The Charles Schwab Corporation
- Open
- 108.77
- Day high
- 110.70
- Day low
- 108.77
- Prev close
- 108.24
- Volume
- 2.5M
- Mkt cap
- $190.4B
- P/E (TTM)
- 19.9
- EPS (TTM)
- $5.52
- P/B
- 3.8
- P/S
- 6.3
- Yield
- 1.12%
- Per share
- $1.23
- ▼Insiders net selling -$143.6M over the last 3 months (0 open-market buys, 36 sales)
- 🏛Institutions mixed (13F)
The Charles Schwab Corporation (SCHW) is a Financial Services company listed on NYSE. The stock is up 13% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 36 sales (SEC Form 4). Drillr has 4 published research articles covering SCHW.
The Charles Schwab Corporation (SCHW) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 9 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SCHW earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 21, 2026 | $1.56 | $1.62 | +3.6% | $7.1B | +1.2% |
| Apr 16, 2026 | $1.40 | $1.43 | +1.9% | $6.5B | -2.4% |
| Jan 21, 2026 | $1.40 | $1.39 | -0.9% | $7.2B | +11.5% |
| Oct 16, 2025 | $1.25 | $1.31 | +5.1% | $7.0B | +16.9% |
| Jul 18, 2025 | $1.10 | $1.14 | +4.0% | $6.8B | +19.1% |
| Apr 17, 2025 | $1.00 | $1.04 | +3.5% | $6.7B | +20.9% |
| Jan 21, 2025 | $0.91 | $1.01 | +11.4% | $5.3B | +3.6% |
| Oct 15, 2024 | $0.75 | $0.77 | +3.1% | $4.8B | +2.1% |
| Jul 16, 2024 | $0.72 | $0.73 | +2.0% | $4.7B | +0.9% |
| Apr 15, 2024 | $0.74 | $0.74 | +0.0% | $4.7B | +0.7% |
| Jan 17, 2024 | $0.66 | $0.68 | +3.3% | $4.5B | -1.5% |
| Oct 16, 2023 | $0.76 | $0.77 | +1.3% | $4.6B | -2.8% |
SCHW insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Sep 2, 2026 | Hathi Neeshaofficer: MD, Head Wealth Adv, Bnk, Tst | Sell | 3,177 | $109.04 |
| Sep 2, 2026 | Hathi Neeshaofficer: MD, Head Wealth Adv, Bnk, Tst | Option | 3,177 | $52.05 |
| Aug 31, 2026 | Hathi Neeshaofficer: MD, Head Wealth Adv, Bnk, Tst | Sell | 3,177 | $108.12 |
| Aug 31, 2026 | Bettinger Walter Wdirector, officer: Co-Chairman | Sell | 74,388 | $110.91 |
| Aug 31, 2026 | Bettinger Walter Wdirector, officer: Co-Chairman | Option | 74,388 | $46.81 |
| Aug 31, 2026 | Hathi Neeshaofficer: MD, Head Wealth Adv, Bnk, Tst | Option | 3,177 | $52.05 |
| Aug 27, 2026 | Schwab-Pomerantz Carolyndirector | Sell | 9,175 | $109.25 |
| Aug 26, 2026 | Schwab Charles R.director, officer: Co-Chairman | Sell | 117,000 | $113.20 |
| Aug 26, 2026 | Bettinger Walter Wdirector, officer: Co-Chairman | Option | 176,210 | $46.81 |
| Aug 26, 2026 | Bettinger Walter Wdirector, officer: Co-Chairman | Sell | 176,210 | $113.49 |
| Aug 18, 2026 | Beatty Jonathan Sofficer: MD, Head of Advisor Services | Sell | 1,000 | $111.33 |
| Aug 17, 2026 | Howard Dennisofficer: MD, Chief Tech, OPS & Data Off | Sell | 2,198 | $110.00 |
| Aug 17, 2026 | Craig Jonathan M.officer: MD, Head of Retail Investing | Option | 21,866 | $46.81 |
| Aug 17, 2026 | Craig Jonathan M.officer: MD, Head of Retail Investing | Sell | 21,866 | $111.03 |
| Aug 13, 2026 | Schwab Charles R.director, officer: Co-Chairman | Sell | 46,410 | $108.18 |
Source: SCHW SEC Form 4 filings, latest Sep 2, 2026. For informational purposes only — not investment advice.
