SCHWAB DELIVERS RECORD NET NEW ASSETS & EARNINGS
SCHWAB DELIVERS RECORD NET NEW ASSETS & EARNINGS Record Quarterly Core Net New Assets of $190.4 Billion, Up 38% Year-Over-Year 3Q Net Revenues Reached a Record $7.2 Billion, Up 17% Year-Over-Year Record GAAP Earnings Per Share of $1.62; $1.69 Adjusted(1)– Up 29% versus 3Q25
– The Charles Schwab Corporation reported net income for the third quarter totaling $2.9 billion, or earnings per share of $1.62. Excluding $151 million of pre-tax transaction-related costs, adjusted (1) net income and earnings per share equaled $3.0 billion and $1.69, respectively.
“During the third quarter, clients opened 1.2 million new brokerage accounts and entrusted Schwab with $190.4 billion in core net new assets – an $190.4B annualized growth rate Client Driven 3Q26 Core of 5.8%. We are Growth Net New Assets delivering new capabilities and solutions, while our leading value proposition continues to resonate with investors and RIAs.” President & CEO Rick Wurster “As investing plays an increasingly central role in people’s financial lives, clients continue to turn to Schwab for our broad set of wealth, 55% trading, and banking Deepen Client 3Q26 Schwab Wealth capabilities. During Relationships AdvisoryTMNet Flows the quarter, Pledged Growth vs. 3Q25 Asset LineTMbalances grew to $37.3 billion, up 59% year-over-year, while net flows into Schwab Wealth AdvisoryTMincreased 55%.” President & CEO Rick Wurster “Deeper client engagement across Schwab's platform continues to broaden 17% and strengthen our Diversified Revenue 3Q26 Revenue revenue model, helping Growth Growth vs. 3Q25 our third quarter revenue increase 17% year-over-year to a record $7.2 billion.” CFO Mike Verdeschi “Our diversified business model, continued focus on meeting clients’ evolving needs, and Strong Earnings 29% industry leading scale Momentum 3Q26 GAAP EPS combined to drive Growth vs. 3Q25 year-over-year GAAP earnings growth of 29% to a record $1.62, or $1.69 on an adjusted(1)basis.” CFO Mike Verdeschi
• New brokerage account openings equaled 1.2 million, helping bring total client accounts to 48.6 million
• Bank loan balances equaled $72.3 billion at September month-end, up 35% year- over-year
• Margin loan balances increased 14% quarter-over-quarter to $187.9 billion at quarter-end, including $60.7 billion related to long/short strategies (2)
• Announced Single Stock Futures on the thinkorswim ® trading platform and plans to expand digital assets available in Schwab Crypto TM
• Introduced Charley, a new AI-powered assistant that provides U.S. retail clients with conversational access to Schwab’s tools and insights
• Partnered with Anthropic to bring Claude for Financial Advisors directly to the independent RIAs Schwab serves
• Client transactional sweep cash balances ended September at $492.8 billion, an increase of $7.1 billion versus the prior quarter-end, reflecting continued demand for long/short strategies and organic growth, partially offset by client asset allocation decisions
• Average interest-earning assets for the quarter equaled $451.5 billion, up 8% versus 3Q25
• Asset management and administration fees grew by 14% year-over-year to $1.9 billion, powered by the firm’s organic growth and investors’ increased utilization of our wealth and asset management solutions
• Clients remained engaged with the market, driving trading revenue of $1.2 billion, up 16% year-over-year
• GAAP expenses for the quarter increased 9% year-over-year; excluding acquisition and integration-related costs and the amortization of acquired intangibles of $151 million, adjusted total expenses (1) were also up 9% relative to 3Q25
• Capital ratios across the firm remained strong – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) of 8.9 % and 7.0 %, respectively
• Repurchased 4.7 million shares of our common stock for $0.5 billion during the quarter
(1) Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-12 of this release.
(2) Client margin loans and short credits related to certain long/short strategies utilized by RIAs are excluded from interest-earning assets and company funding sources.
(3) Fortune America’s Most Innovative Companies 2026 was given on March 25, 2026, and expires on March 24, 2027. The criteria, evaluation, and ranking were determined by Fortune, partnered with Statista. Visit https://www.fortune.com/ranking/americas-most-innovative-companies/ for more information. Schwab paid a licensing fee to Fortune for use of the award and logos.
The company will host its Fall Business Update for institutional investors this morning from 7:30 a.m. - 8:30 a.m. CT, 8:30 a.m. - 9:30 a.m. ET.
Registration for this Update webcast is accessible at https://www.aboutschwab.com/schwabevents . - 2 -
This press release contains forward-looking statements relating to the company’s diversified business model, scale, capabilities, solutions, value proposition, and client engagement. These forward-looking statements reflect management’s expectations as of the date hereof. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations. Important factors that may cause such differences are described in the company’s most recent reports on Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company’s website ( https://www.aboutschwab.com/financial-reports ) and on the Securities and Exchange Commission’s website ( https://www.sec.gov ). The company makes no commitment to update any forward-looking statements.
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 40.3 million active brokerage accounts, 5.9 million workplace plan participant accounts, 2.4 million banking accounts, and $13.33 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org ), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee- based investment advisors through Schwab Advisor Services TM . Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com .
