Charles Schwab Posts Record Q3 Net New Assets of $190.4 Billion as Earnings Beat but Revenue Misses

Charles Schwab reported third-quarter 2026 adjusted earnings per share of $1.69, beating the consensus estimate of $1.66 by $0.03 and rising 29% year over year. Revenue came in at $7.17 billion, up 17% from a year earlier but fractionally below expectations, and the company indicated it sees full-year revenue at the lower end of its prior guidance range. Shares slipped roughly 1.9% in premarket trading on the revenue shortfall.

The quarter's standout figure was core net new assets of $190.4 billion, a record and a 38% increase versus the same period in 2025, with total net new assets reaching $192.4 billion against an estimate of $175.1 billion. Total client assets rose 15% year over year to $13.33 trillion, active brokerage accounts reached 40.26 million, and the company opened 1.24 million new brokerage accounts in the quarter. Daily average trades climbed 44% year over year to 10.69 million.

Net income grew 23% to $2.91 billion. Within the revenue mix, net interest revenue rose 14% to $3.48 billion, falling short of the $3.52 billion estimate, while asset management and administration fees grew 14% to $1.91 billion, trading revenue rose 16% to $1.16 billion, and bank deposit account fees jumped 40% to $345 million. Margin loan balances surged 93% year over year to $187.9 billion, and bank loan balances grew 35% to $72.3 billion. The adjusted pre-tax margin was 54.8%. Schwab repurchased 4.7 million shares for $0.5 billion during the quarter.

On the product and technology front, Schwab announced single stock futures on its thinkorswim platform, unveiled a new AI-powered assistant called Charley, and announced a partnership with Anthropic to bring Claude directly to the independent registered investment advisors it serves. The company also disclosed plans to develop its own tax-aware long-short products, a strategy increasingly popular with high-net-worth clients. Evercore ISI maintained its In Line rating on the stock following the results. Analysts noted that strong asset gathering and expanding margins reflected underlying business strength, while slowing sequential revenue growth and weaker-than-expected net interest revenue and trading monetization tempered enthusiasm.