Charles Schwab Posts Record $7.2B Revenue Yet Shares Drop Around 5% After Mixed Q3 Results

SCHW reported third-quarter 2026 net revenues of $7.17 billion, up 17% from a year earlier and a quarterly record, while GAAP net income rose 23% to $2.91 billion. Adjusted EPS of $1.69, up 29%, topped consensus of roughly $1.65 to $1.66, a beat of $0.03 to $0.04 depending on the estimate used; GAAP EPS was a record $1.62.

Asset gathering was the standout. Total client assets rose 15% to $13.33 trillion, and core net new assets reached a record $190.4 billion, up 38%, according to the company's release. Net interest revenue, roughly half of the top line, grew 14% to about $3.48 billion, a slower pace than earlier in the year.

The stock went the other way. Shares fell about 5% intraday on October 15, and Zerohedge flagged a 5.6% drop to the lowest level since June; by 1:24 p.m. ET they had pared the loss to about 3.1% at $93.83 on SentiSense's delayed quote. Coverage split on the top line: Investing.com put revenue slightly below consensus, while TipRanks counted a small beat. Management also said full-year 2026 revenue growth and net interest margin expansion should land toward the lower end of previously provided ranges, and TipRanks pointed to rising odds of a Fed rate hike after September's hot producer price data.

What to watch: whether management's guidance for fourth-quarter net interest margin expansion of 25 to 30 basis points year over year holds if the Fed tightens again, and whether record asset inflows keep converting into revenue as net interest growth cools. The gap between record asset gathering and a softer revenue outlook is the central tension in the quarter.