| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 53 | 19.1x | 17.6x | Around median | |
Growth | 65 | 20.3% | 7.1% | Around median | |
Quality | 92 | — | — | Top tier | |
Safety | 15 | — | — | Bottom tier | |
Capital Return | 51 | 1.12% | 2.15% | Around median | |
Momentum | 80 | 20.1% | 2.3% | Top tier | |
Sentiment | 43 | 15 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
The Charles Schwab Corporation (SCHW) operates at the center of the U.S. investment ecosystem, serving individual investors, traders, and registered investment advisors through brokerage, custody, wealth and asset management, banking, and lending services. It generates revenue from net interest income on deposits and loans, asset management and administration fees, trading activity, bank deposit account fees, and other revenue. In fiscal Q2 2026, the company said it ranks first in total client assets, registered investment advisor custody assets, and average daily trades, and that its platform executes one-third of the industry’s retail brokerage trades.
Schwab posted record revenue of $7.1 billion in fiscal Q2 2026, up 21% year over year, net income of $2.8 billion, and reported EPS in EDGAR filings of $1.54. Adjusted EPS was $1.62, up 42%, while the adjusted pre-tax profit margin reached 54.3%. The revenue mix included $1.8 billion in asset management and administration fees, up 16%, and $1.2 billion in trading revenue, up 28%, while net interest revenue increased 19% and bank deposit account fees rose 35%.
The results were supported by broader activity across the platform during fiscal Q2 2026: the company added 1.4 million new brokerage accounts and attracted $120 billion in core net new assets, up nearly 50% annually, while managed investing flows increased 53%. Average daily trades totaled 11.9 million, bank loan balances reached $67 billion, up 33%, and margin balances totaled $165.1 billion. The company ended the quarter with an adjusted Tier 1 leverage ratio of 6.8%, after repurchasing $1 billion of common stock and completing net preferred stock redemptions.
The analyst consensus rates SCHW as a “Buy,” with an average price target of $126.5 and a wide target range from $105 to $145. The average and highest targets are above the 52-week range high of $114.53, while the lowest target exceeds the range low of $83.96; therefore, the valuation combines expectations for continued earnings and flow growth with clear divergence regarding the amount of potential value. The data does not include a usable price-to-earnings ratio, leaving fiscal 2026 results and achievement of the 17.5%–18.5% revenue growth range as key benchmarks for testing the analyst thesis.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Revenue totaled $7.1 billion, up 21% annually, and net income reached $2.8 billion. EDGAR EPS was $1.54, while adjusted EPS was $1.62, up 42%, with an adjusted pre-tax profit margin of 54.3%. Growth came from a 19% increase in net interest revenue, a 16% increase in asset management and administration fees to $1.8 billion, and a 28% increase in trading revenue to $1.2 billion.
In fiscal Q2 2026, the company added approximately 1.4 million brokerage accounts and attracted $120 billion in core net new assets, up nearly 50% annually. During the first half of fiscal 2026, the total reached 2.7 million new accounts and $260 billion in core net new assets, representing growth of approximately 20%. In July 2026 alone, it recorded $58.1 billion in net new assets and 417 thousand brokerage accounts, bringing client assets to $13.04 trillion.
Management expects revenue growth of between 17.5% and 18.5% in fiscal 2026, with organic growth of 5% and an average of 10.6 million daily trades. The scenario assumes a market increase of approximately 13% and one 25-basis-point interest rate increase in December 2026. The company also expects expense growth of between 9.5% and 10.5%, with core expenses remaining within the 5.5%–6.5% range and expected operating leverage increasing to 800 basis points.
Automated analysis for informational purposes only — not investment advice.
Bank loan balances totaled $67 billion in fiscal Q2 2026, up 33% annually and 16% from the end of fiscal 2025. Pledged Asset Line originations increased approximately 60%, while margin balances reached $165.1 billion. Management explained that most of the annual expansion in net interest margin came from margin lending and bank lending, and that the Pledged Asset Line yield is more than 100 basis points higher than the securities that could have been purchased instead.
The company said on July 21, 2026, that the Schwab Crypto rollout is proceeding according to plan and that it was targeting the start of cryptocurrency transfer testing by the end of July 2026, and it also invested in Paxos to support the service. It closed the Forge transaction and is working to integrate its private markets capabilities, including specialized managers, index strategies, and direct investment in private companies. In artificial intelligence, it launched Portfolio Insights in May 2026 and began testing Schwab Assistant among employees in July 2026, while reporting that development team productivity improved 15%–20% during the twelve months preceding the call.
Growth in asset fees and trading is linked to market strength and client engagement, while net interest margin expansion depends partly on lending and the assumed fiscal 2026 interest rate path. Management expects average daily trades to moderate from 11.9 million in Q2 to a full-year average of 10.6 million, and it raised the expense growth forecast to 9.5%–10.5%. Execution of the Forge, Schwab Crypto, artificial intelligence, and tokenized infrastructure initiatives adds operational risk, while insiders recorded net sales of $65.5 million during the three months ended August 17, 2026, with some sales potentially prearranged.
