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Charles Schwab (NYSE: SCHW) Q2 EPS jumps to $1.54 as revenue hits $7.1B

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

The Charles Schwab Corporation reported strong second-quarter 2026 results, with net income of $2.8 billion and diluted EPS of $1.54. Excluding $170 million of pre-tax transaction-related costs, adjusted net income was $2.9 billion and adjusted EPS $1.62.

Total net revenues reached a record $7.1 billion, up 21% versus 2Q25, driven by higher net interest revenue, asset management fees, and a 28% increase in trading revenue. GAAP pre-tax profit margin was 51.9% and adjusted margin 54.3%. Return on average common equity was 25% and return on tangible common equity 44%.

Client metrics were robust: total client assets rose to $13.08 trillion, up 22% year-over-year, with core net new assets of $119.8 billion and 1.4 million new brokerage accounts. Daily average trades hit a record 11.9 million, up 57%. Net interest margin expanded to 3.00%. Capital remained solid with a preliminary consolidated Tier 1 leverage ratio of 8.7%; Schwab also redeemed $2.1 billion of preferred stock, issued $1.5 billion of new preferred, and repurchased 11.2 million common shares for $1.0 billion.

Positive

  • Net revenues rose 21% to a record $7.1 billion in 2Q26, supported by growth in net interest revenue, asset management fees, and a 28% increase in trading revenue.
  • GAAP diluted EPS increased 43% year-over-year to $1.54, with adjusted EPS of $1.62 excluding $170 million of pre-tax transaction-related costs.
  • Total client assets reached $13.08 trillion, up 22% year-over-year, with core net new assets of $119.8 billion and 1.4 million new brokerage accounts added.
  • Client trading activity set new records, with daily average trades of 11.9 million, up 57% versus 2Q25, and margin loan balances of $165.1 billion, up 98% year-over-year.
  • Profitability and capital remained strong, including a 51.9% GAAP pre-tax margin, 44% return on tangible common equity, and an 8.7% preliminary consolidated Tier 1 Leverage Ratio.

Negative

  • None.

Filing Explained

A multi-year software license added $633 million of capital spending and a corresponding long-term debt liability.

This Form 8-K reports the company's second-quarter results for the quarter ended June 30, 2026 and discloses $633 million of capital expenditures for a multi-year software license, with a corresponding liability recognized in long-term debt.

In practical terms, the software item is reported as spending already incurred and debt already recorded, rather than as an unused spending capacity.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net revenues Q2 2026 $7,072 million Three months ended June 30, 2026; up 21% vs 2Q25
GAAP net income Q2 2026 $2,800 million GAAP net income for Q2 2026; up 32% vs 2Q25
GAAP diluted EPS Q2 2026 $1.54 Diluted EPS for Q2 2026; up 43% vs 2Q25
Adjusted diluted EPS Q2 2026 $1.62 Adjusted EPS excluding $170 million pre-tax transaction-related costs; up 42% vs 2Q25
Total client assets $13.08 trillion Client assets at June 30, 2026; up 22% year-over-year
Daily average trades 11.9 million Clients’ daily average trades in Q2 2026; up 57% vs 2Q25
Net interest margin 3.00% Net interest margin for Q2 2026; expanded 12 bps quarter-over-quarter
Tier 1 Leverage Ratio 8.7% Preliminary consolidated Tier 1 Leverage Ratio at June 30, 2026 (GAAP)
Net interest margin financial
"Net interest margin for the quarter expanded 12 basis points quarter-over-quarter to 3.00%"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
Return on tangible common equity financial
"Return on tangible common equity (annualized) 44% for the three months ended June 30, 2026"
Return on tangible common equity measures how much profit a company generates from the real, spendable capital that belongs to common shareholders, shown as a percentage. It strips out intangible items like goodwill to focus on the “hard” equity and tells investors how efficiently the firm uses that tangible capital to create earnings—think of it as the return on the cash you actually have rather than on paper values or goodwill.
Adjusted Tier 1 Leverage Ratio regulatory
"Adjusted Tier 1 Leverage Ratio (non-GAAP) 6.8% for the consolidated company at June 30, 2026"
Core net new assets financial
"Core net new assets totaled $119.8 billion, up 49% versus 2Q25"
Core net new assets measure the real, ongoing increase in a firm’s primary assets under management after subtracting money lost from existing clients, one-time transfers, and non-core items. Think of it like counting how much new water a business adds to its main bucket each month after accounting for leaks and temporary pours; it shows the firm’s organic growth. Investors watch this to judge whether growth is sustainable and driven by new customers rather than accounting or market swings.
Generative artificial intelligence technical
"Introduced Portfolio Insights, a generative AI-powered capability that helps investors understand portfolio performance"
Generative artificial intelligence is a type of computer system that learns patterns from large datasets and produces new content—text, images, audio, designs, or code—rather than just sorting or summarizing existing information, like a virtual apprentice that invents drafts based on what it has seen. Investors pay attention because it can lower costs, speed product development, create new revenue streams and competitive advantages, while also introducing risks around accuracy, intellectual property and regulation that can affect valuation.
Net revenues $7.1 billion up 21% vs 2Q25
GAAP net income $2.8 billion up 32% vs 2Q25
GAAP diluted EPS $1.54 up 43% vs 2Q25
Adjusted diluted EPS $1.62 up 42% vs 2Q25
Total client assets $13.08 trillion up 22% year-over-year

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

How did Charles Schwab (SCHW) perform financially in Q2 2026?
Charles Schwab reported $7.1 billion in net revenues in Q2 2026, up 21% year-over-year, and GAAP net income of $2.8 billion. Diluted EPS was $1.54, while adjusted EPS reached $1.62 after excluding $170 million of pre-tax transaction-related costs.

What was Charles Schwab (SCHW)'s adjusted EPS for Q2 2026?
Adjusted diluted EPS for Charles Schwab in Q2 2026 was $1.62. This measure excludes $170 million of pre-tax transaction-related costs and related tax effects, compared with GAAP diluted EPS of $1.54 and adjusted diluted EPS of $1.14 in Q2 2025.

