Charles Schwab has beaten earnings in 3 of the last 4 quarters, carries 38% operating margins rated best-in-class among peers, and has 14.8% upside to the analyst target of $104.45, but trades below its 200-day moving average in a death cross recovery and faces regulatory concentration risk tied to Federal Reserve policy.
Thesis pillars
- Death Cross Recovery Risk↑Improving
- Best In Class Operating Margins→Stable
- Strong Earnings Growth Trajectory—
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 25, 2026
Charles Schwab Corporation (The (SCHW) Stock Analysis
Financial Services · Capital Markets
Hold if already holding. Not a fresh buy at $88.76, but acceptable to hold if already in. Reasons: Concentration risk — Regulatory: Federal Reserve; Negative momentum.
Charles Schwab provides wealth management, brokerage, banking, and asset management through two segments — Investor Services (individual investors and workplace plans) and Advisor Services (RIAs) — holding $11.90 trillion in client assets across 38.5 million active brokerage... Read more
Hold if already holding. Not a fresh buy at $88.76, but acceptable to hold if already in. Reasons: Concentration risk — Regulatory: Federal Reserve; Negative momentum. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Score 6.2/10, moderate confidence.
Passes 6/7 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, earnings proximity 84d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: moderate.
About Charles Schwab Corporation (The
About Charles Schwab Corporation (The
Charles Schwab managed $11.90 trillion in client assets at December 31, 2025, across 38.5 million active brokerage accounts, 5.7 million workplace plan participant accounts, and 2.2 million banking accounts, with total consolidated assets of approximately $491 billion placing it in the Federal Reserve's Category III regulatory framework. Two segments — Investor Services (retail investors, workplace plans, mutual fund clearing) and Advisor Services (RIAs and recordkeepers) — generate the company's four primary revenue streams: net interest revenue, asset management and administration fees, trading revenue, and bank deposit account fees.
Schwab earns net interest revenue on client cash held at its banking subsidiaries — Charles Schwab Bank, SSB; Charles Schwab Premier Bank, SSB; and Charles Schwab Trust Bank — which fund interest-earning assets including investment securities, margin loans, and bank loans. Asset management and administration fees come primarily from proprietary money market mutual funds, Schwab ETFs, and fee-based managed investing solutions. Bank deposit account fees are earned under the 2023 IDA agreement with TD Bank USA, National Association and TD Bank, National Association (the TD Depository Institutions), through which uninvested client cash is swept off-balance sheet and Schwab provides recordkeeping services for a fee. In 2022 and 2023, rapid interest rate increases caused significant client cash migration from sweep accounts into higher-yielding alternatives, requiring Schwab to rely on more expensive wholesale funding that compressed net income. In November 2025, Schwab announced a definitive agreement to acquire Forge Global Holdings, a private market platform, for approximately $660 million, with closing expected in the first quarter of 2026.
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Schwab's net interest revenue and bank deposit account fees both respond to Federal Reserve policy. The 2023 IDA agreement commits the company to maintaining prescribed minimum and maximum insured deposit account balances with the TD Depository Institutions, limiting its ability to respond to rate changes. A decline in short-term rates could adversely affect yields on the $491 billion asset base while also eroding bank deposit account fee revenue. Additionally, if total consolidated assets reach $700 billion, Schwab would move from Category III to Category II under the Federal Reserve's framework, losing the AOCI opt-out election that currently excludes unrealized investment losses from regulatory capital calculations.
See also: Financial Services · Capital Markets
From Charles Schwab Corporation (The's most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-10-29Recent Developments — Charles Schwab Corporation (The
Latest news
- NEWS Charles Schwab Stock (SCHW) Opinions on Analyst Price Target Upgrades - Quiver Quantitative — Quiver Quantitative positive
- NEWS Charles Schwab Stock (SCHW) Opinions on Analyst Price Target Upgrades - quiverquant.com — quiverquant.com positive
- NEWS 3 Big Reasons to Love Charles Schwab (SCHW) - Yahoo Finance — Yahoo Finance positive
- NEWS Is Charles Schwab (SCHW) Still Reasonable After Record Revenue? - simplywall.st — simplywall.st positive
- NEWS UBS raises Charles Schwab stock price target to $128 on earnings beat - Investing.com — Investing.com positive
Generated 2026-10-29T12:43:34Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHregulatoryFederal Reserve10-K Item 1: 'CSC is a savings and loan holding company and is regulated, supervised, and examined by the Board of Governors of the Federal Reserve System (Federal Reserve)'
- MEDIUMcounterpartyTD Depository Institutions10-K Item 1: 'uninvested cash within eligible brokerage client accounts is swept off-balance sheet to deposit accounts at the TD Depository Institutions'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
1 floor-breaker
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $88.76, but acceptable to hold if already in. Reasons: Concentration risk — Regulatory: Federal Reserve; Negative momentum. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Analyst target $105.59 (+19.0%), stop $85.48 (−3.8%), A.R:R 3.8:1. Score 6.2/10, moderate confidence.
Analyst target: $105.59 (+19.0% upside). Analyst target $105.59 (+19.0%), stop $85.48 (−3.8%), A.R:R 3.8:1. Stop-loss: $85.48.
Concentration risk — Regulatory: Federal Reserve; Negative momentum; Below 200-day MA.
Charles Schwab Corporation (The trades at a P/E of 15.2 (forward 11.4). TrendMatrix value score: 7.9/10. Verdict: Hold.
29 analysts cover SCHW with a consensus score of 4.1/5. Average price target: $117.
What does Charles Schwab Corporation (The do?Charles Schwab provides wealth management, brokerage, banking, and asset management through two segments — Investor...
Charles Schwab provides wealth management, brokerage, banking, and asset management through two segments — Investor Services (individual investors and workplace plans) and Advisor Services (RIAs) — holding $11.90 trillion in client assets across 38.5 million active brokerage accounts at December 31, 2025. Revenue derives from net interest income, asset management fees, trading commissions, and bank deposit account fees under a sweep agreement with the TD Depository Institutions.