Schwab Posts Higher Quarter and Year-to-Date Revenues, Net Income, and Diluted EPS Versus Prior Year

Bottom line

For the three-month reporting period identified in this filing, Schwab posted diluted earnings per share of $1.54 per diluted share USD/SHARES, against a prior-year comparative of $1.08 per diluted share USD/SHARES for the three months ended June 30, 2025. On a year-to-date basis, diluted earnings per share were $2.91 per diluted share USD/SHARES for the six-month window the six months ended June 30, 2026, compared with $2.07 per diluted share USD/SHARES for the six months ended June 30, 2025. Both the current quarter and the prior-year quarter were profitable, and both the current six-month window and the prior-year six-month window were profitable, with year-over-year increases at the diluted EPS line in each window.

Net income attributable to parent was $2,800,000,000 USD for the quarter, versus $2,126,000,000 USD in the prior-year quarter, and $5,279,000,000 USD for the six-month year-to-date window, versus $4,035,000,000 USD in the prior-year comparative window. Both comparisons moved higher, and in each case the company remained in profit rather than swinging to a loss.

Revenues were $7,072,000,000 USD for the three-month reporting period, against $5,851,000,000 USD in the prior-year quarter, and $13,554,000,000 USD for the six-month year-to-date period, against $11,450,000,000 USD in the prior-year comparative window. Both the current quarter and the current six-month window saw higher revenues than the matching prior-year windows.

The reporting vehicle is the 10-Q for period-ended-2026-06-30, filed by SCHWAB CHARLES CORP under accession 0000316709-26-000031 and CIK 0000316709, with ticker SCHW. Source scope is the Management's Discussion and Analysis of Financial Condition and Results of Operations in Part I, supported by referenced items and notes within the same filing.

Management frames the period through a "Through Clients' Eyes" strategy focused on trusted relationships, scale paired with expense discipline, and broad product access for retail and institutional clients. Management also points to industry and competitive trends such as artificial intelligence, digital assets, private company securities and other alternative investments, and references the Company's spot crypto trading offer as a strategic initiative discussed in the Overview section. Forward-looking statements cover market valuation, stockholder returns, and integration of Forge Global Holdings, Inc., alongside the other strategic items listed above.

Across every line above — diluted EPS for the quarter and year-to-date, net income for the quarter and year-to-date, and revenues for the quarter and year-to-date — the current period sits above the matching prior-year period. No single period out of the four compared shows a decline at these three dimensions, and none moves from profit to loss or vice versa. The pattern is therefore one of broadly higher top-line and bottom-line results in both windows, with EPS and net income continuing to read as profits on both sides of each comparison.

None identified within the filing evidence at the dimensions covered by the four fact triples (EPS, net income, revenues) for the quarter and the six-month year-to-date window; the prior-period values are uniformly lower than the current-period values across all six comparisons.

The filing evidence does not attribute this change to any single cause.

Financial performance

- Reported Revenues rose relative to the prior-year three-month reporting period, with the authorized direction confirming that the current quarter is higher than the three months ended June 30, 2025. - Reported Revenues for the six-month year-to-date period also rose relative to the prior-year comparative, with the authorized direction confirming that the six months ended June 30, 2026 is higher than the six months ended June 30, 2025. - Net Income (Loss) Attributable to Parent moved higher relative to the prior-year three-month reporting period, with the authorized direction confirming that the current quarter is higher than the three months ended June 30, 2025 and the authorized transition profit to profit recorded for both periods.

- Net Income (Loss) Attributable to Parent also moved higher relative to the prior-year six-month comparative, with the authorized direction confirming that the six months ended June 30, 2026 is higher than the six months ended June 30, 2025 and the authorized transition profit to profit recorded for both periods. - Earnings Per Share, Diluted rose relative to the prior-year three-month reporting period, with the authorized direction confirming that the current quarter is higher than the three months ended June 30, 2025 and the authorized transition profit to profit recorded for both periods.

