Charles Schwab (NYSE:SCHW) Announces Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• Q1 beat estimates: Charles Schwab reported $1.43 EPS, beating consensus by $0.04, with revenue up 15.8% year-over-year and strong profitability (ROE 21.97%, net margin 37.01%); management highlighted record client engagement including roughly $140 billion of core net new assets.
• Dividend increase: The company raised its quarterly dividend to $0.32 from $0.27 (annualized $1.28, ~1.3% yield) with a payout ratio around 27%.
• Market and insider activity: Insiders sold substantial stock recently (454,865 shares over three months), while Wall Street consensus is a "Moderate Buy" with an average target of $114.50 as the shares trade near $100 (52-week range $73.76–$107.50).

Charles Schwab (NYSE:SCHW - Get Free Report) issued its quarterly earnings data on Thursday. The financial services provider reported $1.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.39 by $0.04, Briefing.com reports. Charles Schwab had a return on equity of 21.97% and a net margin of 37.01%.The business's revenue was up 15.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.04 earnings per share.

Charles Schwab Trading Up 2.0%

Charles Schwab stock opened at $100.33 on Thursday. The stock has a 50-day moving average price of $95.27 and a 200 day moving average price of $96.42. Charles Schwab has a 52 week low of $73.76 and a 52 week high of $107.50. The stock has a market cap of $174.38 billion, a PE ratio of 21.53, a P/E/G ratio of 0.81 and a beta of 0.90. The company has a current ratio of 0.62, a quick ratio of 0.62 and a debt-to-equity ratio of 0.52.

Charles Schwab Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Friday, February 13th were paid a dividend of $0.32 per share. The ex-dividend date of this dividend was Friday, February 13th. This is an increase from Charles Schwab's previous quarterly dividend of $0.27. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.3%. Charles Schwab's dividend payout ratio is 27.47%.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on SCHW shares. Raymond James Financial restated an "outperform" rating and issued a $114.00 price target on shares of Charles Schwab in a research report on Monday, January 5th. TD Cowen reiterated a "buy" rating on shares of Charles Schwab in a research report on Thursday, April 9th. Citizens Jmp increased their price objective on shares of Charles Schwab from $110.00 to $120.00 and gave the company a "market outperform" rating in a research note on Monday, January 12th. Citigroup restated a "market outperform" rating on shares of Charles Schwab in a report on Monday, January 12th. Finally, Piper Sandler upped their price target on shares of Charles Schwab from $100.00 to $105.00 and gave the company a "neutral" rating in a report on Wednesday, January 14th. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $114.50.

Insider Activity at Charles Schwab

In related news, Chairman Walter W. Bettinger sold 67,514 shares of the company's stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $104.25, for a total transaction of $7,038,334.50. Following the transaction, the chairman owned 529,346 shares of the company's stock, valued at approximately $55,184,320.50. This represents a 11.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Nigel J. Murtagh sold 41,297 shares of the firm's stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $99.00, for a total transaction of $4,088,403.00. Following the sale, the insider owned 57,972 shares in the company, valued at approximately $5,739,228. This trade represents a 41.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 454,865 shares of company stock worth $46,523,441 over the last three months. Company insiders own 6.30% of the company's stock.

Institutional Investors Weigh In On Charles Schwab

Several hedge funds have recently made changes to their positions in the business. Walter & Keenan Wealth Management LLC IN ADV grew its holdings in shares of Charles Schwab by 0.8% during the fourth quarter. Walter & Keenan Wealth Management LLC IN ADV now owns 14,559 shares of the financial services provider's stock valued at $1,455,000 after purchasing an additional 114 shares during the last quarter. Invenio Wealth Partners LLC lifted its holdings in shares of Charles Schwab by 5.4% in the 3rd quarter. Invenio Wealth Partners LLC now owns 2,584 shares of the financial services provider's stock worth $247,000 after purchasing an additional 132 shares during the last quarter. Hohimer Wealth Management LLC lifted its holdings in shares of Charles Schwab by 1.6% in the 4th quarter. Hohimer Wealth Management LLC now owns 9,395 shares of the financial services provider's stock worth $939,000 after purchasing an additional 145 shares during the last quarter. Quadrant Capital Group LLC boosted its position in Charles Schwab by 0.4% during the 4th quarter. Quadrant Capital Group LLC now owns 41,406 shares of the financial services provider's stock valued at $4,137,000 after purchasing an additional 145 shares during the period. Finally, Haverford Trust Co boosted its position in Charles Schwab by 6.7% during the 4th quarter. Haverford Trust Co now owns 2,345 shares of the financial services provider's stock valued at $234,000 after purchasing an additional 147 shares during the period. Institutional investors and hedge funds own 84.38% of the company's stock.

Trending Headlines about Charles Schwab

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Q1 beat on top and bottom lines: Schwab reported higher-than-expected EPS and revenue and said client engagement drove record results, including $140 billion of core net new assets in the quarter — a clear near-term driver for fee income and deposit growth. Client Growth & Engagement Drive Record Schwab 1Q Results
• Positive Sentiment: Schwab sees a large AI-driven investment surge opportunity that could steer client flows into new product offerings and thematic allocations — a potential multi-year growth vector if clients allocate material assets. Schwab spots a massive investment surge hiding in AI
• Neutral Sentiment: Insider selling disclosed: Nigel Murtagh sold ~41k shares under a pre-arranged Rule 10b5‑1 plan — notable for disclosure but not an unusual planned sale. Nigel Murtagh Sells 41,297 Shares of Charles Schwab NYSE: SCHW Stock
• Neutral Sentiment: Analyst prep and coverage: Wall Street had raised estimates into the print and Benzinga/others flagged consensus expectations heading into the report — helpful context but already priced partially into shares. Charles Schwab Gears Up For Q1 Print
• Negative Sentiment: Options market positioning: Elevated put buying ahead of the report suggests traders were hedging for a downside move, which can increase volatility and pressure shares if sentiment shifts. Traders Purchase High Volume of Charles Schwab Put Options NYSE: SCHW
• Negative Sentiment: Persistent investor concerns around AI-related disruption and competitive pressures remain a headline risk; management clarity on strategy and margins will be watched closely. Ahead of Earnings, What Do Analysts Think about Charles Schwab (SCHW) Stock?

About Charles Schwab

Charles Schwab Corporation NYSE: SCHW is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.

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