Schwab Q2 FY2026: record revenue of $7.07 billion, EPS $1.54 vs $1.08
Schwab's second quarter of FY2026 was a record on both the top and bottom line: revenue of $7.07 billion, up 21.0% year-over-year, and net income of $2.80 billion. Adjusted EPS of $1.62 beat the $1.58 consensus, helped by $170 million of pre-tax costs excluded from the adjusted figure. The view here is Bullish, based on broad revenue growth, record client asset gathering and a 25% return on equity.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS of $1.54 was up 43.0% year-over-year but sat slightly below the $1.58 consensus. On the adjusted basis Schwab prefers, EPS of $1.62 beat that same consensus by 2.5%. The $0.08 gap between the two comes from $170 million of pre-tax transaction-related costs, which are real costs even if management treats them as one-time.
Revenue of $7.07 billion rose 21.0% from $5.85 billion a year ago and 9.1% from $6.48 billion in the prior quarter. Interest revenue was the biggest slice at $4.43 billion before $1.08 billion of interest expense, with asset management and administration fees at $1.83 billion and trading revenue at $1.22 billion. That mix matters: this is a business that earns on both client cash and client activity.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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