Company Performance - Shares of The Charles Schwab Corporation (SCHW) have increased by 2.2% over the past month, reaching a new 52-week high of $105.81 [1] - Year-to-date, Charles Schwab has gained 4.1%, while the Zacks Finance sector and the Zacks Financial - Investment Bank industry have seen gains of 17.9% and 36.1%, respectively [1] Earnings and Revenue Expectations - Charles Schwab has consistently beaten the Zacks Consensus Estimate in the last four quarters, with the latest EPS reported at $1.39 against a consensus of $1.36 [2] - For the current fiscal year, earnings are expected to be $5.73 per share on revenues of $26.24 billion, reflecting a 17.66% increase in EPS and a 9.68% increase in revenues [3] - For the next fiscal year, projected earnings are $6.76 per share on revenues of $29 billion, indicating year-over-year changes of 17.96% and 10.54%, respectively [3] Valuation Metrics - Charles Schwab currently trades at 18.2 times the current fiscal year EPS estimates, which is above the peer industry average of 16.4 times [7] - On a trailing cash flow basis, the stock trades at 17.4 times compared to the peer group's average of 14.4 times [7] - The stock has a PEG ratio of 0.87, which does not place it among the top echelon of stocks from a value perspective [7] Zacks Rank and Style Scores - Charles Schwab holds a Zacks Rank of 2 (Buy) due to a solid earnings estimate revision trend [8] - The company has a Value Score of B, and both Growth and Momentum Scores are A, resulting in a combined VGM Score of A [6][8] Industry Comparison - Interactive Brokers Group, Inc. (IBKR) is a notable peer with a Zacks Rank of 2 (Buy) and a Value Score of C, Growth Score of B, and Momentum Score of A [9] - IBKR is expected to post earnings of $2.31 per share on revenues of $6.39 billion for the current fiscal year, having beaten the consensus estimate by 25% last quarter [10] - The Financial - Investment Bank industry is performing well, ranking in the top 14% of all industries, providing favorable conditions for both SCHW and IBKR [11]

Core Insights - Charles Schwab reported $519 billion in core net new assets for 2025, reflecting an organic growth rate of 5.1% and a revenue growth of 22% compared to 2024 [1] - Total client assets increased by 18% year-over-year in Q4 2025, reaching a record $11.9 trillion [2] - Earnings per share for Q4 2025 were reported at $1.39, slightly below the analyst consensus of $1.40, and fourth quarter revenue was also lower than expected [3] ETF Performance - Client assets allocated to proprietary ETFs increased by 25% in Q4 2025 compared to Q4 2024, while total client assets in third-party ETFs rose by 30% during the same period [4] - The Schwab US Dividend Equity ETF (SCHD) saw net inflows exceeding $5 billion in 2025, indicating strong investor interest [4] - SCHD offers a distribution yield of 3.82% as of December 31, 2025, with a low net expense ratio of 0.06%, appealing to income-seeking investors [5]

Core Viewpoint - Charles Schwab Corporation is experiencing strong financial performance, with analysts projecting a significant upside in its stock price based on recent earnings and revenue growth [1][2][6] Financial Performance - For the quarter ending December 2025, Charles Schwab reported a revenue of $6.34 billion, reflecting an 18.9% increase year-over-year, slightly exceeding the Zacks Consensus Estimate of $6.33 billion [2][6] - The company's earnings per share (EPS) for the same period was $1.39, up from $1.01 a year ago, surpassing the consensus estimate of $1.36 and delivering a surprise of 2.31% [3][6] Stock Performance - Currently, SCHW is priced at $101.79, with a recent change of $0.80, indicating a 0.79% increase [4] - Over the past year, SCHW has experienced a high of $104.98 and a low of $65.88, suggesting a stable yet dynamic trading environment [4] Market Position - Charles Schwab's market capitalization is approximately $184.77 billion, with a trading volume of 14.67 million shares, reflecting strong investor confidence [5] - Barclays analyst Benjamin Budish has set a price target of $125 for SCHW, indicating a potential upside of 22.8% from its current price [1][6]

Core Insights - The company plans to launch Bitcoin and Ethereum spot trading in the first half of 2026 and will introduce high-touch trading services for institutional clients in Q1 [1] - The acquisition of Forge is expected to be completed in the coming months, aimed at attracting high-net-worth clients and enhancing asset gathering [1] - In 2025, the company reported a net new asset increase of $519 billion, a 42% year-over-year growth, with retail and advisor segments growing approximately 33% and over 42% respectively [1][6] - The average age of the company's clients has decreased by about 10 years over the past decade, with approximately one-third of new clients last year being Gen Z [6] Financial Guidance - The CFO provided a financial outlook for 2026, projecting total revenue growth of approximately 9.5% to 10.5% year-over-year [2] - The company expects a net interest margin (NIM) for the year to be in the range of 2.85% to 2.95%, even with a hypothetical 50 basis point decrease in the federal funds rate [2] Business Strategy - The company is focusing on loan growth and will continue to seek strong lending opportunities in 2026, with a significant emphasis on both bank loans and financing transactions [3] - The alternative investment platform is experiencing growth, with positive client feedback, particularly from high-net-worth clients [4] - The company aims to enhance its service capabilities for high-net-worth clients by introducing tax-related services and hiring experienced wealth advisors [4][5] Growth Drivers - The company identifies several potential accelerators for net new asset growth, including the full launch of crypto services, expansion of workplace business, and increased presence of financial advisors [6] - The lending segment is seen as a key growth area, with the current penetration rate of pledged asset lines (PAL) among retail ultra-high-net-worth clients at approximately 9%, which management believes can significantly increase [8][9] Capital Management - The company maintains a capital management framework that prioritizes supporting core business growth and client needs before considering shareholder returns [10] - The target range for the adjusted Tier 1 capital leverage ratio remains at 6.75% to 7%, with potential fluctuations due to interest rate changes [14] Client Engagement - The performance of the Ameritrade client base has improved, with net new assets and engagement with wealth solutions showing significant acceleration [15] - The company emphasizes the importance of deepening relationships with existing clients to enhance asset concentration and client satisfaction [16] Profitability and Efficiency - The company expects profit margins to continue rising due to revenue diversification and balanced expense management [17] - AI applications are being utilized to improve efficiency in client services, with a focus on maintaining low service costs while enhancing productivity [17]