(1) Return on average common stockholders’ equity is calculated using net income available to common stockholders divided by average common stockholders’ equity.
(2) Second quarter of 2026 includes incremental capital expenditures of $633 million related to a multi-year software license agreement with a corresponding liability recognized in long-term debt.
(3) Revenue per trade is calculated as trading revenue divided by the product of DATs and the number of trading days.
N/M Not meaningful. Percentage changes greater than 200% are presented as not meaningful. - 5 -
(1) Beginning in the fourth quarter of 2025, average balances of margin loans and short credits related to client long/short strategies from which the Company earns a fixed net yield are excluded from interest-earning assets and funding sources. Also beginning in the fourth quarter of 2025, related interest revenue and expense were moved from receivables from brokerage clients and payables to brokerage clients, respectively, to other interest revenue and other interest expense, respectively. Amounts and average yields have been reclassified and recalculated for 2025 periods to reflect these changes. Average margin loans related to these client strategies totaled $51.4 billion and $33.0 billion for the three and nine months ended September 30, 2026, respectively, compared to $2.8 billion and $1.3 billion for the same periods in 2025. Average short credits related to these client strategies totaled $53.3 billion and $34.2 billion for the three and nine months ended September 30, 2026, respectively, compared to $2.8 billion and $1.3 billion for the same periods in 2025.
(3) Beginning in the second quarter of 2026, the net fixed yield earned on client long/short strategies is presented in other interest revenue; amounts for periods prior to the three months ended June 30, 2026 have not been recast as the impact of this change was not material. - 6 -
(1) Beginning in the first quarter of 2026, alternative investments and related revenue were moved from other balance-based fees to other third-party mutual funds, ETFs, and alternatives. Prior period amounts and average fees have been reclassified and recalculated to reflect this change.
(2) Managed investing solutions includes managed portfolios, specialized strategies, and customized investment advice such as Schwab Wealth Advisory TM , Schwab Managed Portfolios TM , Managed Account Select ® , Schwab Advisor Network ® , Windhaven Strategies ® , ThomasPartners ® Strategies, Wasmer Schroeder Strategies ® , Schwab Index Advantage advised retirement plan balances, Schwab Intelligent Portfolios ® , Institutional Intelligent Portfolios, Schwab Intelligent Portfolios Premium, Schwab Wealth Portfolios ™ , AdvisorDirect ® , Essential Portfolios, Selective Portfolios, and Personalized Portfolios; as well as legacy non-fee managed investing solutions including Schwab Advisor Source and certain retirement plan balances. Average client assets for managed investing solutions may also include the asset balances contained in the mutual fund and/or ETF categories listed above. For the total end of period view, please see the Monthly Activity Report.
(4) Includes miscellaneous service and transaction fees, including fees relating to mutual funds and ETFs that are not balance-based. - 7 -
(1) Includes balances held on and off the Schwab platform. As of September 30, 2026, off-platform equity and bond funds, CTFs, and ETFs were $55.0 billion, $4.9 billion, and $223.5 billion, respectively.
(3) Third quarter of 2026 includes net inflows of $2.0 billion from off-platform Schwab Bank Retail Certificates of Deposit (CDs). Second quarter of 2026 includes net outflows of $1.1 billion from off-platform Schwab Bank Retail CDs. First quarter of 2026 includes net outflows of $0.1 billion from off-platform Schwab Bank Retail CDs. Fourth quarter of 2025 includes net outflows of $5.7 billion from off-platform Schwab Bank Retail CDs. Third quarter of 2025 includes net outflows of $3.1 billion from off-platform Schwab Bank Retail CDs.
(4) Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business. - 8 -
(1) Unless otherwise noted, differences between net new assets and core net new assets are net flows from off-platform Schwab Bank Retail CDs.
(2) Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $25 billion) relating to a specific client, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods.
(3) Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business.
(4) Balances include margin loans and short credits related to certain long/short strategies from which the Company earns a fixed net yield. For the month of September 2026, margin loans totaled $60.7 billion and short credits totaled $63.3 billion.
(5) For additional information regarding STAX, please visit: https://www.schwab.com/investment-research/stax/view-schwab-trading-activity- index .
(6) Represents average total interest-earning assets on the Company’s balance sheet. Beginning in December 2025, average balances of margin loans and short credits related to client long/short strategies from which the Company earns a fixed net yield are excluded from average interest-earning assets. Prior period amounts have been adjusted accordingly.
(7) Transactional sweep cash includes bank sweep deposits, broker-dealer cash balances, other client cash held on the balance sheet (such as bank checking and savings deposits, short credits related to certain client long/short strategies, and broker-dealer non-interest-bearing credits), and bank deposit account balances; excludes proprietary and third-party CDs.
(8) Schwab One ® , certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets; client cash excludes brokered CDs issued by Charles Schwab Bank.
(9) Represents the principal value of client mutual fund and ETF transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to investment managers. Excludes money market fund transactions. - 9 -
(Unaudited) In addition to disclosing financial results in accordance with generally accepted accounting principles in the U.S. (GAAP), Schwab’s third quarter earnings release contains references to the non-GAAP financial measures described below. We believe these non-GAAP financial measures provide useful supplemental information about the financial performance of the Company, and facilitate meaningful comparison of Schwab’s results in the current period to both historic and future results. These non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may not be comparable to non-GAAP financial measures presented by other companies.
