Charles Schwab (SCHW)
Market Price (4/29/2026): $91.01 | Market Cap: $161.2 BilSector: Financials | Industry: Investment Banking & Brokerage
Charles Schwab (SCHW)
Market Price (4/29/2026): $91.01Market Cap: $161.2 BilSector: FinancialsIndustry: Investment Banking & Brokerage
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.5%, FCF Yield is 5.4% Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -48% Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 22% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 39%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 37%, CFO LTM is 9.3 Bil, FCF LTM is 8.8 Bil Stock buyback supportStock Buyback 3Y Total is 13 Bil Low stock price volatilityVol 12M is 23% Capital ratio is >2x the minimum of 6%Tier 1 Capital / Risk Wtd Assets RatioTier 1 Capital / Risk-Weighted Assets is a common measure of financial strength for a bank. It reflects how much equity there is relative to assets where assets are weighted based on riskiness. Low ratios indicate the bank is highly vulnerable to even small changes in the value of their risk assets. is 17% Uninsured deposits are lowUninsured Deposits Ratio %Fraction of deposits that exceed the insurance deposit thresholds. For example, the FDIC protects deposits up to $250K. A high uninsured deposits ratio indicates large accounts and greater potential exposure to bank run risk. is 8.8% Megatrend and thematic driversMegatrends include Fintech & Digital Payments, AI in Financial Services, and Sustainable Finance. Themes include Digital Payments, Show more. | Weak multi-year price returns2Y Excs Rtn is -17% | Key risksSCHW key risks include [1] its exposure to unrealized losses on investment securities portfolios driven by interest rate fluctuations and [2] its ability to attract and retain client assets amidst intense competition. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.5%, FCF Yield is 5.4% |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -48% |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 22% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 39%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 37%, CFO LTM is 9.3 Bil, FCF LTM is 8.8 Bil |
| Stock buyback supportStock Buyback 3Y Total is 13 Bil |
| Low stock price volatilityVol 12M is 23% |
| Capital ratio is >2x the minimum of 6%Tier 1 Capital / Risk Wtd Assets RatioTier 1 Capital / Risk-Weighted Assets is a common measure of financial strength for a bank. It reflects how much equity there is relative to assets where assets are weighted based on riskiness. Low ratios indicate the bank is highly vulnerable to even small changes in the value of their risk assets. is 17% |
| Uninsured deposits are lowUninsured Deposits Ratio %Fraction of deposits that exceed the insurance deposit thresholds. For example, the FDIC protects deposits up to $250K. A high uninsured deposits ratio indicates large accounts and greater potential exposure to bank run risk. is 8.8% |
| Megatrend and thematic driversMegatrends include Fintech & Digital Payments, AI in Financial Services, and Sustainable Finance. Themes include Digital Payments, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -17% |
| Key risksSCHW key risks include [1] its exposure to unrealized losses on investment securities portfolios driven by interest rate fluctuations and [2] its ability to attract and retain client assets amidst intense competition. |
Qualitative Assessment
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1. Q1 2026 Revenue Miss and Weaker Net Interest Income.
Charles Schwab reported Q1 2026 net revenue of $6.48 billion, falling short of analyst consensus estimates which ranged from $6.49 billion to $6.62 billion. This revenue shortfall was primarily attributed to weaker-than-expected net interest income (NII) of $3.14 billion, trailing the Visible Alpha consensus of $3.18 billion. The ongoing trend of client "cash sorting," where clients move sweep cash into higher-yielding alternatives, continued to pressure NII and net interest margin.
2. Softer Full-Year 2026 EPS Guidance.
The company issued full-year 2026 adjusted earnings per share (EPS) guidance in the range of $5.70 to $5.80. This outlook was below the Street's consensus estimate of $5.93, suggesting a more cautious profitability trajectory from management than analysts had anticipated.
