Charles Schwab’s adjusted EPS of $1.62 beats estimates, but stock falls despite record trading activity and client asset growth.
Charles Schwab reported record second-quarter revenue of $7.1 billion, up 21% year over year, driven by a 57% surge in daily average trades to 11.9 million. Net income reached $2.8 billion, with adjusted earnings per share of $1.62, topping analyst expectations of $1.56.
Trading revenue climbed 28% to $1.2 billion, while net interest revenue rose 19% to $3.4 billion. Client assets grew 22% to $13.08 trillion, and margin loan balances jumped 30% to $165.1 billion. The company also raised its full-year 2026 revenue growth guidance to 17.5%-18.5%.
Despite the strong results, Schwab’s stock fell 2.5% on Tuesday, reflecting investor concerns over sustained growth amid elevated client borrowing and market volatility.