Schwab’s use of non-GAAP measures is reflective of certain adjustments made to GAAP financial measures as described below.
Non-GAAP Adjustment or Definition Usefulness to Investors Measure and Uses by Management We exclude acquisition and integration-related costs, amortization of acquired intangible assets, and Schwab adjusts certain restructuring costs for GAAP financial measures the purpose of to exclude the impact calculating certain of acquisition and non-GAAP measures integration-related because we believe costs incurred as a doing so provides result of the Company’s additional transparency acquisitions, of Schwab’s ongoing amortization of operations, and is acquired intangible useful in both assets, restructuring evaluating the costs, and, where operating performance applicable, the income of the business and Acquisition and tax effect of these facilitating comparison integration-related expenses. of results with prior costs, amortization of Adjustments made to and future periods. acquired exclude amortization of Costs related to intangible assets, and acquired intangible acquisition and restructuring assets are reflective integration or costs of all acquired restructuring fluctuate intangible assets, based on the timing of which were recorded as acquisitions, part of purchase integration and accounting. These restructuring acquired intangible activities, thereby assets contribute to limiting comparability the Company’s revenue of results among generation. periods, and are not Amortization of representative of the acquired intangible costs of running the assets will continue in Company’s ongoing future periods over business. Amortization their remaining useful of acquired intangible lives. assets is excluded because management does not believe it is indicative of the Company’s underlying operating performance. Return on tangible Acquisitions typically common equity result in the represents annualized recognition of adjusted net income significant amounts of available to common goodwill and acquired stockholders as a intangible assets. We percentage of average believe return on Return on tangible tangible common equity. tangible common equity common equity Tangible common equity may be useful to represents common investors as a equity less goodwill, supplemental measure to acquired intangible facilitate assessing assets — net, and capital efficiency and related deferred tax returns relative to the liabilities. composition of Schwab’s balance sheet. Adjusted Tier 1 Inclusion of the Leverage Ratio impacts of AOCI in the represents the Tier 1 Company’s Tier 1 Leverage Ratio as Leverage Ratio provides prescribed by bank additional information regulatory guidance for regarding the Company’s Adjusted Tier 1 the consolidated current capital Leverage Ratio company and for Charles position. We believe Schwab Bank, SSB (CSB), Adjusted Tier 1 adjusted to reflect the Leverage Ratio may be inclusion of useful to investors as accumulated other a supplemental measure comprehensive income of the Company’s (AOCI) in the ratio. capital levels.
The Company also uses adjusted diluted EPS and return on tangible common equity as components of performance criteria for employee bonus and certain executive management incentive compensation arrangements. The Compensation Committee of CSC’s Board of Directors maintains discretion in evaluating performance against these criteria. Additionally, the Company uses adjusted Tier 1 Leverage Ratio in managing capital, including its use of the measure as its long-term operating objective. - 10 -
(1) Acquisition and integration-related costs for the three months ended September 30, 2026 primarily consist of compensation and benefits. Acquisition and integration-related costs for the nine months ended September 30, 2026 primarily consist of $34 million of compensation and benefits and $14 million of professional services. There were no acquisition and integration-related costs for the three and nine months ended September 30, 2025.
(2) The income tax effects of the non-GAAP adjustments are determined using an effective tax rate reflecting the exclusion of non-deductible acquisition costs and are used to present the acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs on an after- tax basis.
(1) See table above for the reconciliation of net income available to common stockholders to adjusted net income available to common stockholders (non-GAAP).
Full text with the tables
Exhibit 99.1
SCHWAB DELIVERS RECORD NET NEW ASSETS & EARNINGS
Record Quarterly Core Net New Assets of $190.4 Billion, Up 38%
Year-Over-Year
3Q Net Revenues Reached a Record $7.2 Billion, Up 17% Year-Over-Year
Record GAAP Earnings Per Share of $1.62; $1.69 Adjusted(1)– Up 29% versus
3Q25
WESTLAKE, Texas, October 15, 2026
– The Charles Schwab Corporation reported net income for the third quarter
totaling $2.9 billion, or earnings per share of $1.62. Excluding $151 million of
pre-tax transaction-related costs, adjusted (1) net income and earnings per
share equaled $3.0 billion and $1.69, respectively.
“During the third
quarter, clients opened
1.2 million new
brokerage accounts and
entrusted Schwab with
$190.4 billion in core
net new assets – an
$190.4B annualized growth rate
Client Driven 3Q26 Core of 5.8%. We are
Growth Net New Assets delivering new
capabilities and
solutions, while our
leading value
proposition continues
to resonate with
investors and RIAs.”
President & CEO Rick
Wurster
“As investing plays an
increasingly central
role in people’s
financial lives,
clients continue to
turn to Schwab for our
broad set of wealth,
55% trading, and banking
Deepen Client 3Q26 Schwab Wealth capabilities. During
Relationships AdvisoryTMNet Flows the quarter, Pledged
Growth vs. 3Q25 Asset LineTMbalances
grew to $37.3 billion,
up 59% year-over-year,
while net flows into
Schwab Wealth
AdvisoryTMincreased
55%.”
