Barclays Turns More Bullish on The Charles Schwab Corporation (SCHW) After Q4

Core Viewpoint - The Charles Schwab Corporation (NYSE:SCHW) is considered a highly profitable financial stock, with a bullish outlook from Barclays analyst Benjamin Budish, who raised the price target to $125 from $120 following Q4 results [1][2]. Financial Performance - In Q4, The Charles Schwab Corporation reported revenue of $6.34 billion, slightly below the consensus estimate of $6.39 billion [2]. - The company achieved core net new assets of $163.9 billion in Q4, leading to a total client asset increase of 18% year-over-year, reaching a record $11.9 trillion [2]. - The net interest margin (NIM) for Q4 was approximately 2.9%, reflecting a 57 basis points improvement year-over-year [2]. Future Guidance - For FY 2026, management guided an NIM of 2.85%-2.95%, supported by modest expansion in average interest-earning assets compared to FY25 [3]. - Adjusted expenses for FY26 are expected to rise by 5.5%-6.5% year-over-year, with adjusted pre-tax margins anticipated to expand into the low-50% range [3]. - The recent acquisition of Forge Global is not included in the FY26 guidance [3]. Company Overview - The Charles Schwab Corporation is a Texas-based savings and loan holding company that provides a variety of financial services, operating in two segments: Investor Services and Advisor Services [4].