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Profit surges at Charles Schwab (NYSE: SCHW) as Q1 2026 revenue climbs 16%

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

Rhea-AI Filing Summary

The Charles Schwab Corporation reported a strong first quarter of 2026, with net income of $2.5 billion and diluted earnings per share of $1.37. Excluding $143 million of transaction-related costs, adjusted net income was $2.6 billion and adjusted EPS was $1.43.

Total net revenues rose 16% year-over-year to a record $6.5 billion, driven by higher asset management, trading, and bank deposit fees. GAAP net income increased 30% and adjusted net income grew 29%, while the GAAP pre-tax profit margin expanded to 49.2% and adjusted pre-tax margin reached 51.4%.

Client activity remained robust. Total client assets increased 19% year-over-year to $11.77 trillion, core net new assets were $140.0 billion, and new brokerage accounts reached 1.3 million. Daily average trades hit a record 9.9 million, up 34% versus 1Q25.

Schwab returned capital aggressively, repurchasing 24.3 million common shares for $2.4 billion and raising its quarterly dividend 19% to $0.32 per share. The company reported an annualized return on average common equity of 23% and return on tangible common equity of 40%, supported by strong Tier 1 leverage ratios.

Positive

  • Strong earnings and revenue growth: Net revenues increased 16% year-over-year to $6.48 billion, while GAAP net income rose 30% to $2.48 billion and adjusted net income grew 29% to $2.59 billion, alongside EPS growth of 38% on both a GAAP and adjusted basis.
  • Robust client asset and activity trends: Total client assets reached $11.77 trillion, up 19% year-over-year, with $140.0 billion in core net new assets, record daily average trades of 9.9 million (up 34%), and 1.3 million new brokerage accounts in the quarter.
  • High profitability and capital return: GAAP pre-tax margin expanded to 49.2% and adjusted pre-tax margin to 51.4%, while return on average common equity reached 23% and return on tangible common equity 40%, supporting $2.4 billion of share repurchases and a 19% dividend increase.

Negative

  • None.

Insights

Schwab delivered a high-growth, high-margin quarter with strong client momentum.

Schwab posted first-quarter net revenues of $6.48 billion, up 16% year-over-year, with GAAP net income rising 30% to $2.48 billion. Both GAAP and adjusted pre-tax profit margins exceeded 49%, highlighting strong operating leverage despite only 5% expense growth.

Client metrics underscore the durability of the franchise. Total client assets grew 19% year-over-year to $11.77 trillion, core net new assets were $140 billion (or $157.5 billion excluding a planned outflow), and daily average trades reached a record 9.9 million, up 34% versus 1Q25.

Capital management was notably shareholder-friendly: the firm repurchased 24.3 million shares for $2.4 billion and lifted its quarterly dividend 19% to $0.32. With Tier 1 leverage of 8.9% at the consolidated level and an adjusted Tier 1 leverage ratio of 6.8%, the balance sheet appears positioned to support continued growth and capital return, subject to regulatory and market conditions.

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 $6.48B Three months ended March 31, 2026; up 16% vs. 1Q25
GAAP net income $2.48B Three months ended March 31, 2026; up 30% vs. 1Q25
Adjusted net income $2.59B Excludes $143M transaction-related costs; Q1 2026 vs. Q1 2025
Diluted EPS (GAAP) $1.37 Q1 2026 diluted EPS vs. $0.99 in Q1 2025
Adjusted diluted EPS $1.43 Q1 2026 adjusted EPS vs. $1.04 in Q1 2025
Total client assets $11.77T Client assets at quarter end; up 19% year-over-year
Share repurchases $2.4B / 24.3M shares Common stock repurchased during Q1 2026
Quarterly dividend $0.32 per share Common dividend after 19% increase in Q1 2026
core net new assets financial
"Core net new assets totaled $140.0 billion, including a $17.5 billion outflow"
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.
pre-tax profit margin financial
"Pre-tax profit margin GAAP 49.2% and adjusted 51.4% for the quarter"
Pre-tax profit margin is the share of each dollar of sales a company keeps as profit before paying taxes, expressed as a percentage. Think of it as the slice of a pie left after covering all operating costs but before the tax bill, which helps investors compare how efficiently different companies turn revenue into profit independent of tax rates or one-time tax items.
net interest margin financial
"Net interest margin for the quarter was 2.88%"
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) 40% versus 35% in 1Q25"
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 financial
"Adjusted Tier 1 Leverage Ratio equaling 8.9% and 6.8%, respectively"
managed investing solutions financial
"Managed Investing Solutions net flows grew 46% versus 1Q25"
Net revenues $6.48B +16% YoY
GAAP net income $2.48B +30% YoY
Adjusted net income $2.59B +29% YoY
Diluted EPS (GAAP) $1.37 +38% YoY
Adjusted diluted EPS $1.43 +38% YoY
Understanding 8-K Material Events →
SCHWAB CHARLES CORPfalse000031670900003167092026-04-162026-04-160000316709us-gaap:CommonStockMember2026-04-162026-04-160000316709us-gaap:SeriesDPreferredStockMember2026-04-162026-04-160000316709schw:SeriesJPreferredStockMember2026-04-162026-04-16