How much client assets did Charles Schwab (SCHW) manage as of June 30, 2026?
As of June 30, 2026, Charles Schwab managed $13.08 trillion in total client assets, a 22% increase year-over-year. Investor Services held $7.34 trillion and Advisor Services $5.74 trillion, reflecting strong organic growth and favorable market gains across the platform.

What were Charles Schwab (SCHW)'s trading activity levels in Q2 2026?
Client trading activity was very high, with daily average trades reaching a record 11.9 million in Q2 2026, up 57% versus 2Q25. Trading revenue rose to $1.2 billion, a 28% year-over-year increase, even as revenue per trade declined compared with the prior year.

How strong were Charles Schwab (SCHW)'s capital ratios at June 30, 2026?
At June 30, 2026, Charles Schwab’s preliminary consolidated Tier 1 Leverage Ratio was 8.7%, with an adjusted Tier 1 Leverage Ratio of 6.8%. Management stated that capital ratios across the firm remained strong while the company continued redeeming and issuing preferred stock and repurchasing common shares.

What client growth metrics did Charles Schwab (SCHW) report for Q2 2026?
In Q2 2026, Schwab added 1.4 million new brokerage accounts, bringing total active brokerage accounts to 39.8 million. Core net new assets totaled $119.8 billion, up 49% year-over-year, and Managed Investing Solutions net flows grew 53% versus 2Q25.
SCHWAB CHARLES CORPfalse000031670900003167092026-07-212026-07-210000316709us-gaap:CommonStockMember2026-07-212026-07-210000316709us-gaap:SeriesDPreferredStockMember2026-07-212026-07-210000316709schw:SeriesJPreferredStockMember2026-07-212026-07-21

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (date of earliest event reported): July 21, 2026

The Charles Schwab Corporation

(Exact name of registrant as specified in its charter)

Commission File Number:  1-9700
Delaware
94-3025021
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)

3000 Schwab Way, Westlake, TX 76262
(Address of principal executive offices, including zip code)

(817) 859-5000
(Registrant’s telephone number, including area code)

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock – $.01 par value per shareSCHWNew York Stock Exchange
Depositary Shares, each representing a 1/40th ownership interest in a share of 5.95% Non-Cumulative Preferred Stock, Series DSCHW PrDNew York Stock Exchange
Depositary Shares, each representing a 1/40th ownership interest in a share of 4.450% Non-Cumulative Preferred Stock, Series JSCHW PrJNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02Results of Operations and Financial Condition

On July 21, 2026, The Charles Schwab Corporation issued a press release announcing its financial results for the quarter ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report.

Item 9.01Financial Statements and Exhibits
(d)
Exhibits
Exhibit No.Description
99.1
Press Release dated July 21, 2026
104Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.




Signature(s)


    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



THE CHARLES SCHWAB CORPORATION
Date:July 21, 2026By:
/s/ Michael Verdeschi
Michael Verdeschi
Managing Director and Chief Financial Officer






Exhibit 99.1
cslogoa03.jpg
SCHWAB REPORTS RECORD QUARTERLY REVENUE AND EARNINGS
Record June Core Net New Assets Grew 47% Year-Over-Year to $62.7 Billion
2Q Net Revenues Reached a Record $7.1 Billion, Up 21% Year-Over-Year
Record GAAP Earnings Per Share of $1.54; $1.62 Adjusted (1) – up 42% versus 2Q25

WESTLAKE, Texas, July 21, 2026 – The Charles Schwab Corporation reported net income for the second quarter totaling $2.8 billion, or earnings per share of $1.54. Excluding $170 million of pre-tax transaction-related costs, adjusted (1) net income and earnings per share equaled $2.9 billion and $1.62, respectively.

Client Driven
Growth
$120B
2Q26 Core
Net New Assets
“Schwab’s leading value proposition continued to resonate in 2Q26, as investors opened 1.4 million new brokerage accounts and brought $120 billion in core net new assets to the firm. June core asset gathering totaled a record $62.7 billion – an annualized organic growth rate of 5.8%.”
President & CEO Rick Wurster
Deepen Client Relationships
53%
2Q26 Managed Investing
Net Flows Growth
“Investors continued to engage with Schwab’s expanding set of solutions during 2Q as daily average trades reached a record 11.9 million, net flows into Schwab Wealth AdvisoryTM increased 80% year-over-year, and Pledged Asset LineTM balances equaled $33.4 billion – up 59% from 2Q25.”
President & CEO Rick Wurster
Diversified Revenue Growth
21%
2Q26 Revenue
Growth vs. 2Q25
“Our ability to do more for clients throughout their financial lives enables Schwab to deliver robust results across a range of environments. During the second quarter, strong client engagement helped drive year-over-year revenue growth of 21% to a record $7.1 billion.”
CFO Mike Verdeschi
Strong Earnings Momentum
43%
2Q26 GAAP EPS
Growth vs. 2Q25
“During 2Q26, the strength of Schwab’s diversified business model, our industry-leading scale, and opportunistic capital return in multiple forms combined to deliver year-over-year GAAP earnings growth of 43% to a record $1.54 per share, or $1.62 on an adjusted (1) basis.”
CFO Mike Verdeschi

2Q26 Client and Business Highlights

•Total client assets increased 22% year-over-year to $13.08 trillion
•Core net new assets totaled $119.8 billion, up 49% versus 2Q25
•New brokerage account openings equaled 1.4 million, helping bring total client accounts to 48.0 million
•Managed Investing Solutions net flows grew 53% versus 2Q25
•Bank loan balances equaled $67.0 billion at June month-end, up 33% year-over-year
•Margin loan balances increased 30% quarter-over-quarter to $165.1 billion at quarter-end
•Long/short strategy interest remained strong amongst RIA clients (2), with margin loan debits and short cash credits equaling $42.1 billion and $43.7 billion, respectively, as of June 30, 2026
•Daily average trading volume reached a record 11.9 million – up 57% versus 2Q25
•Launched Schwab CryptoTM, providing direct access to Bitcoin and Ethereum trading for retail clients
•Introduced Portfolio Insights, a generative AI-powered capability that helps investors understand portfolio performance (3)
•Schwab recognized as the Best Investing Platform by U.S. News for the 4th consecutive year (4)

