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Solid Trading Activity, Growth in NIR to Drive Schwab's Q1 Earnings
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Key Takeaways
Schwab is set to report Q1 results on April 16, with earnings and revenues expected to rise year over year.
SCHW's trading revenues estimate is $1.08B, up 18.4%, as client activity and volatility stayed strong.
SCHW's NIR estimate is $3.19B, up 18%, supported by lending strength and stabilizing funding costs.
Charles Schwab (SCHW - Free Report) is scheduled to report first-quarter 2026 earnings on April 16, before market open. The company’s quarterly earnings and revenues are expected to have increased on a year-over-year basis.
Schwab’s fourth-quarter 2025 earnings outpaced the Zacks Consensus Estimate, driven by the solid performance of the asset management business and higher trading revenues. Higher net interest revenues (NIR) and solid brokerage account numbers were other positives.
The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average beat being 4.11%.
The Charles Schwab Corporation Price and EPS Surprise
Before we take a look at what our quantitative model predicts, let us check the factors that are likely to have impacted Schwab’s first-quarter performance.
Factors Likely to Influence Schwab’s Q1 Earnings
Trading Revenues: Client activity and market volatility were robust in the first quarter. Major factors that influenced trading business in the quarter included shifting expectations around AI, rising geopolitical tensions, particularly concerns over the Middle East and the risk of an oil shock, persistent inflation concerns and uncertainty around the Fed’s monetary policy stance.
The number of new brokerage accounts opened grew in the first two months of the quarter. Nonetheless, in January and February, SCHW’s core net new assets were down year over year.
Despite this, Schwab is expected to have witnessed a rise in trading revenues in the to-be-reported quarter. The Zacks Consensus Estimate for trading revenues is pegged at $1.08 billion, which suggests an 18.4% increase from the prior-year quarter.
NIR: The consensus estimate for SCHW’s average interest-earning assets for the to-be-reported quarter is $439.6 billion, indicating a year-over-year rise of 2.9%.
In the quarter, the Federal Reserve kept interest rates unchanged. However, lower rates are likely to have hurt SCHW’s NIR and net interest margin (NIM) to some extent, but a solid lending scenario and stabilizing funding/deposit costs are expected to have offered the much-needed support.
The company’s continued focus on repaying high-cost bank supplemental funding balances is expected to have further supported growth.
The Zacks Consensus Estimate for NIR is pegged at $3.19 billion, indicating a rise of 18% from the prior-year quarter.
Asset Management & Administration Fees: Led by subdued equity market performance during the quarter, Schwab is likely to have recorded weak growth in asset management and administration fees. In January and February, Schwab’s client assets receiving ongoing advisory services grew from the prior-year periods.
The consensus estimate for asset management and administration fees for the to-be-reported quarter is pegged at $1.74 billion, which implies year-over-year growth of 14%.
Expenses: Schwab’s operating expenses have been elevated in the past few quarters. Due to persistent regulatory spending and strategic acquisitions, marketing and advertising, and efforts to enhance business efficiency, expenses are likely to have increased in the to-be-reported quarter. Also, the company’s plan to expand its branch network and hire for branch-related positions is expected to have led to higher expenses.
Key Q1 2026 Development for SCHW
In March, Schwab acquired Forge Global Holdings, Inc. The all-cash transaction, valued at $660 million, was announced in November 2025.
Per the agreement, Schwab paid $45 per share in cash for each share of Forge Global.
In the near term, the company plans to extend access to more than 1 million retail clients and registered investment advisers (RIAs), with further expansion to all qualified investors and enhanced stock-plan and proprietary solutions over the medium term.
The move aligns with Schwab’s strategy to offer private market capabilities to retail and advisor clients, leveraging its comprehensive suite of wealth, advisory and investment management solutions, to address the complex needs of investors.
What the Zacks Model Reveals for Schwab
According to our quantitative model, the chances of Schwab beating the Zacks Consensus Estimate for earnings this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Schwab is +1.93%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Q1 Earnings & Sales Estimates for SCHW
In the past seven days, the Zacks Consensus Estimate for first-quarter earnings has been revised marginally higher to $1.37 per share. This indicates a 31.7% rise from the year-ago quarter.
The consensus estimate for quarterly sales is pegged at $6.44 billion, which suggests a 15% increase from the prior-year quarter. Management anticipates first-quarter total revenues to increase about 16% year-over-year.
Other Finance Stocks Worth Betting on
Here are a couple of other finance stocks that you may want to consider, as these too have the right combination of elements to post an earnings beat in their upcoming releases:
JPMorgan (JPM - Free Report) is scheduled to announce first-quarter 2026 results on April 14. The company carries a Zacks Rank #3 at present and has an Earnings ESP of +0.52%.
Quarterly earnings estimates for JPMorgan have been revised lower to $5.46 per share over the past week.
