Financial services giant Charles Schwab (NYSE: SCHW) announced better-than-expected revenue in Q2 CY2026, with sales up 20.9% year on year to $7.07 billion. Its non-GAAP profit of $1.62 per share was 4.5% above analysts’ consensus estimates.
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Charles Schwab (SCHW) Q2 CY2026 Highlights:
- Revenue: $7.07 billion vs analyst estimates of $6.90 billion (20.9% year-on-year growth, 2.4% beat)
- Pre-tax Profit: $3.67 billion (51.9% margin)
- Adjusted EPS: $1.62 vs analyst estimates of $1.55 (4.5% beat)
- Market Capitalization: $178.3 billion
“Investors continued to engage with Schwab’s expanding set of solutions during 2Q as daily average trades reached a record 11.9 million, net flows into Schwab Wealth Advisory™ increased 80% year-over-year, and Pledged Asset Line™ balances equaled $33.4 billion – up 59% from 2Q25.”
Company Overview
Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab (NYSE: SCHW) is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, Charles Schwab’s 10.4% annualized revenue growth over the last five years was decent. Its growth was slightly above the average financials company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Charles Schwab’s annualized revenue growth of 18.6% over the last two years is above its five-year trend, suggesting its demand recently accelerated. 
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Charles Schwab reported robust year-on-year revenue growth of 20.9%, and its $7.07 billion of revenue topped Wall Street estimates by 2.4%.
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Key Takeaways from Charles Schwab’s Q2 Results
It was encouraging to see Charles Schwab beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock traded up 1.5% to $104.10 immediately after reporting.
Charles Schwab may have had a good quarter, but does that mean you should invest right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