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Stock Movement Drivers
Fundamental Drivers
The -8.8% change in SCHW stock from 12/31/2025 to 4/28/2026 was primarily driven by a -16.8% change in the company's P/E Multiple.| (LTM values as of) | 12312025 | 4282026 | Change |
|---|---|---|---|
| Stock Price ($) | 99.57 | 90.83 | -8.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 22,914 | 23,921 | 4.4% |
| Net Income Margin (%) | 35.9% | 37.0% | 3.0% |
| P/E Multiple | 21.8 | 18.2 | -16.8% |
| Shares Outstanding (Mil) | 1,806 | 1,771 | 2.0% |
| Cumulative Contribution | -8.8% |
Market Drivers
12/31/2025 to 4/28/2026| Return | Correlation | |
|---|---|---|
| SCHW | -8.8% | |
| Market (SPY) | 5.2% | 38.6% |
| Sector (XLF) | -4.8% | 59.7% |
Fundamental Drivers
The -4.3% change in SCHW stock from 9/30/2025 to 4/28/2026 was primarily driven by a -23.2% change in the company's P/E Multiple.| (LTM values as of) | 9302025 | 4282026 | Change |
|---|---|---|---|
| Stock Price ($) | 94.88 | 90.83 | -4.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 21,626 | 23,921 | 10.6% |
| Net Income Margin (%) | 33.7% | 37.0% | 9.9% |
| P/E Multiple | 23.7 | 18.2 | -23.2% |
| Shares Outstanding (Mil) | 1,817 | 1,771 | 2.6% |
| Cumulative Contribution | -4.3% |
Market Drivers
9/30/2025 to 4/28/2026| Return | Correlation | |
|---|---|---|
| SCHW | -4.3% | |
| Market (SPY) | 8.0% | 40.3% |
| Sector (XLF) | -2.9% | 61.4% |
Fundamental Drivers
The 17.5% change in SCHW stock from 3/31/2025 to 4/28/2026 was primarily driven by a 22.1% change in the company's Net Income Margin (%).| (LTM values as of) | 3312025 | 4282026 | Change |
|---|---|---|---|
| Stock Price ($) | 77.33 | 90.83 | 17.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 19,610 | 23,921 | 22.0% |
| Net Income Margin (%) | 30.3% | 37.0% | 22.1% |
| P/E Multiple | 23.8 | 18.2 | -23.7% |
| Shares Outstanding (Mil) | 1,831 | 1,771 | 3.4% |
| Cumulative Contribution | 17.5% |
Market Drivers
3/31/2025 to 4/28/2026| Return | Correlation | |
|---|---|---|
| SCHW | 17.5% | |
| Market (SPY) | 29.3% | 58.2% |
| Sector (XLF) | 5.7% | 70.7% |
Fundamental Drivers
The 81.2% change in SCHW stock from 3/31/2023 to 4/28/2026 was primarily driven by a 39.7% change in the company's P/E Multiple.| (LTM values as of) | 3312023 | 4282026 | Change |
|---|---|---|---|
| Stock Price ($) | 50.13 | 90.83 | 81.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 20,762 | 23,921 | 15.2% |
| Net Income Margin (%) | 34.6% | 37.0% | 7.0% |
| P/E Multiple | 13.0 | 18.2 | 39.7% |
| Shares Outstanding (Mil) | 1,864 | 1,771 | 5.3% |
| Cumulative Contribution | 81.2% |
Market Drivers
3/31/2023 to 4/28/2026| Return | Correlation | |
|---|---|---|
| SCHW | 81.2% | |
| Market (SPY) | 81.5% | 46.7% |
| Sector (XLF) | 69.3% | 61.1% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| SCHW Return | 60% | 0% | -16% | 9% | 37% | -9% | 84% |
| Peers Return | 47% | -13% | 18% | 43% | 41% | -1% | 198% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 5% | 91% |
Monthly Win Rates [3] | |||||||
| SCHW Win Rate | 58% | 67% | 50% | 58% | 50% | 25% | |
| Peers Win Rate | 70% | 43% | 53% | 65% | 72% | 35% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| SCHW Max Drawdown | -3% | -28% | -43% | -10% | -6% | -11% | |
| Peers Max Drawdown | -1% | -27% | -14% | -5% | -17% | -14% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: MS, GS, JPM, BAC, WFC. See SCHW Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 4/28/2026 (YTD)
How Low Can It Go
| Event | SCHW | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -50.4% | -25.4% |
| % Gain to Breakeven | 101.7% | 34.1% |
| Time to Breakeven | 806 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -42.0% | -33.9% |
| % Gain to Breakeven | 72.4% | 51.3% |
| Time to Breakeven | 257 days | 148 days |
| 2018 Correction | ||
| % Loss | -41.1% | -19.8% |
| % Gain to Breakeven | 69.8% | 24.7% |
| Time to Breakeven | 466 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -56.4% | -56.8% |
| % Gain to Breakeven | 129.3% | 131.3% |
| Time to Breakeven | 1,762 days | 1,480 days |
Compare to MS, GS, JPM, BAC, WFC
In The Past
Charles Schwab's stock fell -50.4% during the 2022 Inflation Shock from a high on 1/14/2022. A -50.4% loss requires a 101.7% gain to breakeven.
