The Investor
15 Oct 2026, 14:41
Charles Schwab Falls 4.4% Despite Record Q3 Assets, Revenue and Earnings
Charles Schwab (NYSE: SCHW) shares fell about 4.4% even after the company reported record third-quarter 2026 client asset inflows, revenue and earnings.
Core net new assets reached a record $190.4 billion, up 38% year over year, representing an annualized growth rate of 5.8%. Clients also opened 1.2 million new brokerage accounts, bringing total client accounts to 48.6 million, while total client assets increased 15% to $13.33 trillion.
Net revenue rose 17% year over year to a record $7.2 billion. Net income totaled $2.9 billion, with GAAP EPS of $1.62, up 29% from a year earlier. Excluding $151 million of pre-tax transaction-related costs, adjusted net income was $3.0 billion and adjusted EPS was $1.69.
Client engagement remained strong across several businesses. Schwab Wealth Advisory net flows increased 55%, Managed Investing Solutions net flows rose 22%, and Pledged Asset Line balances climbed 59% year over year to $37.3 billion. Bank loan balances increased 35% to $72.3 billion.
Trading activity was also elevated. Daily average trading volume increased 44% year over year to 10.7 million, while margin loan balances rose 14% quarter over quarter to $187.9 billion.
The 4.4% decline therefore appears disconnected from the headline operating results and may reflect broader pressure on financial stocks, valuation concerns, or investor focus on balance-sheet sensitivity in a higher-rate environment rather than weakness in Schwab’s core business. The quarter itself showed strong asset gathering, revenue growth and earnings momentum.
Charles Schwab (NYSE: SCHW) shares fell about 4.4% even after the company reported record third-quarter 2026 client asset inflows, revenue and earnings.
Core net new assets reached a record $190.4 billion, up 38% year over year, representing an annualized growth rate of 5.8%. Clients also opened 1.2 million new brokerage accounts, bringing total client accounts to 48.6 million, while total client assets increased 15% to $13.33 trillion.
Net revenue rose 17% year over year to a record $7.2 billion. Net income totaled $2.9 billion, with GAAP EPS of $1.62, up 29% from a year earlier. Excluding $151 million of pre-tax transaction-related costs, adjusted net income was $3.0 billion and adjusted EPS was $1.69.
Client engagement remained strong across several businesses. Schwab Wealth Advisory net flows increased 55%, Managed Investing Solutions net flows rose 22%, and Pledged Asset Line balances climbed 59% year over year to $37.3 billion. Bank loan balances increased 35% to $72.3 billion.
Trading activity was also elevated. Daily average trading volume increased 44% year over year to 10.7 million, while margin loan balances rose 14% quarter over quarter to $187.9 billion.
The 4.4% decline therefore appears disconnected from the headline operating results and may reflect broader pressure on financial stocks, valuation concerns, or investor focus on balance-sheet sensitivity in a higher-rate environment rather than weakness in Schwab’s core business. The quarter itself showed strong asset gathering, revenue growth and earnings momentum.
