The Charles Schwab Corporation is 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. It operates through two segments: Investor Services and Advisor Services. The company offers brokerage accounts, mutual funds, exchange-traded funds, advisory solutions, banking products, trust custody services, digital trading platforms, and retirement plan services. Founded in 1971, it is headquartered in Westlake, Texas.
Schwab Client Assets Reach $13.41 Trillion in August on Record Net New Assets
Charles Schwab reported total client assets of $13.41 trillion for August 2026, up 19% year over year, driven by core net new assets of $64.8 billion, which surged 46% year over year. The company opened 424,000 new brokerage accounts during the month, up 11% year over year, while active brokerage accounts rose 6% to 40.1 million, banking accounts increased 13% to 2.4 million, and workplace plan participant accounts grew 5% to 5.9 million. Client daily average trades reached 9.8 million, up 37% year over year, margin balances soared 92% to $177.6 billion, transactional sweep cash rose 19% to $483.3 billion, and total money market fund balances reached $702.5 billion, up 6% year over year. Management's latest 2026 scenario calls for full-year net interest margin of 3.00%-3.10% and fourth-quarter net interest margin of 3.25%-3.30%, with average interest-earning assets reaching $453 billion at the end of August, up 9% from the prior-year month. Schwab's 2026 adjusted expenses are expected to rise 9.5-10.5% year over year, and over the past six months Schwab shares have gained 12.7%, underperforming the industry's 22.8% growth.
Charles Schwab Partners With Anthropic to Bring Claude AI to 16,000 Advisors
Charles Schwab is partnering with Anthropic to roll out the Claude for Financial Advisors tool across its RIA network, integrating the AI assistant into the workflows of more than 16,000 independent advisors that custody with Schwab. Claude is expected to support tasks such as drafting client communications, summarizing documents, and assisting with research for advisory teams. The rollout wires Claude into custody, CRM, planning and reporting systems for RIAs, part of Schwab's effort to make its advisor platform a stickier operating system rather than just a place to park assets, as it competes with rivals such as Fidelity and Morgan Stanley. The article flags cost and execution risk, noting that rising technology spending could outpace the benefits of deeper advisor engagement if the AI tooling complicates Schwab's tech stack or fails to deliver real time savings for advisors. Charles Schwab operates a large US wealth management and brokerage platform with a $185.6b market cap footprint.
Anthropic Launches Claude for Financial Advisors With Schwab and BlackRock
Anthropic launched Claude for Financial Advisors on September 14, connecting the AI assistant to Charles Schwab, BlackRock and other industry platforms so advisers can pull client and portfolio information into Claude for meeting prep, portfolio review and documentation. Charles Schwab is the first RIA custodian integrated with the offering, and says more than 16,000 independent RIAs will be able to connect Claude to Schwab Advisor Center through an authenticated connection, serving firms with over $5.5 trillion in assets. BlackRock contributes portfolio construction expertise, model portfolios and institutional analytics through Advisor Center, after ending the second quarter with $15.3 trillion in assets under management and posting a 13% year-over-year rise in technology-services and subscription revenue on continued Aladdin momentum. Anthropic says the plugin works across a long list of portfolio systems, CRMs and planning tools, and recommends Enterprise plans with audit logs to meet recordkeeping and compliance obligations. Insider Monkey's database showed 95 hedge funds long SCHW in the second quarter, down from 101 in the first, while BLK holders rose to 84 from 79.
JD Power Study Links Retirement Plan Digital Experience to Engagement
A new JD Power study finds that seamless digital experiences with retirement plan websites and mobile apps directly boost employee engagement, asset retention, and employer perception. The 2026 U.S. Retirement Plan Digital Experience Study shows that employees with the highest digital satisfaction—scoring 801 or higher—are 49% more likely to view their employer favorably, 50% more likely to roll over outside assets, and 60% more likely to keep assets with their current provider after changing jobs. Mobile apps outperform websites by 53 points, with average satisfaction scores of 724 versus 671, driven by faster, more personalized experiences. Security ranks as the top-performing attribute, while predictive tools lag. Bank of America, including Merrill, leads both website and app satisfaction with scores of 775 and 804, respectively, followed by Charles Schwab and Vanguard. The study, based on 6,634 participants, was released by JD Power on September 9, 2026.
