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Can Robust Trading, Higher NIR Support Schwab's Q3 Earnings?
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Key Takeaways
Schwab's Q3 earnings are projected to rise 26.7% year over year, with revenues expected to grow 17.3%.
SCHW's trading revenues are likely to jump 18.2%, driven by market volatility and healthy client engagement.
SCHW's NIR and asset management fees are poised to rise, while higher expenses may weigh on results.
Charles Schwab (SCHW - Free Report) is scheduled to report third-quarter 2026 earnings on Oct. 15, before market open. The company’s quarterly earnings and revenues are expected to have increased on a year-over-year basis.
Schwab’s second-quarter 2026 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 4.16%.
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 third-quarter performance.
Factors Likely to Impact Schwab’s Q3 Earnings
Trading Revenues: Client trading activity remained strong in the third quarter, driven by elevated market volatility amid shifting expectations for artificial intelligence, persistent inflation, ongoing geopolitical tensions and a more hawkish Federal Reserve. These factors fueled higher activity across equities, fixed income, foreign exchange and commodities markets.
Schwab continued to expand its client base, with new brokerage account openings rising in the first two months of the quarter and core net new assets increasing year over year.
Backed by healthy client engagement and a favorable trading backdrop, Schwab is expected to have delivered solid growth in trading revenues. The Zacks Consensus Estimate for trading revenues is pegged at $1.18 billion, indicating an 18.2% year-over-year increase.
NIR: In the quarter, the Fed increased interest rates by 25 basis points, while maintaining a hawkish tone because of persistently high inflation. This is expected to have created a favorable backdrop for SCHW. Thus, supported by growth in loans and stabilizing funding/deposit costs, the company’s NIR is expected to have been positively impacted.
The consensus estimate for SCHW’s average interest-earning assets for the to-be-reported quarter is $460.6 billion, indicating a year-over-year rise of 9.7%. The Zacks Consensus Estimate for second-quarter NIR is pegged at $3.57 billion, indicating a rise of 17%.
Asset Management & Administration Fees: Schwab’s asset management and administration fees are expected to have benefited from higher average client assets in the third quarter, supported by decent equity market performance and continued growth in advisory solutions. In July and August, 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 $1.89 billion, which implies year-over-year growth of 13.2%.
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.
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 low. This is because it doesn’t have 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 -0.11%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Q3 Earnings & Sales Estimates for SCHW
In the past 30 days, the Zacks Consensus Estimate for third-quarter earnings has been revised marginally lower to $1.66 per share. The figure indicates a 26.7% rise from the year-ago quarter.
The consensus estimate for quarterly sales is pegged at $7.19 billion, which suggests a 17.3% increase.
Finance Stocks Worth Considering
Here are a couple of finance stocks that you may want to consider, as these have the right combination of elements to post an earnings beat in their upcoming releases:
JPMorgan (JPM - Free Report) is scheduled to announce third-quarter 2026 results tomorrow. The company carries a Zacks Rank #3 at present and has an Earnings ESP of +1.19%.
Quarterly earnings estimates for JPMorgan have been revised marginally higher to $5.94 per share over the past week.
View the Zacks #1 Rank List
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Can Robust Trading, Higher NIR Support Schwab's Q3 Earnings?
Key Takeaways
Charles Schwab (SCHW - Free Report) is scheduled to report third-quarter 2026 earnings on Oct. 15, before market open. The company’s quarterly earnings and revenues are expected to have increased on a year-over-year basis.
Schwab’s second-quarter 2026 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 4.16%.
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 third-quarter performance.
Factors Likely to Impact Schwab’s Q3 Earnings
Trading Revenues: Client trading activity remained strong in the third quarter, driven by elevated market volatility amid shifting expectations for artificial intelligence, persistent inflation, ongoing geopolitical tensions and a more hawkish Federal Reserve. These factors fueled higher activity across equities, fixed income, foreign exchange and commodities markets.
Schwab continued to expand its client base, with new brokerage account openings rising in the first two months of the quarter and core net new assets increasing year over year.
Backed by healthy client engagement and a favorable trading backdrop, Schwab is expected to have delivered solid growth in trading revenues. The Zacks Consensus Estimate for trading revenues is pegged at $1.18 billion, indicating an 18.2% year-over-year increase.
NIR: In the quarter, the Fed increased interest rates by 25 basis points, while maintaining a hawkish tone because of persistently high inflation. This is expected to have created a favorable backdrop for SCHW. Thus, supported by growth in loans and stabilizing funding/deposit costs, the company’s NIR is expected to have been positively impacted.
The consensus estimate for SCHW’s average interest-earning assets for the to-be-reported quarter is $460.6 billion, indicating a year-over-year rise of 9.7%. The Zacks Consensus Estimate for second-quarter NIR is pegged at $3.57 billion, indicating a rise of 17%.
Asset Management & Administration Fees: Schwab’s asset management and administration fees are expected to have benefited from higher average client assets in the third quarter, supported by decent equity market performance and continued growth in advisory solutions. In July and August, 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 $1.89 billion, which implies year-over-year growth of 13.2%.
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.
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 low. This is because it doesn’t have 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 -0.11%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Q3 Earnings & Sales Estimates for SCHW
In the past 30 days, the Zacks Consensus Estimate for third-quarter earnings has been revised marginally lower to $1.66 per share. The figure indicates a 26.7% rise from the year-ago quarter.
The consensus estimate for quarterly sales is pegged at $7.19 billion, which suggests a 17.3% increase.
Finance Stocks Worth Considering
Here are a couple of finance stocks that you may want to consider, as these have the right combination of elements to post an earnings beat in their upcoming releases:
JPMorgan (JPM - Free Report) is scheduled to announce third-quarter 2026 results tomorrow. The company carries a Zacks Rank #3 at present and has an Earnings ESP of +1.19%.
Quarterly earnings estimates for JPMorgan have been revised marginally higher to $5.94 per share over the past week.
The Earnings ESP for Interactive Brokers (IBKR - Free Report) is +1.52%, and it carries a Zacks Rank #2 (Buy) at present. The company is slated to report third-quarter 2026 results on Oct. 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 Interactive Brokers’ quarterly earnings has been unchanged at 66 cents per share.