Analysts Set Expectations for Charles Schwab FY2027 Earnings

Key Points

• Erste Group Bank raised its FY2027 EPS estimate for Charles Schwab to $7.96, up from $7.85 and well above the current consensus estimate of $6.46.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus rating and an average price target of $118.75, despite ratings ranging from “strong buy” to “sell.”
• Charles Schwab recently exceeded quarterly expectations with $1.62 EPS and $7.07 billion in revenue, while paying a $0.32 quarterly dividend; however, insider selling and rising operating expenses remain notable risks.

The Charles Schwab Corporation (NYSE:SCHW - Free Report) - Erste Group Bank boosted their FY2027 earnings estimates for shares of Charles Schwab in a report released on Thursday, October 8th. Erste Group Bank analyst S. Lingnau now expects that the financial services provider will post earnings per share of $7.96 for the year, up from their prior estimate of $7.85. The consensus estimate for Charles Schwab's current full-year earnings is $6.46 per share.

Several other research analysts have also weighed in on the company. Evercore assumed coverage on Charles Schwab in a research report on Monday. They set a "hold" rating and a $107.00 price target on the stock. Citigroup restated a "market outperform" rating on shares of Charles Schwab in a research report on Wednesday, July 22nd. Bank of America raised their price objective on Charles Schwab from $91.00 to $95.00 and gave the stock an "underperform" rating in a research report on Monday, October 5th. Compass Point initiated coverage on Charles Schwab in a research note on Monday, August 3rd. They set a "buy" rating and a $135.00 target price on the stock. Finally, Wells Fargo & Company began coverage on Charles Schwab in a report on Friday, October 2nd. They issued an "equal weight" rating and a $105.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $118.75.

Charles Schwab Stock Performance

Shares of SCHW stock opened at $97.08 on Tuesday. Charles Schwab has a 1-year low of $83.96 and a 1-year high of $114.53. The company has a current ratio of 0.64, a quick ratio of 0.64 and a debt-to-equity ratio of 0.52. The company has a market capitalization of $167.88 billion, a price-to-earnings ratio of 17.65, a P/E/G ratio of 0.82 and a beta of 0.79. The stock's fifty day simple moving average is $105.50 and its 200-day simple moving average is $98.15.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.62 earnings per share for the quarter, topping the consensus estimate of $1.56 by $0.06. The firm had revenue of $7.07 billion for the quarter, compared to analysts' expectations of $6.90 billion. Charles Schwab had a net margin of 38.79% and a return on equity of 24.53%. The company's quarterly revenue was up 20.9% compared to the same quarter last year. During the same period in the previous year, the company posted $1.14 EPS.

Charles Schwab Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 14th were paid a dividend of $0.32 per share. The ex-dividend date of this dividend was Friday, August 14th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.3%. Charles Schwab's dividend payout ratio (DPR) is 23.27%.

Insider Activity at Charles Schwab

In other news, insider Dennis Howard sold 2,198 shares of the business's stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $110.00, for a total transaction of $241,780.00. Following the transaction, the insider directly owned 6,980 shares in the company, valued at $767,800. The trade was a 23.95% decrease in their position. 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, Director Paula Sneed sold 5,263 shares of the company's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $107.15, for a total transaction of $563,930.45. Following the completion of the transaction, the director directly owned 91,711 shares in the company, valued at $9,826,833.65. This trade represents a 5.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 645,582 shares of company stock worth $69,553,935. 6.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of SCHW. Compass Financial Management LLC acquired a new position in Charles Schwab in the second quarter worth about $27,000. Scarborough Advisors LLC acquired a new stake in Charles Schwab during the first quarter valued at approximately $29,000. Main Street Group LTD acquired a new stake in Charles Schwab during the first quarter valued at approximately $33,000. J.Safra Asset Management Corp acquired a new stake in Charles Schwab during the second quarter valued at approximately $39,000. Finally, Washington Trust Advisors Inc. boosted its holdings in Charles Schwab by 118.0% during the second quarter. Washington Trust Advisors Inc. now owns 447 shares of the financial services provider's stock valued at $41,000 after purchasing an additional 242 shares in the last quarter. Hedge funds and other institutional investors own 84.38% of the company's stock.

Charles Schwab News Summary

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

• Positive Sentiment: Deutsche Bank raised its price target on Charles Schwab to $130 from $125, signaling greater confidence in the company’s earnings outlook and potential valuation. Deutsche Bank Adjusts Price Target on Charles Schwab to $130 From $125
• Positive Sentiment: Analysts expect robust trading activity, higher net interest revenue and increased asset-management fees to support SCHW’s third-quarter results. These trends could help extend the company’s recent earnings momentum. Can Robust Trading, Higher NIR Support Schwab's Q3 Earnings?
• Positive Sentiment: Longer-term commentary points to potential artificial-intelligence-related growth opportunities, while higher Treasury yields could improve the economics of Schwab’s cash and lending businesses. Charles Schwab Earnings And Long-Term AI Tailwinds
• Neutral Sentiment: Evercore initiated coverage with an “in line” assessment, a “hold” rating and a $107 price target. The target implies upside from the referenced share price, but the neutral stance suggests analysts see a relatively balanced risk-reward profile. Evercore ISI Initiates Charles Schwab at In Line
• Neutral Sentiment: Pre-earnings estimates focus on revenue, EPS and key operating metrics for the quarter ended September 2026. The outlook is constructive, but investors are waiting for reported results to confirm the forecasts. Exploring Analyst Estimates for Charles Schwab Q3 Earnings
• Negative Sentiment: Rising operating expenses remain a key risk to third-quarter earnings, potentially offsetting gains from stronger trading, net interest revenue and asset-management fees. Can Robust Trading, Higher NIR Support Schwab's Q3 Earnings?

Charles Schwab Company Profile

Charles Schwab Corporation NYSE: SCHW is a financial services company that provides brokerage, investment, banking and wealth management services to individual investors, employers, institutions and independent investment advisors. Its offerings include online and mobile trading, securities brokerage, retirement accounts, financial planning, portfolio management, banking products, research and access to mutual funds and exchange-traded funds.

The company operates through businesses including Schwab Brokerage, Schwab Wealth Advisory, Schwab Asset Management and Charles Schwab Bank.

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