Schwab Raises Minimum to $10 Million for Tax-Aware Accounts
Charles Schwab Corp. is imposing stricter limits on tax-aware long-short accounts, raising the minimum assets required to fund some separately managed accounts to $10 million from $1 million, according to a client note obtained by Bloomberg. The firm also said it will not enroll new clients or accept new funds in portfolio margin accounts, which use greater leverage. This is at least the third time Schwab has tightened rules for the strategy, which has grown rapidly among affluent investors seeking to offset capital-gains taxes. The changes take effect on September 16 and apply only to new accounts, with existing clients unaffected. Schwab and rival Fidelity Investments have both pulled back from facilitating the trades amid concerns about their unprecedented growth, though other money managers continue to offer tax-minimizing products.
Crypto Groups Submit Competing SEC Plans for Novel ETFs
Crypto firms, asset managers, market makers, and consumer advocates submitted competing proposals to the SEC for regulating novel exchange-traded products, including crypto, private assets, event contracts, and leveraged strategies. The Crypto Council for Innovation urged the SEC to extend regulatory efficiencies available to ETFs under the Investment Company Act of 1940 to other ETPs, while Andreessen Horowitz advised against treating all novel ETFs as a single category and called for closer coordination between fund-registration and exchange-listing reviews. Grayscale opposed new portfolio restrictions for digital-asset products, Charles Schwab proposed a public filing period of at least 75 days, and Chainalysis recommended real-time surveillance on public blockchains. Prediction market Kalshi argued that event contracts should remain eligible for registered funds, but consumer group Public Citizen warned that such ETFs would place gambling-like products in a vehicle retail investors trust for long-term investing. The SEC must now decide whether these products need a common framework or separate rules based on their structures and risks.
Solana's Block Generation Time Reduced to 300 Milliseconds, Introducing Network Constitution and Double Disinflation
Solana validators have passed their first binding on-chain vote, deciding to introduce a network constitution and double disinflation. As a result, slot time has been reduced by 25% over 8 days, reaching 300 milliseconds. This is the second phase of the transition plan 'SIMD-0525', which progresses in 50-millisecond increments from 400 milliseconds to 200 milliseconds. Compared to Bitcoin's average block generation interval of 10 minutes and Ethereum's average of 12 seconds, Solana's 300 milliseconds is significantly shorter. On the same day, it was also reported that Charles Schwab plans to add SOL to Crypto Direct, and Bitwise's Solana staking ETF has surpassed $1 billion in assets under management in 10 months.
Charles Schwab adds Solana, Avalanche, Chainlink to crypto platform
Charles Schwab is expanding its spot crypto trading platform to include Solana, Avalanche, and Chainlink, joining the previously announced Bitcoin and Ethereum offerings. The new assets will be available for purchase and holding on the platform, though transfers on and off are not supported, with fees set at 75 basis points. Schwab, which oversees more than $12 trillion in client assets across approximately 39 million active brokerage accounts, is adding these three established infrastructure plays rather than a broad range of speculative tokens. The move is seen as a defensive strategy to retain customers seeking crypto exposure, as traditional brokerages and crypto-native platforms converge to offer comprehensive services.
Bitcoin Hits New Recovery High, Focus on Jackson Hole Speech
Bitcoin rose to the $81,000 level, updating the recovery high set on Tuesday. The trend of being drawn to the $80,000 option strike continues, and after the 5 PM option cut, there is a possibility of breaking above $82,000 depending on Chair Powell's speech. The speech's content is focused on inflation, employment assessments, and the impact of AI, and unless it is extremely hawkish, it is seen as positive for Bitcoin. Additionally, Charles Schwab has begun offering Solana and other assets, and Solana rose 15% in one day.