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About Charles Schwab (SCHW)
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- It's like Fidelity, but also offers a full suite of banking products and services beyond just investments.
- Think of it as a combination of an investment brokerage like E*TRADE and a traditional bank like JPMorgan Chase.
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- Investment Advisory & Wealth Management: Provides tailored financial advice, planning, and managed portfolios using various investment vehicles for individuals and institutions.
- Securities Brokerage & Trading: Offers platforms and services for trading equities, fixed income, options, futures, forex, mutual funds, and ETFs, including clearing and custody support.
- Banking & Lending: Delivers traditional banking products such as checking and savings accounts, along with lending solutions like mortgages, home equity lines, and pledged asset lines.
- Asset Management: Manages and offers a range of proprietary investment products, including mutual funds and exchange-traded funds (ETFs).
- Custody Services: Provides safekeeping and administration of client assets for individuals, financial advisors, and trusts.
- Retirement Services: Offers various retirement plan services for individuals and corporations, assisting with planning and investment management.
- Trust Services: Provides a comprehensive suite of trust-related solutions, including custody, reporting, and administrative trustee functions.
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Major Customers of The Charles Schwab Corporation (SCHW)
The Charles Schwab Corporation serves a diverse range of customers, primarily individuals and the financial professionals who serve them, as well as corporate clients. Based on the provided description, its major customer categories include:- Individual Investors (Retail Clients): These customers directly engage with Schwab for a variety of services including self-directed brokerage accounts, investment advisory services, banking and trust services, and retirement planning. They utilize Schwab's platforms for trading equities, fixed income, options, and futures, as well as for cash management, mortgages, and personal advice solutions.
- Independent Financial Advisors (Registered Investment Advisors - RIAs): Schwab's Advisor Services segment caters to independent financial advisory firms. These firms use Schwab as a custodian for their clients' assets, leveraging Schwab's platforms for trading, banking, and operational support. While the advisors are Schwab's direct customers in this segment, they, in turn, serve their own base of individual and institutional clients.
- Corporate Clients / Employers: This category includes companies that utilize Schwab's services for their employees' benefit plans. Specifically, Schwab provides services related to retirement plans (such as 401(k)s and other corporate brokerage retirement services) and offers full-service recordkeeping for equity compensation plans (e.g., stock options, restricted stock) sponsored by employers.
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Rick Wurster, President and Chief Executive Officer.
Rick Wurster became President and CEO of The Charles Schwab Corporation on January 1, 2025, and has been a member of its Board of Directors since that date. He previously served as President for over three years, overseeing client enterprises, wealth and asset management, banking and trust services, technology, and operations. Before joining Schwab in early 2016, Wurster held leadership roles at Wellington Management and McKinsey & Company, where he was a leader of the asset management practice and an Associate Principal. He previously served as CEO of Charles Schwab Investment Management, Inc. from 2019 to 2021, and CEO of Charles Schwab Investment Advisory, Inc. from 2018 to 2021. He also served as CEO of ThomasPartners, Inc. and Windhaven Investment Management, Inc. from 2016 to 2018.
Mike Verdeschi, Managing Director, Chief Financial Officer.
Mike Verdeschi has been Managing Director and CFO since May 2024, responsible for Schwab's treasury, controller functions, financial planning, and analysis. Before joining Schwab in 2024, he spent over 30 years at Citigroup, where he rose to Treasurer and Chief Investment Officer, and served in numerous finance and product leadership roles.
Joe Martinetto, Executive Chairperson of the Schwab Banks.