See the full SCHW insider & 13F page →SCHW research & analysis
[SCHW] Charles Schwab Thesis 2026: Cash Sweep Recovery + Ameritrade Integration Synergies Anchor Platform Compounding
Charles Schwab FY2025 revenue ~$21.5B (+12-15% YoY recovering from FY2023 cash sort cyclical trough $18.8B). Net interest income recovering as Schwab Bank deposits stabilized at ~$310B (vs $465B FY2021 peak before cash sort dynamic). Total client assets reached $10.5T+ (~36M+ active brokerage accounts post-Ameritrade integration). TD Ameritrade integration (Nov 2020 $26B acquisition) substantially complete — $2B annual cost synergies achieved (vs initial $1.8-2.0B target). RIA custody business serves 14,000+ advisors with $4T+ client assets (dominant US RIA platform). CEO Rick Wurster transitioned Jan 2025 (succeeded Walt Bettinger 2008-Jan 2025). FY2026 thesis: cash sweep continued stabilization + advisor services growth + post-integration operating margin expansion drives EPS toward $4.00-4.50 by FY2027; key risks: cash sort returns from competitive cash management products, RIA custody competitive intensity from Fidelity/LPL, recession compresses brokerage trading.
Retail Brokerage Options Trading Surges After Pattern Day Trader Repeal
Since the pattern day trader rule ended on 4 June 2026, Webull's options contracts rose 34% sequentially against 7% for equity notional, and Cboe measured it.
8698.TBRBULLSEC Options Roundtable: CBOE and ICE Face Fee Reform as PFOF Scrutiny Hits SCHW, IBKR
SEC's options roundtable agenda release advances reform talks on liquidity and fees, spotlighting ICE and CBOE's dominance amid record volumes. Brokers like SCHW/IBKR face PFOF scrutiny, but exchanges' premiums reflect growth tailwinds. Neutral outlook favors scaled players.
ICECBOEMSWhich Emerging ETF Issuers Are Most Likely to Switch Custodians as Northern Trust Offers a Credible Alternative?
Northern Trust's entry into ETF custody and administration is cracking open a market long dominated by BNY Mellon and State Street. NTRS is the clearest beneficiary as a credible challenger, State Street is the most structurally exposed incumbent due to its dual role as custodian and rival ETF issuer, and Invesco — a cost-conscious mid-size ETF manager — is the most likely major issuer to explore switching.
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The Charles Schwab Corporation company profile
Overview
The Charles Schwab Corporation (NYSE:SCHW) is one of America's largest financial services companies, founded in 1971 by Charles R. Schwab as a discount brokerage firm that democratized investing by offering low-cost stock trades. Originally headquartered in San Francisco, the company relocated to Westlake, Texas, and has grown through strategic acquisitions and organic expansion to become a comprehensive wealth management and financial services provider. The company's most transformative acquisition was TD Ameritrade in 2020 for $26 billion, which nearly doubled its client base and assets under management. Today, Schwab serves over 35 million client accounts with approximately $8 trillion in client assets, operating through nearly 400 domestic branch offices across 48 states and international locations in Puerto Rico, the United Kingdom, Hong Kong, and Singapore.
Business
Charles Schwab operates as a comprehensive financial services provider in the wealth management and brokerage industry, serving both individual investors and financial advisors through two primary business segments. The company's core offering revolves around custody and brokerage services, which means they hold and manage clients' investment accounts, execute trades, and provide the technological infrastructure for investing activities. The Investor Services segment represents the retail-facing business, providing individual investors with brokerage accounts for buying and selling stocks, bonds, mutual funds, and exchange-traded funds (ETFs). This segment also offers banking services including checking and savings accounts, mortgages, and credit lines, as well as investment advisory services where Schwab manages portfolios for clients. The segment generates revenue through various means including interest on client cash balances, fees on managed accounts, and trading commissions on certain products. The Advisor Services segment serves as a custodian for independent financial advisors and registered investment advisors (RIAs), providing the back-office infrastructure that allows these professionals to manage their clients' investments. Schwab holds approximately 45% market share in the RIA custody business, making it the dominant player in this space. This segment provides trading platforms, reporting tools, and administrative services that enable advisors to focus on client relationships rather than operational tasks. Both segments benefit from Schwab's scale in managing client cash through sweep programs, where uninvested cash in brokerage accounts is automatically moved into interest-bearing accounts or money market funds. The company also offers proprietary investment products, including mutual funds and ETFs, and provides margin lending services where clients can borrow against their investment portfolios. Recent strategic initiatives include launching alternative investment platforms for high-net-worth clients and expanding wealth management services to capture more assets from existing relationships.
Revenue model
Charles Schwab generates revenue through multiple interconnected business models that leverage its position as a financial intermediary. The company's primary revenue streams include net interest revenue, which accounts for the largest portion of income and is generated by earning interest on client cash balances and securities lending while paying lower rates on deposits and sweep accounts. This spread-based model means Schwab benefits significantly from rising interest rate environments, as evidenced by net interest revenue increasing 21% year-over-year in Q1 2025. Asset management and administration fees represent the second major revenue source, generated through percentage-based fees on assets under management in advisory accounts, mutual funds, and ETF products. These fees typically range from 0.25% to 1.5% annually depending on the service level and account size. The company also earns trading revenue from commissions on options, futures, and forex transactions, though equity trading has been commission-free since 2019 as a competitive strategy. The business model benefits from several positive feedback loops: as client assets grow, both fee-based revenue and cash balances increase, while the company's scale allows for lower per-client costs. However, the model faces margin pressures from several factors. Interest rate sensitivity creates both opportunities and risks - while rising rates boost net interest margins, falling rates compress spreads and may trigger client cash reallocations from higher-yielding money market funds back to lower-yielding sweep accounts. Competitive pressure continues to drive commission compression and fee reductions, particularly from fintech competitors offering zero-fee investing. Regulatory changes around fiduciary standards and fee transparency can impact pricing power, while market volatility affects both trading volumes and asset values, creating revenue fluctuations. The company's significant supplemental borrowing of $38.1 billion also creates interest expense sensitivity to funding costs.