Vanguard has agreed to acquire Altruist, an AI-forward wealth technology and custody platform, intensifying competition in the registered investment advisor (RIA) custody market, where Charles Schwab is the largest custodian by assets. Altruist will remain a standalone business after the deal closes, retaining its leadership, brand, and advisor-focused operating model, while Vanguard's financial strength and reach are expected to accelerate its technology and custody capabilities. As of June 30, 2026, Schwab served approximately 16,000 advisory firms and held about $5.7 trillion in RIA custodial assets, while Altruist has more than 6,000 independent advisors using its platform. Vanguard's backing could strengthen Altruist's ability to invest in technology, compete on pricing, and attract larger advisory firms, especially as AI adoption accelerates—Schwab's 2026 study found 63% of advisors already using AI. However, Schwab retains significant advantages in assets, advisor relationships, service infrastructure, and brand recognition, so the deal is unlikely to disrupt its leadership immediately but raises competitive stakes. Schwab's peers, Interactive Brokers and Robinhood, are also expanding their product ecosystems, with Interactive Brokers moving into crypto and prediction markets and Robinhood diversifying into crypto, retirement, and advisory services. Over the past six months, Schwab shares gained 14.6%, underperforming the industry's 19.3% growth, and trade at a premium with a 12-month trailing price-to-tangible book of 7.81X versus the industry average of 3.33X. The Zacks Consensus Estimate for Schwab's 2026 earnings suggests year-over-year growth of 32.7%, with estimates revised higher to $6.46 per share for 2026 and $7.83 for 2027.
CME Group to Launch E-mini Equity Factor Futures on September 21
CME Group announced plans to launch E-mini Equity Factor futures on September 21, pending regulatory review, expanding its equity product suite with six new contracts tied to S&P 500 and Dow Jones indexes. The new futures include E-mini S&P 500 Growth, Value, Quality, Momentum, and Low Volatility, as well as E-mini Dow Jones U.S. Dividend 100, providing tailored exposure to specific equity factors. These contracts will complement single- and multi-factor strategies, offering capital efficiencies for risk management and relative value trading, and will be eligible for margin offsets with other cleared equity products. The launch is supported by S&P Dow Jones Indices, Invesco, and Schwab Asset Management, with trading available on CME Globex and through block trades and BTIC transactions.
Charles Schwab Launches Digital Account Opening API with OneVest
Charles Schwab has launched its Digital Account Opening API, now live through wealth management platform OneVest, enabling digital onboarding for advisors and enterprise clients. The API expands Schwab's third-party fintech integration options and broadens distribution for its custody and platform services, targeting advisors, enterprises, and AI engineering teams seeking tighter integration with Schwab's technology stack. This move is part of Schwab's wider push to support data-heavy and AI-driven financial platforms, aligning with its focus on AI-powered efficiency and automation. A key metric to watch is advisor and enterprise uptake of the digital account opening capability across partners like OneVest over the next 12 to 18 months, which will indicate whether this integration becomes a meaningful channel for client asset and workflow growth.
Vanguard to acquire fintech platform Altruist for $4 billion
Vanguard Group has agreed to acquire Altruist, a wealth technology and custody platform for independent financial advisers, in a deal valued at around $4 billion, according to The Wall Street Journal. Altruist's platform combines self-clearing brokerage with tools for account opening, trading, portfolio management, billing, and reporting, competing with Charles Schwab and Fidelity Investments. Post-close, Altruist will operate as a standalone business, retaining its leadership and brand, with the transaction expected to close later this year pending regulatory approvals. Vanguard, which first invested in Altruist in 2020, aims to diversify revenue beyond index funds, and CEO Salim Ramji noted the acquisition aligns with Vanguard's mission to make advice more accessible. Altruist was valued at $1.9 billion in April 2025, making the $4 billion price more than double that valuation. Vanguard manages approximately $12 trillion in assets.
