VALUATION HIGHLIGHTS

1. Interest on Deposits, Loans & Securities constitute 52% of the Trefis price estimate for Charles Schwab's stock.
2. Asset Management Fees constitute 29% of the Trefis price estimate for Charles Schwab's stock.
3. Trading Commissions constitute 13% of the Trefis price estimate for Charles Schwab's stock.

WHAT HAS CHANGED?

Latest Earnings: Q2 FY'26

Charles Schwab Corporation reported total net revenue of $7.1 billion for Q2 FY'26, representing a 21% increase year-over-year. Adjusted diluted earnings per share reached $1.62, up 42% from $1.14 in the prior-year period. Growth was driven by a 19% expansion in net interest income, a 16% rise in asset management fees, and strong client engagement in portfolio-pledged lending.

Note: Charles Schwab Corporation's FY'25 ended on December 31, 2025. Q2 FY'26 ended on June 30, 2026.

Acquisition of Forge Global and Private Asset Platform Integration

Schwab closed its strategic transaction involving Forge Global to expand its capabilities in private market investing and private issuer equity services. The move enables retail investors and registered investment advisors to access pre-IPO equity liquidity, enhancing client retention and fee revenue streams.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of Charles Schwab Corporation's value that present opportunities for upside or downside to the current Trefis price estimate:

Investor Services and Wealth Management

• Net Interest Margin and Sweep Cash Balances: Schwab's profits are sensitive to client transactional sweep cash and interest rate yields. Higher average sweep balances or expanding net interest margins present significant potential upside to revenue estimates.


• Net New Asset Inflows and Fee-Based Assets: Sustained growth in wealth management solutions and organic asset gathering increases recurring advisory fees. Accelerated client acquisition poses upside risk to overall asset management revenue forecasts.

For additional details, select a division from the interactive Trefis split for Charles Schwab Corporation at the top of the page.

BUSINESS SUMMARY

Charles Schwab Corporation is a leading financial services firm providing securities brokerage, banking, wealth management, asset management, and financial advisory services to individual investors and independent investment advisors.

SOURCES OF VALUE

Investor Services and Advisor Services drive the majority of Schwab's value by generating net interest income on client deposits and recurring asset management fees.

Massive Scale and Trillion-Dollar Client Asset Base

Schwab's unmatched asset base provides durable recurring fee income and low-cost deposit funding across market cycles.

Low-Cost Operating Model and Industry-Leading Margins

Proprietary technology and operational efficiency allow Schwab to maintain pre-tax profit margins well above industry peers.

KEY TRENDS

Rapid Expansion of Securities-Based Lending

Strong adoption of pledge-backed lending products is accelerating bank balance sheet growth and boosting high-margin interest income.

Shift Toward Direct Advisory and Private Market Capabilities

Schwab continues to expand its wealth advisory coverage and private equity tools to capture higher-value wealth management relationships.