Schwab posts higher revenue, net income, and diluted EPS versus prior-year quarter

Bottom line

- Schwab closed the three-month reporting period with higher revenue, higher net income, and higher diluted earnings per share than the prior-year quarter, according to the figures cited in the filing. - Revenues were $6,482,000,000 USD for the three months ended March 31, 2026, compared with $5,599,000,000 USD for the three months ended March 31, 2025; the year-over-year direction is an increase. - Net Income (Loss) Attributable to Parent was $2,479,000,000 USD for the three months ended March 31, 2026, compared with $1,909,000,000 USD for the three months ended March 31, 2025, and the period remained profitable on both sides of the comparison, so the authorized transition reads as profit to profit.

99 per diluted share USD/SHARES for the three months ended March 31, 2025, again on a profit-to-profit basis with an authorized increase. - The filing itself is the 10-Q covering period-ended-2026-03-31 for SCHWAB CHARLES CORP (ticker SCHW, CIK 0000316709), filed under accession 0000316709-26-000019; readers can confirm the headline figures by pairing the placeholders above with the dates the machine substitutes from the same keys. - The scope of this opening section is intentionally narrow: it records the three reported totals and their prior-year comparatives, names the filing, and flags where the document stops speaking.

No margin walk, segment breakdown, capital-actions narrative, or risk-factor read-through is included here, because the only reported comparisons that fit this section's role are the three revenue, net income, and diluted EPS rows. - Where the filing evidence does not attribute the revenue, net income, or EPS movement to any single cause, the reader should treat the year-over-year step-up as observed only; The filing evidence does not attribute this change to any single cause.. - No peer or industry benchmark is supplied in the cited evidence, so any cross-company read against brokers, banks, or asset managers sits outside this section; The filing evidence contains no peer or industry comparison..

; each of those items is a disclosure pointer rather than an outcome for the just-reported quarter and is not used here to characterize results. ](/insights/finance/aes-corp-interim-filing-shows-higher-revenue-and-a-loss-to-profit-swing-on-net/) when sizing up the same reporting cycle elsewhere.

Financial performance

- Charles Schwab's three-month results reflect the broker-dealer's continuing emphasis on what management describes as a "no trade-offs" approach, pairing scale with expense discipline to keep products affordable while pursuing client-asset growth. S. investable-wealth pool that management estimates is substantially larger than the firm's current client-asset base, a gap framed by leadership as the structural opportunity for revenue expansion.

- On the top line, Revenues for the three-month reporting period were higher than the prior-year comparative, continuing the directional pattern Schwab management has emphasized when discussing client-asset gathering, net interest-earning asset positioning, and trading activity. The revenue gain in the quarter is consistent with management's stated objective of growing client assets and translating those assets into revenue, paired with ongoing cost discipline. - Net Income (Loss) Attributable to Parent for the three-month reporting period was a profit, higher than the prior-year comparative, also a profit.

The quarter-to-prior-year transition therefore remained profit to profit, with an authorized increase in earnings rather than a swing from a loss base. Earnings Per Share, Diluted for the three-month reporting period was likewise a profit and higher than the prior-year comparative, again with a profit-to-profit transition, aligning the per-share result with the dollar increase in net income over the same comparative window. - Schwab's quarterly performance discussion is set against a backdrop of broader industry themes management flags as forward-looking considerations, including the role of artificial intelligence, digital assets, private-company securities and other alternative investments, the rollout of trading in select cryptocurrencies, and the integration of Forge Global Holdings, Inc.

Management describes these initiatives as part of the strategy to deepen trusted client relationships and to drive incremental revenue through value-added products and services, while acknowledging that achievement of these objectives is subject to risks and uncertainties. - Important risk factors management highlights include general economic and market conditions, including the level of interest rates, equity market valuations and volatility; client cash allocations and sensitivity to deposit rates; competitive pressure on pricing, including deposit rates; the level and mix of client trading activity, including daily average trades, margin balances, and balance sheet cash; capital and liquidity needs; the ability to manage expenses; the ability to attract and retain talent; regulatory guidance and adverse impacts from new or changed legislation, rulemaking, or regulatory expectations; and adverse developments in litigation or regulatory matters, as further detailed in Item (see Item 1A) and in the cited notes referenced through Note 11, Note 12, Note 13, Note 2, and Note 3.

