A Preview Of Charles Schwab's Earnings

Charles Schwab SCHW is preparing to release its quarterly earnings on Friday, 2025-07-18. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Charles Schwab to report an earnings per share (EPS) of $1.07.

Anticipation surrounds Charles Schwab's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings History Snapshot

In the previous earnings release, the company beat EPS by $0.03, leading to a 0.0% drop in the share price the following trading session.

Here's a look at Charles Schwab's past performance and the resulting price change:

Performance of Charles Schwab Shares

Shares of Charles Schwab were trading at $91.26 as of July 16. Over the last 52-week period, shares are up 47.88%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Charles Schwab

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Charles Schwab.

A total of 18 analyst ratings have been received for Charles Schwab, with the consensus rating being Outperform. The average one-year price target stands at $98.0, suggesting a potential 7.39% upside.

Comparing Ratings with Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of LPL Finl Hldgs and Interactive Brokers Group, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for LPL Finl Hldgs, with an average 1-year price target of $437.3, suggesting a potential 379.18% upside.
• Analysts currently favor an Buy trajectory for Interactive Brokers Group, with an average 1-year price target of $140.83, suggesting a potential 54.32% upside.

Analysis Summary for Peers

In the peer analysis summary, key metrics for LPL Finl Hldgs and Interactive Brokers Group are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Charles Schwab ranks at the top for Revenue Growth among its peers, with a growth rate of 50.00%. It also leads in Gross Profit, generating $793M. However, it falls behind in Return on Equity, with a rate of 4.22%.

Discovering Charles Schwab: A Closer Look

Charles Schwab is one of the largest retail-oriented financial services companies in the US, with $10.1 trillion in client assets across its brokerage, banking, asset-management, custody, financial advisory, and wealth-management businesses at year-end 2024. While best known for its retail brokerage offering, Schwab generates the lion's share of its revenue and profits through its Charles Schwab Bank and asset-management segments. The firm is a dominant player in registered investment advisor custody, with over 40% market share, and has recently pushed into wealth management with robo-advisory, direct indexing, and other managed-investment solutions.

A Deep Dive into Charles Schwab's Financials

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Positive Revenue Trend: Examining Charles Schwab's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 18.02% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 32.08%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Charles Schwab's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 4.52%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Charles Schwab's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.38%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.99.

To track all earnings releases for Charles Schwab visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.