- 1 -

Three Months Ended
June 30,		%Six Months Ended
June 30,		%
Financial Highlights20262025Change20262025Change
Net revenues (in millions)$7,072 $5,851 21%$13,554 $11,450 18%
Net income (in millions)
GAAP$2,800 $2,126 32%$5,279 $4,035 31%
Adjusted$2,930 $2,222 32%$5,518 $4,230 30%
Diluted earnings per common share
GAAP$1.54 $1.08 43%$2.91 $2.07 41%
Adjusted$1.62 $1.14 42%$3.05 $2.17 41%
Pre-tax profit margin
GAAP51.9%47.9%50.6%45.9%
Adjusted54.3%50.1%52.9%48.2%
Return on average common
stockholders’ equity (annualized)25%19%23%18%
Return on tangible
common equity (annualized)44%35%41%34%
Note: Items labeled “adjusted” are non-GAAP financial measures; further details are included on pages 10-12 of this release. All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding.

2Q26 Financial Commentary

•Quarterly net revenues grew year-over-year by 21% to a record $7.1 billion
•Net interest margin for the quarter expanded 12 basis points quarter-over-quarter to 3.00%
•Client transactional sweep cash balances ended June at $485.7 billion, an increase of $24.2 billion versus the prior quarter-end, reflecting typical 2Q tax seasonality, organic growth, and client asset allocation decisions
•Average interest-earning assets for the quarter equaled $445.0 billion, up 5% versus 2Q25
•Asset management and administration fees grew by 16% year-over-year to $1.8 billion, powered by the firm’s organic growth and investors’ increased utilization of our wealth and asset management solutions
•Record client trading activity drove trading revenue of $1.2 billion, up 28% year-over-year
•GAAP expenses for the quarter increased 12% year-over-year; excluding acquisition and integration-related costs and the amortization of acquired intangibles of $170 million, adjusted total expenses (1) were up 11% relative to 2Q25
•Capital ratios across the firm remained strong – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) equaling 8.7% and 6.8%, respectively
•Redeemed $2.1 billion Series I Preferred Stock and issued $1.5 billion Series L Preferred Stock
•Repurchased 11.2 million shares of our common stock for $1.0 billion during the quarter

(1) Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-12 of this release.
(2) Client margin loans and short credits related to certain long/short strategies utilized by RIAs are excluded from interest-earning assets and company funding sources.
(3) Portfolio Insights (Insights) is a generative artificial intelligence feature designed to provide: (1) a narrative snapshot of a client’s Portfolio’s Day Change performance as of now versus the prior trading day’s close; (2) a recap of recent news about the top S&P 500® equity movers (up to five securities) most affecting the value of a client’s portfolio; and (3) snippets of the day’s Schwab Center for Financial Research and other Schwab expert content related to a client’s portfolio. The summaries can be refreshed throughout the day. Insights into specific securities are not necessarily representative of a client’s portfolio. The securities referenced to prepare each Insight vary and certain asset types are excluded. Insights should not be construed as investment advice or recommendations and are for informational and educational purposes only. Generative AI output may be inaccurate, containing hallucinated, stale, or incomplete information. Clients should consult their Account Statement(s) for complete account information. For more information about Schwab Portfolio Insights, please visit https://www.schwab.com/legal/portfolio-insights-disclosure.
(4) U.S. News & World Report’s Best Investing Platforms awards were given on 04/16/2026. The criteria, evaluation, and ranking were determined by U.S. News & World Report. See https://money.usnews.com/investing/best-brokers/methodology for more information. Schwab paid a licensing fee to U.S. News & World Report for use of the award and logos.

Summer Business Update
The company will host its Summer Business Update for institutional investors this morning from 7:30 a.m. - 8:30 a.m. CT, 8:30 a.m. - 9:30 a.m. ET.

Registration for this Update webcast is accessible at https://www.aboutschwab.com/schwabevents.

- 2 -

Forward-Looking Statements
This press release contains forward-looking statements relating to the company’s diversified business model, scale, solutions, client engagement, and capital return. These forward-looking statements reflect management’s expectations as of the date hereof. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations. Important factors that may cause such differences are described in the company’s most recent reports on Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company’s website (https://www.aboutschwab.com/financial-reports) and on the Securities and Exchange Commission’s website (https://www.sec.gov). The company makes no commitment to update any forward-looking statements.

About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 39.8 million active brokerage accounts, 5.9 million workplace plan participant accounts, 2.4 million banking accounts, and $13.08 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor ServicesTM. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.

Contact Information

MEDIA
Mayura Hooper, 415-667-1525
public.relations@schwab.com

INVESTORS/ANALYSTS
Jeff Edwards, 817-854-6177
investor.relations@schwab.com
- 3 -


THE CHARLES SCHWAB CORPORATION
Consolidated Statements of Income
(In millions, except per share amounts)
(Unaudited)




Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Net Revenues
Interest revenue$4,432 $3,787 $8,394 $7,544 
Interest expense(1,075)(965)(1,893)(2,016)
Net interest revenue3,357 2,822 6,501 5,528 
Asset management and administration fees
1,825 1,570 3,584 3,100 
Trading revenue1,215 952 2,304 1,860 
Bank deposit account fees333 247 628 492 
Other342 260 537 470 
Total net revenues7,072 5,851 13,554 11,450 
Expenses Excluding Interest
Compensation and benefits1,790 1,536 3,602 3,208 
Professional services307 291 610 560 
Occupancy and equipment301 270 586 544 
Advertising and market development111 108 212 204 
Communications198 176 361 329 
Depreciation and amortization198 215 399 432 
Amortization of acquired intangible assets142 128 274 258 
Regulatory fees and assessments63 77 138 166 
Other293 247 515 491 
Total expenses excluding interest3,403 3,048 6,697 6,192 
Income before taxes on income3,669 2,803 6,857 5,258 
Taxes on income869 677 1,578 1,223 
Net Income2,800 2,126 5,279 4,035 
Preferred stock dividends and other119 149 201 262 
Net Income Available to Common Stockholders$2,681 $1,977 $5,078 $3,773 
Weighted-Average Common Shares Outstanding:
Basic1,735 1,817 1,740 1,819 
Diluted1,739 1,822 1,745 1,825 
Earnings Per Common Shares Outstanding:
Basic$1.55 $1.09 $2.92 $2.07 
Diluted$1.54 $1.08 $2.91 $2.07 

