The Charles Schwab Corporation (SCHW) is a major U.S. financial services firm that provides brokerage, banking, wealth management, and related investment services to individual and institutional clients. The company operates through a nationwide network of branches and digital platforms, coordinating its business from its headquarters in Westlake, Texas. It has a market capitalization of $166.44 billion.
The company is expected to report its first-quarter results for fiscal 2026 soon. Ahead of the release, Wall Street analysts are optimistic about the company’s bottom-line trajectory.
Analysts expect Charles Schwab to report a profit of $1.34 per share on a diluted basis for Q1, up 28.9% year-over-year (YOY). The company has a solid history of surpassing consensus estimates, topping them in all four trailing quarters. For the full fiscal year 2026, Wall Street analysts expect the company’s diluted EPS to grow by 19.3% annually to $5.81, followed by a 15.5% improvement to $6.71 in fiscal 2027.
Investors have warmed to Charles Schwab’s solid asset growth and stable earnings, as the stock has gained 17.6% over the past 52 weeks. However, due to market-wide pressures and a possible rotation away from financial names, it is down 4.9% year-to-date (YTD). On the other hand, the broader S&P 500 Index ($SPX) has increased by 14.1% over the past 52 weeks, but declined 3.7% YTD.
Next, we compare the stock's performance with that of its sector. The State Street Financial Select Sector SPDR ETF (XLF) has declined 2.2% over the past 52 weeks and 9.9% YTD. Therefore, the stock has outperformed its sector over these periods.
This month, the company closed a $660 million acquisition of private market platform operator Forge Global. This provides eligible customers with direct and indirect access to shares of pre-IPO companies, which allows investors to capitalize on the growth prospects of private companies.
Charles Schwab’s 2025 results were driven by growth in its client-driven business, as its total client accounts grew 6% YOY to 46.5 million, while its total client asset base grew to a record $11.90 trillion.
Wall Street analysts have been bullish about Charles Schwab’s future. Among the 22 analysts covering the stock, the consensus rating is “Moderate Buy.” The rating configuration has remained stable over the past two months. The stock has 13 “Strong Buy” ratings, three “Moderate Buys,” five “Holds,” and one “Moderate Sell.” The mean price target of $120.68 implies a 27% upside from current levels, while the Street-high price target of $148 implies 55.8% upside.
