We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SCHW Stock Up On Solid Q1 Revenue View, Higher February Client Assets
Read MoreHide Full Article
Key Takeaways
SCHW expects Q1 2026 revenues to rise about 16% year over year, driven by strong client engagement.
Charles Schwab reported $12.22T in client assets for Feb 2026, up 18.9% YoY and slightly higher than January.
SCHW added 395,000 new brokerage accounts in Feb while core net new assets totaled $32.5B.
Shares of Charles Schwab (SCHW - Free Report) have gained 2% on Friday in response to upbeat revenue guidance for the first quarter of 2026. The company reported an increase in total client assets for February.
Management expects first-quarter total revenues to grow approximately 16% from the prior-year quarter. The increase will be driven by “strong quarter-to-date client engagement across trading, wealth and lending solutions.”
In its earlier guidance issued in January, Schwab projected full-year revenue growth of 9.5-10.5%.
SCHW Posts a Rise in February Client Assets
The company’s total client assets were $12.22 trillion in February 2026, up 18.9% from February 2025 and rose marginally from January 2026. This was driven by the volatile markets during the month.
SCHW’s core net new assets (NNA) were $32.5 billion in February 2026, down 32.3% from the prior-year month but up 16.9% sequentially.
Schwab’s client assets receiving ongoing advisory services totaled $6.26 trillion, up 20.5% from the year-ago period and 1.6% from the prior month.
Schwab’s average interest-earning assets of $434.2 billion rose 2.3% from February 2025 but declined 1.7% from the previous month. Margin balances were $120.6 billion, up 39.4% from the year-ago month and 3.7% from January 2026.
Schwab opened 395,000 new brokerage accounts in February 2026, up 9.1% from the year-earlier month but down 17% from the prior month.
Schwab’s active brokerage accounts totaled 38.9 million at the end of February 2026, up 5.6% year over year and marginally from January 2026. Client banking accounts were 2.3 million, up 11.1% from the February 2025 level and slightly higher than the prior quarter. The number of workplace plan participant accounts rose 6.7% year over year and increased modestly from the January 2026 level to 5.8 million.
Our Take on Schwab
Schwab remains well positioned, supported by its diversified financial model and steady client engagement. The company expects that by year-end, equity market returns will be around 6.5%, average daily trades will be roughly 7.4 million and organic asset growth will be about 5%.
Its strategic initiatives, including the planned acquisitions of Forge Global, branch expansion and AI-driven capabilities, are likely to support client asset growth. Efforts to repay high-cost bank supplemental funding balances are expected to aid net interest income. Its strong liquidity position is likely to support sustainable capital distribution.
Rising operating expenses, intense fintech competition and uncertainty around capital market performance remain concerns.
SCHW’s Zacks Rank & Price Performance
In the past three months, Schwab shares have declined 3.7% compared with the industry’s fall of 11.1%.
Interactive Brokers Group, Inc.’s (IBKR - Free Report) Electronic Brokerage segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported a year-over-year rise in client Daily Average Revenue Trades (“DARTs”) in February 2026.
IBKR’s total client DARTs in February were 4,366,000, representing a 21% increase from February 2025 but declining 1% from January 2026. On an annualized basis, cleared average DARTs per customer account were 204 in February. The metric declined 9% on a year-over-year basis and 3% from January 2026.
Robinhood Markets, Inc. (HOOD - Free Report) released the monthly operating data for February 2026. It reported a rise in equity and options DARTs from the year-ago period.
HOOD’s equity DARTs were 2.6 million in the reported month, up 8% from February 2025. Options DARTs rose 8% year over year to 1.3 million. Crypto DARTs declined 29% from the prior-year month to 0.5 million.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
SCHW Stock Up On Solid Q1 Revenue View, Higher February Client Assets
Key Takeaways
Shares of Charles Schwab (SCHW - Free Report) have gained 2% on Friday in response to upbeat revenue guidance for the first quarter of 2026. The company reported an increase in total client assets for February.
Schwab’s Signals Strong First-Quarter 2026 Performance
Management expects first-quarter total revenues to grow approximately 16% from the prior-year quarter. The increase will be driven by “strong quarter-to-date client engagement across trading, wealth and lending solutions.”
In its earlier guidance issued in January, Schwab projected full-year revenue growth of 9.5-10.5%.
SCHW Posts a Rise in February Client Assets
The company’s total client assets were $12.22 trillion in February 2026, up 18.9% from February 2025 and rose marginally from January 2026. This was driven by the volatile markets during the month.
SCHW’s core net new assets (NNA) were $32.5 billion in February 2026, down 32.3% from the prior-year month but up 16.9% sequentially.
Schwab’s client assets receiving ongoing advisory services totaled $6.26 trillion, up 20.5% from the year-ago period and 1.6% from the prior month.
Schwab’s average interest-earning assets of $434.2 billion rose 2.3% from February 2025 but declined 1.7% from the previous month. Margin balances were $120.6 billion, up 39.4% from the year-ago month and 3.7% from January 2026.
Schwab opened 395,000 new brokerage accounts in February 2026, up 9.1% from the year-earlier month but down 17% from the prior month.
Schwab’s active brokerage accounts totaled 38.9 million at the end of February 2026, up 5.6% year over year and marginally from January 2026. Client banking accounts were 2.3 million, up 11.1% from the February 2025 level and slightly higher than the prior quarter. The number of workplace plan participant accounts rose 6.7% year over year and increased modestly from the January 2026 level to 5.8 million.
Our Take on Schwab
Schwab remains well positioned, supported by its diversified financial model and steady client engagement. The company expects that by year-end, equity market returns will be around 6.5%, average daily trades will be roughly 7.4 million and organic asset growth will be about 5%.
Its strategic initiatives, including the planned acquisitions of Forge Global, branch expansion and AI-driven capabilities, are likely to support client asset growth. Efforts to repay high-cost bank supplemental funding balances are expected to aid net interest income. Its strong liquidity position is likely to support sustainable capital distribution.
Rising operating expenses, intense fintech competition and uncertainty around capital market performance remain concerns.
SCHW’s Zacks Rank & Price Performance
In the past three months, Schwab shares have declined 3.7% compared with the industry’s fall of 11.1%.
Image Source: Zacks Investment Research
Currently, SCHW carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Performance of Schwab’s Peers in February
Interactive Brokers Group, Inc.’s (IBKR - Free Report) Electronic Brokerage segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported a year-over-year rise in client Daily Average Revenue Trades (“DARTs”) in February 2026.
IBKR’s total client DARTs in February were 4,366,000, representing a 21% increase from February 2025 but declining 1% from January 2026. On an annualized basis, cleared average DARTs per customer account were 204 in February. The metric declined 9% on a year-over-year basis and 3% from January 2026.
Robinhood Markets, Inc. (HOOD - Free Report) released the monthly operating data for February 2026. It reported a rise in equity and options DARTs from the year-ago period.
HOOD’s equity DARTs were 2.6 million in the reported month, up 8% from February 2025. Options DARTs rose 8% year over year to 1.3 million. Crypto DARTs declined 29% from the prior-year month to 0.5 million.