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Charles Schwab Q3 Earnings Beat Estimates as Core New Assets Hit Record $190 Billion

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SCHW$93.86 −3.04%

Charles Schwab Corp. (SCHW) reported third-quarter adjusted earnings of $1.69 per share, beating analyst estimates of $1.66 per share. Quarterly revenue rose 17% year over year to a record $7.17 billion, slightly missing expectations of $7.19 billion. Despite the earnings beat, the company's stock declined nearly 5% in trading.

The brokerage attracted a record $190.4 billion in core net new assets during the quarter, marking a 38% increase from the prior year. Total client assets reached $13.33 trillion, up 15%. Growth was supported by strong client activity, with trading revenue rising 16% to $1.16 billion and net interest revenue climbing 14% to $3.48 billion as net interest margins expanded to 3.04%.

Looking ahead, investors will watch whether account addition and deposit expansion continue at this pace. Schwab added 1.2 million new brokerage accounts during the quarter, bringing total active brokerage accounts to 40.3 million, while client transactional sweep cash grew to $492.8 billion.

Key points

  • Adjusted earnings reached $1.69 per share, topping expectations of $1.66 per share.
  • Quarterly revenue climbed 17% year over year to a record $7.17 billion.
  • Core net new assets surged 38% to a record $190.4 billion in the third quarter.
  • Total client assets expanded 15% to $13.33 trillion as active brokerage accounts reached 40.3 million.
  • Schwab stock fell 4.91% to $92.05 despite beating profit expectations.

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Questions and answers

What were Charles Schwab's Q3 earnings results?

Charles Schwab reported third-quarter adjusted earnings of $1.69 per share, beating analyst estimates of $1.66 per share. Revenue rose 17% year over year to a record $7.17 billion.

How much in new assets did Charles Schwab add in Q3?

Core net new assets surged 38% to a record $190.4 billion during the third quarter, helping lift total client assets to $13.33 trillion.

Why did Charles Schwab stock drop after earnings?

Schwab stock fell despite beating profit expectations, as quarterly revenue of $7.17 billion came in slightly below Wall Street targets.