Charles Schwab beats estimates on strong client engagement

Investing.com -- The Charles Schwab Corporation (NYSE: SCHW) reported first-quarter results that exceeded analyst expectations, driven by robust client engagement and record trading activity.

The financial services firm posted adjusted earnings per share of $1.43, surpassing the analyst consensus of $1.39 by $0.04. Revenue reached a record $6.48 billion, slightly above the estimate of $6.47 billion and up 16% from $5.6 billion in the same quarter last year. The company attracted $140 billion in core net new assets during the quarter, with clients opening 1.3 million new brokerage accounts.

Shares rose 1.2% following the announcement. GAAP earnings per share totaled $1.37, up 38% YoY from $0.99 in the first quarter of 2025.

"Driven by robust client engagement across our wealth, trading, and lending solutions, total first quarter revenue increased 16% year-over-year to $6.5 billion," said CFO Mike Verdeschi. The company's diversified business model delivered results amid an uncertain macroeconomic environment.

Daily average trading volume reached a record 9.9 million trades, up 34% YoY. Asset management and administration fees grew 15% YoY to $1.8 billion, while trading revenue increased 20% compared to the prior-year quarter. Total client assets climbed 19% YoY to $11.77 trillion.

The company's net interest margin for the quarter was 2.88%. Client transactional sweep cash balances ended March at $461.5 billion, an increase of $7.8 billion from the prior quarter. Bank loan balances reached $60.9 billion, up 29% YoY, while margin loan balances increased 13% from year-end 2025 to $126.7 billion.

Schwab returned $2.4 billion to shareholders through stock repurchases of 24.3 million shares during the quarter and increased its quarterly common stock dividend by 19% to $0.32 per share.

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