AQR's Tax-Loss Strategy Drives It to $140 Billion Hedge Fund
AQR Capital Management has become the world's largest hedge fund, surpassing $140 billion in assets by the end of March 2026, driven by aggressive tax-loss harvesting strategies that manufacture losses for wealthy investors. The firm's Flex strategy can turn a $100 million investment into over $580 million of tax-offsetting losses over 10 years using shorts and leverage, while a second product, Delphi Plus, targets annual income sheltering. Treasury officials warned in July 2026 that such strategies may be 'potentially abusive' and produce outcomes Congress never intended, and Charles Schwab and Fidelity are limiting new accounts pursuing the strategy. AQR has added a disclosure that the IRS could retroactively bar the benefits, and short sellers are wagering on a government crackdown.
Charles Schwab Shares Up 10% Since Q2 Earnings Beat
Charles Schwab shares have risen about 10% since the company reported second-quarter 2026 results a month ago, outperforming the S&P 500. Adjusted earnings of $1.62 per share beat the Zacks Consensus Estimate of $1.53 and soared 42% year over year, while net revenues reached a record $7.07 billion, up 21%. Total client assets hit a record $13.08 trillion, and the company repurchased 11.2 million shares for $1 billion during the quarter. Management now expects 2026 revenue growth of 17.5% to 18.5%, with net interest margin expanding to 3% to 3.10% for the year. Analysts have been revising estimates upward, giving the stock a Zacks Rank #2, or Buy.
Charles Schwab to Open India Global Capability Centre in Hyderabad
The Charles Schwab Corporation is expanding into India with a new global capability centre in Hyderabad, planning to grow it to around 2,000 employees by the end of 2027, starting with about 500 hires in the first year. The centre will support Schwab's U.S. operations through technology, engineering, and other operational work, and the company plans to bring some technology work currently handled by contractors in India in-house. Schwab is taking a different approach from many financial companies that are using AI to reduce costs and limit hiring, instead building a new team as part of its long-term technology strategy. The move could help Schwab control costs, reduce dependence on outside contractors, and give it more flexibility as its business grows, though risks include AI making some roles less necessary and the need for ongoing training and restructuring. Overall, the expansion is viewed as a modest bullish signal, with the real benefit depending on how effectively Schwab turns the new workforce into a technology and cost advantage.
Charles Schwab raised US$2.60 billion through two fixed-to-floating rate note offerings in August 2026 while facing ongoing litigation linked to Linqto's bankruptcy process and trustee dispute. The company reported client asset totals of US$13.04 billion and expanded its derivatives lineup with cash-settled Single Stock Futures, underscoring its push to deepen client engagement and product breadth. The Linqto litigation adds headline and legal risk, but based on the current share price and the relatively contained dollar amounts involved, it does not yet look like a thesis-breaking event for most shareholders. The bigger near-term swing factors appear to be client asset growth, trading activity, and how Schwab manages capital after the note offerings.
Charles Schwab launches single stock futures on over 50 US equities
Charles Schwab Futures & Forex launched single stock futures on more than 50 U.S. equities on August 12, 2026, covering the S&P 500, Nasdaq-100 and Russell 1000. The contracts trade on the Chicago Mercantile Exchange and let investors go long or short on individual stocks without owning shares, with each standard contract representing 100 shares and micro contracts covering 10 shares. Schwab pitches lower margin requirements, no borrow fees for short positions, and nearly round-the-clock trading access, with a commission of $2.25 per contract per side plus exchange and regulatory fees. The product requires a minimum initial margin of just 15%, compared with about 50% under federal Regulation T for buying stocks on margin, meaning a trader could control 100 shares of a $200 stock by posting about $3,000 instead of $10,000. Schwab's disclosures warn that leveraged futures positions can produce losses exceeding the initial margin deposit, and futures accounts also have no coverage from the Securities Investor Protection Corporation. The same product previously existed in U.S. markets but attracted almost no interest and disappeared by September 2020; CME relaunched the contracts on July 27, 2026, with over 35 retail partners aiming day-one readiness.