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): April 16, 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 April 16, 2026, The Charles Schwab Corporation issued a press release announcing its financial results for the quarter ended March 31, 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 April 16, 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:April 16, 2026By:
/s/ Michael Verdeschi
Michael Verdeschi
Managing Director and Chief Financial Officer






Exhibit 99.1
cslogoa03a.jpg
CLIENT GROWTH & ENGAGEMENT DRIVE RECORD SCHWAB 1Q RESULTS
March Core Net New Assets Equal $79.7 Billion, Second Highest Month Ever
Robust Engagement Drove 1Q Net Revenues to a Record $6.5 Billion, Up 16% Year-Over-Year
Record GAAP Earnings Per Share of $1.37; $1.43 Adjusted (1) – up 38% versus 1Q25

WESTLAKE, Texas, April 16, 2026 – The Charles Schwab Corporation reported net income for the first quarter totaling $2.5 billion, or earnings per share of $1.37. Excluding $143 million of pre-tax transaction-related costs, adjusted (1) net income and earnings per share equaled $2.6 billion and $1.43, respectively.

Client Driven
Growth
$140B
1Q26 Core
Net New Assets
“Schwab’s strong business momentum continued into 2026 as investors opened 1.3 million new brokerage accounts and brought $140 billion
of core net new assets to the firm during the first quarter. Excluding a
planned mutual fund clearing deconversion, asset gathering totaled
$158 billion – an annualized growth rate of 5.4%.”
President & CEO Rick Wurster
Deepen Client Relationships
46%
1Q26 Managed Investing
Net Flows Growth
“Clients continue to turn to us for more of their financial lives, helping wealth and banking solutions reach record levels in 1Q. Led by Schwab Wealth AdvisoryTM, Managed Investing net flows grew 46% year-over-year while bank loans expanded 29% versus 1Q25 to $60.9 billion.”
President & CEO Rick Wurster
Diversified Revenue Growth
16%
1Q26 Revenue
Growth vs. 1Q25
“Schwab’s diversified model delivered record results within an increasingly uncertain macroeconomic environment. Driven by robust client engagement across our wealth, trading, and lending solutions, total first quarter revenue increased 16% year-over-year to $6.5 billion.”
CFO Mike Verdeschi
Opportunistic Capital Return
$2.4B
1Q26 Common
Stock Repurchases
“During 1Q26, the company repurchased 24.3 million shares for $2.4 billion and increased its common stock dividend by 19%. These actions reflect Schwab’s strong capital position as well as the sustained performance of the firm’s through-the-cycle financial model.”
CFO Mike Verdeschi

1Q26 Client and Business Highlights

•Total client assets increased 19% year-over-year to $11.77 trillion
•Core net new assets totaled $140.0 billion, including a $17.5 billion outflow from a planned mutual fund clearing client deconversion; excluding this planned item, core net new assets for the quarter equaled $157.5 billion
•New brokerage account openings equaled 1.3 million, pushing active brokerage accounts and total client accounts to 39.1 million and 47.2 million, respectively
•Managed Investing Solutions net flows grew 46% versus 1Q25
•Bank loan balances equaled $60.9 billion at March month-end, up 29% year-over-year
•Margin loan balances increased 13% versus year-end 2025 to end the quarter at $126.7 billion – including $21.3 billion related to long/short strategies implemented by RIA clients (2)
•Daily average trading volume reached a record 9.9 million – up 34% versus 1Q25
•Launched the Schwab Teen InvestorTM Account, a unique and hands-on investing experience for young people ages 13–17
•Closed Forge Global acquisition in early March
•Schwab ranked #1 Overall Broker by StockBrokers.com, 2 years in a row (3)

