Charles Schwab released more-than-anticipated third-quarter performance on Thursday, highlighting significant client expansion, increased income, and a new high in total assets due to a thriving stock market.
The findings highlight the leading wealth management company's capacity to draw in fresh funds and take advantage of increased investor engagement within the optimistic market conditions of 2025.
A company based in Westlake, Texas, announced adjusted earnings per share (EPS) of $1.31, surpassing the Wall Street forecast of $1.25, as reported by FactSet.
Revenue reached $6.1 billion, exceeding forecasts of $6 billion and showing a substantial increase from $4.8 billion during the same period in the previous year.
Schwab's stock increased by 4.5% in premarket activity after the announcement, but once the market opened, it was up 1.04% at $95.32.
Track client assets and drive expansion
CEO Rick Wurster credited the solid results with "improving organic growth patterns, higher usage of wealth management products, and positive economic conditions."
Schwab recorded core net new assets of $137.5 billion, representing a 44% rise compared to the previous year, highlighting yet another quarter with unprecedented inflows.
The company also opened one million additional brokerage accounts for the fourth straight quarter.
Total customer assets hit a new high of $11.59 trillion, driven by additional deposits and increased market values as stock markets kept climbing.
The firm concluded the quarter with 45.7 million client accounts, solidifying its status as one of the leading brokerage and wealth management services in the United States.
Schwab's growing number of clients and significant inflows were fueled by ongoing excitement about stock investing and trading.
The average daily trading volume was 7.4 million, representing a 30% rise compared to the previous year.
Margin balances — loans that investors use to purchase securities — increased by 16% to $97.2 billion, highlighting the confidence of market participants in the ongoing rally.
Enhanced financial status and interest earnings
Schwab also advanced in improving its financial position.
The company reported that its bank-related additional funding decreased by $12.9 billion in the quarter, dropping to $14.8 billion, which represents an 85% reduction from its highest point in May 2023.
This decrease in debt enhances Schwab's financial flexibility and boosts profitability by increasing net interest income.
For the quarter, Schwab recorded net interest income of $3.05 billion, an increase from $2.22 billion during the same period in the previous year.
The enhancement demonstrates the company's capacity to benefit from increased interest rates and lower financing expenses.
Experts anticipate ongoing expansion momentum
Experts expected strong performance in the third quarter due to positive market circumstances and increased participation from individual investors.
A JP Morgan Securities analyst named Kenneth Worthington kept an Overweight rating on the stock, noting that Schwab's "basic financials are improving in the correct direction" towards reaching its long-term target of 5% to 7% annualized net new asset growth.
Worthington recently increased its price forecast for Schwab's stock to $119 for December 2026, compared to $117 for December 2025.
Schwab's stock has increased by 29% so far this year, surpassing the S&P 500's 14% rise.
As Schwab keeps growing its branch locations and launches new offerings — such as an alternative investment platform introduced earlier this year — the company seems ready to maintain expansion by leveraging market trends, creativity, and solid customer interaction.
The post Charles Schwab reports robust Q3 performance with a rise in client assets and trading activity appeared first on Healthy urvival