Haverhill Financial Research · News · Earnings preview · October 15, 2026
The short version
Charles Schwab reports third-quarter results this morning, with its fall business update webcast at 8:30 a.m. Eastern. Schwab's monthly reports have already shown a strong summer: clients brought in $58.1 billion of core net new assets in July and $64.8 billion in August, records for both months, and total client assets reached $13.41 trillion at the end of August. September comes out with today's results.
Where things stand
| Measure | Latest | Change |
|---|---|---|
| Net revenuesSecond quarter 2026 | $7.07B | +21% |
| Net interest marginSecond quarter 2026 | 3.00% | 2.66% a year earlier |
| Adjusted earnings per shareSecond quarter 2026, GAAP $1.54 | $1.62 | +42% |
| Adjusted pre-tax marginSecond quarter 2026 | 54.3% | 50.1% a year earlier |
| Core net new assetsAugust 2026 | $64.8B | +46% |
| Total client assetsEnd of August | $13.41T | +19% |
| New brokerage accountsAugust 2026 | 424K | +11% |
| Transactional sweep cashEnd of August | $483.3B | $485.7B in June |
Core net new assets, June to August 2026. Source: Schwab monthly activity reports.
What Schwab told us to expect for 2026
In July, Schwab said it expects full-year revenue to grow 17.5% to 18.5% and adjusted expenses to rise 9.5% to 10.5%, with the adjusted pre-tax margin moving further into the low 50s. It guided the net interest margin to 3.00% to 3.10% for the year and 3.25% to 3.30% in the fourth quarter. Those forecasts assumed the federal funds rate ends the year with an upper bound of 4.00%.
What we will be watching
Client cash. Sweep cash dipped in July and recovered in August. Schwab earns a lot on this money, so the September balance matters for the margin path.
Trading activity. Daily average trades were a record 11.9 million in the second quarter, then 11.6 million in July and 9.8 million in August.
Any change to the outlook. A wider margin in the fourth quarter is a big part of the full-year plan.
Our take
The asset-gathering numbers look excellent, and that is the part of Schwab's business that compounds. The swing factor today is client cash and what it means for net interest revenue through year-end.
Sources and disclosures
Figures come from Schwab's own materials: the second-quarter 2026 earnings release, its summer business update, monthly activity reports for July and August, and the fall business update announcement.
Disclosures. Haverhill Financial Research is a publisher of general financial commentary. This article is not personalized investment advice and does not consider any reader's financial situation; readers should do their own research. Nothing here is a recommendation to buy or sell any security. Company figures and guidance can change. The author of this post does not hold positions in Charles Schwab or the other companies named. Data as of October 15, 2026.