        
- 4 -

THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)
Q2-26 % change20262025
vs.vs.SecondFirstFourthThirdSecond
(In millions, except per share amounts and as noted)Q2-25Q1-26QuarterQuarterQuarterQuarterQuarter
Net Revenues
Net interest revenue19%7%$3,357 $3,144 $3,172 $3,050 $2,822 
Asset management and administration fees16%4%1,825 1,759 1,733 1,673 1,570 
Trading revenue 28%12%1,215 1,089 1,066 995 952 
Bank deposit account fees35%13%333 295 238 247 247 
Other 32%75%342 195 127 170 260 
Total net revenues21%9%7,072 6,482 6,336 6,135 5,851 
Expenses Excluding Interest
Compensation and benefits17%(1)%1,790 1,812 1,630 1,653 1,536 
Professional services5%1%307 303 344 293 291 
Occupancy and equipment11%6%301 285 293 280 270 
Advertising and market development3%10%111 101 115 101 108 
Communications13%21%198 163 142 149 176 
Depreciation and amortization (8)%(1)%198 201 206 212 215 
Amortization of acquired intangible assets11%8%142 132 127 127 128 
Regulatory fees and assessments(18)%(16)%63 75 62 59 77 
Other19%32%293 222 237 240 247 
Total expenses excluding interest12%3%3,403 3,294 3,156 3,114 3,048 
Income before taxes on income31%15%3,669 3,188 3,180 3,021 2,803 
Taxes on income28%23%869 709 721 663 677 
Net Income32%13%2,800 2,479 2,459 2,358 2,126 
Preferred stock dividends and other(20)%45%119 82 92 81 149 
Net Income Available to Common Stockholders36%12%$2,681 $2,397 $2,367 $2,277 $1,977 
Earnings per common share:
Basic42%13%$1.55 $1.37 $1.34 $1.26 $1.09 
Diluted43%12%$1.54 $1.37 $1.33 $1.26 $1.08 
Dividends declared per common share19%—$.32 $.32 $.27 $.27 $.27 
Weighted-average common shares outstanding:
Basic(5)%(1)%1,735 1,746 1,772 1,806 1,817 
Diluted(5)%(1)%1,739 1,752 1,777 1,811 1,822 
Performance Measures
Pre-tax profit margin51.9%49.2%50.2%49.2%47.9%
Return on average common stockholders’ equity (annualized) (1)
25%23%22%21%19%
Financial Condition (at quarter end, in billions)
Cash and cash equivalents26%(10)%$40.6 $45.0 $46.0 $30.6 $32.2 
Cash and investments segregated(28)%(17)%33.0 39.8 42.9 47.8 45.6 
Receivables from brokers, dealers, and clearing organizations N/M86%22.0 11.8 7.2 4.7 4.3 
Receivables from brokerage clients — net48%16%122.8 106.2 104.7 93.8 82.8 
Available for sale securities(8)%2%62.5 61.1 62.4 62.3 67.6 
Held to maturity securities(7)%(1)%130.6 131.7 134.0 136.7 139.7 
Bank loans — net33%10%67.0 60.9 58.0 53.6 50.4 
Total assets13%5%517.3 493.3 491.0 465.3 458.9 
Bank deposits7%(1)%249.7 253.0 255.7 239.1 233.1 
Payables to brokers, dealers, and clearing organizations135%56%43.8 28.1 25.7 22.4 18.6 
Payables to brokerage clients13%5%124.0 118.0 116.3 115.4 109.4 
Accrued expenses and other liabilities16%4%12.5 12.0 12.8 11.4 10.8 
Other short-term borrowings64%11%13.9 12.5 6.9 6.5 8.5 
Federal Home Loan Bank borrowings(94)%N/M0.5 — 1.9 0.9 9.0 
Long-term debt12%11%22.7 20.5 22.2 20.2 20.2 
Total liabilities14%5%467.1 444.1 441.6 415.9 409.5 
Stockholders’ equity1%2%50.1 49.2 49.4 49.4 49.5 
Total liabilities and stockholders’ equity13%5%517.3 493.3 491.0 465.3 458.9 
Other
Full-time equivalent employees (at quarter end, in thousands)3%1%33.7 33.5 33.0 32.7 32.6 
Capital expenditures — purchases of equipment, office facilities, and property,
  net (in millions) (2)
N/MN/M$792 $173 $158 $152 $136 
Expenses excluding interest as a percentage of average client assets (annualized)0.11%0.11%0.11%0.11%0.12%
Clients’ Daily Average Trades (DATs) (in thousands)
57%20%11,920 9,899 8,274 7,421 7,571 
Number of Trading Days—2%62.0 61.0 63.0 63.5 62.0 
Revenue Per Trade (3)
(19)%(9)%$1.64 $1.80 $2.05 $2.11 $2.03 
(1) Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity.
(2) Second quarter of 2026 includes incremental capital expenditures of $633 million related to a multi-year software license agreement with a corresponding liability recognized in long-term debt.
(3) Revenue per trade is calculated as trading revenue divided by the product of DATs and the number of trading days.
N/M Not meaningful. Percentage changes greater than 200% are presented as not meaningful.
- 5 -