- 1 -

Three Months Ended
March 31,		%
Financial Highlights20262025Change
Net revenues (in millions)$6,482 $5,599 16%
Net income (in millions)
GAAP$2,479 $1,909 30%
Adjusted$2,588 $2,008 29%
Diluted earnings per common share
GAAP$1.37 $.99 38%
Adjusted$1.43 $1.04 38%
Pre-tax profit margin
GAAP49.2%43.8%
Adjusted51.4%46.2%
Return on average common
stockholders’ equity (annualized)23%18%
Return on tangible
common equity (annualized)40%35%
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.

1Q26 Financial Commentary

•Quarterly net revenues grew year-over-year by 16% to a record $6.5 billion
•Net interest margin for the quarter was 2.88%
•Client transactional sweep cash balances ended March at $461.5 billion, an increase of $7.8 billion versus the prior quarter-end, reflecting seasonality, organic growth, and client asset allocation decisions
•Average interest-earning assets for the quarter equaled $437.7 billion, up 2% versus 1Q25
•Asset management and administration fees grew by 15% year-over-year to $1.8 billion, powered by the firm’s organic growth and investors’ utilization of our wealth and asset management solutions
•Trading revenue increased 20% versus 1Q25 due to record engagement
•GAAP expenses for the quarter increased 5% year-over-year; excluding acquisition and integration-related costs and the amortization of acquired intangibles of $143 million, adjusted total expenses (1) were up 5% relative to 1Q25
•Capital ratios across the firm remained strong – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) equaling 8.9% and 6.8%, respectively
•Increased the quarterly common stock dividend by 19% to $.32 per share
•Repurchased 24.3 million shares of our common stock for $2.4 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) The StockBrokers.com 2026 Annual Awards (https://www.stockbrokers.com/annual-awards-2026) were announced on January 27, 2026. Criteria, testing methodologies, and rankings were determined by StockBrokers.com. Companies were assessed across StockBrokers.com’s 7 Primary Categories: Range of Investments, Advanced Trading, Mobile Trading Apps, Research, Education, Ease of Use, and Overall.

Spring Business Update
The company will host its Spring 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 business momentum, client relationships, capital position, and through-the-cycle financial model. 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 39.1 million active brokerage accounts, 5.8 million workplace plan participant accounts, 2.3 million banking accounts, and $11.77 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
March 31,
20262025
Net Revenues
Interest revenue$3,962 $3,757 
Interest expense(818)(1,051)
Net interest revenue3,144 2,706 
Asset management and administration fees
1,759 1,530 
Trading revenue1,089 908 
Bank deposit account fees295 245 
Other195 210 
Total net revenues6,482 5,599 
Expenses Excluding Interest
Compensation and benefits1,812 1,672 
Professional services303 269 
Occupancy and equipment285 274 
Advertising and market development101 96 
Communications163 153 
Depreciation and amortization201 217 
Amortization of acquired intangible assets132 130 
Regulatory fees and assessments75 89 
Other222 244 
Total expenses excluding interest3,294 3,144 
Income before taxes on income3,188 2,455 
Taxes on income709 546 
Net Income2,479 1,909 
Preferred stock dividends and other82 113 
Net Income Available to Common Stockholders$2,397 $1,796 
Weighted-Average Common Shares Outstanding:
Basic1,746 1,817 
Diluted1,752 1,822 
Earnings Per Common Shares Outstanding:
Basic$1.37 $.99 
Diluted$1.37 $.99 