President & CEO Rick
Wurster
“Deeper client
engagement across
Schwab's platform
continues to broaden
17% and strengthen our
Diversified Revenue 3Q26 Revenue revenue model, helping
Growth Growth vs. 3Q25 our third quarter
revenue
increase 17%
year-over-year to a
record $7.2 billion.”
CFO Mike Verdeschi
“Our diversified
business model,
continued focus on
meeting clients’
evolving needs, and
Strong Earnings 29% industry leading scale
Momentum 3Q26 GAAP EPS combined to drive
Growth vs. 3Q25 year-over-year GAAP
earnings growth of 29%
to a record $1.62, or
$1.69 on an
adjusted(1)basis.”
CFO Mike Verdeschi
3Q26 Client and Business Highlights
• Total client assets increased 15% year-over-year to $13.33 trillion
• Core net new assets totaled $190.4 billion, up 38% versus 3Q25
• New brokerage account openings equaled 1.2 million, helping bring total client
accounts to 48.6 million
• Managed Investing Solutions net flows grew 22% versus 3Q25
• Bank loan balances equaled $72.3 billion at September month-end, up 35% year-
over-year
• Margin loan balances increased 14% quarter-over-quarter to $187.9 billion at
quarter-end, including $60.7 billion related to long/short strategies (2)
• Daily average trading volume equaled 10.7 million – up 44% versus 3Q25
• Announced Single Stock Futures on the thinkorswim ® trading platform and plans
to expand digital assets available in Schwab Crypto TM
• Introduced Charley, a new AI-powered assistant that provides U.S. retail
clients with conversational access to Schwab’s tools and insights
• Partnered with Anthropic to bring Claude for Financial Advisors directly to
the independent RIAs Schwab serves
• Schwab was recognized as one of Fortune’s 2026 Most Innovative Companies (3)
- 1 -
Th… Ni…
Mo… Mo…
En… En…
F… Se… Se…
H… 20… 30, 20… Ch… % 20… 30, 20… Ch…
──────────────────────────────────────────────────────────────────────────────
N…
r… $ 7,… $ 6,… 17% $ 20… $ 1… 18%
(…
m…
N…
i…
(…
m…
G… $ 2,… $ 2,… 23% $ 8,… $ 6… 28%
A… $ 3,… $ 2,… 23% $ 8,… $ 6… 28%
D…
e…
p…
c…
s…
G… $ 1.… $ 1.… 29% $ 4.… $ 3… 36%
A… $ 1.… $ 1.… 29% $ 4.… $ 3… 36%
P…
p…
m…
G… 52… % 49… % 51… % 4… %
A… 54… % 51… % 53… % 4… %
R…
on
a…
c…
s…
e… 25 % 21 % 24 % 20 %
(…
R…
on
t…
c…
e… 44 % 38 % 42 % 37 %
(…
N…
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l…
“…
a…
n…
f…
m…
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i…
on
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3Q26 Financial Commentary
• Quarterly net revenues grew year-over-year by 17% to a record $7.2 billion
• Net interest margin expanded quarter-over-quarter to 3.04%
• Client transactional sweep cash balances ended September at $492.8 billion, an
increase of $7.1 billion versus the prior quarter-end, reflecting continued
demand for long/short strategies and organic growth, partially offset by client
asset allocation decisions
• Average interest-earning assets for the quarter equaled $451.5 billion, up 8%
versus 3Q25
• Asset management and administration fees grew by 14% year-over-year to $1.9
billion, powered by the firm’s organic growth and investors’ increased
utilization of our wealth and asset management solutions
• Clients remained engaged with the market, driving trading revenue of $1.2
billion, up 16% year-over-year
• GAAP expenses for the quarter increased 9% year-over-year; excluding
acquisition and integration-related costs and the amortization of acquired
intangibles of $151 million, adjusted total expenses (1) were also up 9%
relative to 3Q25
• Capital ratios across the firm remained strong – including preliminary
consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) of 8.9 % and 7.0
%, respectively
• Repurchased 4.7 million shares of our common stock for $0.5 billion during the
quarter
(1) Further details on non-GAAP financial measures and a reconciliation of such
measures to GAAP reported results are included on pages 10-12 of this release.
(2) Client margin loans and short credits related to certain long/short
strategies utilized by RIAs are excluded from interest-earning assets and
company funding sources.
(3) Fortune America’s Most Innovative Companies 2026 was given on March 25,
2026, and expires on March 24, 2027. The criteria, evaluation, and ranking were
determined by Fortune, partnered with Statista. Visit
https://www.fortune.com/ranking/americas-most-innovative-companies/ for more
information. Schwab paid a licensing fee to Fortune for use of the award and
logos.
Fall Business Update
The company will host its Fall Business Update for institutional investors this
morning from 7:30 a.m. - 8:30 a.m. CT, 8:30 a.m. - 9:30 a.m. ET.
Registration for this Update webcast is accessible at
https://www.aboutschwab.com/schwabevents .