THE CHARLES SCHWAB CORPORATION
Net Interest Revenue Information
(In millions, except ratios or as noted)
(Unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Average
Balance		Interest
Revenue/
Expense		Average
Yield/
Rate		Average
Balance		Interest
Revenue/
Expense		Average
Yield/
Rate		Average
Balance		Interest
Revenue/
Expense		Average
Yield/
Rate		Average
Balance		Interest
Revenue/
Expense		Average
Yield/
Rate
Interest-earning assets
Cash and cash equivalents$30,707 $278 3.58%$28,000 $305 4.30%$31,587 $566 3.57%$29,236 $633 4.30%
Cash and investments segregated41,326 374 3.58%47,574 506 4.20%42,629 771 3.60%43,117 918 4.23%
Receivables from brokerage clients (1)
112,136 1,609 5.68%78,732 1,321 6.64%108,349 3,108 5.71%80,805 2,700 6.64%
Available for sale securities (2)
65,864 358 2.17%77,750 405 2.08%65,561 684 2.09%81,151 838 2.06%
Held to maturity securities (2)
131,126 570 1.73%141,098 602 1.70%131,656 1,137 1.73%142,740 1,224 1.71%
Bank loans63,823 693 4.35%48,691 518 4.27%61,567 1,320 4.31%47,374 1,011 4.29%
Total interest-earning assets444,982 3,882 3.47%421,845 3,657 3.45%441,349 7,586 3.43%424,423 7,324 3.44%
Securities lending revenue178 96 269 156 
Other interest revenue (1)
372 34 539 64 
Total interest-earning assets$444,982 $4,432 3.96%$421,845 $3,787 3.57%$441,349 $8,394 3.79%$424,423 $7,544 3.54%
Funding sources
Bank deposits$246,346 $114 0.19%$237,645 $326 0.55%$244,522 $232 0.19%$241,660 $762 0.64%
Payables to brokers, dealers, and clearing
  organizations
31,693 276 3.45%16,657 167 3.97%28,617 493 3.43%15,424 304 3.93%
Payables to brokerage clients (1)
108,840 59 0.22%92,425 60 0.26%106,978 115 0.22%91,305 109 0.24%
Other short-term borrowings11,082 111 3.98%7,644 87 4.55%10,098 203 4.02%7,172 169 4.74%
Federal Home Loan Bank borrowings126 1 3.79%9,753 110 4.48%699 13 3.85%10,236 243 4.72%
Long-term debt21,324 228 4.23%20,624 206 3.94%21,512 429 3.97%21,448 418 3.87%
Total interest-bearing liabilities419,411 789 0.75%384,748 956 0.99%412,426 1,485 0.72%387,245 2,005 1.04%
Non-interest-bearing funding sources25,571 37,097 28,923 37,178 
Other interest expense (1)
286 9 408 11 
Total funding sources$444,982 $1,075 0.96%$421,845 $965 0.91%$441,349 $1,893 0.85%$424,423 $2,016 0.95%
Net interest revenue$3,357 3.00%$2,822 2.66%$6,501 2.94%$5,528 2.59%
(1) Beginning in the fourth quarter of 2025, average balances of client margin loans and short credits related to certain client long/short strategies from which the Company earns a fixed net yield are excluded from interest-earning assets and funding sources. Prior period amounts and average yields have been reclassified and recalculated to reflect this change. Average margin loans related to these client strategies totaled $33.1 billion and $23.7 billion for the three and six months ended June 30, 2026, respectively, compared to $884 million and $562 million for the same periods in 2025. Average short credits related to these client strategies totaled $34.3 billion and $24.5 billion for the three and six months ended June 30, 2026, respectively, compared to $898 million and $569 million for the same periods in 2025. Interest revenue and expense related to these client strategies are presented in other interest revenue and other interest expense, respectively.
(2) Amounts have been calculated based on amortized cost.
- 6 -

THE CHARLES SCHWAB CORPORATION
Asset Management and Administration Fees Information
(In millions, except ratios or as noted)
(Unaudited)

Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Average
Client
Assets		RevenueAverage
Fee		Average
Client
Assets		RevenueAverage
Fee		Average
Client
Assets		RevenueAverage
Fee		Average
Client
Assets		RevenueAverage
Fee
Schwab money market funds$692,896 $473 0.27%$644,811 $442 0.27%$694,727 $941 0.27%$633,143 $860 0.27%
Schwab equity and bond funds, exchange-traded
  funds (ETFs), and collective trust funds (CTFs) 		882,538 157 0.07%661,793 122 0.07%850,427 303 0.07%660,191 244 0.07%
Mutual Fund OneSource ® and other no-
  transaction-fee funds (NTFs)
484,076 273 0.23%350,487 218 0.25%476,089 535 0.23%355,092 440 0.25%
Other third-party mutual funds, ETFs, and
  alternatives (1)
677,708 117 0.07%623,167 116 0.07%671,797 232 0.07%633,008 232 0.07%
Total mutual funds, ETFs, CTFs, and
  alternatives (1,2)
$2,737,218 $1,020 0.15%$2,280,258 $898 0.16%$2,693,040 $2,011 0.15%$2,281,434 $1,776 0.16%
Managed investing solutions (2)
Fee-based$763,716 $707 0.37%$595,203 $589 0.40%$745,799 $1,381 0.37%$592,843 $1,158 0.39%
Non-fee-based159,255 — —120,726 — —152,442 — —120,584 — —
Total managed investing solutions$922,971 $707 0.31%$715,929 $589 0.33%$898,241 $1,381 0.31%$713,427 $1,158 0.33%
Other balance-based fees (1,3)
991,946 70 0.03%826,894 61 0.03%977,724 139 0.03%824,621 125 0.03%
Other (4)
28 22 53 41 
Total asset management and administration fees$1,825 $1,570 $3,584 $3,100 
(1) Beginning in the first quarter of 2026, alternative investments and related revenue were moved from other balance-based fees to other third-party mutual funds, ETFs, and alternatives. Prior period amounts and average fees have been reclassified and recalculated to reflect this change.
(2) Managed investing solutions includes managed portfolios, specialized strategies, and customized investment advice such as Schwab Wealth AdvisoryTM, Schwab Managed PortfoliosTM, Managed Account Select®, Schwab Advisor Network®, Windhaven Strategies®, ThomasPartners® Strategies, Wasmer Schroeder StrategiesTM, Schwab Index Advantage advised retirement plan balances, Schwab Intelligent Portfolios®, Institutional Intelligent Portfolios, Schwab Intelligent Portfolios Premium, Schwab Wealth Portfolios™, AdvisorDirect®, Essential Portfolios, Selective Portfolios, and Personalized Portfolios; as well as legacy non-fee managed investing solutions including Schwab Advisor Source and certain retirement plan balances. Average client assets for managed investing solutions may also include the asset balances contained in the mutual fund and/or ETF categories listed above. For the total end of period view, please see the Monthly Activity Report.
(3) Includes various asset-related fees, such as trust fees, 401(k) recordkeeping fees, and mutual fund clearing fees and other service fees.
(4) Includes miscellaneous service and transaction fees, including fees relating to mutual funds and ETFs that are not balance-based.
- 7 -

