SCHWAB CHARLES CORP (SCHW)

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AI: Fair-priced

Price checkThe shares look fairly priced, with strong growth already reflected in a demanding valuation.

At $111.09, the August 14 close, Schwab trades at about 20.2 times trailing earnings of roughly $5.49 a share; this multiple means investors pay $20.20 for each dollar of annual profit. Annualizing first-half 2026 earnings gives $5.82 and a 19.1 multiple. An 18-to-20 range for a high-quality but cyclical broker implies $105-$116, bracketing the market price. The shares are therefore fairly priced, not cheap: a return to 2025’s $4.65 earnings would lift the multiple to 23.9.

Big pictureEarnings have recovered sharply, but cash generation remains unusually sensitive to client behavior.

Revenue rose from $18.84 billion in 2023 to $23.92 billion in 2025, while net income climbed from $5.07 billion to $8.85 billion. First-half 2026 net income reached $5.28 billion, 31% above the prior year. Operating cash minus capital spending—cash left after running and investing in the business—was $8.76 billion in 2025, but operating cash swung from $19.59 billion in 2023 to $2.67 billion in 2024. For a broker-bank, client deposits and trading settlements distort cash flow, so earnings and capital measures are more dependable.

Business strengthScale, client growth, and a stronger balance sheet support durable long-term earning power.

Second-quarter client assets reached $13.08 trillion, up 22%, with $119.8 billion of core net new assets. Revenue was diversified: $3.36 billion from interest, $1.83 billion from asset services, and $1.22 billion from trading. Cash of $40.58 billion exceeded $22.67 billion of debt, while equity was $50.15 billion against $517.27 billion of assets; that leverage makes the 8.7% Tier 1 capital ratio important. First-half buybacks of $3.38 billion outweighed $230 million of stock compensation, and diluted shares fell 4.6% year over year; dividends used another $1.28 billion.

What could change the storyContinued asset gathering could justify today’s price, while quieter markets would expose its optimism.

The bull case is continued client gathering near June’s 5.8% annualized organic rate, more wealth fees, and successful Forge and crypto cross-selling. The bear case is normalization from record 11.9 million daily trades, falling margin loans from the unusually high $165.1 billion, or clients moving cheap sweep cash elsewhere. Those shifts would reduce trading and interest revenue; interest supplied 47% of second-quarter revenue. At $111.09, the price assumes roughly $5.55-$6.17 of sustainable earnings at an 18-to-20 multiple, plus growth. A margin below 3.0% or weakening flows would challenge that assumption.

$111.09 price considered

AI: News

Record second quarterRevenue and earnings reached records, but the shares fell as investors weighed already-high expectations.

On July 21, 2026, Schwab reported second-quarter revenue of $7.07 billion, up 21%, and reported earnings of $1.54 per share, up 43%; adjusted earnings of $1.62 exceeded the $1.54 analyst consensus cited by financial reporting. Client assets reached $13.08 trillion and core net new assets were $119.8 billion. Shares closed 2.52% lower at $99.96. Contemporary coverage linked the weakness partly to valuation concerns and a preceding analyst downgrade, but that attribution is not proven causation.

Direct crypto tradingSchwab added direct cryptocurrency trading, widening its offer while introducing new operating and regulatory risks.

Schwab’s July 21, 2026, results confirmed the launch of Schwab Crypto following its April 16 announcement. Eligible clients can trade Bitcoin and Ethereum through a separate account held by Schwab Premier Bank. Schwab said its clients already held about 20% of spot cryptocurrency exchange-traded products. The service could increase engagement and trading revenue, but management supplied no revenue target. Custody, extreme price swings, and changing regulation add risk, and no reliable one-day share-price reaction can be isolated from the broader earnings news.

Forge acquisition completedBuying Forge opened private markets to Schwab clients, although its immediate earnings contribution was negligible.

On March 2, 2026, Schwab completed its Forge Global acquisition for $636 million of cash and other consideration, following an agreed $45-per-share offer. Forge provides access to private-company shares and related funds. From closing through March 31, Forge contributed only $14 million of revenue and a $6 million net loss, making the near-term financial effect small. The opportunity is cross-selling to Schwab’s large client base; integration costs and thin, illiquid private markets are the main company-specific uncertainties.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	$23.92B	$19.61B	$18.84B	$20.76B	$18.52B	$11.69B	$10.72B	$10.13B	$8.62B	$7.48B	$6.38B	$6.06B	$5.43B	$4.88B	$4.69B	$4.25B	$4.19B	$5.15B	$4.99B
Operating expenses	$12.46B	$11.91B	$12.46B	$11.37B	$10.81B	$7.39B	$5.87B	$5.57B	$4.97B	$4.49B	$4.10B	$3.94B	$3.73B	$3.43B	$3.30B	$3.47B	$2.92B	$3.12B	$3.14B
Net income	$8.85B	$5.94B	$5.07B	$7.18B	$5.86B	$3.30B	$3.70B	$3.51B	$2.35B	$1.89B	$1.45B	$1.32B	$1.07B	$928.0M	$864.0M	$454.0M	$787.0M	$1.21B	$2.41B
Basic EPSper diluted share	$4.67	$3.00	$2.55	$3.52	$2.84	$2.13	$2.69	$2.47	$1.63	$1.32	$1.04	$0.96	$0.78	$0.69	$0.70	$0.38	$0.68	$1.06	$1.98
Diluted EPSper diluted share	$4.65	$2.99	$2.54	$3.50	$2.83	$2.12	$2.67	$2.45	$1.61	$1.31	$1.03	$0.95	$0.78	$0.69	$0.70	$0.38	$0.68	$1.05	$1.96

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys3$4.13M disclosed value

Sells (SEC code S)166$452.15M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 28, 2026Form 4	Wurster Richard APresident & CEO	BuyCommon Stock	22.0K	$84.23	$1.85M	218.4K
May 19, 2026Form 4	Schwab Charles R.Co-Chairman	SellCommon Stock · indirect	27.5K	$92.22	$2.54M	30.21M
May 18, 2026Form 4	Schwab Charles R.Co-Chairman	SellCommon Stock · indirect	27.5K	$92.40	$2.54M	30.24M
May 13, 2026Form 4	Sarin ArunDirector	SellCommon Stock · indirect	2.5K	$91.16	$227.9K	24.0K
May 6, 2026Form 4	Schwab Charles R.Co-Chairman	SellCommon Stock · indirect	109.3K	$92.01	$10.06M	30.26M

Review ownership filings at SEC.gov ↗

SCHWAB CHARLES CORP (SCHW)

Financial charts

Financial statements

Insider buys & sells