Schwab Reports July 2026 Monthly Activity Highlights
Charles Schwab released its Monthly Activity Report for July 2026, showing core net new assets rose 24% year-over-year to a July record of $58.1 billion. Total client assets reached $13.04 trillion at month-end, up 19% from July 2025 and relatively flat compared to June 2026. New brokerage accounts totaled 417,000, an 11% increase from a year earlier, while daily average trades were 11.6 million and client margin loan balances ended the month at $169.9 billion, up 51% from year-end. Transactional sweep cash declined by $8.9 billion to $476.8 billion, reflecting client net purchasing activity and typical seasonality related to advisory fee payments.
Charles Schwab Faces Lawsuit Over Bankruptcy Trust Affecting 13,000 Customers
Charles Schwab is facing litigation from Linqto over an alleged contractual breakdown tied to bankruptcy trust management affecting more than 13,000 customers. Linqto is seeking damages it claims stem from Schwab's role in the disputed trust arrangements during Linqto's bankruptcy process. The dispute centers on alleged contractual breaches that Linqto argues caused substantial harm to impacted customer accounts. The case is drawing attention because of potential reputational and operational risks for Schwab as well as possible regulatory interest.
Zeplyn Launches First Agentic Account-Opening Workflow in Wealth Management Through Schwab Integration
Zeplyn announced a new integration with Schwab Advisor Center that introduces what it calls the first agentic account-opening workflow in wealth management. The integration allows Zeplyn's AI agents to automatically complete Schwab's digital account-opening workflow and incorporate live Schwab holdings and transactions into AI-powered client briefs. Early pilots showed an approximately 80% decline in Not-In-Good-Order submissions and advisors saving more than 12 hours each week. The integration is part of Zeplyn's AI operating system for wealth management, which now includes over 50 wealth-specific AI agents and more than 30 integrations.
Linqto pursues litigation against Forge and Schwab to recover damages for over 13,000 customers
Linqto, Inc. announced it continues to pursue litigation against Forge Global, Inc. and its owner, The Charles Schwab Corporation, seeking full monetary damages for harms caused to its more than 13,000 customers, as well as repayment of all legal fees connected to the case. The company is also pursuing alternative risk mitigation strategies to exit bankruptcy as quickly as possible should Forge continue to refuse to perform as agreed. Linqto was forced to take these actions after Forge, under instructions from Schwab, broke its contractual commitment on July 15, 2026, to serve as trustee for the Liquidating Trust as part of the confirmed Plan of Reorganization, just days before Linqto was to exit bankruptcy. This action caused significant and immediate harm to customers already materially harmed by prior management's fraudulent actions that led to the Chapter 11 filing in July 2025. The securities to be transferred for the benefit of Linqto's customers remain safe, and their value has increased from $657 million in June 2025 to $1.3 billion in May 2026.
Advisor360° pilots native Schwab account opening on its platform
Advisor360° announced a pilot integration that makes Schwab Advisor Services account opening available natively within its Digital Onboarding capability. Advisors custodying with Schwab can now initiate accounts, trigger a digital client envelope for acceptance, and receive new account details automatically without leaving the Advisor360° platform, eliminating the previous multi-step process that required gathering data from separate systems and routing signatures through a third-party provider. The integration uses Schwab’s new digital onboarding API and Advisor360°’s Unified Data Fabric to create a straight-through workflow, building on the earlier availability of Schwab Advisor Center single sign-on. The pilot begins in August 2026 and is part of a broader initiative to expand advisors’ access to Schwab data while advancing Advisor360°’s multi-custodial offering.
Companies defy macro uncertainty and raise guidance
A growing number of companies are raising their profit outlooks despite macroeconomic uncertainty. More S&P 500 firms are lifting guidance than cutting it, and Wall Street analysts have raised third-quarter earnings estimates for the index for the second consecutive quarter. Argus research analyst Christine Dooley views consistent guidance raises as a catalyst for market-beating returns. Among the companies that have raised guidance in the second quarter so far are Cheesecake Factory, Ford, General Motors, Hasbro, Starbucks, Coca-Cola, Charles Schwab, PayPal, US Bancorp, ASML, Seagate Technology, Supermicro Computer, Bristol Myers Squibb, Johnson & Johnson, UnitedHealth Group, 3M, Lockheed Martin, Northrop Grumman, United Airlines, and United Parcel Service.