- 2 -
Forward-Looking Statements
This press release contains forward-looking statements relating to the company’s
diversified business model, scale, capabilities, solutions, value proposition,
and client engagement. These forward-looking statements reflect management’s
expectations as of the date hereof. Achievement of these expectations and
objectives is subject to risks and uncertainties that could cause actual results
to differ materially from the expressed expectations. Important factors that may
cause such differences are described in the company’s most recent reports on
Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange
Commission and are available on the company’s website (
https://www.aboutschwab.com/financial-reports ) and on the Securities and
Exchange Commission’s website ( https://www.sec.gov ). The company makes no
commitment to update any forward-looking statements.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial
services, with 40.3 million active brokerage accounts, 5.9 million workplace
plan participant accounts, 2.4 million banking accounts, and $13.33 trillion in
client assets. Through its operating subsidiaries, the company provides a full
range of wealth management, securities brokerage, banking, asset management,
custody, and financial advisory services to individual investors and independent
investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc.
(member SIPC, https://www.sipc.org ), and its affiliates offer a complete range
of investment services and products including an extensive selection of mutual
funds; financial planning and investment advice; retirement plan and equity
compensation plan services; referrals to independent, fee-based investment
advisors; and custodial, operational and trading support for independent, fee-
based investment advisors through Schwab Advisor Services TM . Its primary
banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing
Lender), provides banking and lending services and products. More information is
available at https://www.aboutschwab.com .
Contact Information
MEDIA
Mayura Hooper, 415-667-1525
public.relations@schwab.com
INVESTORS/ANALYSTS
Kartik Sharma, 817-662-7648
investor.relations@schwab.com
- 3 -
THE CHARLES SCHWAB CORPORATION
Consolidated Statements of Income
(In millions, except per share amounts)
(Unaudited)
Three Nine
Months Months
Ended Ended
Septem… Septemb…
Net 30, 30,
Revenu… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Intere… $ 4,473 $ 3,956 $ 12,581 $ 11,500
revenue
Intere… -997 -906 -2,604 -2,922
expense
Net
intere… 3,476 3,050 9,977 8,578
revenue
Asset
manage…
and 1,913 1,673 5,497 4,773
admini…
fees
Trading 1,158 995 3,462 2,855
revenue
Bank
deposit 345 247 973 739
account
fees
Other 279 170 816 640
Total
net 7,171 6,135 20,725 17,585
revenu…
Expens…
Exclud…
Intere…
Compen…
and 1,756 1,653 5,358 4,861
benefi…
Profes… 325 293 935 853
servic…
Occupa…
and 316 280 902 824
equipm…
Advert…
and 114 101 326 305
market
develo…
Commun… 172 149 533 478
Deprec…
and 196 212 595 644
amorti…
Amorti…
of
acquir… 141 127 415 385
intang…
assets
Regula…
fees 73 59 211 225
and
assess…
Other 301 240 816 731
Total
expens… 3,394 3,114 10,091 9,306
exclud…
intere…
Income
before
taxes 3,777 3,021 10,634 8,279
on
income
Taxes
on 871 663 2,449 1,886
income
Net 2,906 2,358 8,185 6,393
Income
Prefer…
stock
divide… 95 81 296 343
and
other
Net
Income
Availa… $ 2,811 $ 2,277 $ 7,889 $ 6,050
to
Common
Stockh…
Weight…
Common
Shares
Outsta…
Basic 1,728 1,806 1,736 1,815
Diluted 1,733 1,811 1,741 1,820
Earnin…
Per
Common
Shares
Outsta…
Basic $ 1.63 $ 1.26 $ 4.54 $ 3.33
Diluted $ 1.62 $ 1.26 $ 4.53 $ 3.33
- 4 -
…
%
… … …
… … … … … … …
… … … … … … …
──────────────────────────────────────────────────────────────────────────────
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… % … % … % … % …
… % … % … … … … …
1 % 3 % … … … … …
… % 3 % $ … $ … $ … $ … $ …
(1) Return on average common stockholders’ equity is calculated using net income
available to common stockholders divided by average common stockholders’ equity.
(2) Second quarter of 2026 includes incremental capital expenditures of $633
million related to a multi-year software license agreement with a corresponding
liability recognized in long-term debt.
(3) Revenue per trade is calculated as trading revenue divided by the product of
DATs and the number of trading days.
N/M Not meaningful. Percentage changes greater than 200% are presented as not
meaningful.
- 5 -
THE CHARLES SCHWAB CORPORATION
Net Interest Revenue Information
(In millions, except ratios or as noted)
(Unaudited)
──────────────────────────────────────────────────────────────────────────────
(1) Beginning in the fourth quarter of 2025, average balances of margin loans
and short credits related to client long/short strategies from which the Company
earns a fixed net yield are excluded from interest-earning assets and funding
sources. Also beginning in the fourth quarter of 2025, related interest revenue
and expense were moved from receivables from brokerage clients and payables to
brokerage clients, respectively, to other interest revenue and other interest
expense, respectively. Amounts and average yields have been reclassified and
recalculated for 2025 periods to reflect these changes. Average margin loans
related to these client strategies totaled $51.4 billion and $33.0 billion for
the three and nine months ended September 30, 2026, respectively, compared to
$2.8 billion and $1.3 billion for the same periods in 2025. Average short
credits related to these client strategies totaled $53.3 billion and $34.2
billion for the three and nine months ended September 30, 2026, respectively,
compared to $2.8 billion and $1.3 billion for the same periods in 2025.