Effective June 28, 2024, Joe Martinetto transitioned from his role as Chief Operating Officer to Executive Chairperson of the Schwab Banks. He has served Schwab for over 25 years in various roles, including CFO and Treasurer. Most recently, he successfully oversaw the integration and conversion of former TD Ameritrade clients to Schwab, which was the largest integration in the history of the investment brokerage industry. He joined Schwab in 1997 as senior vice president and treasurer, later becoming CFO in 2007 until May 2017. Prior to Schwab, he was senior assistant treasurer at Transamerica Corporation and worked at First Interstate Bancorp. At Schwab, he and Fred Duden worked together on selling off US Trust to Bank of America in 2007.
Omar Aguilar, Chief Executive Officer and Chief Investment Officer, Schwab Asset Management™.
Omar Aguilar heads Schwab Asset Management, overseeing key investment strategies and the Schwab Center for Financial Research. He manages equity, index, and quantitative strategies as well as asset allocation, supporting millions of investors with data-driven investment solutions. With over 25 years in investment management, Aguilar previously directed $40 billion in managed accounts at Financial Engines and led quantitative equity at ING Investment Management.
Jonathan M. Craig, Head of Investor Services.
Jonathan M. Craig leads Schwab's Investor Services unit, supporting self-directed clients and overseeing company-wide marketing to build the brand and client base. He has held positions as Chief Marketing Officer and Chief of Staff to Charles R. Schwab. Craig joined Schwab in 2000 after working at AT&T in marketing and sales.
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The key risks to Charles Schwab (SCHW) are:
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Interest Rate Sensitivity and its Impact on Net Interest Income (NII) and Client Cash Flows: Charles Schwab's earnings are highly sensitive to fluctuations in interest rates, largely due to its substantial interest-earning assets. A decline in interest rates could cause the rates earned on its assets to decrease more significantly than the rates paid on its funding sources. Conversely, rapid increases in market interest rates, such as those observed in 2022 and 2023, have contributed to increased unrealized losses on the company's investment securities portfolios. Moreover, higher interest rates incentivize clients to move their cash from lower-yielding sweep accounts to higher-yielding investment alternatives, directly impacting Charles Schwab's net interest income, a critical revenue component. Declining net interest income represents a negative outlook for the company's stock.
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Intense Competition and the Evolving Financial Services Landscape: The financial services industry is highly competitive and is constantly evolving. Charles Schwab faces significant competition from traditional brokerage firms, established banks, and emerging fintech disruptors. This stiff price competition, particularly in its equity brokerage business, can exert pressure on profit margins. To maintain its competitive edge and market share, Charles Schwab must continuously innovate and adapt to changing customer preferences and technological advancements.
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Operational Risks, including Cybersecurity and Technology Reliance: Charles Schwab's extensive reliance on technology systems and third-party services for its wealth management, brokerage, banking, and advisory offerings introduces significant operational risks. These risks include the potential for system failures, service disruptions, and cybersecurity breaches. Given the sensitive nature of financial data and transactions, any significant operational disruption or cyberattack could impact client trust, lead to financial losses, and harm the company's reputation. There are also investor concerns regarding potential disruption from artificial intelligence (AI) within the industry.
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1. Decentralized Finance (DeFi) Platforms and Advanced Cryptocurrency Ecosystems
DeFi platforms offer alternative financial services (lending, borrowing, yield farming, asset management) through blockchain technology, largely bypassing traditional financial institutions. As these ecosystems mature and potentially gain regulatory clarity and user adoption, they represent a clear emerging threat by offering a parallel financial system where investors can manage assets and engage in financial activities without traditional intermediaries like Charles Schwab. This could siphon a significant portion of investment capital and financial activity, particularly from tech-savvy individuals seeking direct, permissionless financial interactions.
2. Integrated "Fintech Super-Apps" and Digital-First Neobanks/Brokers
A growing number of fintech companies are developing "super-apps" that consolidate a wide range of financial services—including banking, investing (stocks, ETFs, sometimes crypto), lending, and payments—into a single, seamless, often mobile-first user experience. Companies like SoFi, Revolut, or new digital-native brokers aim to be the primary financial hub for their users. Their integrated approach, typically characterized by lower fees, highly intuitive interfaces, and mobile accessibility, threatens to disintermediate Charles Schwab by capturing and retaining customers who might otherwise use Schwab's separate brokerage, banking, and advisory services.
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Charles Schwab (symbol: SCHW) operates in several large addressable markets, primarily within the United States, offering wealth management, securities brokerage, banking, asset management, custody, and financial advisory services.
