# Charles Schwab Corporation (SCHW) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/SCHW/thesis · /stocks/SCHW/memo

## Financial Snapshot

---
ticker: SCHW
step: 04
generated: 2026-05-12
source: quick-research
---

### The Charles Schwab Corporation (SCHW) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2023 | FY2024 | FY2025 | YoY (FY25) |
|--------|--------|--------|--------|------------|
| Total Net Revenue | $18.8B | $19.6B | $24.0B+ | +22% |
| Net Interest Revenue | $9.1B | $9.5B | $12B+ | +26% |
| Asset Management & Admin Fees | $5.2B | $5.7B | ~$6.3B | +11% |
| Trading Revenue | $3.4B | $3.6B | ~$4.0B | +11% |
| Total Operating Expenses | $13.7B | $14.0B | ~$13.5B | -3.6% (synergy capture) |
| Net Income | $5.1B | $5.9B | $8.9B | +51% |
| Diluted EPS | $2.54 | $2.99 | ~$4.85 | +62% |
| Net Interest Margin | 2.12% | 2.12% | 2.90% (Q4 25) | +78 bps |

#### Q1 2026 Results

| Metric | Q1 2026 |
|--------|---------|
| Total Revenue | $6.5B |
| Diluted EPS (record) | $1.43 |
| Net Income | $2.6B (+30% YoY) |
| Net Interest Revenue | $3.1B (+16% YoY) |
| Client Assets | $11.9T |

#### Client Asset & Account Metrics

| Metric | Year-end 2024 | Q1 2026 |
|--------|---------------|---------|
| Total Client Assets | $10.10T | $11.9T |
| Core Net New Assets (TTM) | — | $519B |
| Active Brokerage Accounts | ~36M | 45.2M+ |
| RIAs on Platform | ~7,000 | ~7,000 |
| Client Sweep Cash | $425.6B | $453.7B |

#### Cash Flow & Capital Allocation (FY2025)

| Metric | Value |
|--------|-------|
| Net Cash from Operations | ~$10B |
| Capital Expenditures | ~$0.5B (asset-light) |
| Free Cash Flow | ~$9.5B |
| Share Repurchases | ~$2B |
| Dividends Paid | ~$2.2B |
| Quarterly Dividend | $0.30 |
| Annual Dividend | $1.20 |
| Dividend Yield | ~1.2% |
| Tier 1 Leverage Ratio | ~10% |

#### TD Ameritrade Integration Synergies

| Item | Status |
|------|--------|
| Expense Synergy Run-Rate | $1.8–2.0B achieved |
| Revenue Synergy Opportunity | $4.3–4.8B (ramping through 2027) |
| Final Account Conversions | Completed May 2024 |

#### Key Ratios (approximate)
- P/E: ~19x (FY26E EPS ~$5.50+) | Price/TBV: ~3x | ROTCE: ~25%+
- Revenue Growth (FY25): +22% (NIM-driven + synergies)
- Net Interest Margin: 2.90% (Q4 25, up from 2.12% in 2024)
- Net Income Growth (FY25): +51%
- Dividend Yield: ~1.2% | Buyback Yield: ~1.2%
- Net Income Margin Target: ~39% by FY26 (vs. ~37% FY25)

#### Growth Profile
FY25 was an exceptional year:
- Net Income +51% to $8.9B
- NIM expansion from 2.12% to 2.90% on FHLB + CDs paydown
- Sweep cash rebuilt to $454B
- Client assets grew to $11.9T
- TD Ameritrade integration revenue synergies beginning to layer on top of completed cost synergies

The 2026 setup ("pivot to offense"):
- Continued NIM expansion as portfolio rotates into higher-yielding assets
- $4.3–4.8B revenue synergy opportunity from cross-selling Schwab capabilities to legacy TDA clients
- Net income margin expanding from ~37% (FY25) to ~39% (FY26 target)
- Q1 2026 record EPS $1.43 + revenue $6.5B confirms operational momentum

Risk: Fed rate cuts compress investment yields on sweep cash (partial offset from lending growth) + ongoing sweep-cash litigation could force industry-wide sweep rate increases.

#### Forward Estimates
FY2026 Consensus:
- Revenue: ~$26–28B (+8–17%)
- EPS: ~$5.50–6.20 (+15–28%)

Bull case: NIM expansion continues to 3.10%; TDA revenue synergies layered in; net income margin reaches 40%; multiple expands to 22x P/E. Bear case: Fed rate cuts deeper than expected; sweep litigation outcome forces rate increases; NIM compresses; multiple compresses to 15x P/E. Consensus targets ~$105–120 vs. trading ~$90–100 (~10–25% implied upside).

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/SCHW/fundamental

## Navigation

- Overview: /stocks/SCHW
- Financials (this page): /stocks/SCHW/financials
- Thesis: /stocks/SCHW/thesis
- Investment Memo: /stocks/SCHW/memo
- Coverage universe: /stocks