        
- 4 -

THE CHARLES SCHWAB CORPORATION
Financial and Operating Highlights
(Unaudited)
Q1-26 % change
20262025
vs.vs.FirstFourthThirdSecondFirst
(In millions, except per share amounts and as noted)Q1-25Q4-25QuarterQuarterQuarterQuarterQuarter
Net Revenues
Net interest revenue16%(1)%$3,144 $3,172 $3,050 $2,822 $2,706 
Asset management and administration fees15%2%1,759 1,733 1,673 1,570 1,530 
Trading revenue 20%2%1,089 1,066 995 952 908 
Bank deposit account fees20%24%295 238 247 247 245 
Other (7)%54%195 127 170 260 210 
Total net revenues16%2%6,482 6,336 6,135 5,851 5,599 
Expenses Excluding Interest
Compensation and benefits8%11%1,812 1,630 1,653 1,536 1,672 
Professional services13%(12)%303 344 293 291 269 
Occupancy and equipment4%(3)%285 293 280 270 274 
Advertising and market development5%(12)%101 115 101 108 96 
Communications7%15%163 142 149 176 153 
Depreciation and amortization (7)%(2)%201 206 212 215 217 
Amortization of acquired intangible assets2%4%132 127 127 128 130 
Regulatory fees and assessments(16)%21%75 62 59 77 89 
Other(9)%(6)%222 237 240 247 244 
Total expenses excluding interest5%4%3,294 3,156 3,114 3,048 3,144 
Income before taxes on income30%—3,188 3,180 3,021 2,803 2,455 
Taxes on income30%(2)%709 721 663 677 546 
Net Income30%1%2,479 2,459 2,358 2,126 1,909 
Preferred stock dividends and other(27)%(11)%82 92 81 149 113 
Net Income Available to Common Stockholders33%1%$2,397 $2,367 $2,277 $1,977 $1,796 
Earnings per common share:
Basic38%2%$1.37 $1.34 $1.26 $1.09 $.99 
Diluted38%3%$1.37 $1.33 $1.26 $1.08 $.99 
Dividends declared per common share19%19%$.32 $.27 $.27 $.27 $.27 
Weighted-average common shares outstanding:
Basic(4)%(1)%1,746 1,772 1,806 1,817 1,817 
Diluted(4)%(1)%1,752 1,777 1,811 1,822 1,822 
Performance Measures
Pre-tax profit margin49.2%50.2%49.2%47.9%43.8%
Return on average common stockholders’ equity (annualized) (1)
23%22%21%19%18%
Financial Condition (at quarter end, in billions)
Cash and cash equivalents29%(2)%$45.0 $46.0 $30.6 $32.2 $35.0 
Cash and investments segregated4%(7)%39.8 42.9 47.8 45.6 38.4 
Receivables from brokers, dealers, and clearing organizations N/M64%11.8 7.2 4.7 4.3 2.9 
Receivables from brokerage clients — net26%1%106.2 104.7 93.8 82.8 84.4 
Available for sale securities(18)%(2)%61.1 62.4 62.3 67.6 74.8 
Held to maturity securities(8)%(2)%131.7 134.0 136.7 139.7 143.8 
Bank loans — net29%5%60.9 58.0 53.6 50.4 47.1 
Total assets7%—493.3 491.0 465.3 458.9 462.9 
Bank deposits3%(1)%253.0 255.7 239.1 233.1 246.2 
Payables to brokers, dealers, and clearing organizations79%9%28.1 25.7 22.4 18.6 15.7 
Payables to brokerage clients17%1%118.0 116.3 115.4 109.4 100.6 
Accrued expenses and other liabilities9%(6)%12.0 12.8 11.4 10.8 11.0 
Other short-term borrowings81%81%12.5 6.9 6.5 8.5 6.9 
Federal Home Loan Bank borrowings(100)%(100)%— 1.9 0.9 9.0 11.5 
Long-term debt(5)%(8)%20.5 22.2 20.2 20.2 21.5 
Total liabilities7%1%444.1 441.6 415.9 409.5 413.4 
Stockholders’ equity(1)%—49.2 49.4 49.4 49.5 49.5 
Total liabilities and stockholders’ equity7%—493.3 491.0 465.3 458.9 462.9 
Other
Full-time equivalent employees (at quarter end, in thousands)4%2%33.5 33.0 32.7 32.6 32.1 
Capital expenditures — purchases of equipment, office facilities, and property,