- Earnings Per Share, Diluted rose relative to the prior-year six-month comparative, with the authorized direction confirming that the six months ended June 30, 2026 is higher than the six months ended June 30, 2025 and the authorized transition profit to profit recorded for both periods. - The filing evidence does not attribute any of the year-over-year movement above to any single cause, so The filing evidence does not attribute this change to any single cause.. - Management frames the year-to-date and quarter outcomes around its "Through Clients' Eyes" strategy, tying broader investable wealth in the United States and the Company's own client assets base to longer-run revenue, earnings, and stockholder value goals, rather than offering a quarter-specific quantitative outlook.

- Forward-looking commentary references interest-rate levels, equity market valuations and volatility, client cash allocations and deposit-rate sensitivity, balance-sheet positioning relative to interest-rate shifts, interest-earning asset mix and growth, funding access and cost, mortgage-backed securities prepayment levels, regulatory and legislative developments, and litigation or regulatory matters, all of which are flagged as risks that could cause actual results to differ. , along with attention to industry and competitive trends in artificial intelligence, digital assets, private company securities, and other alternative investments.

- No forward-looking quantitative revenue, expense, or earnings guidance ranges are issued for the coming quarter, so expectations beyond directional and strategic commentary are not provided in the filing evidence. - The filing evidence does not disclose segment-level revenue, expense, or earnings detail for the quarter or year-to-date period, so segment commentary is captured by The filing evidence does not disclose segment-level detail for this dimension.. - The filing evidence contains no peer or industry comparison, so relative positioning against named peers is captured by The filing evidence contains no peer or industry comparison..

- Readers comparing this filing to other recent interim reports may find the broader Finance Calculators category useful for orientation.

Operating drivers and segments

- Schwab reports two reporting segments, Investor Services and Advisor Services, per the cited segment description, with retail brokerage, advisory, banking and trust, retirement and business services grouped in Investor Services and custodial, trading, banking and trust, and support services to independent registered investment advisors grouped in Advisor Services. - The filing evidence does not provide segment-level revenue, expense, or margin figures, so segment profitability, mix, and year-over-year change cannot be examined at the segment line.

- The only top-line revenue figures disclosed for this filing are the consolidated Revenues values, so a segment-vs-segment margin comparison is not supportable here. - Management describes its "Through Clients' Eyes" strategy, emphasizing client experience, expense discipline, broad product access, and "no trade-offs" framing as the bridge between client trust and revenue, earnings, and long-term stockholder value. S.

investable wealth pool as a growth backdrop, noting that the Company's client assets leave substantial opportunity, again asserting the chain of trusted relationships, revenue, earnings growth, and stockholder value. , all of which are flagged as subject to risks and uncertainties. - Consolidated Revenues for the three-month period the three months ended June 30, 2026 were $7,072,000,000 USD, higher than the prior-year comparative $5,851,000,000 USD for the three months ended June 30, 2025, and Revenues for the six-month year-to-date period the six months ended June 30, 2026 were $13,554,000,000 USD, higher than $11,450,000,000 USD for the six months ended June 30, 2025, consistent with management's directional claim that the strategy drives revenue.

- The filing evidence does not attribute this change to any single cause. - Management links client-asset growth and strategic initiatives to revenue and earnings, but the filing does not isolate how much of the top-line change is attributable to net new assets, market appreciation, fee-rate movement, or any specific segment. - Counter-evidence from independent analysis is limited because the filing evidence contains no peer or industry benchmark, so the revenue increase cannot be weighed against sector trends.

- The filing evidence contains no peer or industry comparison. - Unknowns for this section include segment revenue split, segment expense ratios, client asset flows, and any quantification of the Forge integration or the spot crypto rollout on results; the filing references the phased retail crypto rollout in Note 3 but does not provide revenue contribution.