Competitive moat
Charles Schwab's competitive moat stems primarily from its scale advantages and switching costs in the financial services industry. The company's $8 trillion in client assets and 35 million accounts create significant economies of scale that allow it to offer competitive pricing while maintaining healthy margins. This scale advantage is particularly pronounced in technology infrastructure, where Schwab can amortize massive investments in trading platforms, cybersecurity, and compliance systems across a large client base, achieving an expense-to-client-assets ratio of just 12 basis points. The switching costs for both retail and advisor clients are substantial, involving complex account transfers, potential tax implications, and the need to learn new platforms and relationships. For RIA clients in particular, Schwab's 45% market share creates network effects where advisors benefit from being on the dominant platform with the most resources and third-party integrations. The company's trusted brand built over five decades provides additional protection, as financial services require high levels of client trust and Schwab's reputation for stability and client advocacy creates customer loyalty. However, the moat faces several challenges. Fintech disruption continues to pressure traditional fee structures, with companies like Robinhood and newer entrants offering simplified, mobile-first experiences that appeal to younger investors. Technology giants like Apple and Google could potentially enter wealth management with superior user experiences and deeper pockets. The commoditization of basic brokerage services has already eliminated most trading commissions, and asset management fees face ongoing pressure from low-cost index funds and robo-advisors. Additionally, regulatory changes could reduce barriers to account transfers or mandate more transparent fee structures, potentially weakening switching costs. While Schwab's scale and advisor relationships provide meaningful protection, the moat is moderate rather than insurmountable, requiring continuous innovation and service improvements to maintain competitive positioning.
Risks & safety
Charles Schwab presents a moderate margin of safety profile, with strong operational cash flows but elevated leverage due to its banking operations and recent acquisition financing. • Liquidity position: Strong with $35 billion in cash and short-term investments as of Q1 2025, providing substantial operational flexibility and ability to weather market volatility • Debt structure: Elevated debt-to-equity ratio of 0.81, though much of this reflects client deposits and supplemental bank funding rather than traditional corporate debt. The company has been actively reducing supplemental funding by $11.8 billion in Q1 2025 • Cash generation: Robust free cash flow of $6.2 billion in Q1 2025, demonstrating strong underlying profitability and ability to self-fund operations and growth investments • Valuation metrics: Trading at 18.6x trailing earnings and 2.87x book value, representing reasonable but not compelling valuations for a financial services company with moderate growth prospects • Regulatory capital: As a bank holding company, subject to regulatory capital requirements that provide cushion but also limit financial flexibility • Interest rate sensitivity: Significant exposure to interest rate fluctuations affects both revenue and funding costs, creating earnings volatility risk in changing rate environments
Recent development
Over the past few years, Charles Schwab has undergone significant strategic transformation centered around the integration of TD Ameritrade, which was completed in 2024 after welcoming 17 million client accounts and nearly $2 trillion in assets. This represented the largest brokerage integration in industry history and achieved 100% of targeted run-rate expense synergies while experiencing lower client attrition than forecasted. The company has pivoted toward win-win monetization strategies, focusing on deeper client relationships rather than just account gathering. Key initiatives include launching a retail alternatives platform in 2025 for clients with $5 million or more in assets, offering access to private equity, private credit, and hedge funds. Schwab has also significantly expanded its wealth management capabilities, with advisory solution net flows reaching record levels and services like Schwab Wealth Advisory growing 40% year-over-year. Technology investments have been substantial, with AI technology usage increasing 90% and the company investing in advanced analytics and process automation. The integration of thinkorswim trading platform has enhanced the company's appeal to active traders, while new digital onboarding and service capabilities improve client experience. The company has also been preparing for cryptocurrency expansion, currently offering crypto ETFs and futures while planning to launch direct spot crypto trading pending regulatory approval. Physical expansion continues with plans for 16 new branch offices and hiring 250 new financial consultants, reflecting the company's belief in the value of human advisory relationships. The company has also been optimizing its balance sheet, reducing supplemental bank funding and exploring partnerships with third-party banks to improve capital efficiency while maintaining client service levels.
SCHW company profile · for informational purposes only — not investment advice.
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