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Schwab Tops Q3 Expectations on Record Revenues, Favorable Backdrop
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Key Takeaways
Charles Schwab's Q3 net revenues hit a record $6.14B, up 27% year over year.
Adjusted EPS climbed 70% to $1.31 on strong trading, asset growth and higher interest revenues.
Client assets rose to $11.59T, driven by $137.5B in net new assets and 1M new accounts.
Charles Schwab (SCHW - Free Report) posted record net revenues of $6.14 billion for the third quarter of 2025. The metric was up 27% year over year, with strength across all major revenue streams. The top line also beat the Zacks Consensus Estimate of $5.95 billion.
Supported by massive revenues and manageable expenses, SCHW’s adjusted earnings per share soared 70% from the prior-year quarter to $1.31. Further, it surpassed the consensus estimate of $1.23.
The Charles Schwab Corporation Price, Consensus and EPS Surprise
Record net new assets: Schwab attracted $137.5 billion in core net new assets during the quarter, marking a 44% year-over-year jump. This surge was driven by organic client growth and sustained transfers from competitors. This lifted the total client assets to an all-time high of $11.59 trillion.
Trading activity spike: Daily average trading volumes surged 30% from the prior-year quarter to 7.42 million trades, fueling a 25% increase in trading revenues as clients responded to market volatility and opportunity. Schwab opened more than 1 million new brokerage accounts for the fourth consecutive quarter, highlighting persistent client engagement. Driven by these factors, the company’s trading revenues jumped 25% to $995 million.
Higher net interest revenues (NIR): A favorable interest rate environment continued to benefit Schwab, with net interest margin rising 78 basis points year over year to 2.86%. Client sweep cash balances grew $13.5 billion, supporting both profitability and funding costs.
The company also lowered its supplemental bank funding by $12.9 billion to $14.8 billion as of Sept. 30, 2025. This reflected better balance sheet efficiency. At the end of the third quarter, Schwab’s average interest-earning assets were relatively stable at $419.8 billion. Hence, NIR (SCHW’s biggest revenue source) increased 37% year over year to $3.05 billion.
Asset management fee growth: Revenues from asset management and administration rose 13% to $1.67 billion, supported by record adoption of wealth solutions and strong equity market performance. At the end of September, client assets receiving ongoing advisory services totaled $5.81 billion, up 16% year over year.
Other Factors: Strong equity markets, client optimism and robust economic activity supported both asset growth and trading engagement at SCHW. Further, the company expanded its AI-enabled investment solutions and ETFs, driving higher net flows and retention among higher-value clients.
Other Factors That Influenced Schwab’s Q3 Earnings
Total non-interest expenses (GAAP basis) rose 4% to $3.11 billion. Excluding non-recurring items, adjusted total expenses were $3 billion, up 5% year over year.
Additionally, as of Sept. 30, 2025, the company had 38 million active brokerage accounts, 2.2 million banking accounts and 5.6 million corporate retirement plan participants.
Despite a record quarterly performance, Schwab’s shares pared initial gains and ended yesterday’s session down almost 1%. Bearish investor sentiments had nothing to do with the company’s financial performance; it was because of the sector-wide concerns about regional banks and increasing credit stress.
Here are a couple of Schwab’s peers that are yet to come out with quarterly numbers.
Tradeweb Markets (TW - Free Report) is scheduled to announce quarterly numbers on Oct. 30.
In the past week, the Zacks Consensus Estimate for TW’s quarterly earnings has been revised 2.4% lower to 83 cents, indicating a 10.7% rise from the prior-year reported number.
Robinhood Markets (HOOD - Free Report) is slated to announce third-quarter 2025 numbers on Nov. 5.
In the past seven days, the Zacks Consensus Estimate for Robinhood’s quarterly earnings has moved 4.3% upward to 49 cents, implying a 188.2% jump from the prior-year reported number.
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Schwab Tops Q3 Expectations on Record Revenues, Favorable Backdrop
Key Takeaways
Charles Schwab (SCHW - Free Report) posted record net revenues of $6.14 billion for the third quarter of 2025. The metric was up 27% year over year, with strength across all major revenue streams. The top line also beat the Zacks Consensus Estimate of $5.95 billion.
Supported by massive revenues and manageable expenses, SCHW’s adjusted earnings per share soared 70% from the prior-year quarter to $1.31. Further, it surpassed the consensus estimate of $1.23.
The Charles Schwab Corporation Price, Consensus and EPS Surprise
The Charles Schwab Corporation price-consensus-eps-surprise-chart | The Charles Schwab Corporation Quote
Core Drivers of Schwab’s Q3 Revenue Growth
Record net new assets: Schwab attracted $137.5 billion in core net new assets during the quarter, marking a 44% year-over-year jump. This surge was driven by organic client growth and sustained transfers from competitors. This lifted the total client assets to an all-time high of $11.59 trillion.
Trading activity spike: Daily average trading volumes surged 30% from the prior-year quarter to 7.42 million trades, fueling a 25% increase in trading revenues as clients responded to market volatility and opportunity. Schwab opened more than 1 million new brokerage accounts for the fourth consecutive quarter, highlighting persistent client engagement. Driven by these factors, the company’s trading revenues jumped 25% to $995 million.
Higher net interest revenues (NIR): A favorable interest rate environment continued to benefit Schwab, with net interest margin rising 78 basis points year over year to 2.86%. Client sweep cash balances grew $13.5 billion, supporting both profitability and funding costs.
The company also lowered its supplemental bank funding by $12.9 billion to $14.8 billion as of Sept. 30, 2025. This reflected better balance sheet efficiency. At the end of the third quarter, Schwab’s average interest-earning assets were relatively stable at $419.8 billion. Hence, NIR (SCHW’s biggest revenue source) increased 37% year over year to $3.05 billion.
Asset management fee growth: Revenues from asset management and administration rose 13% to $1.67 billion, supported by record adoption of wealth solutions and strong equity market performance. At the end of September, client assets receiving ongoing advisory services totaled $5.81 billion, up 16% year over year.
Other Factors: Strong equity markets, client optimism and robust economic activity supported both asset growth and trading engagement at SCHW. Further, the company expanded its AI-enabled investment solutions and ETFs, driving higher net flows and retention among higher-value clients.
Other Factors That Influenced Schwab’s Q3 Earnings
Total non-interest expenses (GAAP basis) rose 4% to $3.11 billion. Excluding non-recurring items, adjusted total expenses were $3 billion, up 5% year over year.
Additionally, as of Sept. 30, 2025, the company had 38 million active brokerage accounts, 2.2 million banking accounts and 5.6 million corporate retirement plan participants.
Despite a record quarterly performance, Schwab’s shares pared initial gains and ended yesterday’s session down almost 1%. Bearish investor sentiments had nothing to do with the company’s financial performance; it was because of the sector-wide concerns about regional banks and increasing credit stress.
At present, Schwab carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of Schwab's Peers
Here are a couple of Schwab’s peers that are yet to come out with quarterly numbers.
Tradeweb Markets (TW - Free Report) is scheduled to announce quarterly numbers on Oct. 30.
In the past week, the Zacks Consensus Estimate for TW’s quarterly earnings has been revised 2.4% lower to 83 cents, indicating a 10.7% rise from the prior-year reported number.
Robinhood Markets (HOOD - Free Report) is slated to announce third-quarter 2025 numbers on Nov. 5.
In the past seven days, the Zacks Consensus Estimate for Robinhood’s quarterly earnings has moved 4.3% upward to 49 cents, implying a 188.2% jump from the prior-year reported number.