Charles Schwab Corp

Charles Schwab delivered a strong third quarter, posting earnings per share of $1.31 against a consensus estimate of $1.25, a beat of 5.21%, while revenue of $6.13 billion topped expectations by 1.96%, even as the top line reflected a 6.4% decline from a year ago. The most consequential driver behind the results was a 37% surge in net interest revenue to $3.05 billion, fueled by a 78-basis-point expansion in net interest margin to 2.86% as the company continued aggressively unwinding higher-cost bank supplemental funding, which fell $12.90 billion during the quarter to $14.80 billion. GAAP net income climbed 67% to $2.36 billion, and the pre-tax profit margin expanded sharply to 49.2% from 38.0% a year ago, underscoring significant operating leverage. Client momentum remained a bright spot, with core net new assets of $137.50 billion and total client assets reaching $11.59 trillion. Management signaled confidence in the trajectory ahead, pointing to continued organic growth, deepening wealth solution adoption, and ongoing capital returns, backed by a $20 billion share repurchase program.