Schwab reported record second-quarter net revenues of $7.07 billion and GAAP net income of $2.80 billion, or $1.54 per diluted share, for Q2 2026. Adjusted net income was $2.93 billion, with adjusted diluted EPS of $1.62 after excluding $170 million of pre-tax transaction-related and integration costs. The company cited 21% year-over-year revenue growth and strong client engagement driving record trading volumes and net asset inflows.
Financial Highlights
- Net revenues: $7,072 million for the three months ended June 30, 2026 (up 21% vs. Q2 2025).
- GAAP net income: $2,800 million; GAAP diluted earnings per share: $1.54 for Q2 2026.
- Adjusted net income (non-GAAP): $2,930 million; adjusted diluted EPS: $1.62 for Q2 2026 (excludes $170 million pre-tax acquisition/integration and related items).
- Pre-tax profit margin (GAAP): 51.9%; adjusted pre-tax profit margin (non-GAAP): 54.3% for Q2 2026.
- Return on average common stockholders’ equity (annualized): 25% for the quarter; return on tangible common equity (annualized, non-GAAP): 44%.
Business Highlights
- Total client assets reached $13.08 trillion, up 22% year-over-year as of June 30, 2026.
- Core net new assets: $119.8 billion in Q2 2026; June core net new assets alone were a record $62.7 billion (annualized organic growth rate of 5.8%).
- New brokerage accounts opened: 1.4 million in Q2 2026, bringing total client accounts to 48.0 million.
- Record client trading activity: daily average trades reached 11.9 million (up 57% vs. Q2 2025), driving trading revenue of $1,215 million (up 28% vs. Q2 2025).
- Product and platform launches: introduced Schwab Crypto for retail Bitcoin and Ethereum trading and launched Portfolio Insights, a generative AI capability for portfolio performance narratives.
Original SEC Filing:
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