THE CHARLES SCHWAB CORPORATION
Growth in Client Assets and Accounts
(Unaudited)

Q2-26 % Change20262025
vs.vs.SecondFirstFourthThirdSecond
(In billions, at quarter end, except as noted)Q2-25Q1-26QuarterQuarterQuarterQuarterQuarter
Assets in client accounts
Schwab One®, certain cash equivalents, and bank deposits
21%6%$415.4 $390.5 $379.5 $357.1 $342.7 
Bank deposit account balances(14)%(4)%70.6 73.5 76.2 78.5 82.1 
Proprietary mutual funds (Schwab Funds® and Laudus Funds®) and CTFs
Money market funds6%(1)%690.5 700.8 693.8 666.4 653.5 
Equity and bond funds and CTFs (1)
25%14%311.2 271.8 277.4 269.7 249.7 
Total proprietary mutual funds and CTFs11%3%1,001.7 972.6 971.2 936.1 903.2 
Mutual Fund Marketplace® (2)
Mutual Fund OneSource® and other NTF funds
7%10%485.7 443.3 454.2 473.5 453.9 
Mutual fund clearing services12%7%334.3 311.1 327.7 320.2 298.3 
Other third-party mutual funds17%8%1,366.0 1,263.7 1,274.3 1,237.2 1,168.5 
Total Mutual Fund Marketplace14%8%2,186.0 2,018.1 2,056.2 2,030.9 1,920.7 
Total mutual fund assets13%7%3,187.7 2,990.7 3,027.4 2,967.0 2,823.9 
Exchange-traded funds
Proprietary ETFs (1)
33%14%583.7 512.6 495.3 476.0 439.7 
Other third-party ETFs36%15%2,959.7 2,579.8 2,527.5 2,395.7 2,175.6 
Total ETF assets35%15%3,543.4 3,092.4 3,022.8 2,871.7 2,615.3 
Equity and other securities25%14%5,228.4 4,566.9 4,722.6 4,624.7 4,188.7 
Fixed income securities2%3%804.5 780.6 786.8 792.1 788.0 
Margin loans outstanding98%30%(165.1)(126.7)(112.3)(97.2)(83.4)
Total client assets22%11%$13,084.9 $11,767.9 $11,903.0 $11,593.9 $10,757.3 
Client assets by business
Investor Services (3)
21%12%$7,343.0 $6,566.4 $6,707.5 $6,577.2 $6,069.9 
Advisor Services22%10%5,741.9 5,201.5 5,195.5 5,016.7 4,687.4 
Total client assets22%11%$13,084.9 $11,767.9 $11,903.0 $11,593.9 $10,757.3 
Net growth in assets in client accounts (for the quarter ended)
Net new assets by business
Investor Services (3)
23%(29)%$38.5 $54.1 $60.4 $52.7 $31.2 
Advisor Services89%(7)%80.2 85.8 97.8 81.7 42.4 
Total net new assets61%(15)%$118.7 $139.9 $158.2 $134.4 $73.6 
Net market gains (losses)1,198.3 (275.0)150.9 702.2 754.0 
Net growth (decline)$1,317.0 $(135.1)$309.1 $836.6 $827.6 
New brokerage accounts (in thousands, for the quarter ended)26%7%1,388 1,299 1,268 1,143 1,098 
Client accounts (in thousands)
Active brokerage accounts6%2%39,802 39,099 38,506 37,963 37,476 
Banking accounts12%3%2,352 2,281 2,214 2,150 2,096 
Workplace Plan Participant Accounts (4)
5%1%5,888 5,844 5,740 5,619 5,586 
(1) Includes balances held on and off the Schwab platform. As of June 30, 2026, off-platform equity and bond funds, CTFs, and ETFs were $53.8 billion, $5.0 billion, and $208.5 billion, respectively.
(2) Excludes all proprietary mutual funds and ETFs.
(3) Second quarter of 2026 includes net outflows of $1.1 billion from off-platform Schwab Bank Retail CDs. First quarter of 2026 includes net outflows of $0.1 billion from off-platform Schwab Bank Retail CDs. Fourth quarter of 2025 includes net outflows of $5.7 billion from off-platform Schwab Bank Retail CDs. Third quarter of 2025 includes net outflows of $3.1 billion from off-platform Schwab Bank Retail CDs. Second quarter of 2025 includes net outflows of $6.7 billion from off-platform Schwab Bank Retail CDs.
(4) Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business.

