Charles Schwab

SCHW Q3 2025 Earnings

Reported Oct 16, 2025 at 4:25 PM ET · SEC Source

Q3 25 EPS

$1.31

BEAT +5.21%

Est. $1.25

Q3 25 Revenue

$6.14B

BEAT +1.96%

Est. $6.02B

vs S&P Since Q3 25

-9.5%

TRAILING MARKET

SCHW -1.1% vs S&P +8.5%

Market Reaction

Did SCHW Beat Earnings? Q3 2025 Results

Charles Schwab delivered a strong third quarter, posting earnings per share of $1.31 against a consensus estimate of $1.25, a beat of 5.21%, while revenue of $6.13 billion topped expectations by 1.96%, even as the top line reflected a 6.4% decline fr… Read more Charles Schwab delivered a strong third quarter, posting earnings per share of $1.31 against a consensus estimate of $1.25, a beat of 5.21%, while revenue of $6.13 billion topped expectations by 1.96%, even as the top line reflected a 6.4% decline from a year ago. The most consequential driver behind the results was a 37% surge in net interest revenue to $3.05 billion, fueled by a 78-basis-point expansion in net interest margin to 2.86% as the company continued aggressively unwinding higher-cost bank supplemental funding, which fell $12.90 billion during the quarter to $14.80 billion. GAAP net income climbed 67% to $2.36 billion, and the pre-tax profit margin expanded sharply to 49.2% from 38.0% a year ago, underscoring significant operating leverage. Client momentum remained a bright spot, with core net new assets of $137.50 billion and total client assets reaching $11.59 trillion. Management signaled confidence in the trajectory ahead, pointing to continued organic growth, deepening wealth solution adoption, and ongoing capital returns, backed by a $20 billion share repurchase program.

Key Takeaways

  • Net interest margin expanded 21 basis points sequentially to 2.86% due to reduction of higher-cost liabilities, strong securities lending activity, and increased client utilization of lending solutions
  • Core net new assets of $137.5 billion, up 44% year-over-year
  • New brokerage account openings exceeded 1 million for the fourth consecutive quarter
  • Daily average trading volume of 7,421 thousand, up 30% year-over-year
  • Managed Investing Solutions net inflows grew 40% versus 3Q24
  • Bank Supplemental Funding declined by $12.9 billion to $14.8 billion
  • Client transactional sweep cash increased $13.5 billion sequentially to $425.6 billion
  • Margin balances ended the quarter at $97.2 billion, up 16% versus year-end 2024
  • Securities lending revenue more than doubled year-over-year
  • Increasing client interest in derivatives trading
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SCHW YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

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SCHW Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“Our unwavering focus on delivering for clients helped us attract $137.5 billion in 3Q core net new assets plus over 1 million new brokerage accounts for the fourth straight quarter.”

— Rick Wurster, Q3 2025 Earnings Press Release