc.3.0 bn38.218.7%13.3%+15.4%+81% / +208%
JSMNavient Holdings, Inc.1.5 bn—-2.0%—−15.6%−21% / −19%
MTCMmtec, Inc.534.8 m—-272.7%-6,944.3%−56.8%+97% / −42%
SIEBSiebert Financial Corp.75.2 m—-1.3%-1.1%+12.3%−43% / −3%
DOMHDominari Holdings Inc.39.8 m—-315.4%-51.6%+487.0%−65% / −28%
LGHLLion Group Holding Ltd.34.3 m—-27.4%-52.8%unavailable−100% / −100%
COHNCohen & Co Inc.33.0 m1.933.3%5.6%+246.2%−33% / +66%
AXGSolowin Holdings, Ltd.26.5 m—-88.9%-47.4%+895.0%−53% / −38%
GLXYGalaxy Digital Inc.1.4 k—-16.7%-0.5%+41.8%−47% / unavailable
HOODRobinhood Markets, Inc.040.321.3%39.0%+51.6%−32% / +893%
ETOReToro Group Ltd.—10.41.4%1.6%+9.5%−43% / unavailable
NMRNomura America Finance, LLC————+12.7%+29% / +138%
FUTUFutu Holdings Ltd075.933.3%49.6%+67.8%−42% / +82%

1- and 3-year price returns: for SCHW from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
58.20
Total return -37% · Per year -37%
102.88
Total return 12% · Per year 12%
154.95
Total return 68% · Per year 68%
3 years
56.87
Total return -36% · Per year -14%
113.07
Total return 25% · Per year 8%
186.93
Total return 106% · Per year 27%
5 years
55.56
Total return -35% · Per year -8%
124.27
Total return 41% · Per year 7%
225.50
Total return 152% · Per year 20%
What moves the 3-year price the most
  • Exit P/E± 28.27
  • Net margin± 19.79
  • Annual revenue growth± 16.19
  • Annual dilution± 1.66

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Schwab is one of the largest financial services firms in the US, offering brokerage, banking, asset management and custody to individual investors and independent registered investment advisors (RIAs). With client assets of 13.33 trillion USD at the end of the third quarter of 2026, the company shows how scale and diversified revenue can support profit growth in a changing rate environment.

SWOT

Strengths

  • Large scale of client assets and accounts, allowing operating costs to be spread over a wide client base.
  • Diversified revenue model combining interest, fees, trading and banking services.
  • Strong brand and reputation in an industry built on trust, supported by a service-oriented culture.

Weaknesses

  • Interest revenue is sensitive to rate changes and to how clients allocate their cash.
  • Reliance on costly funding emerged during periods of rapid rate increases and weighed on profit.
  • Dependence on bank deposit arrangements with third parties limits flexibility in managing interest revenue.

Opportunities

  • Large growth potential in US investable wealth, far above the company's current client assets.
  • Expansion into alternative and private market investments through the Forge Global acquisition.
  • Greater use of managed solutions and AI tools by advisers and investors.

Threats

  • Fintech competition and price cuts could squeeze margins.
  • Changes in banking regulation and FDIC costs could raise capital burdens.
  • Cybersecurity and data security risks could damage client confidence.

Risks

  • Interest rate riskhigh

    Changes in interest rates can alter net interest revenue and deposit fee income, a major driver of profitability 1.

  • Client cash allocationhigh

    Moving cash out of sweep balances into higher-yielding investments can reduce income, as seen during rapid rate increases 1.

  • Liquidity and funding riskmedium

    If funding becomes more expensive or harder to obtain during market stress, the company could need costly funding sources 1.

  • Cybersecuritymedium

    Cyber attacks or data losses could expose the company to liability and damage its reputation 1.

  • Regulation and FDIC costslow

    Capital requirements and possible special FDIC assessments could affect profitability if further bank failures occur 1.

Investment thesis

What would need to be true (bull case)

  • If client assets and net new asset flows keep growing, fee and asset management revenue could support rising earnings, as the record third quarter 2026 results indicate 3.
  • Revenue diversification and operating scale could help the company sustain high margins even as interest rates change 13.
  • The Forge acquisition and expansion into alternative investments could open new revenue sources from existing clients 1.

What would break the thesis

  • If rates fall or clients move cash into higher-yielding investments, interest and deposit revenue could drop significantly 1.
  • Rising regulatory and FDIC costs could reduce profitability, especially if new bank failures occur 1.
  • Competition from fintech firms and banks could pressure pricing and margins over the longer term 1.

What to watch

  • Trend in net interest margin and client cash allocationQ4 2026
  • Completion of the Forge Global acquisition and integration of private market capabilities2027
  • Development of core net new assets and new account openingsQ1 2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

Its revenue model rests on net interest revenue, asset management and administration fees, trading revenue and bank deposit account fees, each supported by its broker-dealer, bank and asset management subsidiaries 1. Net interest revenue depends on client cash balances held as a funding source, a factor sensitive to the level of rates 1.

Segments

Investor Services

The Investor Services segment provides retail brokerage, investment advisory, banking and trust services to individual investors, as well as retirement plan and equity compensation services for employers 1. It includes programmes such as Schwab Wealth Advisory and Schwab Private Client Services for clients with more than one million dollars in qualifying assets 1.

Advisor Services

The Advisor Services segment provides custody, trading, banking, trust and support services to independent RIAs, independent retirement advisors and recordkeepers 1. The company describes itself as one of the largest providers of these services and says its scale helps lower costs per client 12.

Market context

Schwab's share in a competitive market depends on pricing, deposit rates and its ability to attract new assets 1. Fintech competition and lower pricing could weigh on margins over time.

Trends

  • Sensitivity to interest ratesmixed

    Net interest revenue depends on the spread between interest earned and interest paid on funding; falling rates could reduce revenue, while rising rates could raise funding costs 1. The net interest margin reached 3.04% in the third quarter of 2026 3.

  • Digitalisation and artificial intelligencetailwind

    The company launched an AI assistant for retail clients and announced a partnership with an AI provider for RIAs 23. These investments could widen the client base, but they also increase the need for cybersecurity 1.

  • Banking regulation and FDIC costsheadwind

    Higher capital requirements and FDIC costs after the 2023 bank failures could weigh on profitability 1. Regulatory changes can directly affect the cost of running the bank.

Competitive position

In individual investing, Schwab competes with brokerage and asset management firms, banks, fintech companies and retirement service providers 1. In serving RIAs, it competes with institutional custodians, wirehouses, regional and independent broker-dealers, fintech custodians, banks and trust companies 1.

Management cites scale, operating efficiency, an integrated structure combining bank, wealth management and broker-dealer, brand reputation and service culture as its advantages 1. These advantages could be tested by aggressively priced fintech offerings.

  • Interactive BrokersIBKR

    Direct competitor in brokerage for individual and professional investors, with a focus on low costs.

  • Morgan StanleyMS

    Competes in wealth management and adviser services, named among wealth management firms in the sources.

  • Fintech custodians

    Fintech providers offering custody and trading to independent advisers, cited explicitly as competition in Advisor Services.

  • Banks and trust companies

    Institutions offering deposits, trust services and asset administration, competing for both investors and advisers.

News & filings

In the press

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / The Charles Schwab Corporation · 25 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / The Charles Schwab Corporation · 07 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / The Charles Schwab Corporation · 15 Oct 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.