Core Insights - The Charles Schwab Corporation reported $6.34 billion in revenue for Q4 2025, marking an 18.9% year-over-year increase and a slight surprise of +0.1% over the Zacks Consensus Estimate of $6.33 billion [1] - Earnings per share (EPS) for the same period was $1.39, up from $1.01 a year ago, exceeding the consensus EPS estimate of $1.36 by +2.31% [1] Financial Performance Metrics - Total client assets reached $11,903 billion, surpassing the average estimate of $11,803.17 billion by analysts [4] - The net interest margin was reported at 2.9%, matching the average estimate [4] - Daily Average Trades (DATs) were 8.27 million, exceeding the average estimate of 7.79 million [4] - Average Interest Earning Assets stood at $431.14 billion, slightly below the estimated $437.45 billion [4] Revenue Breakdown - Net interest revenue was $3.17 billion, above the average estimate of $3.15 billion, reflecting a year-over-year increase of +25.3% [4] - Other net revenues were reported at $127 million, below the average estimate of $159.74 million, showing a year-over-year decline of -27.4% [4] - Bank deposit account fees totaled $238 million, slightly below the average estimate of $242.78 million, with a year-over-year change of -1.2% [4] - Asset management and administration fees reached $1.73 billion, exceeding the average estimate of $1.7 billion, with a year-over-year increase of +14.8% [4] - Trading revenue was reported at $1.07 billion, above the estimated $1.04 billion, reflecting a +22.1% change year-over-year [4] - Schwab money market funds generated $465 million, slightly above the average estimate of $462.49 million, with a year-over-year increase of +19.5% [4] - Asset management fees from equity and bond funds, ETFs, and CTFs were $140 million, slightly below the average estimate of $141.85 million, with a +12% year-over-year change [4] - Mutual Fund OneSource and other no-transaction-fee funds generated $267 million, close to the average estimate of $269.88 million, reflecting a +15.6% year-over-year change [4]

分组1 - The Charles Schwab Corporation reported quarterly earnings of $1.39 per share, exceeding the Zacks Consensus Estimate of $1.36 per share, and showing an increase from $1.01 per share a year ago, resulting in an earnings surprise of +2.31% [1] - The company posted revenues of $6.34 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.10%, and up from $5.33 billion year-over-year [2] - Charles Schwab has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - Charles Schwab shares have increased by approximately 1.1% since the beginning of the year, contrasting with a 0.7% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.32 on revenues of $6.41 billion, and for the current fiscal year, it is $5.68 on revenues of $26.16 billion [7] 分组3 - The Zacks Industry Rank places the Financial - Investment Bank sector in the top 18% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Charles Schwab is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

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Group 1 - The company reported fourth-quarter earnings that matched analyst expectations with adjusted earnings per share of $1.39 and record revenue of $6.34 billion, reflecting a 19% increase year over year [1] - Total client assets rose 18% year over year to a record $11.90 trillion, with core net new assets totaling $163.9 billion for the quarter [2] - The net interest margin expanded to 2.90%, an increase of 57 basis points from the previous year, while asset management and administration fees increased by 15% to $1.7 billion [3] Group 2 - Trading revenue climbed 22% compared to the prior-year quarter, indicating strong performance in trading activities [3] - Full-year inflows reached $519.4 billion, reflecting organic growth of 5.1% [2]

Group 1 - The fourth quarter earnings season is gaining momentum, with major financial institutions like Charles Schwab and regional banks such as Fifth Third set to report results, alongside Netflix and Intel, which are expected to be focal points [1][5] - An optimistic consensus is emerging, with 7% of S&P 500 companies having reported fourth quarter results as of January 16, and analysts projecting an 8.2% increase in earnings per share for the quarter, marking the 10th consecutive quarter of annual earnings growth for the index [2] - Analysts had initially anticipated an 8.3% increase in earnings per share heading into the reporting period, a decrease from the previous quarter's 13.6% growth rate, but expectations have been raised recently, particularly for technology companies [3] Group 2 - The current earnings season is expected to test the improved stock market breadth observed at the beginning of 2026, with ongoing themes from 2025, such as artificial intelligence and economic policies, continuing to influence market dynamics [4] - This week's earnings releases will also include reports from notable companies such as United Airlines, 3M Company, D.R. Horton, Johnson & Johnson, GE Aerospace, Procter & Gamble, Abbott Laboratories, and Capital One [5]

Exhibit 99.1 https://files.repo SCHWAB REPORTS RECORD 4Q AND FULL YEAR 2025 RESULTS 4Q Core Net New Assets Total $163.9 Billion; Full-Year Organic Growth of 5.1% 4Q Net Revenues Up 19% Year-Over-Year to a Record $6.3 Billion Quarterly GAAP Earnings Per Share of $1.33, $1.39 Adjusted – Up 38% versus 4Q24 (1) WESTLAKE, Texas, January 21, 2026 – The Charles Schwab Corporation reported net income for the fourth quarter totaling $2.5 billion, or $1.33 earnings per share. Excluding $127 million of pre-tax transac ...