Oct 15, 2026 earnings call — Client growth, AI and lending drive results
Schwab reported record total net revenues of $7.2 billion with $190 billion core net new assets and adjusted EPS of $1.69.
Revenue $7.2B (est $7.2B) · EPS $1.69 (est $1.65)
Key quotes
"AI is an opportunity for Schwab. It is attracting more people to investing while amplifying our strengths."
"Clients opened 1.2 million brokerage accounts in the third quarter."
"Total bank loan balances grew to $72.3 billion, up 35% from 3Q25, driven primarily by demand for Pledged Asset Line loans."
Analyst Q&A 11
AI use and LLM connections
Q (Ken Worthington · JPMorgan): Do you see revenue from AI and are you letting external LLMs connect to Schwab to run analytics or execute trades?
A: Management said AI is already helping revenue by boosting client engagement and wealth tools. They allow LLMs to connect but control authentication and do not permit moving money; clients can trade via LLMs and APIs and that activity is growing.
"We are allowing LLMs to connect, but we are controlling the experience." — Rick Wurster (CEO)
Net interest income and deposit trends
Q (Alex Blostein · Goldman Sachs): Why have deposits trended down despite strong NNA, and what will 4Q NIM look like versus prior guide?
A: Management said the environment is favorable for NIM expansion and they expect NIM to rise in 4Q and into 2027. They explained cash moved back into the market in 3Q as sentiment and IPOs picked up and highlighted loans growing versus securities as support for NIM.
"We'll expand NIM in the fourth quarter, and we expect to continue to expand NIM in 2027." — Mike Verdeschi (CFO)
Share repurchases and capital use
Q (Bill Katz · TD Cowen): With more loans and mix shift, how will you pace buybacks given limited earning asset growth?
A: Management said they will prioritize capital to support clients and the franchise, including loan growth and platform engagement. They also said being at the top of their capital range and strong earnings gives flexibility to return capital to shareholders.
"The capital, first and foremost, is going to be there to support clients." — Mike Verdeschi (CFO)
Sustainability of organic NNA growth
Q (Dan Fannon · Jefferies): How confident are you that NNA growth is sustainable across channels, and how much did long/short strategies contribute?
A: Management said NNA momentum is broad across retail, advisors, and workplace, and they are confident it will continue. They acknowledged long/short helped some advisor NNA but noted advisor growth remains strong even after throttling long/short minimums.
"I feel great about the momentum in our NNA because it is coming from every one of our three client-facing businesses and every demographic within each of the businesses." — Rick Wurster (CEO)
Cash outlook and rate scenarios
Q (Steven Chubak · Wolfe): How are you planning for cash growth or contraction if rates rise further, and how will that affect deposit betas and funding mix?
A: Management said clients are already largely allocated between on-balance cash and money funds, and recent cash moves were sentiment-driven not a rate shock. They expect continued organic cash pickup, see the rate environment as favorable for their financials, and keep flexibility via wholesale funding and lending programs.
"From here, again, a favorable environment for us, for our financials." — Mike Verdeschi (CFO)
Rate sensitivity and hedges
Q (Ben Budish · Barclays): How rate-sensitive are you now, and how do existing hedges affect timing of NIM benefit?
A: Management said the firm remains asset sensitive and the higher rate environment is favorable. They reiterated the included sensitivity range in their materials and said they use some hedges to convert floating-rate loans to fixed to match deposits.
"We remain asset sensitive. This higher rate environment is favorable for us." — Mike Verdeschi (CFO)
Long/short program changes and effects
Q (Brennan Hawken · BMO): After you changed limits on long/short, have client behaviors changed and how will growth in that program look?
A: Management said they throttled growth to ensure operational capacity and support the program sustainably. They noted no sign of adviser NNA slowing since throttling and emphasized Schwab's broader capabilities keep advisors engaged.
"We have throttled growth so that we can do that in a sustainable way and have multiple solutions for clients." — Rick Wurster (CEO)
Prediction markets plans and timing
Q (Michael Cyprys · Morgan Stanley): How will you build prediction markets for financial events or company KPIs, timing, and regulatory needs?
A: Management said they already offer limited binary options on the S&P and plan to expand to financial events and KPIs over the next 12 to 18 months. They will avoid sports gambling, aim to keep products responsible, and tie offerings to clients' portfolios.
"That is the path I would expect us to build on our current capability over the next 12 to 18 months and eventually have a pretty broad suite of ability to predict and participate in different financial events and KPIs and political events." — Rick Wurster (CEO)
Platform monetization opportunities
Q (Devin Ryan · Citizens Bank): How is work progressing to earn a fairer share from the platform and is thinking on monetizing cash evolving?
A: Management said they are finding multiple ways to monetize, including ETF monetization and new transactional streams like crypto and prediction markets. On cash, they keep client cash liquid until instructed and will use innovation and AI to help clients decide what to do with cash.
"We are also expanding into new areas that create additional transactional-based revenue streams that are beneficial to our clients, things like crypto, things like prediction markets." — Rick Wurster (CEO)
Trading hours, KPIs, and AI trading
Q (Brian Bedell · Deutsche Bank): Will company KPI products come sooner, how will extended trading hours be used, and might Schwab build internal AI trading solutions?
A: Management said they will move quickly on KPIs and are building the experience in thinkorswim as Cboe rolls them out. They see limited trading outside market hours today but will offer access thoughtfully, and they do not plan to create quantitative trading strategies for clients, preferring education and tools instead.
"I don't see us getting into the business of trying to create trading strategies on behalf of clients." — Rick Wurster (CEO)
Proprietary long/short product opportunity
Q (Mike Brown · UBS): Given demand, will Schwab launch a proprietary long/short solution and what would that take?
A: Management said they expect to have an offering and already have direct indexing that delivers tax alpha, which they can extend to long/short. They believe a proprietary product can be run efficiently from balance sheet and operations and will provide sustainable long/short capabilities.
"We already have a great direct indexing capability today that has had wonderful performance in terms of tax alpha and delivering for clients." — Rick Wurster (CEO)