Erste Group Bank Predicts Charles Schwab FY2027 Earnings

Key Points

• Erste Group raised its FY2027 EPS estimate for Charles Schwab to $7.04 (from $6.82), which is well above the Street consensus of $5.98 and signals a stronger forward earnings outlook.
• Schwab beat Q1 expectations with $1.43 EPS on $6.48B revenue and set FY2026 guidance of $5.70–$5.80 EPS, while returning capital via about $4.58B of buybacks and a quarterly dividend of $0.32 ($1.28 annual).
• Analysts maintain a consensus rating of "Moderate Buy" with a $114 target, but several brokers have trimmed price objectives and the stock trades near $91 (1‑year range $79.47–$107.50), indicating upside tempered by narrower expectations.

The Charles Schwab Corporation (NYSE:SCHW - Free Report) - Equities researchers at Erste Group Bank upped their FY2027 earnings per share (EPS) estimates for Charles Schwab in a research note issued to investors on Monday, April 27th. Erste Group Bank analyst S. Lingnau now anticipates that the financial services provider will post earnings of $7.04 per share for the year, up from their previous forecast of $6.82. The consensus estimate for Charles Schwab's current full-year earnings is $5.98 per share.

Several other brokerages have also recently weighed in on SCHW. Truist Financial reduced their price objective on Charles Schwab from $122.00 to $120.00 and set a "buy" rating on the stock in a research note on Wednesday, April 1st. UBS Group reduced their price objective on Charles Schwab from $125.00 to $119.00 and set a "buy" rating on the stock in a research note on Wednesday, April 8th. Piper Sandler boosted their price objective on Charles Schwab from $100.00 to $105.00 and gave the stock a "neutral" rating in a research note on Wednesday, January 14th. Jefferies Financial Group reduced their price objective on Charles Schwab from $122.00 to $118.00 and set a "buy" rating on the stock in a research note on Monday, April 6th. Finally, Argus set a $108.00 target price on Charles Schwab in a research note on Monday, April 20th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Charles Schwab currently has an average rating of "Moderate Buy" and a consensus target price of $114.00.

Charles Schwab Trading Up 0.4%

Shares of NYSE SCHW opened at $91.16 on Thursday. The business's 50 day moving average is $93.91 and its two-hundred day moving average is $96.23. 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 1-year low of $79.47 and a 1-year high of $107.50. The stock has a market capitalization of $158.44 billion, a P/E ratio of 18.09, a PEG ratio of 0.72 and a beta of 0.90.

Charles Schwab (NYSE:SCHW - Get Free Report) last issued 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. Charles Schwab had a return on equity of 23.03% and a net margin of 37.99%.The company had revenue of $6.48 billion for the quarter, compared to analysts' expectations of $6.39 billion. During the same period in the previous year, the firm posted $1.04 earnings per share. The firm's revenue for the quarter was up 15.8% on a year-over-year basis. Charles Schwab has set its FY 2026 guidance at 5.700-5.800 EPS.

Charles Schwab Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 22nd. Stockholders of record on Friday, May 8th will be paid a dividend of $0.32 per share. The ex-dividend date of this dividend is Friday, May 8th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.4%. Charles Schwab's dividend payout ratio is currently 25.40%.

Insider Activity

In other news, insider Dennis Howard sold 27,903 shares of the company's stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $95.02, for a total transaction of $2,651,343.06. Following the transaction, the insider owned 10,470 shares of the company's stock, valued at approximately $994,859.40. This represents a 72.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 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 value of $1,510,886.08. Following the transaction, the insider directly owned 35,992 shares in the company, valued at approximately $3,423,559.04. This represents a 30.62% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 471,268 shares of company stock valued at $48,114,169. 6.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Charles Schwab

Large investors have recently modified their holdings of the company. Dogwood Wealth Management LLC boosted its holdings in shares of Charles Schwab by 99.2% in the fourth quarter. Dogwood Wealth Management LLC now owns 247 shares of the financial services provider's stock valued at $25,000 after purchasing an additional 123 shares during the period. Piscataqua Savings Bank purchased a new stake in shares of Charles Schwab in the fourth quarter valued at approximately $26,000. GoalVest Advisory LLC purchased a new stake in shares of Charles Schwab in the fourth quarter valued at approximately $28,000. West Branch Capital LLC purchased a new stake in shares of Charles Schwab in the third quarter valued at approximately $27,000. Finally, Beacon Financial Strategies CORP purchased a new stake in shares of Charles Schwab in the fourth quarter valued at approximately $29,000. Hedge funds and other institutional investors own 84.38% of the company's stock.

Charles Schwab News Roundup

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

• Positive Sentiment: Erste Group raised earnings forecasts — the firm boosted FY2026 EPS to about $6.01 and lifted FY2027 to roughly $7.04, improving Schwab’s forward earnings outlook and implying stronger organic/fee revenue or margin gains. Erste Group estimate notes
• Positive Sentiment: Material share buybacks: Schwab repurchased roughly $4.58 billion of stock in the 12 months through Sept. 2025 — a tangible capital return that supports EPS and valuation per share. A Target Cut Could Be Missing The Bigger Growth Story
• Neutral Sentiment: Corporate research and brand initiatives: Schwab’s consumer surveys (teen investing interest, investor complexity) and advisor/custody footprint stories reinforce long‑term client acquisition and advisory demand, a structural tailwind but not an immediate earnings shock. Teens Interested in Investing
• Neutral Sentiment: RIA custodian pricing remains highly customized — Schwab services ~16,000 RIAs with many fee structures; this highlights recurring revenue diversity but also fee negotiation risk for margins. What do RIAs pay for Schwab as custodian?
• Neutral Sentiment: Market/peer volatility: heavy crypto weakness (Robinhood earnings misses) is pressuring broker sentiment and could temporarily reduce trading volumes industry‑wide, though Schwab’s more diversified model limits direct exposure. Robinhood Earnings Sink
• Negative Sentiment: Several brokerages trimmed price targets (Argus, TD Cowen among others) while keeping Buy ratings — this narrows upside expectations and may prompt some investors to lock in gains. Capitalizing on Business Momentum & Diversified Model
• Negative Sentiment: Insider selling: Director Frank C. Herringer sold 2,520 shares at about $90.60 (disclosed Apr. 28) — a modest reduction in insider ownership that can be perceived negatively even though the stake remains large. SEC Form 4 – Insider Sale

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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