(2) Amounts have been calculated based on amortized cost.
(3) Beginning in the second quarter of 2026, the net fixed yield earned on
client long/short strategies is presented in other interest revenue; amounts for
periods prior to the three months ended June 30, 2026 have not been recast as
the impact of this change was not material.
- 6 -
THE CHARLES SCHWAB CORPORATION
Asset Management and Administration Fees Information
(In millions, except ratios or as noted)
(Unaudited)
──────────────────────────────────────────────────────────────────────────────
(1) Beginning in the first quarter of 2026, alternative investments and related
revenue were moved from other balance-based fees to other third-party mutual
funds, ETFs, and alternatives. Prior period amounts and average fees have been
reclassified and recalculated to reflect this change.
(2) Managed investing solutions includes managed portfolios, specialized
strategies, and customized investment advice such as Schwab Wealth Advisory TM ,
Schwab Managed Portfolios TM , Managed Account Select ® , Schwab Advisor Network
® , Windhaven Strategies ® , ThomasPartners ® Strategies, Wasmer Schroeder
Strategies ® , Schwab Index Advantage advised retirement plan balances, Schwab
Intelligent Portfolios ® , Institutional Intelligent Portfolios, Schwab
Intelligent Portfolios Premium, Schwab Wealth Portfolios ™ , AdvisorDirect ® ,
Essential Portfolios, Selective Portfolios, and Personalized Portfolios; as well
as legacy non-fee managed investing solutions including Schwab Advisor Source
and certain retirement plan balances. Average client assets for managed
investing solutions may also include the asset balances contained in the mutual
fund and/or ETF categories listed above. For the total end of period view,
please see the Monthly Activity Report.
(3) Includes various asset-related fees, such as trust fees, 401(k)
recordkeeping fees, and mutual fund clearing fees and other service fees.
(4) Includes miscellaneous service and transaction fees, including fees relating
to mutual funds and ETFs that are not balance-based.
- 7 -
THE CHARLES SCHWAB CORPORATION
Growth in Client Assets and Accounts
(Unaudited)
…
…
…
…
…
…
…
… Q…
… %
… C… 2… 2…
… v… v… T… S… F… F… …
… Q… Q… Q… Q… Q… Q… …
──────────────────────────────────────────────────────────────────────────────
…
…
…
… 20 % 3 % $ 4… $ 4… $ 3… $ 3… $ 3…
…
…
…
…
…
… -… % -4 % 6… 7… 7… 7… 7…
…
…
…
…
…
…
…
…
…
…
…
…
… 5 % 1 % 6… 6… 7… 6… 6…
…
…
…
… 17 % 2 % 3… 3… 2… 2… 2…
…
…
…
…
…
… 8 % 1 % 1… 1… 9… 9… 9…
…
…
…
…
…
…
…
…
…
… — -3 % 4… 4… 4… 4… 4…
…
…
…
…
… 2 % -2 % 3… 3… 3… 3… 3…
…
…
…
… 9 % -1 % 1… 1… 1… 1… 1…
…
…
…
… 6 % -2 % 2… 2… 2… 2… 2…
…
…
…
… 7 % -1 % 3… 3… 2… 3… 2…
…
…
…
…
… 27 % 4 % 6… 5… 5… 4… 4…
…
…
… 27 % 3 % 3… 2… 2… 2… 2…
…
…
… 27 % 3 % 3… 3… 3… 3… 2…
…
…
… 16 % 3 % 5… 5… 4… 4… 4…
…
…
…
… 4 % 2 % 8… 8… 7… 7… 7…
…
…
… 93 % 14 % -… -… -… -… -…
…
…
… 15 % 2 % $ 1… $ 1… $ 1… $ 1… $ 1…
…
…
…
…
…
… 14 % 2 % $ 7… $ 7… $ 6… $ 6… $ 6…
…
… 17 % 2 % 5… 5… 5… 5… 5…
…
…
… 15 % 2 % $ 1… $ 1… $ 1… $ 1… $ 1…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
… 37 % 88 % $ 7… $ 3… $ 5… $ 6… $ 5…
…
… 47 % 50 % 1… 8… 8… 9… 8…
…
…
… 43 % 62 % $ 1… $ 1… $ 1… $ 1… $ 1…
…
…
…
… 5… 1… -… 1… 7…
…
…
…
… $ 2… $ 1… $ -… $ 3… $ 8…
…
…
…
…
…
… 9 % -… % 1… 1… 1… 1… 1…
…
…
…
…
…
…
…
…
…
… 6 % 1 % 4… 3… 3… 3… 3…
…
… 13 % 3 % 2… 2… 2… 2… 2…
…
…
… 4 % — 5… 5… 5… 5… 5…
…
…
(1) Includes balances held on and off the Schwab platform. As of September 30,
2026, off-platform equity and bond funds, CTFs, and ETFs were $55.0 billion,
$4.9 billion, and $223.5 billion, respectively.
