The Charles Schwab Corporation (SCHW), headquartered in Westlake, Texas, operates as a savings and loan holding company. With a market cap of $167.5 billion, the company provides wealth and asset management, securities brokerage, banking, trading and research, custody, and financial advisory services. The leading financial services firm is expected to announce its fiscal third-quarter earnings for 2025 before the market opens on Thursday, Oct. 16.
Ahead of the event, analysts expect SCHW to report a profit of $1.22 per share on a diluted basis, up 58.4% from $0.77 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect SCHW to report EPS of $4.65, representing a 43.1% increase from $3.25 in fiscal 2024. Its EPS is expected to rise 16.6% year-over-year to $5.42 in fiscal 2026.
SCHW stock has outperformed the S&P 500 Index’s ($SPX) 17.6% gains over the past 52 weeks, with shares up 46.3% during this period. Similarly, it outperformed the Financial Select Sector SPDR Fund’s (XLF) 18.2% gains over the same time frame.
Strong asset management and trading revenues, higher net interest income, and solid growth in brokerage accounts drive Charles Schwab's outperformance. Declining funding costs, strategic acquisitions, and increased advice solution fees also contributed to the positive results.
On Jul. 18, SCHW shares closed up by 2.9% after reporting its Q2 results. Its adjusted EPS of $1.14 beat the consensus estimate of $1.09. The company’s revenue was $5.9 billion, handily surpassing the consensus estimate of $5.7 billion.
Analysts’ consensus opinion on SCHW stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 22 analysts covering the stock, 13 advise a “Strong Buy” rating, four suggest a “Moderate Buy,” three give a “Hold,” one recommends a “Moderate Sell,” and one advocates a “Strong Sell.” SCHW’s average analyst price target is $108, indicating a potential upside of 16.5% from the current levels.
