Analysts Issue Forecasts for Charles Schwab FY2026 Earnings

Key Points

• Zacks Research has raised its FY2026 earnings per share forecast for Charles Schwab to $5.28, slightly higher than the previous estimate of $5.27, with FY2027 earnings expected to reach $5.96 EPS.
• For the most recent quarter, Charles Schwab reported $1.14 EPS, exceeding analyst expectations, and achieved a 24.8% year-over-year revenue increase to $5.85 billion.
• Charles Schwab is implementing a $20 billion stock buyback program, indicating confidence in its stock value and aiming to repurchase up to 11.6% of its shares.

The Charles Schwab Corporation (NYSE:SCHW - Free Report) - Zacks Research increased their FY2026 earnings per share (EPS) estimates for Charles Schwab in a note issued to investors on Thursday, September 4th. Zacks Research analyst Team now forecasts that the financial services provider will post earnings per share of $5.28 for the year, up from their previous forecast of $5.27. The consensus estimate for Charles Schwab's current full-year earnings is $4.22 per share. Zacks Research also issued estimates for Charles Schwab's FY2027 earnings at $5.96 EPS.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its quarterly earnings results on Friday, July 18th. The financial services provider reported $1.14 EPS for the quarter, beating the consensus estimate of $1.10 by $0.04. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The company had revenue of $5.85 billion for the quarter, compared to the consensus estimate of $5.64 billion. During the same quarter last year, the company posted $0.73 earnings per share. The company's revenue for the quarter was up 24.8% compared to the same quarter last year.

Several other equities research analysts have also recently weighed in on SCHW. Barclays increased their price objective on Charles Schwab from $106.00 to $113.00 and gave the company an "overweight" rating in a research report on Friday, July 18th. Truist Financial increased their price objective on Charles Schwab from $107.00 to $112.00 and gave the company a "buy" rating in a research report on Friday, August 15th. Redburn Atlantic raised Charles Schwab from a "sell" rating to a "neutral" rating and increased their price objective for the company from $65.00 to $82.00 in a research report on Monday, June 9th. Morgan Stanley increased their price objective on Charles Schwab from $117.00 to $131.00 and gave the company an "overweight" rating in a research report on Tuesday, July 29th. Finally, William Blair cut Charles Schwab from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 3rd. Sixteen analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $99.60.

Charles Schwab Stock Performance

Shares of SCHW traded down $5.55 during mid-day trading on Friday, hitting $92.09. The company's stock had a trading volume of 18,234,685 shares, compared to its average volume of 8,208,947. Charles Schwab has a one year low of $61.16 and a one year high of $99.59. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55. The firm has a market capitalization of $167.15 billion, a PE ratio of 24.75, a price-to-earnings-growth ratio of 0.91 and a beta of 0.96. The stock's 50-day moving average is $95.20 and its two-hundred day moving average is $86.38.

Charles Schwab announced that its Board of Directors has approved a stock buyback plan on Thursday, July 24th that permits the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 11.6% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board believes its shares are undervalued.

Charles Schwab Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were given a $0.27 dividend. This represents a $1.08 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend was Friday, August 8th. Charles Schwab's dividend payout ratio (DPR) is 29.03%.

Insider Transactions at Charles Schwab

In related news, Chairman Walter W. Bettinger sold 173,876 shares of the firm's stock in a transaction on Tuesday, July 29th. The stock was sold at an average price of $98.84, for a total value of $17,185,903.84. Following the completion of the transaction, the chairman directly owned 590,734 shares of the company's stock, valued at $58,388,148.56. This trade represents a 22.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Jonathan S. Beatty sold 6,144 shares of Charles Schwab stock in a transaction on Thursday, August 28th. The shares were sold at an average price of $96.81, for a total value of $594,800.64. Following the transaction, the insider directly owned 11,923 shares of the company's stock, valued at approximately $1,154,265.63. The trade was a 34.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 298,214 shares of company stock valued at $29,022,580 over the last 90 days. Corporate insiders own 6.30% of the company's stock.

Institutional Investors Weigh In On Charles Schwab

Institutional investors and hedge funds have recently made changes to their positions in the company. Atwood & Palmer Inc. acquired a new stake in shares of Charles Schwab in the 1st quarter valued at $25,000. Princeton Global Asset Management LLC acquired a new stake in shares of Charles Schwab in the 2nd quarter valued at $25,000. Westside Investment Management Inc. boosted its stake in shares of Charles Schwab by 75.0% in the 1st quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock valued at $27,000 after purchasing an additional 150 shares in the last quarter. RMG Wealth Management LLC acquired a new stake in shares of Charles Schwab in the 2nd quarter valued at $27,000. Finally, CBIZ Investment Advisory Services LLC boosted its stake in shares of Charles Schwab by 97.9% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 386 shares of the financial services provider's stock valued at $30,000 after purchasing an additional 191 shares in the last quarter. Institutional investors and hedge funds own 84.38% of the company's stock.

Charles Schwab Company Profile

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services.