Client Growth & Engagement Drive Record Schwab 1Q Results
Charles Schwab reported record Q1 net revenue of $6.5 billion, up 16% year-over-year, and adjusted EPS of $1.43. Core net new assets hit $140 billion, and the firm added 1.3 million new brokerage accounts.
The Charles Schwab Corporation (NYSE: SCHW) posted record first-quarter results for 2026, driven by robust client engagement across wealth management, trading, and lending. Net revenue reached $6.5 billion, a 16% increase from the same period last year. GAAP net income totaled $2.5 billion, or $1.37 per diluted share, while adjusted net income—excluding $143 million in transaction-related costs—came in at $2.6 billion, or $1.43 per share. The adjusted EPS figure represents a 38% jump over Q1 2025.
Client growth remained a key driver. The firm attracted $140 billion in core net new assets during the quarter, including a planned $17.5 billion outflow from a mutual fund clearing client deconversion; excluding that item, asset gathering totaled $157.5 billion. Schwab opened 1.3 million new brokerage accounts, pushing total active brokerage accounts to 39.1 million and total client accounts to 47.2 million. Total client assets reached $11.77 trillion, up 19% year-over-year.
Managed Investing solutions saw net flows increase 46% year-over-year, while bank loan balances rose 29% to $60.9 billion. Margin loan balances ended March at $126.7 billion, up 13% versus year-end 2025. Daily average trading volume hit a record 9.9 million, a 34% increase from Q1 2025. Trading revenue rose 20% to $1.09 billion, and asset management and administration fees grew 15% to $1.8 billion.
Capital Return and Strategic Moves
During the quarter, Schwab repurchased 24.3 million shares of common stock for $2.4 billion and increased its quarterly common stock dividend by 19% to $0.32 per share. The company also closed its acquisition of Forge Global in early March and launched the Schwab Teen Investor Account targeting young investors. Schwab was ranked #1 Overall Broker by StockBrokers.com for the second consecutive year.
CFO Mike Verdeschi highlighted the diversified revenue model, noting that strong client engagement drove record results despite macroeconomic uncertainty. The net interest margin for the quarter was 2.88%, and client transactional sweep cash balances rose to $461.5 billion at quarter-end. Pre-tax profit margin on an adjusted basis stood at 51.4%, compared to 46.2% a year earlier.
Source: Charles Schwab