Schwab Tops Q3 Expectations on Record Revenues, Favorable Backdrop

Core Insights - Charles Schwab (SCHW) achieved record net revenues of $6.14 billion for Q3 2025, reflecting a 27% year-over-year increase and surpassing the Zacks Consensus Estimate of $5.95 billion [1][10] - Adjusted earnings per share rose 70% from the previous year to $1.31, exceeding the consensus estimate of $1.23 [1][10] Revenue Growth Drivers - Record net new assets of $137.5 billion were attracted during the quarter, a 44% year-over-year increase, bringing total client assets to an all-time high of $11.59 trillion [2] - Daily average trading volumes increased by 30% year-over-year to 7.42 million trades, leading to a 25% rise in trading revenues to $995 million [3] - Net interest revenues (NIR) grew by 37% year-over-year to $3.05 billion, supported by a net interest margin increase of 78 basis points to 2.86% [4][5] Asset Management and Other Revenue Streams - Revenues from asset management and administration rose 13% to $1.67 billion, driven by strong equity market performance and record adoption of wealth solutions [6] - The company reported a 4% increase in total non-interest expenses to $3.11 billion, with adjusted total expenses rising 5% year-over-year to $3 billion [8] Client Engagement and Market Conditions - The company opened over 1 million new brokerage accounts for the fourth consecutive quarter, indicating strong client engagement [3] - Positive market conditions, including strong equity markets and client optimism, contributed to asset growth and trading activity [7] Market Sentiment - Despite strong financial performance, Schwab's shares experienced a slight decline of almost 1% due to sector-wide concerns regarding regional banks and increasing credit stress [9]