Charles Schwab Could Be 15% Undervalued After Earnings, Buybacks, and Dividends
Charles Schwab shares may be undervalued by about 15% following a combination of higher second-quarter earnings, fresh buyback progress, and confirmed common and preferred dividends. The stock recently traded at $104.47, while a narrative-based fair value estimate places it at $122.76. The company's model blends brokerage, asset management, advisory services, and banking to create multiple overlapping revenue streams. The analysis notes that Schwab still faces risks if interest rate trends shift or regulatory changes raise costs.
Morgan Stanley doubles down on Schwab after earnings
Morgan Stanley reiterated its bullish stance on Charles Schwab after the company reported second-quarter adjusted earnings of $1.62 per share on record revenue of $7.07 billion, beating Wall Street estimates. The firm raised its full-year revenue growth outlook to between 17.5% and 18.5%, up from the prior 14% to 15% range, driven by stronger client engagement and transaction activity rather than improved net interest margin assumptions, which remain at 3.00% to 3.10%. Daily average trades hit a record 11.9 million, a 57% jump from a year earlier, while trading revenue climbed 28% to about $1.2 billion and bank loan balances reached $67 billion, up 33%. Morgan Stanley highlighted Schwab's shift toward high-margin client lending, with pledged asset line balances surging 59% to $33.4 billion, and noted new growth drivers including prediction markets, crypto spot trading, and AI tools. The analyst set a $133 price target based on a 16 times multiple of estimated 2027 earnings per share of $8.32, implying roughly 30% upside from the pre-earnings level near $102.54.
Gen Z rushes to save for retirement, defying the spend-now trend in pursuit of financial independence
Bloomberg reports that a segment of Gen Z is accelerating savings and investments for retirement from a young age, sparking a movement dubbed Retirement-Maxxing. One example is Natalie Badour, age 26, who has amassed around 300,000 US dollars by saving more than half her income and holding shares in Chewy Inc. Data from Charles Schwab shows Gen Z begins saving on average at age 19, while Gen X started at 32 and Baby Boomers at 35. Vanguard Group reveals that one-third of Gen Z who opened an IRA last year chose to invest the full annual limit of 7,000 US dollars. A report by the Investment Company Institute and the University of Chicago found that older Gen Z members have nearly three times as much in retirement accounts as Gen X did at the same age, after adjusting for inflation. Analysts see this behavior rooted in economic uncertainty, such as high home prices, elevated interest rates, and risks to Social Security. Many savers also embrace the FIRE concept for financial independence and early retirement. However, experts at Vanguard caution that excessive saving may lead to neglecting credit card debt, resulting in high interest costs.
Schwab Raises 2026 Outlook on Record Revenue and AI-Led Expansion
Charles Schwab raised its full-year 2026 revenue growth forecast to 17.5–18.5% and expects net interest margin expansion to 3–3.10%, citing stronger equity markets, asset gathering, and increased trading activity. The company reported second-quarter adjusted earnings per share of $1.62 on revenues of $7.07 billion, both exceeding consensus estimates, while adding 1.4 million brokerage accounts and generating $120 billion in core net new assets. CEO Richard Wurster highlighted a 53% year-over-year increase in managed investing net flows and a 33% rise in bank lending balances to $67 billion, with margin balances reaching $165.1 billion. Management also emphasized the integration of artificial intelligence across the platform, noting a 15–20% improvement in developer productivity, and provided updates on Schwab Crypto and the Forge acquisition to expand private market access.
Charles Schwab posts record Q2 2026 revenue, stock falls 2.5%
Charles Schwab reported record second-quarter revenue and earnings on Tuesday, yet its stock ended the day down 2.5%. Total net revenue rose 21% year over year to a record $7.1 billion, while adjusted earnings per share of $1.62 beat analyst expectations of $1.56. Trading revenue climbed 28% to $1.2 billion, fueled by client daily average trades reaching an all-time high of 11.9 million, a 57% jump from a year ago. Net interest revenue grew 19% to $3.4 billion, and the net interest margin widened to 3.00%. The company also raised its full-year 2026 revenue growth guidance to a range of 17.5% to 18.5%, up from its prior forecast of 14% to 15%.