Wealth Management
- The global wealth management market was valued at approximately USD 1.83 trillion in 2024 and is projected to reach USD 5.95 trillion by 2033, growing at a compound annual growth rate (CAGR) of 14% from 2026 to 2033.
- Another estimate places the global wealth management market at USD 1636.83 billion in 2024, with a projection to surpass USD 4893.17 billion by 2034, at a CAGR of 10.6% from 2025 to 2034.
- The global wealth management platform market, a component of the broader wealth management sector, was valued at USD 3.73 billion in 2025 and is projected to grow to USD 9.99 billion by 2034, demonstrating a CAGR of 11.40% during the forecast period. North America held the largest share of this market, with a valuation of USD 1.26 billion in 2025.
Securities Brokerage
- The United States securities brokerage market was valued at USD 201.07 billion in 2024 and is expected to reach USD 252.58 billion by 2030, with a CAGR of 3.93%.
- Another report indicates the U.S. securities brokerage market was valued at USD 188.9 billion in 2023 and is anticipated to exceed USD 280.5 billion by 2033, growing at a CAGR of 4.03%.
- The global securities brokerages and stock exchanges market was valued at approximately USD 917.82 billion in 2024 and is projected to reach USD 2532.93 billion by 2034, at a CAGR of 9.8% from 2025 to 2034. North America was identified as the largest region in this market in 2025.
Banking Services (Retail Banking and Mortgages)
- The United States retail banking market was valued at USD 870 billion in 2025 and is estimated to grow to USD 1,112.2 billion by 2031, at a CAGR of 4.17%. Another source states the U.S. retail banking market generated revenue of USD 1.28 trillion in 2025.
- The US home mortgage market was valued at approximately USD 180.91 billion in 2023 and is predicted to grow to around USD 501.67 billion by 2032, with a CAGR of roughly 12.00% between 2024 and 2032.
- Total single-family mortgage origination volume in the U.S. is expected to increase to USD 2.2 trillion in 2026 from an estimated USD 2.0 trillion in 2025.
Asset Management
- The global asset management market size was estimated at USD 458.02 billion in 2023 and is expected to reach USD 3,677.39 billion by 2030, growing at a CAGR of 36.4% from 2024 to 2030. North America held a 33.04% revenue share of this market in 2023.
- The U.S. asset management market generated a revenue of USD 115,630.9 million in 2023 and is expected to reach USD 849,248.5 million by 2030, with a CAGR of 34.6% from 2024 to 2030. Other data suggests the U.S. asset management market was valued at USD 52.08 trillion in 2024 and is expected to reach USD 134.67 trillion by 2030, with a CAGR of 17.22%.
- Global assets under management (AuM) are projected to climb from US$139 trillion in 2024 to US$200 trillion by 2030, at a CAGR of 6.2%.
Custody Services
- The global custody services market size was valued at USD 4.54 billion in 2024 and is poised to grow to USD 9.15 billion by 2033, growing at a CAGR of 8.1% during the forecast period (2026–2033). Other estimates place the global market size at USD 44.77 billion in 2024, projected to reach USD 99.21 billion by 2035 with a CAGR of 7.5%.
- North America leads the custody services market, holding approximately 45% of the global market share, with the United States being the largest contributor. The North America custody service market had a size of USD 13804.88 million in 2024 and is projected to grow at a CAGR of 7.1% from 2024 to 2031. The U.S. market specifically had a size of USD 10892.05 million in 2024.
Retirement Plan Services
- The United States has the largest retirement market globally, with approximately $36 trillion in assets held under retirement-related accounts as of 2024.
- Total U.S. retirement assets were $48.1 trillion as of September 30, 2025.
- The United States Pension Fund market was valued at USD 6.12 trillion in 2024 and is expected to reach USD 10.24 trillion by 2030, with a CAGR of 9.02% during the forecast period.
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For Charles Schwab (SCHW), several key drivers are expected to fuel future revenue growth over the next 2-3 years:
- Client Asset Growth and Net New Assets (NNA): Charles Schwab consistently emphasizes its ability to attract and retain client assets. The company aims for an annual net new asset (NNA) growth rate of 5-7%, driven by both new client acquisition and deeper relationships with existing clients. For instance, in 2025, Schwab attracted $519 billion in core net new assets, representing a 5.1% organic growth rate and bringing total client assets to a record $11.90 trillion. The ongoing integration of TD Ameritrade has also significantly expanded its client base and asset pool.
