Schwab Q2 profit jumps 42%, raises full-year outlook
Charles Schwab reported record second-quarter earnings driven by a surge in trading and asset gathering, prompting the brokerage to raise its 2026 revenue guidance as clients consolidate more of their financial relationships with the firm.
Charles Schwab posted record second-quarter results, with adjusted earnings per share jumping 42% to $1.62 on a 21% increase in revenue to $7.1 billion. The brokerage giant immediately raised its full-year 2026 outlook, now projecting total revenue growth between 17.5% and 18.5%.
A significant driver of the quarterly beat was a sharp increase in market engagement. Daily average trades reached 11.9 million, pushing trading revenue up 28% to $1.2 billion. This level of activity highlights how Schwab's massive scale allows it to capture outsized returns during periods of high market volatility.
Asset Gathering Accelerates
Beyond trading, the firm demonstrated substantial momentum in accumulating long-term client capital. Schwab generated $120 billion in core net new assets during the quarter, a figure President and CEO Rick Wurster noted was up nearly 50% year over year. The company also added 1.4 million new brokerage accounts in the second quarter, bringing its first-half total to 2.7 million accounts and $260 billion in core net new assets.
For market professionals, the significance of these figures lies in the evolving nature of client behavior. Wurster emphasized that customers are no longer just opening trading accounts; they are consolidating their wealth, lending and banking relationships with Schwab. He credited this cross-selling success to the company's "true client size" strategy, arguing that Schwab occupies the "trusted center of the investing ecosystem" in a financial landscape that is "increasingly driven by investing."
Sustainable Growth Outlook
Management moved to reassure investors that this pace of asset gathering is not a temporary spike. When Jefferies analyst Dan Fannon asked about the sustainability of net new asset trends on the earnings call, Wurster said the firm remains "bullish." He pointed to broad-based strength across Advisor Services, Investor Services and workplace-related businesses.
Looking forward, Schwab expects its organic growth rate to remain at 5% or higher. The company identified expanding advice, lending, artificial intelligence and crypto initiatives as key future growth drivers. The quarterly results suggest Schwab is successfully leveraging its scale to fend off specialized fintech competitors by transforming into a consolidated financial hub.
