Charles Schwab (NYSE:SCHW) today reported record financial results for the first quarter of 2026, driven by unprecedented client engagement and robust organic growth across its core business segments.
The Westlake, Texas-based financial services leader posted net income of $2.5 billion, or $1.37 per diluted share.
Excluding $143 million in pre-tax transaction-related costs, adjusted net income reached $2.6 billion, or $1.43 per share.
Quarterly net revenues hit an all-time high of $6.5 billion, a 16% increase over the first quarter of 2025.
This top-line surge was fueled by a 20% rise in trading revenue, as record market volatility and client activity drove high volumes.
Additionally, asset management and administration fees climbed 15% year-over-year to $1.8 billion, reflecting the continued migration of client assets into Schwab's premium wealth management and advisory solutions.
The firm’s net interest margin (NIM) for the quarter stood at 2.88%, supported by average interest-earning assets of $437.7 billion.
Notably, client transactional sweep cash balances ended March at $461.5 billion, an increase of $7.8 billion from the previous quarter.
On the expense side, Schwab demonstrated disciplined scale.
GAAP expenses rose 5% year-over-year, while adjusted total expenses—excluding acquisition and integration costs—also saw a modest 5% uptick.
This controlled spending, paired with rapid revenue growth, resulted in significant operating leverage for the quarter.