- Expansion of Managed Investing Solutions and Advisory Services: Schwab is focused on scaling its managed investing solutions, such as Schwab Intelligent Portfolios, Personalized Indexing, and other fee-based advisory services. This strategy aims to increase advice-eligible assets and recurring advisory revenue by deepening client relationships and catering to their evolving financial planning and portfolio management needs. Managed investing net inflows grew 36% in 2025 compared to 2024.
- Net Interest Revenue and Banking Services Expansion: Net interest revenue remains a core earnings engine for Schwab. The company focuses on growing high-quality sweep deposits and targeted certificates of deposit (CDs), while also migrating clients into higher-value cash products to stabilize and expand net interest income. Additionally, growth in client lending, including margin loan balances and other bank loans, significantly contributes to this revenue stream. Client margin loan balances exceeded $112 billion in 2025, a 34% increase from 2024, and bank loan balances reached a record $58 billion.
- Increased Trading Activity: Robust client engagement in the markets and higher trading volumes directly translate into increased trading revenue. Schwab reported a significant acceleration in its trading business, with daily average trades reaching a record 7.7 million per day for the full year 2025, and trading revenue climbing 22% from the previous year. This also includes the expansion of trading capabilities, such as overnight trading for a wider range of securities on its thinkorswim platform.
- Product Diversification and Technology Enhancements: Charles Schwab is actively expanding its product offerings and leveraging technology to enhance client experience and operational efficiency. This includes extending its ETF platform with new factor and income funds, offering direct indexing, and planning expansion into alternative investments and crypto offerings. Strategic technology investments, including digital tools and AI, are crucial for maintaining a competitive edge, improving service, and supporting cross-sell opportunities.
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Capital Allocation Decisions for Charles Schwab (SCHW)
Share Repurchases
- In July 2025, Charles Schwab's board authorized a new share repurchase program of up to $20 billion, which replaced a previous authorization that had approximately $6.9 billion remaining as of June 30, 2025.
- The company repurchased $2.7 billion in shares during the fourth quarter of 2025, contributing to a total of $7.3 billion in common stock repurchases for the full year 2025.
- A prior authorization for $15 billion in share repurchases was made in July 2022, with $8.7 billion remaining available under that authorization as of June 30, 2023.
Share Issuance
- The number of Charles Schwab's shares outstanding decreased by 1.36% in 2025, totaling 1.809 billion, down from 1.834 billion in 2024.
- Common stock net for Charles Schwab was reported as $0.021 billion in both 2024 and 2023.
Outbound Investments
- Charles Schwab announced its agreement in November 2025 to acquire Forge Global, a private shares platform, for approximately $660 million, with the deal anticipated to close in March 2026.
- In April 2025, Charles Schwab made a minority investment in Wealth.com, an estate planning platform, with the aim of scaling its capabilities to assist financial advisors.
- The acquisition of TD Ameritrade, an all-stock deal valued at $26 billion, was approved by Schwab shareholders in June 2020, and the final client account conversions were completed in May 2024.
Capital Expenditures
- Charles Schwab's capital expenditures were -$548 million in 2025, -$620 million in 2024, -$700 million in 2023, and -$518 million in 2022.
- The company plans a significant expansion of its branch network in 2025, intending to open approximately 16 new branches, which represents its largest expansion in many years, with these investments projected to continue in 2026 and 2027.
