Charles Schwab (NYSE:SCHW) Releases Earnings Results, Beats Estimates By $0.07 EPS

Charles Schwab (NYSE:SCHW) released its earnings results on Wednesday. The financial services provider reported $1.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.32 by $0.07, Zacks reports. Charles Schwab had a net margin of 35.93% and a return on equity of 21.02%. During the same period last year, the firm posted $1.01 earnings per share. The firm’s revenue for the quarter was up 18.9% compared to the same quarter last year.

Charles Schwab Price Performance

Shares of NYSE SCHW opened at $100.98 on Wednesday. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.58 and a quick ratio of 0.58. The stock has a market capitalization of $179.44 billion, a price-to-earnings ratio of 23.65, a PEG ratio of 0.71 and a beta of 0.94. The firm’s 50 day simple moving average is $97.42 and its 200-day simple moving average is $95.70. Charles Schwab has a 12 month low of $65.88 and a 12 month high of $104.98.

Charles Schwab Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, November 28th. Shareholders of record on Friday, November 14th were given a $0.27 dividend. This represents a $1.08 annualized dividend and a yield of 1.1%. The ex-dividend date was Friday, November 14th. Charles Schwab’s dividend payout ratio is currently 25.29%.

Insider Activity at Charles Schwab

In related news, insider Jonathan S. Beatty sold 2,000 shares of Charles Schwab stock in a transaction dated Tuesday, December 23rd. The stock was sold at an average price of $102.01, for a total value of $204,020.00. Following the completion of the transaction, the insider owned 11,923 shares in the company, valued at $1,216,265.23. The trade was a 14.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 6.30% of the stock is owned by company insiders.

Institutional Trading of Charles Schwab

Several large investors have recently made changes to their positions in SCHW. Invenio Wealth Partners LLC lifted its holdings in Charles Schwab by 5.4% in the 3rd quarter. Invenio Wealth Partners LLC now owns 2,584 shares of the financial services provider’s stock valued at $247,000 after purchasing an additional 132 shares in the last quarter. CYBER HORNET ETFs LLC lifted its stake in shares of Charles Schwab by 3.9% in the third quarter. CYBER HORNET ETFs LLC now owns 4,087 shares of the financial services provider’s stock worth $390,000 after buying an additional 155 shares in the last quarter. Newbridge Financial Services Group Inc. boosted its position in Charles Schwab by 233.6% during the third quarter. Newbridge Financial Services Group Inc. now owns 357 shares of the financial services provider’s stock worth $34,000 after acquiring an additional 250 shares during the last quarter. Clark Capital Management Group Inc. grew its stake in Charles Schwab by 10.3% during the 3rd quarter. Clark Capital Management Group Inc. now owns 3,012 shares of the financial services provider’s stock valued at $288,000 after acquiring an additional 281 shares in the last quarter. Finally, Main Street Financial Solutions LLC raised its holdings in Charles Schwab by 4.7% in the 2nd quarter. Main Street Financial Solutions LLC now owns 6,828 shares of the financial services provider’s stock valued at $623,000 after acquiring an additional 305 shares during the last quarter. 84.38% of the stock is currently owned by hedge funds and other institutional investors.

Charles Schwab News Roundup

Here are the key news stories impacting Charles Schwab this week:

• Positive Sentiment: Schwab reported record Q4 and full‑year 2025 results, including $2.5B net income for the quarter, underscoring strong profitability and asset/flow momentum. This is a clear company‑specific positive for revenues and margins. Schwab Reports Record 4Q and Full Year 2025 Results
• Positive Sentiment: Quarterly EPS came in above consensus ($1.39 vs. $1.32), and the firm posted a high ROE (~21%) and strong net margin (~36%), supporting earnings growth and valuation multiples. MarketBeat SCHW Page
• Positive Sentiment: WSJ highlights that brokerage activity surged in 2025, lifting Schwab’s profit — a structural tailwind if retail trading and ETF flows remain elevated. That helps the revenue mix and potential fee income. Schwab’s Profit Jumps on Surge in Brokerage Activity
• Positive Sentiment: Jim Cramer flagged Schwab as a long‑term beneficiary of aging demographics and recurring wealth transfer trends, which is supportive sentiment for retail investor flows and long‑term AUM growth. Jim Cramer Says Charles Schwab Is One of the “Three Biggest Beneficiaries of My Aging Generation”
• Neutral Sentiment: Analysis notes steady earnings expectations and low short interest, which reduces immediate downside tail‑risk from short squeezes but also means fewer contrarian catalysts. This shifts focus back to fundamentals and macro flow. Does Steady Expectations and Low Short Interest Quietly Recast Charles Schwab’s Risk Narrative (SCHW)?
• Neutral Sentiment: Long‑term performance pieces (20‑year return analyses) highlight Schwab’s historical shareholder gains, useful context for buy‑and‑hold investors but less relevant for near‑term price moves. Here’s How Much You Would Have Made Owning Charles Schwab Stock In The Last 20 Years
• Negative Sentiment: Barron’s ran a headline framing the earnings as lower than expected and noted the stock was down — conflicting take vs. the beat — which can prompt headline‑driven selling from short‑term traders. Charles Schwab Earnings Lower Than Expected. The Stock Is Down.
• Negative Sentiment: Broader market risk‑off ahead of macro/political events (e.g., Davos/Trump headlines) hit the market and pressured financial names, which likely amplified Schwab’s intraday weakness despite company‑level positives. Markets Switch to “Risk-Off” Ahead of Trump at Davos

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on SCHW shares. TD Cowen upped their target price on shares of Charles Schwab from $134.00 to $135.00 and gave the stock a “buy” rating in a research note on Wednesday, January 14th. The Goldman Sachs Group reiterated a “buy” rating and set a $114.00 target price on shares of Charles Schwab in a report on Friday, October 17th. Raymond James Financial restated an “outperform” rating and issued a $114.00 price target on shares of Charles Schwab in a report on Monday, January 5th. Morgan Stanley upped their price target on shares of Charles Schwab from $139.00 to $148.00 and gave the stock an “overweight” rating in a research report on Monday, December 22nd. Finally, Wolfe Research set a $120.00 price objective on shares of Charles Schwab in a research report on Monday, January 12th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $114.45.

About Charles Schwab

Charles Schwab Corporation (NYSE: SCHW) is a diversified financial services firm that provides brokerage, banking, wealth management and advisory services to individual investors, independent investment advisors and institutional clients. Its primary offerings include retail brokerage accounts, online trading platforms, Schwab-branded mutual funds and exchange-traded funds (ETFs), retirement plan services, custodial services for independent Registered Investment Advisors (RIAs), and banking products through Charles Schwab Bank.