(2) Excludes all proprietary mutual funds and ETFs.
(3) Third quarter of 2026 includes net inflows of $2.0 billion from off-platform
Schwab Bank Retail Certificates of Deposit (CDs). Second quarter of 2026
includes net outflows of $1.1 billion from off-platform Schwab Bank Retail CDs.
First quarter of 2026 includes net outflows of $0.1 billion from off-platform
Schwab Bank Retail CDs. Fourth quarter of 2025 includes net outflows of $5.7
billion from off-platform Schwab Bank Retail CDs. Third quarter of 2025 includes
net outflows of $3.1 billion from off-platform Schwab Bank Retail CDs.
(4) Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage
Services, and Retirement Business Services. Participants may be enrolled in
services in more than one Workplace business.
- 8 -
The Charles Schwab Corporation Monthly Activity Report For September 2026
(1) Unless otherwise noted, differences between net new assets and core net new
assets are net flows from off-platform Schwab Bank Retail CDs.
(2) Net new assets before significant one-time inflows or outflows, such as
acquisitions/divestitures or extraordinary flows (generally greater than $25
billion) relating to a specific client, and activity from off-platform Schwab
Bank Retail CDs. These flows may span multiple reporting periods.
(3) Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage
Services, and Retirement Business Services. Participants may be enrolled in
services in more than one Workplace business.
(4) Balances include margin loans and short credits related to certain
long/short strategies from which the Company earns a fixed net yield. For the
month of September 2026, margin loans totaled $60.7 billion and short credits
totaled $63.3 billion.
(5) For additional information regarding STAX, please visit:
https://www.schwab.com/investment-research/stax/view-schwab-trading-activity-
index .
(6) Represents average total interest-earning assets on the Company’s balance
sheet. Beginning in December 2025, average balances of margin loans and short
credits related to client long/short strategies from which the Company earns a
fixed net yield are excluded from average interest-earning assets. Prior period
amounts have been adjusted accordingly.
(7) Transactional sweep cash includes bank sweep deposits, broker-dealer cash
balances, other client cash held on the balance sheet (such as bank checking and
savings deposits, short credits related to certain client long/short strategies,
and broker-dealer non-interest-bearing credits), and bank deposit account
balances; excludes proprietary and third-party CDs.
(8) Schwab One ® , certain cash equivalents, bank deposits, third-party bank
deposit accounts, and money market fund balances as a percentage of total client
assets; client cash excludes brokered CDs issued by Charles Schwab Bank.
(9) Represents the principal value of client mutual fund and ETF transactions
handled by Schwab, including transactions in proprietary funds. Includes
institutional funds available only to investment managers. Excludes money market
fund transactions.
- 9 -
THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)
In addition to disclosing financial results in accordance with generally
accepted accounting principles in the U.S. (GAAP), Schwab’s third quarter
earnings release contains references to the non-GAAP financial measures
described below. We believe these non-GAAP financial measures provide useful
supplemental information about the financial performance of the Company, and
facilitate meaningful comparison of Schwab’s results in the current period to
both historic and future results. These non-GAAP measures should not be
considered a substitute for, or superior to, financial measures calculated in
accordance with GAAP, and may not be comparable to non-GAAP financial measures
presented by other companies.
Schwab’s use of non-GAAP measures is reflective of certain adjustments made to
GAAP financial measures as described below.
Non-GAAP Adjustment or Definition Usefulness to Investors
Measure and Uses by Management
We exclude acquisition
and integration-related
costs, amortization of
acquired intangible
assets, and
Schwab adjusts certain restructuring costs for
GAAP financial measures the purpose of
to exclude the impact calculating certain
of acquisition and non-GAAP measures
integration-related because we believe
costs incurred as a doing so provides
result of the Company’s additional transparency
acquisitions, of Schwab’s ongoing
amortization of operations, and is
acquired intangible useful in both
assets, restructuring evaluating the
costs, and, where operating performance
applicable, the income of the business and
Acquisition and tax effect of these facilitating comparison
integration-related expenses. of results with prior
costs, amortization of Adjustments made to and future periods.
acquired exclude amortization of Costs related to
intangible assets, and acquired intangible acquisition and
restructuring assets are reflective integration or
costs of all acquired restructuring fluctuate
intangible assets, based on the timing of
which were recorded as acquisitions,
part of purchase integration and
accounting. These restructuring
acquired intangible activities, thereby
assets contribute to limiting comparability
the Company’s revenue of results among
generation. periods, and are not
Amortization of representative of the
acquired intangible costs of running the
assets will continue in Company’s ongoing
future periods over business. Amortization
their remaining useful of acquired intangible
lives. assets is excluded
because management does
not believe it is
indicative of the
Company’s underlying
operating performance.
Return on tangible Acquisitions typically
common equity result in the
represents annualized recognition of
adjusted net income significant amounts of
available to common goodwill and acquired
stockholders as a intangible assets. We
percentage of average believe return on
Return on tangible tangible common equity. tangible common equity
common equity Tangible common equity may be useful to
represents common investors as a
equity less goodwill, supplemental measure to
acquired intangible facilitate assessing
assets — net, and capital efficiency and
related deferred tax returns relative to the
liabilities. composition of Schwab’s
balance sheet.