- 8 -

The Charles Schwab Corporation Monthly Activity Report For June 2026
2025
2026Change
JunJulAugSepOctNovDecJanFebMarAprMayJunMo.Yr.
Number of Trading Days20.0 21.5 21.0 21.0 23.0 18.5 21.5 20.0 19.0 22.0 21.0 20.0 21.0 
Market Indices (at month end)
Dow Jones Industrial Average®
44,095 44,131 45,545 46,398 47,563 47,716 48,063 48,892 48,978 46,342 49,652 51,032 52,319 3%19%
Nasdaq Composite®
20,370 21,122 21,456 22,660 23,725 23,366 23,242 23,462 22,668 21,591 24,892 26,973 26,214 (3)%29%
Standard & Poor’s® 500
6,205 6,339 6,460 6,688 6,840 6,849 6,846 6,939 6,879 6,529 7,209 7,580 7,499 (1)%21%
Client Assets (in billions of dollars)
Beginning Client Assets10,349.0 10,757.3 10,963.5 11,228.1 11,593.9 11,828.0 11,834.3 11,903.0 12,148.5 12,220.3 11,767.9 12,605.3 13,135.3 
Net New Assets (1)
38.9 45.7 43.3 45.4 41.6 38.7 77.9 27.6 32.5 79.8 6.7 49.9 62.1 24%60%
Net Market Gains (Losses)369.4 160.5 221.3 320.4 192.5 (32.4)(9.2)217.9 39.3 (532.2)830.7 480.1 (112.5)
Total Client Assets (at month end)10,757.3 10,963.5 11,228.1 11,593.9 11,828.0 11,834.3 11,903.0 12,148.5 12,220.3 11,767.9 12,605.3 13,135.3 13,084.9 —22%
Core Net New Assets (1,2)
42.6 46.9 44.4 46.2 44.4 40.4 79.1 27.8 32.5 79.7 7.2 49.9 62.7 26%47%
Receiving Ongoing Advisory Services (at month end)
Investor Services737.6 747.9 771.1 792.5 807.6 817.9 824.8 849.5 866.8 841.3 895.0 925.8 929.8 —26%
Advisor Services4,687.4 4,765.1 4,888.2 5,016.7 5,106.1 5,155.9 5,195.5 5,311.7 5,394.3 5,201.5 5,525.7 5,716.0 5,741.9 —22%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts37,476 37,658 37,798 37,963 38,145 38,266 38,506 38,730 38,925 39,099 39,300 39,536 39,802 1%6%
Banking Accounts 2,096 2,116 2,137 2,150 2,172 2,189 2,214 2,239 2,258 2,281 2,305 2,329 2,352 1%12%
Workplace Plan Participant Accounts (3)
5,586 5,619 5,606 5,619 5,696 5,730 5,740 5,793 5,829 5,844 5,864 5,886 5,888 —5%
Client Activity
New Brokerage Accounts (in thousands)323 377 382 384 429 365 474 476 395 428 437 461 490 6%52%
Client Daily Average Trades (DATs) (in
  thousands)		7,147 7,252 7,182 7,832 8,617 8,459 7,746 9,512 9,922 10,232 10,328 11,813 13,615 15%90%
Derivative Trades as a Percentage of Total
  Trades		20.8%21.3%22.5%22.3%23.8%21.7%21.4%20.1%20.1%20.4%21.4%19.8%17.7%(210) bp(310) bp
Margin Balances at month end (in billions of
  dollars) (4)
83.4 88.3 92.4 97.2 105.6 110.1 112.3 116.3 120.6 126.7 136.0 154.6 165.1 7%98%
Schwab Trading Activity IndexTM (STAX) (5)
40.7 41.8 43.7 46.1 48.1 48.8 48.5 50.0 57.3 56.0 50.1 55.1 59.1 7%45%
Selected Balances (in billions of dollars)
Average Interest-Earning Assets (6)
416.5 416.7 414.4 419.8 428.3 429.1 436.0 441.7 434.2 436.8 444.6 442.0 448.4 1%8%
Transactional Sweep Cash (4,7) (at month end)
412.1 407.5 406.7 425.6 428.8 427.5 453.7 433.3 436.1 461.5 467.6 472.4 485.7 3%18%
Total Money Market Funds (at month end)653.9 658.6 665.2 667.0 675.5 685.9 694.5 693.4 696.2 702.2 688.1 694.6 691.9 —6%
Client Cash as a Percentage of Client Assets (8)
9.9%9.7%9.5%9.4%9.3%9.4%9.7%9.3%9.3%9.9%9.2%8.9%9.0%10 bp(90) bp
Net Buy (Sell) Activity (in billions of dollars) (9)
Mutual Funds(5.4)(3.4)(2.2)(4.8)(6.3)(7.3)(3.6)(0.9)(2.4)(8.5)(5.7)(7.4)(10.4)
Exchange-Traded Funds (ETFs)19.4 25.8 23.0 25.6 28.1 24.9 39.8 34.8 37.4 25.3 27.4 34.2 32.0 
(1) Unless otherwise noted, differences between net new assets and core net new assets are net flows from off-platform Schwab Bank Retail CDs.
(2) Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $25 billion) relating to a specific client, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods.
(3) Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business.
(4) Balances include margin loans and short credits related to certain long/short strategies from which the Company earns a fixed net yield. For the month of June 2026, margin loans totaled $42.1 billion and short credits totaled $43.7 billion.
(5) For additional information regarding STAX, please visit: https://www.schwab.com/investment-research/stax/view-schwab-trading-activity-index.
(6) Represents average total interest-earning assets on the Company’s balance sheet. Beginning in December 2025, average balances of client margin loans and short credits related to certain client long/short strategies from which the Company earns a fixed net yield are excluded from average interest-earning assets. Prior period amounts have been adjusted accordingly.
(7) Transactional sweep cash includes bank sweep deposits, broker-dealer cash balances, other client cash held on the balance sheet (such as bank checking and savings deposits, short credits related to certain client long/short strategies, and broker-dealer non-interest-bearing credits), and bank deposit account balances; excludes proprietary and third-party CDs.
(8) Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets; client cash excludes brokered CDs issued by Charles Schwab Bank.
(9) Represents the principal value of client mutual fund and ETF transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to investment managers. Excludes money market fund transactions.
- 9 -

THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)
In addition to disclosing financial results in accordance with generally accepted accounting principles in the U.S. (GAAP), Schwab’s second quarter earnings release contains references to the non-GAAP financial measures described below. We believe these non-GAAP financial measures provide useful supplemental information about the financial performance of the Company, and facilitate meaningful comparison of Schwab’s results in the current period to both historic and future results. These non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may not be comparable to non-GAAP financial measures presented by other companies.

Schwab’s use of non-GAAP measures is reflective of certain adjustments made to GAAP financial measures as described below.
Non-GAAP Adjustment or MeasureDefinitionUsefulness to Investors and Uses by Management
Acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costsSchwab adjusts certain GAAP financial measures to exclude the impact of acquisition and integration-related costs incurred as a result of the Company’s acquisitions, amortization of acquired intangible assets, restructuring costs, and, where applicable, the income tax effect of these expenses.

Adjustments made to exclude amortization of acquired intangible assets are reflective of all acquired intangible assets, which were recorded as part of purchase accounting. These acquired intangible assets contribute to the Company’s revenue generation. Amortization of acquired intangible assets will continue in future periods over their remaining useful lives.		We exclude acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs for the purpose of calculating certain non-GAAP measures because we believe doing so provides additional transparency of Schwab’s ongoing operations, and is useful in both evaluating the operating performance of the business and facilitating comparison of results with prior and future periods.