  net (in millions)		11%9%$173 $158 $152 $136 $156 
Expenses excluding interest as a percentage of average client assets (annualized)0.11%0.11%0.11%0.12%0.12%
Clients’ Daily Average Trades (DATs) (in thousands)
34%20%9,899 8,274 7,421 7,571 7,391 
Number of Trading Days2%(3)%61.0 63.0 63.5 62.0 60.0 
Revenue Per Trade (2)
(12)%(12)%$1.80 $2.05 $2.11 $2.03 $2.05 
(1) Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity.
(2) 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
March 31,
20262025
Average
Balance		Interest
Revenue/
Expense		Average
Yield/
Rate		Average
Balance		Interest
Revenue/
Expense		Average
Yield/
Rate
Interest-earning assets
Cash and cash equivalents$32,477 $288 3.56%$30,483 $328 4.31%
Cash and investments segregated43,946 397 3.61%38,611 412 4.27%
Receivables from brokerage clients (1)
104,520 1,499 5.74%82,902 1,379 6.65%
Available for sale securities (2)
65,255 326 2.00%84,590 433 2.05%
Held to maturity securities (2)
132,192 567 1.72%144,401 622 1.72%
Bank loans59,285 627 4.27%46,043 493 4.32%
Total interest-earning assets437,675 3,704 3.39%427,030 3,667 3.44%
Securities lending revenue91 60 
Other interest revenue (1)
167 30 
Total interest-earning assets$437,675 $3,962 3.63%$427,030 $3,757 3.52%
Funding sources
Bank deposits$242,679 $118 0.20%$245,719 $436 0.72%
Payables to brokers, dealers, and clearing organizations25,508 217 3.40%14,177 137 3.88%
Payables to brokerage clients (1)
105,095 56 0.22%90,173 49 0.22%
Other short-term borrowings9,103 92 4.07%6,695 82 4.96%
Federal Home Loan Bank borrowings1,277 12 3.85%10,725 133 4.94%
Long-term debt21,702 201 3.71%22,281 212 3.81%
Total interest-bearing liabilities405,364 696 0.69%389,770 1,049 1.08%
Non-interest-bearing funding sources32,311 37,260 
Other interest expense (1)
122 2 
Total funding sources$437,675 $818 0.75%$427,030 $1,051 0.99%
Net interest revenue$3,144 2.88%$2,706 2.53%
(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 $14.1 billion and $235 million for the three months ended March 31, 2026 and 2025, respectively. Average short credits related to these client strategies totaled $14.4 billion and $237 million for the three months ended March 31, 2026 and 2025, respectively. 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
March 31,
20262025
Average
Client
Assets		RevenueAverage
Fee		Average
Client
Assets		RevenueAverage
Fee
Schwab money market funds$696,558 $468 0.27%$621,474 $418 0.27%
Schwab equity and bond funds, exchange-traded
  funds (ETFs), and collective trust funds (CTFs) 		818,316 146 0.07%658,588 122 0.08%
Mutual Fund OneSource ® and other no-transaction-
  fee funds (NTFs)
468,101 262 0.23%359,696 222 0.25%
Other third-party mutual funds, ETFs, and alternatives (1)
665,887 115 0.07%642,852 116 0.07%
Total mutual funds, ETFs, CTFs, and alternatives (1,2)
$2,648,862 $991 0.15%$2,282,610 $878 0.16%
Managed investing solutions (2)
Fee-based$727,883 $674 0.38%$590,483 $569 0.39%
Non-fee-based145,628 — —120,442 — —
Total managed investing solutions$873,511 $674 0.31%$710,925 $569 0.32%
Other balance-based fees (1,3)
963,502 69 0.03%822,350 64 0.03%
Other (4)
25 19 
Total asset management and administration fees$1,759 $1,530 
(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 relating to mutual funds and ETFs that are not balance-based.
- 7 -

