Key Highlights
The financial services giant delivered impressive results in the first quarter, with adjusted earnings per share of $1.43, surpassing Wall Street's consensus estimate of $1.39.
On a GAAP basis, earnings per share were $1.37. The company's net income reached a record $6.5 billion, a 16% year-over-year increase, slightly exceeding analysts' forecast of $6.47 billion.
During this three-month period, GAAP net income was $2.48 billion, up 30% from the same period last year. Adjusted net income was $2.59 billion, reflecting a 29% increase compared to Q1 2025.
The company's pre-tax profit margin under GAAP accounting standards expanded to 49.2%, up from 43.8% in the same period last year. The adjusted pre-tax profit margin reached 51.4%.
In this quarter, the brokerage attracted $140 billion in core net new client assets. After adjustments, considering the $17.5 billion outflow due to periodic mutual fund liquidations, the net new asset figure increased to $157.5 billion.
The company added 1.3 million brokerage accounts in the first quarter. The total number of active brokerage accounts now stands at 39.1 million, while the total number of client accounts is 47.2 million.
Record Trading Volume and Asset Expansion
Average daily trading volume reached a historic high of 9.9 million trades this quarter, a 34% year-over-year increase. This surge contributed to a 20% year-over-year growth in trading revenue.
Assets under management grew 19% year-over-year, reaching $11.77 trillion. Revenue from asset management and administrative fees increased by 15%, totaling $1.8 billion.
Net inflows into managed investment solutions surged 46% year-over-year. Bank loan balances increased by 29%, reaching $60.9 billion as of the end of March.
Margin loan balances rose 13% from the end of 2025, reaching $126.7 billion, which includes $21.3 billion related to long/short investment strategies used by registered investment advisor clients.
The net interest margin for the period was 2.88%. Client trading cash balances reached $461.5 billion by the end of March, an increase of $7.8 billion from the previous quarter.
The annualized return on common equity reached 23%, an improvement from 18% in Q1 2025. The return on tangible common equity was 40%.
The brokerage completed its acquisition of Forge Global in early March. GAAP expenses increased by 5% year-over-year, and after excluding $143 million in costs related to acquisition and integration activities, adjusted expenses also grew by 5%.
The company also launched the Schwab Teen Investment Account this quarter, aimed at serving young investors aged 13 to 17.
StockBrokers.com named the company the best overall broker for the second consecutive year. Core net new assets in March totaled $79.7 billion.