Charles Schwab (NYSE:SCHW) Releases FY 2026 Earnings Guidance

Key Points

• FY2026 EPS guidance of 5.700–5.800 was issued below the Street consensus of 5.93, indicating a softer outlook from management.
• The firm beat Q1 estimates (adjusted EPS $1.43 vs. $1.39) with ~16% revenue growth, record client assets and ~1.3M new accounts, but the stock fell to $92.65 on heavy volume as investors focused on cash‑sweep and net interest margin risks.
• Schwab Crypto will offer direct spot Bitcoin and Ether trading on Schwab platforms, and management signaled plans to enter prediction markets—moves that expand product offerings and potential fee/revenue streams.

Charles Schwab (NYSE:SCHW - Get Free Report) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 5.700-5.800 for the period, compared to the consensus estimate of 5.930. The company issued revenue guidance of -, compared to the consensus revenue estimate of $26.6 billion.

Analysts Set New Price Targets

SCHW has been the subject of several recent research reports. TD Cowen reissued a "buy" rating on shares of Charles Schwab in a research report on Thursday, April 9th. Truist Financial cut their price objective on Charles Schwab from $122.00 to $120.00 and set a "buy" rating on the stock in a research report on Wednesday, April 1st. Wolfe Research set a $120.00 price objective on shares of Charles Schwab in a report on Monday, January 12th. Raymond James Financial reissued an "outperform" rating and set a $114.00 price target on shares of Charles Schwab in a research report on Monday, January 5th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $131.00 price objective on shares of Charles Schwab in a research note on Thursday, January 22nd. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $114.50.

Charles Schwab Stock Performance

Shares of NYSE SCHW traded down $7.62 during midday trading on Thursday, hitting $92.65. 27,827,050 shares of the company's stock were exchanged, compared to its average volume of 10,773,962. The firm has a market cap of $161.03 billion, a P/E ratio of 19.88, a PEG ratio of 0.81 and a beta of 0.90. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.62 and a quick ratio of 0.62. Charles Schwab has a twelve month low of $73.76 and a twelve month high of $107.50. The stock's 50 day moving average price is $95.27 and its 200-day moving average price is $96.42.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings data on Thursday, April 16th. The financial services provider reported $1.43 earnings per share for the quarter, topping the consensus estimate of $1.39 by $0.04. The business had revenue of $6.48 billion during the quarter, compared to the consensus estimate of $6.39 billion. Charles Schwab had a net margin of 37.01% and a return on equity of 21.97%. The company's quarterly revenue was up 15.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.04 earnings per share. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS. Equities research analysts anticipate that Charles Schwab will post 4.22 EPS for the current year.

Charles Schwab Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Friday, February 13th were issued a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend was Friday, February 13th. This is a positive change from Charles Schwab's previous quarterly dividend of $0.27. Charles Schwab's dividend payout ratio is currently 27.47%.

Insiders Place Their Bets

In other news, insider Nigel J. Murtagh sold 41,297 shares of Charles Schwab stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $99.00, for a total value of $4,088,403.00. Following the transaction, the insider directly owned 57,972 shares of the company's stock, valued at $5,739,228. This trade represents a 41.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Paul V. Woolway sold 15,884 shares of the company's stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $95.12, for a total transaction of $1,510,886.08. Following the completion of the sale, the insider owned 35,992 shares of the company's stock, valued at approximately $3,423,559.04. This trade represents a 30.62% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 454,865 shares of company stock worth $46,523,441. Corporate insiders own 6.30% of the company's stock.

Key Charles Schwab News

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

• Positive Sentiment: Schwab is launching Schwab Crypto — direct spot Bitcoin and Ether trading integrated into its web, mobile and thinkorswim platforms (custody via its bank and execution through Paxos), widening retail product offerings and potential fee/revenue streams. Business Wire: Charles Schwab Announces Details of Spot Crypto Trading Launch
• Positive Sentiment: Q1 results beat estimates: adjusted EPS topped consensus and revenue rose ~16% year‑over‑year with record client assets and elevated trading volumes — confirming strong client engagement and topline momentum. Zacks: Schwab Beats Q1 Earnings Estimates
• Positive Sentiment: Client acquisition remains robust — Schwab added roughly 1.3 million new accounts and reported large net new asset inflows, supporting longer‑term AUM and fee opportunities. Benzinga: Charles Schwab Adds 1.3 Million Accounts, Reports Record Client Assets
• Neutral Sentiment: Schwab says it will likely enter prediction markets (but wants to avoid “gambling” framing); management is also publicly pushing long‑term investor education to counter social‑media driven trading trends — strategic moves that may affect client mix over time. Benzinga: Schwab Says Yes To Prediction Markets, No To Gambling
• Negative Sentiment: Market reaction: stock fell because investors focused on sensitivity to cash‑sweep flows and net interest margin risks, plus a couple of metrics that didn’t fully satisfy elevated expectations — prompting profit‑taking despite the beat. Motley Fool: Why Charles Schwab Stock Is Down Today
• Negative Sentiment: Options and insider signals: elevated put‑option buying ahead of the print and recent insider sales (filed Rule 10b5‑1 plans) have amplified downside pressure and hedging activity. AmericanBankingNews: Traders Purchase High Volume of Charles Schwab Put Options

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Primecap Management Co. CA raised its stake in shares of Charles Schwab by 9.7% in the fourth quarter. Primecap Management Co. CA now owns 23,276,071 shares of the financial services provider's stock worth $2,325,512,000 after acquiring an additional 2,066,884 shares during the last quarter. Blue Sparrow LLC DE bought a new stake in shares of Charles Schwab during the fourth quarter valued at approximately $134,384,000. Marshall Wace LLP increased its holdings in shares of Charles Schwab by 80.4% in the fourth quarter. Marshall Wace LLP now owns 2,866,021 shares of the financial services provider's stock valued at $286,344,000 after purchasing an additional 1,277,598 shares in the last quarter. Amundi raised its position in Charles Schwab by 21.6% in the 3rd quarter. Amundi now owns 6,982,838 shares of the financial services provider's stock worth $656,387,000 after purchasing an additional 1,238,813 shares during the last quarter. Finally, Man Group plc raised its position in Charles Schwab by 170.8% in the 3rd quarter. Man Group plc now owns 1,457,689 shares of the financial services provider's stock worth $139,166,000 after purchasing an additional 919,329 shares during the last quarter. Institutional investors own 84.38% of the company's stock.

Charles Schwab Company Profile

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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