- Management also points readers to the Current Regulatory and Other Developments discussion under Item 7 for context on proposed and final rules, and to the Liquidity Risk discussion and Item in Note 12 for liquidity positioning. Schwab separately posts Dodd-Frank stress-test results, Basel III regulatory capital disclosures, average liquidity coverage ratio, and average net stable funding ratio to its website, and refers investors to the SEC's website for reports and proxy statements, as described in Section 13. - For comparison context, readers can contrast Schwab's higher-revenue, higher-net-income, higher-diluted-EPS quarter with peers that reported different directional patterns in the same window, such as the Costco Wholesale Posts Higher Revenue, Operating Income, Net Income, and Diluted EPS on Both the Quarter and the Eight-Month Year-to-Date Windows update, while noting that The filing evidence contains no peer or industry comparison.

for any direct margin or return benchmarking. - Forward-looking expectations in management's discussion center on continued client-asset growth, disciplined expense management, thoughtful capital actions, and the integration of new product and technology capabilities, with guidance commentary framed by the cautions enumerated above; segment-level performance attribution The filing evidence does not disclose segment-level detail for this dimension. within this filing's evidence, and the underlying drivers of the quarter-to-prior-year revenue and earnings changes The filing evidence does not attribute this change to any single cause..

Operating drivers and segments

The reported revenue line moved from $5,599,000,000 USD for the three months ended March 31, 2025 to $6,482,000,000 USD for the three months ended March 31, 2026, an increase period over period as authorized. Beyond this single top-line comparison, the filing evidence does not provide segment-level revenue or operating margin splits for SCHWAB CHARLES CORP's Investor Services and Advisor Services reporting units in this filing, and no pre-tax margin, expense ratio, or segment contribution figures are present in the supplied narrative for the three months ended March 31, 2026. The filing evidence contains no peer or industry comparison.

Management describes a "Through Clients' Eyes" strategy that pairs scale and resources with what it characterizes as ongoing expense discipline, aimed at keeping costs low while products and solutions remain affordable and responsive to client needs. Forward-looking commentary references maximizing market valuation and stockholder returns over time, belief that trusted relationships translate into more client assets which then drive revenue, and — coupled with expense discipline and thoughtful capital management — generate earnings growth and build long-term stockholder value. Management's introduction points readers to the prior Annual Report on Form referenced within Item 2 and to forward-looking themes covering industry and competitive trends including artificial intelligence, digital assets, private company securities and other alternative investments, the rollout of trading in select cryptocurrencies, and the integration of Forge Global Holdings, Inc., each tagged to the same Item 2 anchor in the quoted text. Forward-looking statements are flagged with words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may," "estimate," "appear," "could," "would," "aim," "maintain," "continue," and "seek."

Independent analysis reading the same evidence cannot, on the strength of what is supplied here, attribute the quarter-over-quarter revenue movement to any single operational driver; the narrative frames strategy and intent rather than quantifying causal links, so any further driver commentary would step outside the record. The filing evidence does not attribute this change to any single cause. Readers comparing this reporting period with other recent broker-dealer and custodian filings may find the cross-quarter revenue comparison format useful, as illustrated in Schwab Posts Higher Quarter and Year-to-Date Revenues, Net Income, and Diluted EPS Versus Prior Year, which applies the same year-over-year lens to the company's own prior periods. The investor services and advisor services framing that management emphasizes — retail brokerage, banking and trust, retirement plan and corporate brokerage services for individuals and businesses on one side, and custodial, trading, banking and trust, and support services for independent registered investment advisors, independent retirement advisors, and recordkeepers on the other — is reproduced verbatim in the quoted filing text and is not independently re-derived here, because the filing evidence does not present the per-segment revenue or margin detail that would let an outside reader confirm or contest those characterizations. Unknowns for this section include segment-level revenue, segment operating income, net interest margin, asset-based fee rate, and any explicit cost-to-revenue ratio for the three months ended March 31, 2026, none of which appear in the supplied record.

Cash flow and capital

The most recent reporting period filed by SCHWAB CHARLES CORP under 10-Q for period-ended-2026-03-31 (accession 0000316709-26-000019, CIK 0000316709, ticker SCHW) shows an operating cash flow figure of $7,342,000,000 for the three months ended March 31, 2026, compared with $6,359,000,000 for the three months ended March 31, 2025. Both periods report a positive direction, and the authorized year-over-year comparison registers an increase.

Investing activities moved in the opposite direction. Investing cash flow was -$10,000,000 for the current three-month reporting period against $10,470,000,000 in the prior-year quarter. The current quarter carries a negative direction while the prior-year quarter carries a positive one, and the authorized comparison confirms a decrease, leaving the line as a net use of cash rather than a source. The filing evidence does not attribute this change to any single cause.

Financing activities were a use of cash in both quarters. The current the three months ended March 31, 2026 figure of -$3,713,000,000 is more negative than the prior-year the three months ended March 31, 2025 figure of -$20,362,000,000; both carry a negative direction, and the authorized comparison records an increase (that is, a larger outflow) year over year.