View the Zacks #1 Rank List
Image: Bigstock
Solid Trading Activity, Growth in NIR to Drive Schwab's Q1 Earnings
Key Takeaways
Charles Schwab (SCHW - Free Report) is scheduled to report first-quarter 2026 earnings on April 16, before market open. The company’s quarterly earnings and revenues are expected to have increased on a year-over-year basis.
Schwab’s fourth-quarter 2025 earnings outpaced the Zacks Consensus Estimate, driven by the solid performance of the asset management business and higher trading revenues. Higher net interest revenues (NIR) and solid brokerage account numbers were other positives.
The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average beat being 4.11%.
The Charles Schwab Corporation Price and EPS Surprise
The Charles Schwab Corporation price-eps-surprise | The Charles Schwab Corporation Quote
Before we take a look at what our quantitative model predicts, let us check the factors that are likely to have impacted Schwab’s first-quarter performance.
Factors Likely to Influence Schwab’s Q1 Earnings
Trading Revenues: Client activity and market volatility were robust in the first quarter. Major factors that influenced trading business in the quarter included shifting expectations around AI, rising geopolitical tensions, particularly concerns over the Middle East and the risk of an oil shock, persistent inflation concerns and uncertainty around the Fed’s monetary policy stance.
The number of new brokerage accounts opened grew in the first two months of the quarter. Nonetheless, in January and February, SCHW’s core net new assets were down year over year.
Despite this, Schwab is expected to have witnessed a rise in trading revenues in the to-be-reported quarter. The Zacks Consensus Estimate for trading revenues is pegged at $1.08 billion, which suggests an 18.4% increase from the prior-year quarter.
NIR: The consensus estimate for SCHW’s average interest-earning assets for the to-be-reported quarter is $439.6 billion, indicating a year-over-year rise of 2.9%.
In the quarter, the Federal Reserve kept interest rates unchanged. However, lower rates are likely to have hurt SCHW’s NIR and net interest margin (NIM) to some extent, but a solid lending scenario and stabilizing funding/deposit costs are expected to have offered the much-needed support.
The company’s continued focus on repaying high-cost bank supplemental funding balances is expected to have further supported growth.
The Zacks Consensus Estimate for NIR is pegged at $3.19 billion, indicating a rise of 18% from the prior-year quarter.
Asset Management & Administration Fees: Led by subdued equity market performance during the quarter, Schwab is likely to have recorded weak growth in asset management and administration fees. In January and February, Schwab’s client assets receiving ongoing advisory services grew from the prior-year periods.
The consensus estimate for asset management and administration fees for the to-be-reported quarter is pegged at $1.74 billion, which implies year-over-year growth of 14%.
Expenses: Schwab’s operating expenses have been elevated in the past few quarters. Due to persistent regulatory spending and strategic acquisitions, marketing and advertising, and efforts to enhance business efficiency, expenses are likely to have increased in the to-be-reported quarter. Also, the company’s plan to expand its branch network and hire for branch-related positions is expected to have led to higher expenses.
Key Q1 2026 Development for SCHW
In March, Schwab acquired Forge Global Holdings, Inc. The all-cash transaction, valued at $660 million, was announced in November 2025.
Per the agreement, Schwab paid $45 per share in cash for each share of Forge Global.
In the near term, the company plans to extend access to more than 1 million retail clients and registered investment advisers (RIAs), with further expansion to all qualified investors and enhanced stock-plan and proprietary solutions over the medium term.
The move aligns with Schwab’s strategy to offer private market capabilities to retail and advisor clients, leveraging its comprehensive suite of wealth, advisory and investment management solutions, to address the complex needs of investors.
What the Zacks Model Reveals for Schwab
According to our quantitative model, the chances of Schwab beating the Zacks Consensus Estimate for earnings this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Schwab is +1.93%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Q1 Earnings & Sales Estimates for SCHW
In the past seven days, the Zacks Consensus Estimate for first-quarter earnings has been revised marginally higher to $1.37 per share. This indicates a 31.7% rise from the year-ago quarter.
The consensus estimate for quarterly sales is pegged at $6.44 billion, which suggests a 15% increase from the prior-year quarter. Management anticipates first-quarter total revenues to increase about 16% year-over-year.
Other Finance Stocks Worth Betting on
Here are a couple of other finance stocks that you may want to consider, as these too have the right combination of elements to post an earnings beat in their upcoming releases:
JPMorgan (JPM - Free Report) is scheduled to announce first-quarter 2026 results on April 14. The company carries a Zacks Rank #3 at present and has an Earnings ESP of +0.52%.
Quarterly earnings estimates for JPMorgan have been revised lower to $5.46 per share over the past week.
The Earnings ESP for Bank of America (BAC - Free Report) is +1.49%, and it carries a Zacks Rank #3 at present. The company is slated to report first-quarter 2026 results on April 15. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past seven days, the Zacks Consensus Estimate for Bank of America’s quarterly earnings has been unchanged at 99 cents per share.