The Charles Schwab Corporation (SCHW), headquartered in Westlake, Texas, operates as a savings and loan holding company. With a market cap of $158.9 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 second-quarter earnings for 2026 in the near term.
Ahead of the event, analysts expect SCHW to report a profit of $1.50 per share on a diluted basis, up 31.6% from $1.14 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 $6.14, up 26.1% from $4.87 in fiscal 2025. Its EPS is expected to rise 17.9% year over year to $7.24 in fiscal 2027.
SCHW stock has underperformed the S&P 500 Index’s ($SPX) 20.8% gains over the past 52 weeks, with shares down marginally during this period. Similarly, it underperformed the State Street Financial Select Sector SPDR ETF’s (XLF) 4% gains over the same time frame.
SCHW has trailed the broader market, driven by weaker net interest income as clients reallocated cash from low-yield sweep accounts to higher-yield options. Additionally, elevated funding costs and deposit competition have kept investors wary of margin pressure. Furthermore, Schwab missed the AI-driven momentum that lifted many tech leaders, which widened its performance gap versus the market.
Analysts’ consensus opinion on SCHW stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 23 analysts covering the stock, 13 advise a “Strong Buy” rating, four suggest a “Moderate Buy,” five give a “Hold,” and one recommends a “Moderate Sell.” SCHW’s average analyst price target is $115.05, indicating a potential upside of 28.6% from the current levels.
