The Charles Schwab Corporation SCHW emphasized continued client expansion, deeper relationships and technology investments during its second-quarter 2026 earnings call. Management focused on broadening Schwab’s role across investing, wealth, banking and lending while highlighting a diversified revenue model.
Executives also raised their full-year outlook, citing stronger business momentum, higher trading activity and improving operating leverage. The discussion centered on growth opportunities, artificial intelligence (AI), and the company’s ability to serve evolving investor needs.
SCHW Expands Client Growth Strategy
CEO, president and director Richard Wurster said that SCHW continued to see strong client engagement, with second-quarter results supported by new accounts, asset gathering and deeper relationships. The company added 1.4 million brokerage accounts and generated $120 billion in core net new assets during the quarter.
Wurster highlighted growth across wealth and lending offerings, noting that managed investing net flows increased 53% year over year, while bank lending balances reached $67 billion, up 33%. He said Schwab’s strategy remains focused on helping clients consolidate more of their financial lives on one platform.
The company reported adjusted earnings per share (EPS) of $1.62, exceeding the Zacks Consensus Estimate of $1.53. Revenues totaled $7.07 billion, surpassing the Zacks Consensus Estimate of $6.89 billion.
The Charles Schwab Corporation Price, Consensus and EPS Surprise
The Charles Schwab Corporation price-consensus-eps-surprise-chart | The Charles Schwab Corporation Quote
Schwab Pushes Wealth & Banking Growth
Schwab said that its wealth opportunity remains significant as more investors seek financial guidance. Wurster said only a small portion of retail clients currently use fee-based advice solutions, creating room for growth through expanded planning, tax and trust capabilities.
Wurster also pointed to lending as a key relationship-building opportunity. He noted that pledged asset line adoption has grown and said increasing lending penetration could strengthen both client relationships and revenue diversification.
CFO Michael Verdeschi said bank loan balances grew to $67 billion, while margin balances reached $165.1 billion. He added that increased lending activity supported revenue growth and improved the company’s business mix.
SCHW Advances AI & New Capabilities
SCHW management continued to emphasize AI as a tool to enhance client experiences and operating efficiency. Wurster said AI is being integrated across the company’s platform to personalize interactions and support scalable growth.
The company highlighted new capabilities, including Portfolio Insights and progress on Schwab Assistant. Wurster said developer productivity improved 15-20% over the past year as AI tools became more embedded in operations.
SCHW also discussed expansion into emerging investment areas. Management said Schwab Crypto is progressing as planned, with transfer capabilities expected to enter pilot testing, while the Forge acquisition is intended to expand private market access.
Schwab Updates 2026 Financial Outlook
Schwab raised its expectations for 2026 revenue growth, with Verdeschi saying the company now expects total revenue growth of 17.5-18.5%. Management also expects full-year net interest margin expansion to 3-3.10%.
Verdeschi said the updated 2026 outlook reflects stronger equity markets, continued asset gathering and increased trading activity. The company raised its full-year daily average trade assumption to 10.6 million while expecting some moderation from recent elevated levels.
The CFO added that expense growth expectations increased to 9.5-10.5%, driven by volume-related costs and the inclusion of Forge. He said underlying expense growth expectations remained consistent with prior targets.
SCHW Addresses Trading Activity Questions
During the Q&A session, a Piper Sandler analyst asked about the sustainability of record trading activity. Wurster said SCHW views higher engagement as being supported by broader participation, younger investors, options adoption and increased use of AI in investing decisions.
Wurster also mentioned that market interest in areas such as artificial intelligence, major technology themes and new investment opportunities has contributed to elevated engagement. He emphasized that trading activity was not solely driven by short-term market conditions.
A Jefferies analyst questioned the durability of net new asset trends. Wurster said management remains confident in long-term organic growth of 5% or higher, supported by advisor services, wealth offerings and workplace opportunities.
Schwab Maintains Long-Term Focus
Schwab’s leadership continued to frame the business around scale, diversification and client relationships. Wurster said the company is investing in branches, financial consultants, advisor support and technology while using its platform breadth to serve different client needs.
Management highlighted that record revenues of $7.1 billion and adjusted EPS of $1.62 reflected strength across multiple businesses, including net interest revenues, asset management fees and trading revenues.
The company enters the remainder of 2026 focused on expanding wealth, banking and investing capabilities while maintaining capital discipline. Verdeschi said Schwab’s diversified model supports continued earnings growth across market environments.
Zacks Rank & Style Signals
SCHW carries a Zacks Rank #2 (Buy), which indicates favorable earnings estimate revision trends and places the stock among the higher-rated stocks in the Zacks Rank system. The Zacks Rank can change as analysts update earnings estimates following quarterly results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock’s Style Scores include a Value Score of C, Growth Score of D, Momentum Score of A and VGM Score of C. Zacks Style Scores are designed to complement the Zacks Rank, with higher grades generally reflecting stronger characteristics within each investment style.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Charles Schwab Corporation (SCHW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).