The Charles Schwab Corporation

2Q 2026 total revenue was $7.1 billion, up 21% year over year. Adjusted EPS was a record $1.62, up 42% year over year, and adjusted pre-tax profit margin was 54.3%. Asset management and administration fees rose 16% to $1.8 billion, trading revenue increased 28% to $1.2 billion, and bank deposit account fees grew 35% year over year. Daily average trades were 11.9 million. New brokerage accounts were 1.4 million in the quarter, and core net new assets were $120 billion, up nearly 50% year over year. Bank lending balances reached $67 billion, up 33% year over year; total margin balances ended at $165.1 billion. For full-year 2026, Schwab now expects total revenue growth of 17.5%-18.5%, full-year net interest margin of 3%-3.10%, average 4Q 2026 net interest margin of 3.25%-3.30%, and expense growth of 9.5%-10.5%. Management said full-year daily average trades are now assumed at 10.6 million and reiterated 5% organic growth as the expectation for 2026.

Rick Wurster framed the quarter as evidence that Schwab is winning as clients consolidate banking, investing, and advice in one place. He emphasized the firm’s “no trade-offs” value proposition, the expansion of wealth, banking, crypto, private markets, and AI capabilities, and said Schwab is building a platform that can serve clients across channels and future market infrastructure models. His tone was upbeat and confident throughout, especially on long-term NNA, trading, and advice growth.

Mike Verdeschi said Schwab converted business momentum into another record financial quarter, with 21% revenue growth and 42% EPS growth, supported by stronger trading, asset management fees, and 19% growth in net interest revenue. He pointed to lending as the primary driver of NIM expansion, including strong PAL originations and bank loan growth to $67 billion, while cash trends remained solid after seasonal tax-related outflows. He also noted adjusted expenses rose 11% year over year and that capital remained strong with an adjusted Tier 1 Leverage Ratio of 6.8%, including the redemption of preferred equity and $1 billion of common share repurchases.

Analysts focused on whether the record June and trading surge were sustainable, and management said yes, citing broad participation, younger investors, options adoption, AI-driven research and execution, and a more market-engaged client base. Questions also centered on what was driving NNA, June momentum, and SpaceX; Rick said SpaceX drove engagement but not meaningful NNA, which he described as broad-based. On capital allocation and NIM, Mike said Schwab will prioritize funding client activity and franchise growth first, then opportunistic buybacks, and he said securities lending hard-to-borrow activity remains subdued while most NIM improvement is coming from lending and PAL growth.