Latest Trefis Analyses
Trade Ideas
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| 03272026 | JKHY | Jack Henry & Associates | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 3.1% | 3.1% | 0.0% |
| 03202026 | MKTX | MarketAxess | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -5.2% | -5.2% | -5.7% |
| 03202026 | RYAN | Ryan Specialty | Insider | Insider Buys | Low D/EStrong Insider BuyingCompanies with strong insider buying in the last 1 month, positive operating income and reasonable debt / market cap | -2.7% | -2.7% | -8.5% |
| 07312024 | SCHW | Charles Schwab | Insider | Insider Buys | Low D/EStrong Insider BuyingCompanies with strong insider buying in the last 1 month, positive operating income and reasonable debt / market cap | 26.8% | 52.0% | -4.9% |
| 03312023 | SCHW | Charles Schwab | Insider | Insider Buys | Low D/EStrong Insider BuyingCompanies with strong insider buying in the last 1 month, positive operating income and reasonable debt / market cap | 5.8% | 40.6% | -9.6% |
| 04302022 | SCHW | Charles Schwab | Insider | Insider Buys | Low D/EStrong Insider BuyingCompanies with strong insider buying in the last 1 month, positive operating income and reasonable debt / market cap | 21.7% | -20.1% | -25.2% |
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 140.59 |
| Mkt Cap | 291.2 |
| Rev LTM | 74,706 |
| Op Inc LTM | - |
| FCF LTM | -19,894 |
| FCF 3Y Avg | -5,907 |
| CFO LTM | -18,445 |
| CFO 3Y Avg | -4,278 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 8.3% |
| Rev Chg 3Y Avg | 6.7% |
| Rev Chg Q | 6.7% |
| QoQ Delta Rev Chg LTM | 1.7% |
| Op Inc Chg LTM | - |
| Op Inc Chg 3Y Avg | - |
| Op Mgn LTM | - |
| Op Mgn 3Y Avg | - |
| QoQ Delta Op Mgn LTM | - |
| CFO/Rev LTM | -24.9% |
| CFO/Rev 3Y Avg | -10.2% |
| FCF/Rev LTM | -27.1% |
| FCF/Rev 3Y Avg | -11.3% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 291.2 |
| P/S | 4.6 |
| P/Op Inc | - |
| P/EBIT | - |
| P/E | 15.7 |
| P/CFO | -6.0 |
| Total Yield | 6.4% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | -0.5% |
| D/E | 0.9 |
| Net D/E | -0.4 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 11.4% |
| 3M Rtn | 0.8% |
| 6M Rtn | 1.8% |
| 12M Rtn | 32.9% |
| 3Y Rtn | 126.5% |
| 1M Excs Rtn | -0.7% |
| 3M Excs Rtn | -1.4% |
| 6M Excs Rtn | -2.1% |
| 12M Excs Rtn | 3.8% |
| 3Y Excs Rtn | 49.3% |
Price Behavior
| Market Price | $90.83 | |
| Market Cap ($ Bil) | 160.9 | |
| First Trading Date | 06/30/1989 | |
| Distance from 52W High | -15.0% | |
| 50 Days | 200 Days | |
| DMA Price | $93.98 | $95.47 |
| DMA Trend | indeterminate | down |
| Distance from DMA | -3.4% | -4.9% |
| 3M | 1YR | |
| Volatility | 31.9% | 23.1% |
| Downside Capture | 0.85 | 0.51 |
| Upside Capture | 59.63 | 79.47 |
| Correlation (SPY) | 35.8% | 40.3% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.21 | 0.70 | 0.83 | 0.75 | 0.80 | 0.88 |
| Up Beta | 0.12 | 1.42 | 1.12 | 0.74 | 0.71 | 0.80 |
| Down Beta | 0.26 | -0.63 | 0.03 | 0.43 | 0.87 | 0.87 |
| Up Capture | 25% | 105% | 121% | 89% | 85% | 95% |
| Bmk +ve Days | 7 | 16 | 27 | 65 | 139 | 424 |
| Stock +ve Days | 11 | 21 | 31 | 69 | 146 | 397 |
| Down Capture | 19% | 110% | 113% | 91% | 87% | 97% |
| Bmk -ve Days | 12 | 23 | 33 | 58 | 110 | 323 |
