Charles Schwab reported stronger-than-expected third-quarter results on Thursday, showcasing robust client growth, higher revenue, and record total assets amid a buoyant stock market.
The results underscore the wealth management giant’s ability to attract new money and capitalize on rising investor activity in 2025’s bullish environment.
The Westlake, Texas-based firm reported adjusted earnings per share (EPS) of $1.31, beating Wall Street’s consensus estimate of $1.25, according to FactSet.
Revenue came in at $6.1 billion, ahead of expectations for $6 billion and up significantly from $4.8 billion in the same quarter last year.
Shares of Schwab climbed 4.5% in premarket trading following the announcement although after the market open, it was trading 1.04% high at $95.32.
Record client assets and accelerating growth
CEO Rick Wurster attributed the strong performance to “strengthening organic growth trends, increasing adoption of wealth solutions, and favorable macroeconomic tailwinds.”
Schwab reported core net new assets of $137.5 billion, a 44% year-over-year increase, marking another quarter of record inflows.
The company also added one million new brokerage accounts for the fourth consecutive quarter.
Total client assets reached a record $11.59 trillion, reflecting both new deposits and higher market valuations as equity markets continued to rise.
The company ended the quarter with 45.7 million client accounts, reinforcing its position as one of the largest brokerage and wealth management platforms in the United States.
Schwab’s expanding client base and strong inflows were supported by continued enthusiasm for stock investing and trading.
Daily average trading volume reached 7.4 million, a 30% increase from a year ago.
Margin balances — loans clients take out to buy securities — rose 16% to $97.2 billion, underscoring investors’ confidence in the market rally.
Improved financial position and interest income
Schwab also made progress in strengthening its balance sheet.
The company said its bank supplemental funding declined by $12.9 billion during the quarter to $14.8 billion, marking an 85% drop from its peak in May 2023.
This reduction in debt improves Schwab’s financial flexibility and supports profitability through higher net interest income.
For the quarter, Schwab reported net interest revenue of $3.05 billion, up from $2.22 billion in the same period last year.
The improvement reflects the company’s ability to capitalize on higher interest rates and reduced funding costs.
Analysts expect continued growth momentum
Analysts had anticipated solid third-quarter results given favorable market conditions and retail investor engagement.
JP Morgan Securities analyst Kenneth Worthington maintained an Overweight rating on the stock, citing Schwab’s “underlying fundamentals moving in the right direction” toward achieving its long-term goal of 5% to 7% annualized net new asset growth.
Worthington recently raised his price target for Schwab’s stock to $119 for December 2026, up from $117 for December 2025.
Schwab shares are up 29% higher year-to-date, outperforming the S&P 500’s 14% gain.
As Schwab continues to expand its branch network and introduce new products — including an alternative investment platform launched earlier this year — the company appears well-positioned to sustain growth through a combination of market momentum, innovation, and strong client engagement.
The post Charles Schwab posts strong Q3 results as client assets and trading surge appeared first on Invezz
