SCHWAB (CHARLES) CORP (NYSE:SCHW) Reports Record Q3 2025 Earnings, Beating Estimates

Schwab (Charles) Corp (NYSE:SCHW) has reported financial results for the third quarter of 2025, delivering record revenue and earnings that surpassed analyst expectations. The performance underscores a period of robust client-driven growth and operational efficiency for the financial services giant.

Earnings and Revenue Performance

The company's third-quarter results demonstrated significant strength, with both top and bottom-line figures exceeding the consensus estimates held by market analysts.

• Earnings Per Share (EPS): Schwab reported adjusted earnings per share of $1.31. This result outpaced the analyst estimate of $1.26, representing a positive surprise.
• Revenue: The firm posted record net revenues of $6.14 billion for the quarter. This also came in above the anticipated $6.11 billion, highlighting robust revenue generation across its business segments.

The market reaction to these results has been notably positive. In pre-market trading, the stock is indicating a significant upward move, reflecting investor approval of the earnings beat and the company's overall financial health.

Key Business Highlights

The earnings press release detailed several factors contributing to the strong quarterly performance, painting a picture of a company experiencing solid organic growth and improved profitability.

• Client Asset Growth: Total client assets reached a record $11.59 trillion, a 17% increase from the prior year.
• Strong Client Inflows: The firm gathered $137.5 billion in core net new assets during the quarter, bringing the year-to-date total to $355.5 billion.
• Account Growth: New brokerage accounts exceeded one million for the fourth consecutive quarter.
• Improved Profitability: The adjusted pre-tax profit margin expanded to 51.3%, up from 41.2% in the prior-year quarter, driven by revenue growth and disciplined expense management.
• Capital Return: Schwab repurchased $2.7 billion of its common stock during the quarter, demonstrating a commitment to returning capital to shareholders.

Financial Position and Outlook

Management's commentary emphasized "strengthening organic growth trends" and "favorable macroeconomic tailwinds." While the press release did not provide a specific quantitative financial outlook for the coming periods, the tone was optimistic, citing momentum across its service offerings.

Analysts currently project the following for Schwab's future performance:

• Q4 2025 Revenue Estimate: $6.18 billion
• Q4 2025 EPS Estimate: $1.28
• Full-Year 2025 EPS Estimate: $4.73

The company's ability to meet or exceed these future estimates will be a key focus for investors in the subsequent quarters.

Conclusion

Schwab's third-quarter earnings report presented a compelling case of a company executing effectively in the current environment. By surpassing earnings and revenue expectations and showcasing strong fundamental growth in client assets and accounts, the results have been met with a positive market reception. The significant pre-market stock movement suggests investors are rewarding the company for its record performance and efficient capital management.

For a detailed look at historical earnings and future analyst estimates for Schwab (Charles) Corp, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any security. Investors should conduct their own research before making any investment decisions.