Charles Schwab Third-Quarter Revenue Misses Views; Sees Full-Year Topline at Lower End of Guidance

10:58 AM EDT, 10/15/2026 (MT Newswires) -- Charles Schwab (SCHW) reported third-quarter revenue just below Wall Street's estimates on Thursday, while the financial services provider expects its full-year topline to grow at the lower end of its previously issued guidance. Revenue climbed 17% year on year to $7.17 billion for the September quarter, just shy of the FactSet-polled consensus of $7.18 billion. Adjusted earnings rose to $1.69 a share from $1.31, topping the Street's view for $1.65. Shares of Charles Schwab fell 4.9% in Thursday trade, taking their year-to-date loss to 7.9%. For 2026, the company anticipates revenue and net interest margin to grow toward the lower end of the ranges it provided in the summer, Chief Financial Officer Mike Verdeschi said during an earnings call, according to a FactSet transcript. In July, the firm expected revenue to increase by 17.5% to 18.5% annually and net interest margin to expand into the 3% to 3.1% range. "Given the robust pace of lending this year, loan growth has outpaced deposit growth, which has resulted in greater utilization of our diversified funding sources," according to Verdeschi. The company projects expenses to come in at the low end of a 9.5% to 10.5% growth range, the CFO added. For the third quarter, Charles Schwab's client assets gained 15% year over year to $13.33 trillion. The company added 1.2 million new brokerage accounts during the quarter, taking the number of active accounts to 40.3 million. Core net new assets jumped 38% to $190.4 billion. "As we look forward, we expect to see continued cash build through net new assets and the normal seasonal inflow through year end," Verdeschi said on the call. Net interest revenue and asset management and administration fees climbed 14% each to $3.48 billion and $1.91 billion, respectively. Trading revenue added 16% to $1.16 billion. "We expect many of the positive trends to continue in the fourth quarter, driven by strong client engagement and growth across the platform, including in lending and trading," Verdeschi told analysts. Charles Schwab expects to enter 2027 with strong momentum, although macroeconomic factors, equity markets and client engagement levels will continue to shape the operating environment, Verdeschi said. "We expect to continue investing in growth and other key strategic initiatives while leveraging our scale and emerging capabilities, including artificial intelligence, to drive greater efficiency," he added. Earlier in the week, Bank of America (BAC) reported weaker-than-expected third-quarter results, impacted by a $1.2 billion regulatory settlement charge. Goldman Sachs (GS) and Morgan Stanley (MS) posted results above Wall Street's estimates amid strength in their equities trading businesses. Interactive Brokers (IBKR) is scheduled to release its latest quarterly results after markets close Thursday. Robinhood Markets (HOOD) is expected to announce its results later in October. Price: 91.62, Change: -5.18, Percent Change: -5.35