Capital expenditures, dividends and share repurchases all rose year over year, with each pair showing a positive direction in both quarters and an authorized increase. Payments to acquire property, plant and equipment ran at $140,000,000 in the latest quarter versus $117,000,000 a year earlier. Dividends paid were $632,000,000 against $595,000,000, and common-stock repurchases were $2,378,000,000 against $1,500,000,000.

Management's commentary frames the dividend step-up explicitly. The narrative states that the Company "increased its common dividend" during the quarter and, in the same passage, that the Company "repurchased" a "billion in common stock" while continuing to support client demand for margin and bank lending. It also notes that average common stockholders' equity rose on growth in retained earnings and improved average accumulated other comprehensive income, partially offset by higher treasury stock tied to repurchases. The change in treasury stock is presented as a partial offset to retained-earnings growth rather than as a driver of dividend capacity. The filing evidence does not attribute this change to any single cause.

On the balance-sheet side, the disclosed fair-value snapshot of accounts payable and accrued liabilities stands at $2,842,000,000 USD as of the balance sheet date of March 31, 2026, while cash and cash equivalents at carrying value were $44,975,000,000 USD on the same date; both are positive-direction items. Management describes total balance-sheet assets as "increasing slightly" from year-end, attributing the move to ongoing margin-lending demand, RIA long/short activity, and supporting wholesale funding, with bank loans up on growth in pledged asset lines and First Mortgages. The narrative also notes that the consolidated Tier Leverage Ratio stepped down from year-end, reflecting "both returns of capital and organic capital generation during the quarter from earnings."

Read together with prior 10-Q coverage such as Schwab Posts Higher Quarter and Year-to-Date Revenues, Net Income, and Diluted EPS Versus Prior Year, the cash-return pattern — higher dividends, higher repurchases and higher capex alongside a larger financing outflow — is consistent with a firm returning more capital to shareholders while still funding organic investment. The financing-direction shift is authorized as an increase but is mechanically a deeper outflow; The filing evidence does not attribute this change to any single cause..

Peer and historical context

- Across the three-month reporting window, Schwab delivered a higher top line than the prior-year period, with revenues advancing to $6,482,000,000 USD from $5,599,000,000 USD. - Bottom-line profitability also improved, with Net Income (Loss) Attributable to Parent increasing to $2,479,000,000 USD from $1,909,000,000 USD, preserving the profit-to-profit transition that the filing records. - Operating cash generation strengthened as well, with Net Cash Provided by (Used in) Operating Activities moving up to $7,342,000,000 USD from $6,359,000,000 USD, indicating that the earnings improvement was accompanied by higher cash conversion rather than working-capital deferral. - The three primary performance indicators moved in the same direction relative to the prior period, an aligned pattern the reader can cross-check against the prior Schwab earnings recap.

- The favorable revenue and net income picture is partially offset by a shift on the investing side of the cash flow statement, with Net Cash Provided by (Used in) Investing Activities moving from a positive reading in the prior period to a negative reading in the current period. - Net Cash Provided by (Used in) Financing Activities remained negative on both sides of the comparison, with Payments for Repurchase of Common Stock and Payments of Dividends both higher than in the prior-year quarter, in line with the year-over-year direction the filing records. - Payments to Acquire Property, Plant, and Equipment also stepped up relative to the prior-year quarter, indicating that organic capital generation supported both growth investment and shareholder returns during the period. - Taken together, these offsetting flows remind the reader that headline earnings growth is being delivered alongside heavier capital deployment on both the investing and financing sides of the balance sheet, leaving the consolidated Tier one Leverage Ratio lower than at year-end.

The the three months ended March 31, 2026 results should be read alongside the comparable the three months ended March 31, 2025 context in this 10-Q for the period-ended-2026-03-31 of SCHWAB CHARLES CORP (ticker SCHW, CIK 0000316709, accession 0000316709-26-000019). The filing evidence contains no peer or industry comparison. The filing evidence does not attribute this change to any single cause. The filing evidence does not disclose segment-level detail for this dimension.

Scenario analysis

The base case assumes Schwab maintains its current operating momentum while the integration of Forge proceeds without a material disruption. Reported revenue increased to $6,482,000,000 from $5,599,000,000, while net income attributable to the parent increased to $2,479,000,000 from $1,909,000,000. Both periods remained profitable, indicating that the core earnings direction remains constructive. Management describes integration work as underway and expects Forge’s private-company investment capabilities to improve the company’s ability to serve evolving investor needs across its growing client base.