Charles Schwab launches direct Bitcoin and Ethereum trading after record revenue
Charles Schwab has introduced direct Bitcoin and Ethereum trading for its retail clients, adding the new crypto offering alongside its existing brokerage, advisory, and banking services. The launch follows a record quarter in which the company reported revenue of US$7.1 billion, net income of US$2.8 billion, and higher earnings per share. The move brings crypto access into the same platform where many households already manage stocks, ETFs, mutual funds, and cash, positioning Schwab as a more complete one-stop shop against rivals such as Robinhood, Coinbase, and Fidelity. The expansion adds compliance, technology, and risk management demands that investors will weigh against the firm's existing cost base and capital allocation, including its ongoing share buyback program.
Charles Schwab profits surge 32% on record trading activity
Charles Schwab reported a 32% surge in second-quarter profits, driven by record client trading activity. Net income reached $2.8 billion, or $1.54 per share, while total net revenue rose 21% to $7.1 billion, including a 28% jump in trading revenue. The daily average number of trades climbed to a record 11.9 million, and customer margin balances rose 30% from the previous quarter to $165 billion. Net interest income increased 19% to $3.36 billion, with the net interest margin expanding 12 basis points to 3.00%. Total client assets on the platform grew by $1.31 trillion from the prior quarter to $13.08 trillion.
Charles Schwab Set to Report Q2 Earnings With Revenue Expected to Rise 18%
Charles Schwab will announce its second-quarter earnings this Tuesday before market open. Analysts expect revenue to grow 18% year on year, a slowdown from the 24.8% increase recorded in the same quarter last year. The company met revenue expectations last quarter with $6.48 billion, up 15.8% year on year, but has missed Wall Street revenue estimates multiple times over the past two years. Peers Goldman Sachs and Morgan Stanley have already reported Q2 results, with Goldman Sachs beating estimates by 23.7% on 39.5% revenue growth and Morgan Stanley topping estimates by 8.7% on 27.1% revenue growth. Charles Schwab shares are up 10.8% over the last month, heading into earnings with an average analyst price target of $120.74 compared to the current share price of $102.
Schwab Survey Shows Client Referrals and Hiring Top RIA Priorities for 2026
Client referrals and recruiting are the top two priorities for registered investment advisors custodied with Charles Schwab, according to the firm's annual RIA survey. Firms with over $250 million in assets under management most frequently identified client acquisition through new referrals as their number one focus for 2026, continuing a trend seen since 2023. The survey of 1,236 RIAs found that firms with existing client referral plans generated 1.6 times more new client assets than those without, yet less than half of firms over $250 million have such plans. Recruiting staff to increase skill sets and capacity ranked second, with 75% of firms having hired in 2025 at a median of two new staffers, and a median of four new roles planned for 2026. Only one in three RIAs has a documented path to equity for employees, primarily to retain key talent. Newer priorities include improving productivity through AI and integrating AI into business strategy, which ranked sixth and seventh respectively.
Morgan Stanley's E*TRADE Fully Launches Spot Crypto Trading
E*TRADE, the online brokerage platform under Morgan Stanley, has completed the full rollout of spot cryptocurrency trading for Bitcoin, Ethereum, and Solana. The trading fee is 0.50% of the transaction amount, making it the lowest in the industry, undercutting Coinbase's 60 basis points, Charles Schwab's 75 basis points, and Robinhood's 95 basis points or more. Leveraging a trading infrastructure built through a partnership with crypto infrastructure provider Zero Hash, customers can buy, sell, and hold assets in a linked Zero Hash account and view their portfolio alongside traditional assets. Transfer functionality is planned for launch within 2026.
