Based in Westlake, Texas, The Charles Schwab Corporation (SCHW) is a financial services company offering brokerage, banking, and financial advisory services. It helps individual investors, financial advisors, and employers manage and grow their wealth through investment products, trading platforms, retirement plans, banking services, and professional investment solutions. The company has a market capitalization of $154.4 billion.
Shares of this large American financial services company have significantly underperformed the broader market over the past year. SCHW has posted a marginal decline during this period, compared with a nearly 13.5% advance in the S&P 500 Index ($SPX). The stock has maintained its downward momentum in 2026, plunging 6.6% year-to-date, while the index has gained 12.3% over the same period.
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Narrowing the comparison, SCHW has also trailed the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI), which has gained 6.9% over the past year and 3.7% year-to-date.
www.barchart.com On Oct. 15, Charles Schwab reported its Q3 2026 results, with shares falling 2.7% that day as revenue narrowly missed analyst estimates despite adjusted earnings exceeding expectations. Net revenue increased 16.9% year over year to a record $7.17 billion, driven by 14% growth in both net interest revenue, which reached $3.48 billion, and asset management and administration fees, which rose to $1.91 billion. Trading revenue also increased 16% to $1.16 billion. Adjusted net income climbed 23% to $3.02 billion, while adjusted diluted EPS rose 29% to $1.69 from $1.31 in the year-ago quarter.
Schwab also reported record quarterly core net new assets of $190.4 billion, up 38% year over year, while total client assets increased 15% to $13.33 trillion. Clients opened 1.2 million new brokerage accounts during the quarter, bringing the total number of client accounts to 48.6 million. Daily average trading volume climbed 44% to 10.7 million trades, and net interest margin expanded to 3.1% from 2.9% in the year-ago quarter. The company repurchased 4.7 million shares for $500 million during the quarter. However, it indicated that full-year 2026 revenue and net interest margin growth would likely finish toward the lower ends of its previously issued guidance ranges.
For the current fiscal year, ending in December 2026, analysts expect SCHW’s diluted EPS to increase 31.6% to $6.41. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 26 analysts covering SCHW stock, the consensus is a “Moderate Buy.” That's based on 13 "Strong Buys," four "Moderate Buys," eight "Holds," and one "Moderate Sell."
www.barchart.com The analyst configuration is more bearish than it was two months ago, when SCHW had 14 “Strong Buy” recommendations.
On Oct. 29, 2026, Evercore ISI analyst Benjamin Rubin maintained a “Hold” rating on Charles Schwab and set a price target of $98.
The mean analyst price target of $115.62 implies 23.8% upside from SCHW’s current share price, while the Street-high target of $147 suggests an upside potential of 57.4%.
On the date of publication, Abhishek Bhuyan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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