Cash flow and capital

- Reported facts: Net Cash Provided by (Used in) Operating Activities was $11,642,000,000 USD for the six months ended June 30, 2026 and $9,536,000,000 USD for the six months ended June 30, 2025, both positive readings. Net Cash Provided by (Used in) Investing Activities was -$6,424,000,000 USD for the six months ended June 30, 2026 and $19,546,000,000 USD for the six months ended June 30, 2025. Net Cash Provided by (Used in) Financing Activities was -$5,677,000,000 USD for the six months ended June 30, 2026 and -$39,027,000,000 USD for the six months ended June 30, 2025, both negative readings. Payments for Repurchase of Common Stock were $3,377,000,000 USD for the six months ended June 30, 2026 and $1,833,000,000 USD for the six months ended June 30, 2025. Payments of Dividends were $1,275,000,000 USD for the six months ended June 30, 2026 and $1,203,000,000 USD for the six months ended June 30, 2025. Payments to Acquire Property, Plant, and Equipment were $325,000,000 USD for the six months ended June 30, 2026 and $245,000,000 USD for the six months ended June 30, 2025. On the balance-sheet side, Cash and Cash Equivalents at Carrying Value was $40,580,000,000 USD as of the balance sheet date of June 30, 2026, and Accounts Payable and Accrued Liabilities at Fair Value Disclosure was $3,318,000,000 USD as of the balance sheet date of June 30, 2026.

- Management explanations: Management attributes the broader capital-allocation picture to "effective management of the balance sheet and financial resources, including sustained demand for margin and bank lending." During the second quarter and first six months the company repurchased common stock, raised the common dividend in the first quarter, issued Series L preferred stock in the second quarter, and redeemed Series I preferred stock in the same quarter, in each case without stating size in the cited narrative other than the repurchase figures carried in the cash-flow statement.

- Analyst inference: The authorized direction for Operating Activities for the six months ended June 30, 2026 versus the six months ended June 30, 2025 is increase, with both periods positive. The authorized direction for Investing Activities is decrease, with the current period negative and the prior period positive, a directional swing across the sign line. The authorized direction for Financing Activities is increase, with both periods negative. The authorized directions for Common Stock Repurchases, Dividends Paid, and Capital Expenditures for the six months ended June 30, 2026 versus the six months ended June 30, 2025 are all increase, with both periods positive in each case. No causal claim is authorized for any of these directional relations.

- Counter-evidence: No counter-evidence is identified in the quoted narrative; the management commentary on higher average common stockholders' equity cites offsetting treasury-stock growth from repurchases, but does not contradict the reported cash-flow direction.

- Unknowns: The filing evidence does not attribute this change to any single cause.. Segment-level detail is not provided for these cash-flow dimensions and The filing evidence does not disclose segment-level detail for this dimension.. No peer comparison is presented for these cash-flow or capital-allocation dimensions and The filing evidence contains no peer or industry comparison.. The size of the Series L issuance and Series I redemption beyond the partial narrative figures is not separately quantified here.

Peer and historical context

- Reported revenues rose year over year in both the three-month reporting period and the six-month year-to-date period covered by this filing, consistent with the year-to-date and quarterly revenue trajectory that the interim disclosure presents. - Net income attributable to parent also expanded in both windows on a year-over-year basis, with the year-to-date six-month net income higher than the prior-year six-month comparative and the current quarter's net income higher than the prior-year quarter, in line with the same upward pattern shown by revenue.

- Net cash provided by operating activities was positive in the current six-month period and was higher than the prior-year six-month comparative, reinforcing the broader year-to-date picture of wider profitability and stronger operating cash generation. - Because the filing evidence contains no peer or industry comparison, the year-over-year pattern cannot be benchmarked against similarly sized broker-dealer or custodian peers; the assessment is limited to SCHWAB CHARLES CORP's own historical record rather than a cross-firm context.