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

Q1-26 % Change20262025
vs.vs.FirstFourthThirdSecondFirst
(In billions, at quarter end, except as noted)Q1-25Q4-25QuarterQuarterQuarterQuarterQuarter
Assets in client accounts
Schwab One®, certain cash equivalents, and bank deposits
13%3%$390.5 $379.5 $357.1 $342.7 $345.2 
Bank deposit account balances(12)%(4)%73.5 76.2 78.5 82.1 83.7 
Proprietary mutual funds (Schwab Funds® and Laudus Funds®) and CTFs
Money market funds9%1%700.8 693.8 666.4 653.5 641.5 
Equity and bond funds and CTFs (1)
20%(2)%271.8 277.4 269.7 249.7 227.0 
Total proprietary mutual funds and CTFs12%—972.6 971.2 936.1 903.2 868.5 
Mutual Fund Marketplace® (2)
Mutual Fund OneSource® and other NTF funds
30%(2)%443.3 454.2 473.5 453.9 340.3 
Mutual fund clearing services11%(5)%311.1 327.7 320.2 298.3 280.6 
Other third-party mutual funds6%(1)%1,263.7 1,274.3 1,237.2 1,168.5 1,195.4 
Total Mutual Fund Marketplace11%(2)%2,018.1 2,056.2 2,030.9 1,920.7 1,816.3 
Total mutual fund assets11%(1)%2,990.7 3,027.4 2,967.0 2,823.9 2,684.8 
Exchange-traded funds
Proprietary ETFs (1)
29%3%512.6 495.3 476.0 439.7 398.2 
Other third-party ETFs32%2%2,579.8 2,527.5 2,395.7 2,175.6 1,960.1 
Total ETF assets31%2%3,092.4 3,022.8 2,871.7 2,615.3 2,358.3 
Equity and other securities21%(3)%4,566.9 4,722.6 4,624.7 4,188.7 3,765.5 
Fixed income securities1%(1)%780.6 786.8 792.1 788.0 775.8 
Margin loans outstanding52%13%(126.7)(112.3)(97.2)(83.4)(83.6)
Total client assets19%(1)%$11,767.9 $11,903.0 $11,593.9 $10,757.3 $9,929.7 
Client assets by business
Investor Services (3)
18%(2)%$6,566.4 $6,707.5 $6,577.2 $6,069.9 $5,557.4 
Advisor Services19%—5,201.5 5,195.5 5,016.7 4,687.4 4,372.3 
Total client assets19%(1)%$11,767.9 $11,903.0 $11,593.9 $10,757.3 $9,929.7 
Net growth in assets in client accounts (for the quarter ended)
Net new assets by business
Investor Services (3)
(22)%(10)%$54.1 $60.4 $52.7 $31.2 $69.5 
Advisor Services36%(12)%85.8 97.8 81.7 42.4 62.9 
Total net new assets6%(12)%$139.9 $158.2 $134.4 $73.6 $132.4 
Net market gains (losses)(275.0)150.9 702.2 754.0 (304.0)
Net growth (decline)$(135.1)$309.1 $836.6 $827.6 $(171.6)
New brokerage accounts (in thousands, for the quarter ended)10%2%1,299 1,268 1,143 1,098 1,183 
Client accounts (in thousands)
Active brokerage accounts6%2%39,099 38,506 37,963 37,476 37,011 
Banking accounts11%3%2,281 2,214 2,150 2,096 2,050 
Workplace Plan Participant Accounts (4)
6%2%5,844 5,740 5,619 5,586 5,495 
(1) Includes balances held on and off the Schwab platform. As of March 31, 2026, off-platform equity and bond funds, CTFs, and ETFs were $46.5 billion, $4.5 billion, and $187.2 billion, respectively.
(2) Excludes all proprietary mutual funds and ETFs.
(3) 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. First quarter of 2025 includes net outflows of $5.3 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 March 2026
2025
2026Change
MarAprMayJunJulAugSepOctNovDecJanFebMarMo.Yr.
Number of Trading Days21.0 21.0 21.0 20.0 21.5 21.0 21.0 23.0 18.5 21.5 20.0 19.0 22.0 
Market Indices (at month end)
Dow Jones Industrial Average®
42,002 40,669 42,270 44,095 44,131 45,545 46,398 47,563 47,716 48,063 48,892 48,978 46,342 (5)%10%
Nasdaq Composite®
17,299 17,446 19,114 20,370 21,122 21,456 22,660 23,725 23,366 23,242 23,462 22,668 21,591 (5)%25%
Standard & Poor’s® 500
5,612 5,569 5,912 6,205 6,339 6,460 6,688 6,840 6,849 6,846 6,939 6,879 6,529 (5)%16%
Client Assets (in billions of dollars)
Beginning Client Assets10,280.2 9,929.7 9,892.2 10,349.0 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 
Net New Assets (1)
55.3 1.1 33.6 38.9 45.7 43.3 45.4 41.6 38.7 77.9 27.6 32.5 79.8 146%44%
Net Market Gains (Losses)(405.8)(38.6)423.2 369.4 160.5 221.3 320.4 192.5 (32.4)(9.2)217.9 39.3 (532.2)