Adjusted Tier 1 Inclusion of the
Leverage Ratio impacts of AOCI in the
represents the Tier 1 Company’s Tier 1
Leverage Ratio as Leverage Ratio provides
prescribed by bank additional information
regulatory guidance for regarding the Company’s
Adjusted Tier 1 the consolidated current capital
Leverage Ratio company and for Charles position. We believe
Schwab Bank, SSB (CSB), Adjusted Tier 1
adjusted to reflect the Leverage Ratio may be
inclusion of useful to investors as
accumulated other a supplemental measure
comprehensive income of the Company’s
(AOCI) in the ratio. capital levels.
The Company also uses adjusted diluted EPS and return on tangible common equity
as components of performance criteria for employee bonus and certain executive
management incentive compensation arrangements. The Compensation Committee of
CSC’s Board of Directors maintains discretion in evaluating performance against
these criteria. Additionally, the Company uses adjusted Tier 1 Leverage Ratio in
managing capital, including its use of the measure as its long-term operating
objective.
- 10 -
THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)
The tables below present reconciliations of GAAP measures to non-GAAP measures:
… …
… …
… …
… …
… …
… 2… … 2…
… T… … T…
… E… … E…
… … E… … … N… E… …
… … I… … … I… I… …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ 2… $ 1… $ … $ … $ 6…
… … … 1… -… … … 3…
… … — — -… … — —
… … N… -… … … N… -…
$ … $ … $ … $ 2… $ 9… $ … $ … $ 6…
(1) Acquisition and integration-related costs for the three months ended
September 30, 2026 primarily consist of compensation and benefits. Acquisition
and integration-related costs for the nine months ended September 30, 2026
primarily consist of $34 million of compensation and benefits and $14 million of
professional services. There were no acquisition and integration-related costs
for the three and nine months ended September 30, 2025.
(2) The income tax effects of the non-GAAP adjustments are determined using an
effective tax rate reflecting the exclusion of non-deductible acquisition costs
and are used to present the acquisition and integration-related costs,
amortization of acquired intangible assets, and restructuring costs on an after-
tax basis.
N/A Not applicable.
… N…
… M…
… % % E… % %
… … … S… of of
… … … 3… T… T…
… … … … 2… N… 2… N…
… … … … A… R… A… R…
──────────────────────────────────────────────────────────────────────────────
$ … … % $ … … % $ … … % $ … … %
… … % … … % … … % … … %
… … % — — … … % — —
$ … … % $ … … % $ … … % $ … … %
T… N…
M… M…
E… E…
S… S…
3… 3…
2… D… 2… D… 2… D… 2… D…
A… E… A… E… A… E… A… E…
──────────────────────────────────────────────────────────────────────────────
…
…
…
…
…
…
… $ 2… $ 1… $ 2… $ … $ … $ … $ … $ …
…
…
…
…
—
…
…
…
…
… 1… .… 1… … … … … …
…
…
…
… 10 .… — — … … — —
…
…
…
… -… -… -… … … … … …
…
…
…
…
…
…
… $ 2… $ 1… $ 2… $ … $ … $ … $ … $ …
…
…
…
…
…
…
- 11 -
THE CHARLES SCHWAB CORPORATION
Non-GAAP Financial Measures
(In millions, except ratios and per share amounts)
(Unaudited)
Ret…
on
ave…
com… Three Nine
sto… Mont… Months
equ… Ended Ended
— Sept… Septe…
ann… 30, 30,
(GA… 2026 25 % 2025 21 % 2026 24 % 2025 20 %
──────────────────────────────────────────────────────────────────────────────
Ave…
com… $ 44,5… $ 42,6… $ 43,9… $ 40,903
sto…
equ…
Les…
Ave… -12,… -11,… -12,… -11,9…
goo…
Les…
Ave…
acq…
int… -7,2… -7,4… -7,1… -7,552
ass…
—
net
Plu…
Ave…
def…
tax
lia…
rel…
to 1,753 1,695 1,704 1,695
goo…
and
acq…
int…
ass…
—
net
Ave…
tan… $ 26,8… $ 24,9… $ 26,3… $ 23,095
com…
equ…
Adj…
net
inc…
ava… $ 2,926 $ 2,375 $ 8,243 $ 6,343
to
com…
sto…
Ret…
on
tan…
com… 44 % 38 % 42 % 37 %
equ…
—
ann…
(no…
(1) See table above for the reconciliation of net income available to common
stockholders to adjusted net income available to common stockholders (non-GAAP).
(Preliminary)
September 30, 2026
──────────────────────────────────────────────────────────────────────────────
CSC CSB
Tier 1 Leverage Ratio 8.9% 10.6%
(GAAP)
Tier 1 Capital $ 44,782 $ 26,925
Plus: AOCI adjustment -10,389 -9,043
Adjusted Tier 1 Capital 34,393 17,882
Average assets with
regulatory 501,735 255,095
adjustments
Plus: AOCI adjustment -9,894 -8,746
Adjusted average assets
with regulatory $ 491,841 $ 246,349
adjustments
Adjusted Tier 1 Leverage
Ratio 7.0 % 7.3 %
(non-GAAP)
- 12 -