Charles Schwab Corp. (NYSE:SCHW) shares fell Thursday after the brokerage reported first-quarter fiscal 2026 results.
Earnings And Revenue Performance
The company posted adjusted earnings of $1.43 per share, up 38% from a year earlier and above the analyst consensus estimate of $1.39. Revenue rose 16% year over year to $6.48 billion, slightly below Wall Street expectations of $6.47 billion.
Trading Activity And Interest Income Trends
Trading revenue increased 20% to $1.09 billion, driven by strong client engagement. Net interest revenue climbed 16% to $3.14 billion, while net interest margin expanded to 2.88% from 2.53% a year earlier.
Asset Management Growth And Client Activity
Asset management and administration fees rose 15% to $1.8 billion, supported by organic growth and increased use of wealth management solutions. Average daily trading volume reached 9.9 million, up 34% from the prior-year quarter.
Margin loan balances totaled $126.7 billion at quarter-end, up 13% from year-end 2025.
President and CEO Rick Wurster said client engagement remained strong, driving record levels in wealth and banking solutions. “Clients continue to turn to us for more of their financial lives, helping wealth and banking solutions reach record levels in 1Q,” he said. “Led by Schwab Wealth Advisory, Managed Investing net flows grew 46% year over year while bank loans expanded 29% versus 1Q25 to $60.9 billion.”
Client Assets, Account Growth And Capital Position
Total client assets rose 19% to a record $11.8 trillion. Core net new assets reached a first-quarter record of $140 billion, bringing total asset gathering to $158 billion.
The company added 1.3 million new brokerage accounts during the quarter, bringing active brokerage accounts to 39.1 million and total client accounts to 47.2 million.
Schwab ended the quarter with $45.0 billion in cash and cash equivalents. Deposits totaled $253.0 billion, up 3% year over year. The company repurchased 24.3 million shares for $2.4 billion during the quarter.
Crypto Expansion And Product Rollout
In a separate release, Schwab said it is rolling out Schwab Crypto, allowing its 39 million active brokerage clients to trade Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) for the first time. The offering will be introduced in phases over the coming weeks, aligning with a previously announced second-quarter launch timeline. Schwab will charge 75 basis points per transaction.
SCHW Price Action: Charles Schwab shares were down 6.08% at $94.17 at the time of publication on Thursday, according to Benzinga Pro data.
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