Zacks Research Lowers Earnings Estimates for Charles Schwab

Key Points

• Zacks Research has lowered its Q4 2025 earnings per share estimate for Charles Schwab from $1.22 to $1.21, while maintaining a "Hold" rating on the stock.
• Charles Schwab's recent quarterly earnings surpassed expectations, reporting $1.14 earnings per share on revenue of $5.85 billion, a year-over-year revenue increase of 24.8%.
• Insider selling has been notable, with key executives selling shares, while the company has initiated a $20 billion stock buyback program to repurchase up to 11.6% of its outstanding shares.

The Charles Schwab Corporation (NYSE:SCHW - Free Report) - Stock analysts at Zacks Research cut their Q4 2025 earnings per share (EPS) estimates for shares of Charles Schwab in a report released on Thursday, September 18th. Zacks Research analyst Team now expects that the financial services provider will post earnings per share of $1.21 for the quarter, down from their prior forecast of $1.22. Zacks Research currently has a "Hold" rating on the stock. 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 Q3 2026 earnings at $1.38 EPS, FY2026 earnings at $5.26 EPS and FY2027 earnings at $5.95 EPS.

SCHW has been the subject of a number of other research reports. Raymond James Financial reissued an "outperform" rating and issued a $99.00 price objective on shares of Charles Schwab in a research report on Friday, July 18th. Piper Sandler raised their target price on Charles Schwab from $80.00 to $92.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 15th. Barclays raised their target price on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research note on Friday, July 18th. Keefe, Bruyette & Woods raised their target price on Charles Schwab from $102.00 to $108.00 and gave the stock an "outperform" rating in a research note on Monday, July 21st. Finally, Truist Financial raised their target price on Charles Schwab from $107.00 to $112.00 and gave the stock a "buy" rating in a research note on Friday, August 15th. Sixteen equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Charles Schwab presently has an average rating of "Moderate Buy" and a consensus target price of $100.00.

Charles Schwab Stock Up 1.1%

Charles Schwab stock opened at $94.27 on Monday. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.55 and a quick ratio of 0.55. The stock has a market capitalization of $171.12 billion, a price-to-earnings ratio of 25.34, a PEG ratio of 0.93 and a beta of 0.96. Charles Schwab has a 1-year low of $62.41 and a 1-year high of $99.59. The business has a fifty day moving average price of $95.42 and a 200-day moving average price of $87.41.

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

Hedge Funds Weigh In On Charles Schwab

Several institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. increased its stake in shares of Charles Schwab by 1.9% in the 2nd quarter. Vanguard Group Inc. now owns 151,182,081 shares of the financial services provider's stock valued at $13,793,853,000 after purchasing an additional 2,786,829 shares in the last quarter. Price T Rowe Associates Inc. MD increased its stake in shares of Charles Schwab by 12.3% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 82,048,984 shares of the financial services provider's stock valued at $6,422,795,000 after purchasing an additional 8,954,248 shares in the last quarter. State Street Corp increased its stake in shares of Charles Schwab by 0.7% in the 2nd quarter. State Street Corp now owns 72,464,619 shares of the financial services provider's stock valued at $6,611,672,000 after purchasing an additional 531,329 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Charles Schwab by 2.9% in the 2nd quarter. Geode Capital Management LLC now owns 37,381,183 shares of the financial services provider's stock worth $3,399,181,000 after buying an additional 1,038,376 shares during the last quarter. Finally, Franklin Resources Inc. boosted its holdings in Charles Schwab by 2.8% in the 2nd quarter. Franklin Resources Inc. now owns 30,035,937 shares of the financial services provider's stock worth $2,740,479,000 after buying an additional 815,625 shares during the last quarter. Hedge funds and other institutional investors own 84.38% of the company's stock.

Insider Buying and Selling at Charles Schwab

In other Charles Schwab news, insider Nigel J. Murtagh sold 24,096 shares of Charles Schwab stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $97.91, for a total transaction of $2,359,239.36. Following the completion of the transaction, the insider owned 58,999 shares in the company, valued at approximately $5,776,592.09. This trade represents a 29.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Chairman Walter W. Bettinger sold 173,876 shares of Charles Schwab stock in a transaction dated Tuesday, July 29th. The shares were sold at an average price of $98.84, for a total value of $17,185,903.84. Following the transaction, the chairman owned 590,734 shares of the company's stock, valued at $58,388,148.56. The trade was a 22.74% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 267,213 shares of company stock worth $26,232,180. Insiders own 6.30% of the company's stock.

Charles Schwab announced that its board has initiated a stock buyback program 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 repurchase up to 11.6% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's management believes its stock is undervalued.

Charles Schwab Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were paid a dividend of $0.27 per share. The ex-dividend date was Friday, August 8th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.1%. Charles Schwab's dividend payout ratio (DPR) is presently 29.03%.

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.

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