Total Client Assets (at month end)9,929.7 9,892.2 10,349.0 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 (4)%19%
Core Net New Assets (1,2)
59.1 2.7 35.0 42.6 46.9 44.4 46.2 44.4 40.4 79.1 27.8 32.5 79.7 145%35%
Receiving Ongoing Advisory Services (at month end)
Investor Services688.8 688.2 711.2 737.6 747.9 771.1 792.5 807.6 817.9 824.8 849.5 866.8 841.3 (3)%22%
Advisor Services4,372.3 4,353.0 4,525.6 4,687.4 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 (4)%19%
Client Accounts (at month end, in thousands)
Active Brokerage Accounts37,011 37,254 37,375 37,476 37,658 37,798 37,963 38,145 38,266 38,506 38,730 38,925 39,099 —6%
Banking Accounts 2,050 2,066 2,077 2,096 2,116 2,137 2,150 2,172 2,189 2,214 2,239 2,258 2,281 1%11%
Workplace Plan Participant Accounts (3)
5,495 5,518 5,563 5,586 5,619 5,606 5,619 5,696 5,730 5,740 5,793 5,829 5,844 —6%
Client Activity
New Brokerage Accounts (in thousands)388 439 336 323 377 382 384 429 365 474 476 395 428 8%10%
Client Daily Average Trades (DATs) (in
  thousands)		7,365 8,362 7,184 7,147 7,252 7,182 7,832 8,617 8,459 7,746 9,512 9,922 10,232 3%39%
Derivative Trades as a Percentage of Total
  Trades		19.5%18.4%21.0%20.8%21.3%22.5%22.3%23.8%21.7%21.4%20.1%20.1%20.4%30 bp90 bp
Margin Balances at month end (in billions of
  dollars)		83.6 76.2 81.3 83.4 88.3 92.4 97.2 105.6 110.1 112.3 116.3 120.6 126.7 5%52%
Schwab Trading Activity IndexTM (STAX) (4)
48.4 41.2 39.7 40.7 41.8 43.7 46.1 48.1 48.8 48.5 50.0 57.3 56.0 (2)%16%
Selected Balances (in billions of dollars)
Average Interest-Earning Assets (5)
424.9 430.4 418.7 416.5 416.7 414.4 419.8 428.3 429.1 436.0 441.7 434.2 436.8 1%3%
Transactional Sweep Cash (6) (at month end)
407.8 403.3 398.1 412.1 407.5 406.7 425.6 428.8 427.5 453.7 433.3 436.1 461.5 6%13%
Total Money Market Funds (at month end)641.9 637.8 645.8 653.9 658.6 665.2 667.0 675.5 685.9 694.5 693.4 696.2 702.2 1%9%
Client Cash as a Percentage of Client Assets (7)
10.6%10.5%10.1%9.9%9.7%9.5%9.4%9.3%9.4%9.7%9.3%9.3%9.9%60 bp(70) bp
Net Buy (Sell) Activity (in billions of dollars) (8)
Mutual Funds(8.5)(14.0)(3.2)(5.4)(3.4)(2.2)(4.8)(6.3)(7.3)(3.6)(0.9)(2.4)(8.5)
Exchange-Traded Funds (ETFs)18.2 18.8 21.9 19.4 25.8 23.0 25.6 28.1 24.9 39.8 34.8 37.4 25.3 
(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) For additional information regarding STAX, please visit: https://www.schwab.com/investment-research/stax/view-schwab-trading-activity-index.
(5) 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.
(6) 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.
(7) 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.
(8) 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 first 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
March 31,
20262025
Total
Expenses
Excluding
Interest		Net
Income		Total
Expenses
Excluding
Interest		Net
Income
Total expenses excluding interest (GAAP), Net income (GAAP)$3,294 $2,479 $3,144 $1,909 
Amortization of acquired intangible assets(132)132 (130)130 
Acquisition and integration-related costs (1)
(11)11 — — 
Income tax effects (2)
N/A(34)N/A(31)
Adjusted total expenses (non-GAAP), Adjusted net income (non-GAAP)$3,151 $2,588 $3,014 $2,008 
(1) Acquisition and integration-related costs for the three months ended March 31, 2026 primarily consist of professional services. There were no acquisition and integration-related costs for the three months ended March 31, 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
March 31,
20262025
Amount% of
Total Net Revenues		Amount% of
Total Net Revenues
Income before taxes on income (GAAP), Pre-tax profit margin (GAAP)$3,188 49.2%$2,455 43.8%
Amortization of acquired intangible assets132 2.0%130 2.4%
Acquisition and integration-related costs11 0.2%— —
Adjusted income before taxes on income (non-GAAP), Adjusted pre-tax profit
  margin (non-GAAP)		$3,331 51.4%$2,585 46.2%

