Charles Schwab delivered a record first quarter on Thursday, reporting net revenues of $6.48 billion, up 16% year-over-year and ahead of the $6.47 billion analyst consensus. Adjusted earnings per share came in at $1.43, beating the $1.38 estimate and representing a 38% increase against the same quarter in 2025. GAAP earnings per share reached $1.37, up from $0.99 a year earlier. Net income for the quarter totalled $2.5 billion on a GAAP basis and $2.6 billion on an adjusted basis.
The headline figure that defined the quarter was daily average trading volume, which reached a record 9.9 million trades, up 34% compared to Q1 2025. Market volatility driven by the US-Iran conflict and sustained macroeconomic uncertainty produced exactly the conditions that historically benefit Schwab’s trading-oriented revenue lines. When retail investors are active and anxious about their portfolios simultaneously, brokerage engagement climbs and the resulting revenue follows.
Total client assets reached $11.77 trillion at the end of March, up 19% year-over-year and representing another record level for the firm. Core net new assets totalled $140 billion for the quarter. Excluding a planned $17.5 billion outflow related to a mutual fund clearing client deconversion, the underlying organic figure was $157.5 billion, a first-quarter record that speaks to Schwab’s continued ability to attract new money even in a challenging macroeconomic climate.
New brokerage account openings came in at 1.3 million, pushing total client accounts to 47.2 million and active brokerage accounts to 39.1 million. Managed investing net flows grew 46% versus Q1 2025 to an all-time record, driven by demand for Schwab Wealth Advisory, which reached $10 billion in flows with 30% coming from legacy Ameritrade clients still migrating across to the platform. Bank loan balances increased 29% year-over-year to $60.9 billion, and margin loan balances expanded 13% from year-end 2025 to $126.7 billion.
CFO Mike Verdeschi described the results in terms of the firm’s broader strategic identity: “Driven by robust client engagement across our wealth, trading, and lending solutions, total first quarter revenue increased 16% year-over-year to $6.5 billion.” The language was measured, but the underlying numbers represented a validation of Schwab’s diversified revenue model in one of the more disruptive quarters the market has produced in recent years.
Schwab also closed its acquisition of Forge Global in early March. The deal gives Schwab’s clients direct and fund-based access to pre-IPO company shares, extending the firm’s reach into the private markets space at a time when pre-IPO equity has become an increasingly prominent asset class for high-net-worth and retail investors alike. Management described the integration as progressing on schedule.
The firm repurchased 24.3 million shares for $2.4 billion during the quarter, maintaining its capital return programme at a meaningful pace. Management said full-year EPS is tracking above the previously implied range of $5.70 to $5.80, with more specific guidance expected to be issued in July. The Forge acquisition and ongoing investment in technology and branch expansion are expected to weigh modestly on near-term margins, but management framed both as deliberate strategic choices rather than cost control failures.
Despite the strong results, shares declined more than 2.5% in pre-market trading before stabilising. The pattern mirrors what has happened to other stocks this earnings season where beats have been priced in ahead of reporting and the market’s first reaction has been to sell the news rather than chase it. The market’s treatment of Schwab’s results also reflects broader uncertainty about how long the trading volume tailwind persists once geopolitical conditions stabilise and volatility normalises.
Looking ahead, Schwab flagged an ETF monetisation strategy expected to be live by year-end, following negotiations with more than 400 asset managers. A crypto platform and expanded pre-IPO share access were identified as additional growth levers for the second half of the year, alongside continued AI integration across both client-facing and operational functions.