The filing evidence contains no peer or industry comparison. - The sequential step-up in net income from the prior-year quarter to the current quarter, alongside the parallel rise in revenue, suggests that the profitability improvement is broad-based across the top line rather than confined to one reporting window; the cash-flow step-up adds an independent confirmation that the earnings improvement is not solely a function of non-cash adjustments. - A standing caveat applies to any causal reading: The filing evidence does not attribute this change to any single cause.

Scenario analysis

- Reported facts: Net Income (Loss) Attributable to Parent for the three-month reporting period the three months ended June 30, 2026 stood at $2,800,000,000 USD, against $2,126,000,000 USD for the three months ended June 30, 2025, a year-over-year authorized direction increase with a profit-to-profit transition. The six-month window the six months ended June 30, 2026 carried Net Income (Loss) Attributable to Parent of $5,279,000,000 USD versus $4,035,000,000 USD for the six months ended June 30, 2025, also higher and remaining in profit. Revenues were $7,072,000,000 USD for the three months ended June 30, 2026 against $5,851,000,000 USD for the three months ended June 30, 2025, and $13,554,000,000 USD for the six months ended June 30, 2026 against $11,450,000,000 USD for the six months ended June 30, 2025, each rising year over year. - Management explanation: Schwab attributes net interest revenue outcomes to asset composition, prevailing rates and spreads, derivative hedge effects, and client-driven balance growth such as margin lending supported in part by wholesale funding. Crypto Trading Offer rollout plans, captured under Note 3, frame a new revenue stream in early ramp. - Analyst inference: A continuation of the present trend implies that revenues and parent net income remain on a higher year-over-year footing in subsequent periods without losing profitability, supported by continued margin and bank lending demand. - Counter-evidence: Rate-cycle shifts, regulatory capital revisions noted under Item 7, and the cost of expanded sub-custodian relationships for digital assets could compress the top line or net interest revenue. - Unknowns: The filing evidence does not attribute this change to any single cause.

- Reported facts: Revenues and Net Income (Loss) Attributable to Parent are higher in both the three months ended June 30, 2026 and the six months ended June 30, 2026 versus their prior-year comparatives, and each EPS, Diluted measure carries an authorized direction increase with a profit-to-profit transition. - Management explanation: Management cites continued growth in margin and bank lending, asset-gathering momentum, and the phased Crypto Trading Offer rollout, with CSPB as custodian and Paxos as sub-custodian as described in Note 3, as well as orderly adjustment of rates paid on client-related liabilities. - Analyst inference: Sustained client cash allocation into Schwab products, deepening crypto platform engagement, and net interest revenue benefits from the derivative program described alongside Note 12 could lift revenue and parent net income beyond the current trend without altering the profit-to-profit outcome. - Counter-evidence: Expansion of long-term debt requirements under the referenced banking-agency proposals and any adverse shift in the rate environment could mute the upside. - Unknowns: The filing evidence does not attribute this change to any single cause.

- Reported facts: Net Interest Revenue discussion flags dependency on short-term rate movements, FHLB and other borrowings, securities lending balances, and AFS and HTM securities levels. Regulatory capital rulemaking described under Item 7 proposes inclusion of AOCI in regulatory capital, and Note 13 lists legal and regulatory outcomes as risk factors. - Management explanation: Schwab notes rates paid on client-related liabilities adjust at some fraction of short-term moves, and a compressed franchise yield could erode net interest revenue even as average interest-earning assets rise. - Analyst inference: A scenario in which rate spreads compress, margin balances retreat, or Item 1A risk factors crystallize could push revenues and Net Income (Loss) Attributable to Parent lower year over year, potentially interrupting the profit-to-profit transition seen this period. - Counter-evidence: Asset-gathering tailwinds, the cash-segregation trends described, and phased crypto adoption could partially offset. - Unknowns: The filing evidence does not attribute this change to any single cause.