The operating backdrop is supported by strong demand for margin and bank lending, growth in client engagement, and higher long and short strategy activity implemented by registered investment advisers. Client cash activity also reflected seasonality, organic asset gathering, and asset-allocation decisions amid elevated market volatility. Management links higher interest revenue primarily to growth in margin and bank lending, lower aggregate wholesale-funding balances, and lower average rates on funding sources, partly offset by lower yields on floating-rate assets and lower available-for-sale and held-to-maturity securities balances. The net interest margin increased from the prior-year level as funding efficiencies more than offset the effect of lower market rates.

The principal base-case risks are continued market volatility, sensitivity to interest rates, regulatory changes, and execution risk during the Forge integration. Proposed capital rules would require accumulated other comprehensive income to be included in regulatory capital under a revised standardized approach with a phased implementation, although management does not anticipate a material impact. The filing evidence does not disclose segment-level detail for this dimension. The filing evidence does not disclose segment-level detail for this dimension.

The upside case would feature sustained client engagement, strong lending demand, continued cash inflows, and successful integration of Forge’s private-company investment capabilities. Under that combination, the reported increases in revenue and net income could continue, supported by higher interest-earning activity, lower funding costs, and broader client relationships. The net interest margin’s expansion from the prior-year level provides a favorable operating signal, while management’s expectation that the proposed capital rules will not materially affect the business reduces one source of near-term uncertainty. Readers comparing these directional moves with peers such as the Costco Wholesale quarterly and year-to-date results can view the pattern of higher reported revenue and net income as a useful benchmark.

Additional upside would require integration progress to translate into stronger client service and product breadth without creating material costs or operational friction. Strong registered investment adviser engagement, continued growth in long and short strategies, and resilient client cash allocation could further support the base of interest-earning assets. The filing’s reported revenue and net income provide the principal evidence for the current trajectory, but the filing evidence does not disclose segment-level detail. The filing evidence does not disclose segment-level detail for this dimension. It also contains no peer or industry comparison. The filing evidence contains no peer or industry comparison.

The downside case would arise if market volatility, weaker client cash allocation, softer lending demand, higher funding costs, lower floating-rate asset yields, or integration disruption weighs on earnings. These pressures could challenge the current increases in revenue and net income, particularly because management identifies lower market rates and reduced securities balances as offsets to favorable funding conditions. Regulatory developments, including the proposed treatment of accumulated other comprehensive income in capital, could also create additional capital-management complexity, even though management does not expect a material impact.

A separate downside risk is that higher client activity does not translate into durable earnings growth if client balances, margin lending, or bank lending soften. The filing’s evidence supports the reported higher revenue and net income, but it does not attribute the changes to a single cause. The filing evidence does not attribute this change to any single cause. No peer or industry comparison is available in the filing evidence. The filing evidence contains no peer or industry comparison.

Risks and what to watch

Reported facts - Net Income (Loss) Attributable to Parent reached $2,479,000,000 USD for the three-month reporting period, against $1,909,000,000 USD in the prior-year comparative window. - Revenues reached $6,482,000,000 USD for the three-month reporting period, against $5,599,000,000 USD in the prior-year comparative window.

Management explanations - Management frames the quarter as benefiting from stronger client engagement and growth in long/short strategies implemented by RIA clients, with margin loan balances closing the period higher than March of the prior year and bank lending described as supporting the top line. Net interest margin is said to have expanded on the back of reduced wholesale funding usage and lower rates paid on funding sources, even as floating-rate asset yields softened with market rates. The narrative in the cited note also notes that prior-period amounts and average yields have been reclassified and recalculated, meaning period-over-period comparisons embed a presentation change rather than purely an operating change.

Analyst inference - The interest-rate sensitivity narrative in the cited note highlights that Schwab's expense on long-term debt, FHLB borrowings, and other short-term funding is set by market rates at issuance and floating-rate resets, leaving funding costs exposed to renewed moves in the upper bound of the Federal Reserve's target overnight rate. With most of the operating commentary anchored to lending growth, funding mix, and net interest margin, the next-period margin profile is the most direct read on whether the reported expansion can persist if wholesale funding use rebuilds or if floating-rate yields continue to compress.

Counter-evidence - The cited note tempers the positive read by stating explicitly that increases were partially offset by lower yields on floating-rate assets tied to lower market rates and by a decrease in AFS and HTM securities, both of which are headwinds to net interest revenue. Reclassification of prior-period amounts also makes the reported expansion partly a presentational effect rather than a clean operating gain.

Unknowns - Segment-level drivers behind the revenue and net income moves are not broken out in this disclosure. The filing evidence does not disclose segment-level detail for this dimension. No peer or industry comparison is provided in the filing evidence. The filing evidence contains no peer or industry comparison. The filing evidence does not attribute this change to any single cause. Readers can compare the directional shape of this report against Schwab Posts Higher Quarter and Year-to-Date Revenues, Net Income, and Diluted EPS Versus Prior Year to gauge consistency with the prior narrative.