Goldman Sachs RIA Custody Gains Traction on Name Recognition and UHNW Focus
Goldman Sachs is gaining traction as a custodian for registered investment advisors, particularly those serving ultra-high-net-worth clients, as its brand name and bundled capabilities attract breakaway teams. Nate Lenz, CEO of Concurrent, said adding Goldman as a custody option in late 2024 has helped fuel a recruiting push that more than doubled the firm's assets under management to $21 billion, though Fidelity remains the largest custodian among its over 90 partner firms. Bill Keaton of Keaton & Sams Wealth Management, a $1.3 billion firm that joined Concurrent in October 2025, said the team led client conversations with the fact that Goldman would hold their assets, leveraging the brand's high-end reputation. Goldman has been added as a custody option by larger aggregators including Dynasty Financial Partners, NewEdge Capital Group, and Steward Partners, and by full consolidator RIAs such as Creative Planning, Prime Capital, and Perigon. While Charles Schwab still dominates the RIA custody space with over 55% market share among RIAs established since 2020, Goldman's share stands at 2.8%, though its bundling of banking, asset management, and alternatives access resonates with breakaways, according to consultant Mark Tibergien.
Charles Schwab Quietly Benefits from Retail Trading Boom
Charles Schwab is quietly cashing in on the current retail trading boom, with customer assets reaching $13.1 trillion in May 2026, a 27% increase year over year. New brokerage accounts opened during the month totaled 461,000, up 37% from May 2025, while the company hit a record daily average of 11.8 million trades. Margin loans rose 38% from the end of 2025. Despite being an established player, Schwab's growth remains strong, and its price-to-earnings ratio of 19x is less than half of Robinhood's 54x.
Charles Schwab passes Fed stress test and adds record assets
Charles Schwab comfortably passed the Federal Reserve's 2026 CCAR stress test with a 26.3% CET1 ratio, while reporting record net new assets and brokerage account onboarding. The clean stress test result gives Schwab more flexibility on dividends, buybacks, and balance sheet growth. The company also issued a US$1b fixed to floating rate note due 2029, tapping debt markets for funding. The stock recently closed at $97.0, up 8.5% over the past week but down 4.5% year to date. These milestones come amid closer scrutiny across the brokerage and banking industry.
Charles Schwab Shows Potential for Another Earnings Beat
Charles Schwab has a history of beating earnings estimates and may do so again in its next quarterly report. The company posted an average earnings surprise of 2.54% over the past two quarters, with the most recent quarter delivering $1.43 per share against a $1.39 estimate and the prior quarter delivering $1.39 per share against a $1.36 estimate. Its Earnings ESP is positive at 1.53%, and combined with a Zacks Rank of 2, or Buy, this suggests another beat is possible. The next earnings report is expected on July 21, 2026.
Big Banks, Brokerages, and Insurers Stand to Gain as Fed Rate Hikes Loom
With futures markets pricing a 63% chance of a Federal Reserve rate hike in September, financial stocks are poised to benefit from a higher-rate environment. The State Street Financial Select Sector SPDR ETF has outperformed the S&P 500 over the past month, rising about 4.2% while the broader index fell roughly 2%. Big banks like JPMorgan Chase, Wells Fargo, and Bank of America could see net interest margins widen, boosting profits, as JPMorgan did during the 2022-2023 hiking cycle when it generated record net interest income exceeding $90 billion. Brokerages such as LPL Financial Holdings and Charles Schwab stand to earn more on client cash held in short-term securities, while insurers including Berkshire Hathaway and Allstate can reinvest premiums into higher-yielding bonds.
Wall Street’s Favorite Stocks: Doximity, Crane NXT, and Charles Schwab
Wall Street analysts have set price targets implying returns above 20% for Doximity, Crane NXT, and Charles Schwab. Doximity, a digital platform for physicians, has a consensus target of $25.42, suggesting a 24.2% upside from its $20.47 share price, supported by 25.5% annual sales growth and an 89.1% gross margin. Crane NXT, a payment and authentication technology provider, carries a $66.83 target for a 36% implied return, backed by 15.3% average backlog growth and projected 16.3% revenue acceleration. Charles Schwab, the wealth management and brokerage firm, has a $115.85 target implying 28.2% upside, driven by 15.9% annual revenue growth and a 14.9% return on equity.
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