Risks and what to watch

- The filing's Risk Factors discussion in Item 1A is identified by reference but not quoted in the filing evidence, so the catalog of specific risk language cannot be reproduced here. Risks tied to net interest revenue remain the most prominent forward-looking exposure: Schwab's narrative explains that revenue on interest-earning assets is shaped by asset mix, prevailing rates, spreads at origination, floating-rate resets, and prepayment behavior on mortgage-backed and asset-backed securities, while interest expense is shaped by market rates at borrowing and floating-rate resets on FHLB borrowings, other short-term borrowings, and long-term debt.

The same passage notes that Schwab expects to adjust rates paid on client-related liabilities at "some fraction" of short-term rate moves, leaving the size of that pass-through as an open variable for next period. - Liquidity and funding risk is flagged through the cross-reference chain Risk Management – Liquidity Risk and Note 12, which points readers to Item 1 for further context; the detailed disclosure itself is not in the quoted block. Securities lending activity (client securities loaned to other broker-dealers and clearinghouses, with cash collateral) is described, but the scale of those balances and any associated indemnification exposure are not reproduced in this section's evidence.

- A second structural risk surfaces around the legal and regulatory dimension: Note 13 directs readers to the Legal Proceedings and Regulatory Matters note, and Item 4 carries the controls and procedures language; the substance of any pending matter is not in the filing evidence, so the size of potential outcomes cannot be assessed from this section's evidence. - The cryptocurrency offering referenced in Note 3 introduces an execution and adoption risk for the next period: a phased retail rollout began in the cited month, so client uptake, operational integration with existing trading platforms, and any incremental regulatory scrutiny are forward-looking items that are not yet quantified.

- Revenues and Net Income (Loss) Attributable to Parent are each authorized as higher than the prior period on both a quarterly and year-to-date basis. The filing evidence does not attribute this change to any single cause. - The Authorized Comparisons set also shows Earnings Per Share, Diluted authorized as higher than the prior period on the same bases; Accretion (Amortization) of Discounts and Premiums on Investments is authorized as a smaller negative (higher) versus the prior year-to-date; and Net Cash Provided by (Used in) Operating Activities is authorized as higher than the prior year-to-date.

None of those authorized directions carries an authorized cause. - Net interest revenue discussion notes that average interest-earning assets increased versus the prior periods, supported in part by wholesale funding, and that receivables from brokerage clients (primarily margin loans) ended the quarter above both year-end and prior-year levels; client demand for margin and bank lending is described as continuing to grow in both the quarter and the year-to-date window. Those items argue against a thesis that rate-driven headwinds have overwhelmed volume gains, but the same passage does not isolate rate impact from volume impact.

- Counter-evidence on capital deployment appears through the Authorized Comparisons covering Payments of Dividends, Payments for Repurchase of Common Stock, and Payments to Acquire Property, Plant, and Equipment — all three higher than the prior year-to-date period — alongside Net Cash Provided by (Used in) Financing Activities (still a use, but smaller than the prior use) and Net Cash Provided by (Used in) Investing Activities (now a use versus a source in the prior year-to-date period). The filing evidence does not attribute this change to any single cause.

- Item 3 carries Quantitative and Qualitative Disclosures About Market Risk, and Section 13 references the Securities Exchange Act safe-harbor language; specific VaR, sensitivity, or scenario outputs are not in the quoted block. - Peer or industry comparisons are not in this filing. The filing evidence contains no peer or industry comparison.

- Segment-level detail is not disclosed for these dimensions. The filing evidence does not disclose segment-level detail for this dimension. - Metrics to watch next period: the next period's reported $2,800,000,000 and $5,279,000,000 alongside their prior-year comparatives $2,126,000,000 and $4,035,000,000; the same set for Revenues across $7,072,000,000, $13,554,000,000, $5,851,000,000, and $11,450,000,000; the size and pricing of average interest-earning assets; the mix of margin lending, bank lending, and AFS/HTM securities; the pass-through fraction on client-related liability rates; the trajectory of cash flow categories already listed; and any disclosed outcomes tied to the cited legal, regulatory, and crypto rollout references.