Costs related to acquisition and integration or restructuring fluctuate based on the timing of acquisitions, integration and restructuring activities, thereby limiting comparability of results among periods, and are not representative of the costs of running the Company’s ongoing business. Amortization of acquired intangible assets is excluded because management does not believe it is indicative of the Company’s underlying operating performance.
Return on tangible common equityReturn on tangible common equity represents annualized adjusted net income available to common stockholders as a percentage of average tangible common equity. Tangible common equity represents common equity less goodwill, acquired intangible assets — net, and related deferred tax liabilities.Acquisitions typically result in the recognition of significant amounts of goodwill and acquired intangible assets. We believe return on tangible common equity may be useful to investors as a supplemental measure to facilitate assessing capital efficiency and returns relative to the composition of Schwab’s balance sheet.
Adjusted Tier 1 Leverage RatioAdjusted Tier 1 Leverage Ratio represents the Tier 1 Leverage Ratio as prescribed by bank regulatory guidance for the consolidated company and for Charles Schwab Bank, SSB (CSB), adjusted to reflect the inclusion of accumulated other comprehensive income (AOCI) in the ratio.Inclusion of the impacts of AOCI in the Company’s Tier 1 Leverage Ratio provides additional information regarding the Company’s current capital position. We believe Adjusted Tier 1 Leverage Ratio may be useful to investors as a supplemental measure of the Company’s capital levels.

The Company also uses adjusted diluted EPS and return on tangible common equity as components of performance criteria for employee bonus and certain executive management incentive compensation arrangements. The Compensation Committee of CSC’s Board of Directors maintains discretion in evaluating performance against these criteria. Additionally, the Company uses adjusted Tier 1 Leverage Ratio in managing capital, including its use of the measure as its long-term operating objective.


- 10 -

THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)
The tables below present reconciliations of GAAP measures to non-GAAP measures:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Total
Expenses
Excluding
Interest		Net
Income		Total
Expenses
Excluding
Interest		Net
Income		Total
Expenses
Excluding
Interest		Net
Income		Total
Expenses Excluding
Interest		Net
Income
Total expenses excluding interest (GAAP),
  Net income (GAAP)		$3,403 $2,800 $3,048 $2,126 $6,697 $5,279 $6,192 $4,035 
Amortization of acquired intangible assets(142)142 (128)128 (274)274 (258)258 
Acquisition and integration-related costs (1)
(28)28 — — (39)39 — — 
Income tax effects (2)
N/A(40)N/A(32)N/A(74)N/A(63)
Adjusted total expenses (non-GAAP),
  Adjusted net income (non-GAAP)		$3,233 $2,930 $2,920 $2,222 $6,384 $5,518 $5,934 $4,230 
(1) Acquisition and integration-related costs for the three months ended June 30, 2026 primarily consist of compensation and benefits. Acquisition and integration-related costs for the six months ended June 30, 2026 consist of $26 million of compensation and benefits and $13 million of professional services. There were no acquisition and integration-related costs for the three and six months ended June 30, 2025.
(2) The income tax effects of the non-GAAP adjustments are determined using an effective tax rate reflecting the exclusion of non-deductible acquisition costs and are used to present the acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs on an after-tax basis.
N/A Not applicable.

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Amount% of
Total Net Revenues		Amount% of
Total Net Revenues		Amount% of
Total Net Revenues		Amount% of
Total Net Revenues
Income before taxes on income (GAAP), Pre-tax profit
  margin (GAAP)		$3,669 51.9%$2,803 47.9%$6,857 50.6%$5,258 45.9%
Amortization of acquired intangible assets142 2.0%128 2.2%274 2.0%258 2.3%
Acquisition and integration-related costs28 0.4%— —39 0.3%— —
Adjusted income before taxes on income (non-GAAP),
  Adjusted pre-tax profit margin (non-GAAP)		$3,839 54.3%$2,931 50.1%$7,170 52.9%$5,516 48.2%

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
AmountDiluted
EPS		AmountDiluted
EPS		AmountDiluted
EPS		AmountDiluted
EPS
Net income available to common stockholders (GAAP),
  Earnings per common share — diluted (GAAP)		$2,681 $1.54 $1,977 $1.08 $5,078 $2.91 $3,773 $2.07 
Amortization of acquired intangible assets142 .08 128 .07 274 .16 258 .14 
Acquisition and integration-related costs28 .02 — — 39 .02 — — 
Income tax effects(40)(.02)(32)(.01)(74)(.04)(63)(.04)
Adjusted net income available to common stockholders
  (non-GAAP), Adjusted diluted EPS (non-GAAP)		$2,811 $1.62 $2,073 $1.14 $5,317 $3.05 $3,968 $2.17 

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THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Return on average common stockholders’ equity — annualized (GAAP)
25%19%23%18%
Average common stockholders’ equity
$43,203 $41,504 $43,298 $40,936 
Less: Average goodwill(12,294)(11,951)(12,121)(11,951)
Less: Average acquired intangible assets — net(7,348)(7,551)(7,258)(7,615)
Plus: Average deferred tax liabilities related to goodwill
  and acquired intangible assets — net		1,742 1,710 1,714 1,716 
Average tangible common equity$25,303 $23,712 $25,633 $23,086 
Adjusted net income available to common stockholders (1)
$2,811 $2,073 $5,317 $3,968 
Return on tangible common equity — annualized (non-GAAP)44%35%41%34%
(1) See table above for the reconciliation of net income available to common stockholders to adjusted net income available to common stockholders (non-GAAP).

(Preliminary)
June 30, 2026
CSCCSB
Tier 1 Leverage Ratio (GAAP)
8.7%10.7%
Tier 1 Capital
$42,751 $27,085 
Plus: AOCI adjustment(10,225)(8,899)
Adjusted Tier 1 Capital32,526 18,186 
Average assets with regulatory adjustments
489,718 254,224 
Plus: AOCI adjustment(10,249)(9,022)
Adjusted average assets with regulatory adjustments$479,469 $245,202 
Adjusted Tier 1 Leverage Ratio (non-GAAP)
6.8%7.4%
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Source: View Original Filing on SEC EDGAR

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