| Stock -ve Days | 11 | 21 | 31 | 56 | 104 | 351 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with SCHW | |
|---|---|---|---|---|
| SCHW | 15.1% | 23.0% | 0.54 | - |
| Sector ETF (XLF) | 9.7% | 14.7% | 0.41 | 59.8% |
| Equity (SPY) | 31.5% | 12.5% | 1.92 | 40.3% |
| Gold (GLD) | 38.6% | 27.2% | 1.18 | -1.9% |
| Commodities (DBC) | 45.9% | 18.0% | 1.95 | -3.1% |
| Real Estate (VNQ) | 14.4% | 13.4% | 0.75 | 8.2% |
| Bitcoin (BTCUSD) | -19.0% | 42.1% | -0.39 | 21.1% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with SCHW | |
|---|---|---|---|---|
| SCHW | 8.3% | 32.3% | 0.30 | - |
| Sector ETF (XLF) | 10.0% | 18.7% | 0.42 | 67.0% |
| Equity (SPY) | 12.9% | 17.1% | 0.59 | 51.1% |
| Gold (GLD) | 20.2% | 17.8% | 0.92 | -3.7% |
| Commodities (DBC) | 14.8% | 19.1% | 0.63 | 11.9% |
| Real Estate (VNQ) | 3.4% | 18.8% | 0.09 | 38.4% |
| Bitcoin (BTCUSD) | 7.3% | 56.2% | 0.35 | 17.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with SCHW | |
|---|---|---|---|---|
| SCHW | 13.6% | 33.5% | 0.47 | - |
| Sector ETF (XLF) | 12.7% | 22.2% | 0.53 | 74.1% |
| Equity (SPY) | 14.9% | 17.9% | 0.71 | 59.1% |
| Gold (GLD) | 13.4% | 15.9% | 0.70 | -13.0% |
| Commodities (DBC) | 9.9% | 17.7% | 0.46 | 20.7% |
| Real Estate (VNQ) | 5.4% | 20.7% | 0.23 | 40.4% |
| Bitcoin (BTCUSD) | 67.8% | 66.9% | 1.07 | 11.7% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/16/2026 | -0.4% | -4.0% | |
| 1/21/2026 | 2.2% | 1.7% | -7.3% |
| 10/16/2025 | 0.8% | 1.3% | 1.3% |
| 7/18/2025 | 0.5% | 1.3% | 0.7% |
| 4/17/2025 | -1.6% | 5.0% | 17.6% |
| 1/21/2025 | -0.4% | 1.0% | 1.4% |
| 10/15/2024 | 0.2% | -1.5% | 9.1% |
| 7/16/2024 | -5.4% | -3.4% | -2.7% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 11 | 14 | 16 |
| # Negative | 14 | 11 | 8 |
| Median Positive | 1.8% | 2.2% | 5.7% |
| Median Negative | -1.1% | -3.4% | -3.9% |
| Max Positive | 3.2% | 5.0% | 26.4% |
| Max Negative | -6.2% | -8.2% | -12.7% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 12/31/2025 | 02/25/2026 | 10-K |
| 09/30/2025 | 11/07/2025 | 10-Q |
| 06/30/2025 | 08/08/2025 | 10-Q |
| 03/31/2025 | 05/09/2025 | 10-Q |
| 12/31/2024 | 02/26/2025 | 10-K |
| 09/30/2024 | 11/08/2024 | 10-Q |
| 06/30/2024 | 08/08/2024 | 10-Q |
| 03/31/2024 | 05/09/2024 | 10-Q |
| 12/31/2023 | 02/23/2024 | 10-K |
| 09/30/2023 | 11/08/2023 | 10-Q |
| 06/30/2023 | 08/08/2023 | 10-Q |
| 03/31/2023 | 05/08/2023 | 10-Q |
| 12/31/2022 | 02/24/2023 | 10-K |
| 09/30/2022 | 11/08/2022 | 10-Q |
| 06/30/2022 | 08/08/2022 | 10-Q |
| 03/31/2022 | 05/09/2022 | 10-Q |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Craig, Jonathan M | MD, Head of Retail Investing | by Trust | Sell | 4152026 | 99.00 | 21,750 | Form | ||
| 2 | Murtagh, Nigel J | Chief Risk Officer | Direct | Sell | 4152026 | 99.00 | 41,297 | 4,088,523 | 5,739,444 | Form |
| 3 | Woolway, Paul V | MD, Chief Banking Officer | by Trust | Sell | 3032026 | 94.61 | 6,126 | 579,573 | 2,825,623 | Form |
| 4 | Woolway, Paul V | MD, Chief Banking Officer | by Trust | Sell | 3032026 | 95.12 | 15,884 | 1,510,817 | 3,423,444 | Form |
| 5 | Beatty, Jonathan S | MD, Head of Advisor Services | by Trust | Sell | 3032026 | 95.30 | 2,030 | 193,454 | 1,880,980 | Form |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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