Three Months Ended
March 31,
20262025
AmountDiluted
EPS		AmountDiluted
EPS
Net income available to common stockholders (GAAP), Earnings per common share —
  diluted (GAAP)		$2,397 $1.37 $1,796 $.99 
Amortization of acquired intangible assets132 .07 130 .07 
Acquisition and integration-related costs11 .01 — — 
Income tax effects
(34)(.02)(31)(.02)
Adjusted net income available to common stockholders (non-GAAP), Adjusted diluted
  EPS (non-GAAP)		$2,506 $1.43 $1,895 $1.04 

- 11 -

THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)
Three Months Ended
March 31,
20262025
Return on average common stockholders’ equity (GAAP)
23%18%
Average common stockholders’ equity
$42,567 $39,752 
Less: Average goodwill(12,125)(11,951)
Less: Average acquired intangible assets — net(7,323)(7,679)
Plus: Average deferred tax liabilities related to goodwill and acquired intangible assets — net1,693 1,709 
Average tangible common equity$24,812 $21,831 
Adjusted net income available to common stockholders (1)
$2,506 $1,895 
Return on tangible common equity (non-GAAP)40%35%
(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)
March 31, 2026
CSCCSB
Tier 1 Leverage Ratio (GAAP)
8.9%10.9%
Tier 1 Capital
$41,894 $27,474 
Plus: AOCI adjustment(10,631)(9,240)
Adjusted Tier 1 Capital31,263 18,234 
Average assets with regulatory adjustments
471,426 252,021 
Plus: AOCI adjustment(10,703)(9,341)
Adjusted average assets with regulatory adjustments$460,723 $242,680 
Adjusted Tier 1 Leverage Ratio (non-GAAP)
6.8%7.5%
- 12 -

Source: View Original Filing on SEC EDGAR

FAQ

How did Charles Schwab (SCHW) perform financially in Q1 2026?

Charles Schwab delivered strong Q1 2026 results, with net revenues of $6.48 billion, up 16% year-over-year. GAAP net income reached $2.48 billion, a 30% increase, and diluted EPS rose to $1.37 from $0.99, reflecting higher margins and operating leverage.

What were Charles Schwab’s adjusted earnings and margins for Q1 2026?

Excluding $143 million of transaction-related costs, Schwab reported adjusted net income of $2.59 billion and adjusted EPS of $1.43. Adjusted pre-tax profit margin improved to 51.4%, compared with 46.2% a year earlier, highlighting disciplined expense control alongside revenue growth.

How fast are client assets and accounts growing at Charles Schwab (SCHW)?

Total client assets climbed to $11.77 trillion, a 19% year-over-year increase. Core net new assets were $140.0 billion, or $157.5 billion excluding a planned mutual fund clearing deconversion, and Schwab added 1.3 million new brokerage accounts, bringing active brokerage accounts to 39.1 million.

How much capital did Charles Schwab return to shareholders in Q1 2026?

Schwab repurchased 24.3 million common shares for $2.4 billion during Q1 2026 and increased its quarterly common dividend by 19% to $0.32 per share. These actions were taken while maintaining a consolidated Tier 1 leverage ratio of 8.9%.

What were Charles Schwab’s key profitability and return metrics in Q1 2026?

Schwab’s GAAP pre-tax profit margin was 49.2%, and adjusted pre-tax margin reached 51.4%. Return on average common stockholders’ equity was 23%, while return on tangible common equity, using adjusted earnings, was a strong 40% for the quarter.

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