A discount brokerage and wealth-management firm, Schwab runs a giant retail brokerage, a bank, and custody services that back independent financial advisors, with products like Schwab Funds, ETFs, and thinkorswim for everyday investors. Founder Charles "Chuck" Schwab launched it in 1971 as First Commander Corporation, renamed it after himself in 1973, and turned it into an industry-disrupting discounter when commissions were deregulated in 1975. Its playful Stock Slices service lets people buy a "slice" of an expensive share for a small amount, like a slice of pizza.
Schwab's Q2 2026 net income rose 32% to $2.8B as trading revenue rose 28% on a 57% rise in daily average trades.
Trading rose as daily average trades rose 57%, the sharpest increase in over two years. Revenue rose 21% to $7.1B and reached $2.8B, with of $1.54, driven by higher and a spike in client trading activity. Client assets hit a record $13.1 trillion, but the slipped to 8.7% as buybacks accelerated.
Key takeaways
Net interest rose 19% to $3.4B, driven by growth in margin and bank lending and lower wholesale borrowings, continuing the recovery from the funding-cost drag that ended in early 2025.
Trading increased 28% to $1.2B as daily average trades rose 57% to 9.3 million, generating higher and commissions amid elevated market activity.
Asset management and administration fees rose 16% to $1.8B, reflecting higher average client asset balances from market appreciation and strong net flows into managed investing solutions.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 net income rose 32% to $2.8B on 21% revenue growth driven by higher net interest and trading revenue.
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Total net revenues grew 21% to $7.1B, driven by a 19% increase in net interest to $3.4B from growth in margin and bank lending and lower wholesale borrowings.
Total expenses excluding interest rose 12% to $3.4B on higher compensation, the inclusion of recently acquired , and investments in strategic initiatives; management now expects full-year expense growth of 10-11%.
The consolidated declined to 8.7% from 9.3% at year-end 2025, while the adjusted ratio of 6.8% remained within the long-term operating objective after $3.4B in share repurchases during the quarter.
Client assets reached a record $13.08 trillion, up 10% year-to-date, supported by $119.8B in and 1.4 million new brokerage accounts opened.
What changed
The 57% rise in daily average trades marks a clear acceleration from the 34% increase in Q1 2026 and the 31% rise for full-year 2025, pushing trading growth to 28% from 20% in the prior quarter.
Expense growth of 12% exceeded the 5% increase in Q1 2026, partly due to the inclusion of following the close of the $660M acquisition, which was flagged in the FY2025 10-K.
The consolidated declined further to 8.7% from 8.9% in Q1 2026 and 9.3% at year-end 2025, as flagged for monitoring, while the adjusted ratio held at 6.8%, within the 6.75%-7.00% objective.
Bank deposit account fees remained unreported as a separate line, continuing the omission that has persisted since Q2 2024 and was flagged in every subsequent filing.
What to watch
Whether the 57% rise in daily average trades and the resulting trading growth are sustained in Q3 2026 or represent a spike tied to specific market conditions.
The pace of common stock repurchases after $3.4B in Q2 2026, which already approaches half of the $7.4B full-year 2025 total, and its effect on the .
Full-year expense growth trajectory against the updated 10-11% , given the 12% rise in Q2 and the inclusion of operating costs.
Whether bank deposit account fees resume as a reported line after omission since Q2 2024.
Asset management and administration fees rose 16% to $1.8B, reflecting higher average client assets from market appreciation and strong net flows into managed investing solutions.
Trading increased 28% to $1.2B on higher order flow revenue and commissions due to a 57% surge in daily average trades.
Total expenses excluding interest rose 12% to $3.4B, driven by higher compensation, the inclusion of Forge, and investments in strategic initiatives; full-year expense growth is now expected at 10-11%.
The consolidated declined to 8.7% from 9.3% at year-end, while the adjusted ratio of 6.8% remained within the long-term operating objective after $3.4B in share repurchases.
Client assets reached a record $13.08 trillion, up 10% year-to-date, supported by $119.8B in core net new assets and 1.4 million new brokerage accounts.
Schwab discloses no material pending legal proceedings, noting only the settled Corrente antitrust litigation under appeal.
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The company states it is subject to claims and lawsuits in the ordinary course of business, including arbitrations and class actions.
Schwab believes it has strong defenses in all significant matters and is contesting liability and damages claimed.
The Corrente antitrust litigation, alleging the acquisition violated the Clayton Act, received final court approval for a class settlement on November 24, 2025.
Certain objectors have appealed the Corrente settlement approval to the Fifth Circuit Court of Appeals.
For all other pending matters, Schwab does not believe a material loss is reasonably possible based on current information and counsel consultation.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 71 Item 3. Defaults Upon Senior Securities 72 Item 4. Mine Safety Disclosures 72 Item 5. Other Information 72 Item 6. Exhibits 73 Signature 74 Part I – FINANCIAL INFORMATION THE CHARLES SCHWAB CORPORATION Manage…
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 71
Item 3. Defaults Upon Senior Securities 72
Item 4. Mine Safety Disclosures 72
Item 5. Other Information 72
Item 6. Exhibits 73
Signature 74
Part I – FINANCIAL INFORMATION
THE CHARLES SCHWAB CORPORATION
Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Tabular Amounts in Millions, Except Ratios, or as Noted)