# Schwab Charles Corp. (SCHW)

> Schwab provides investing, banking, lending, and financial services to individual investors, employers, and independent advisors.

- Exchange: New York Stock Exchange · Sector: Financials · Industry: Capital Markets
- Headquarters: Westlake, Texas
- Founded: 1971
- Employees: approximately 33,000 full-time-equivalent employees (December 31, 2025)
- SEC CIK: 0000316709 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000316709))
- Full page: https://inspectstocks.com/stocks/schw
- Data as of: price 2026-09-28; newest filing used 2026-08-07; latest fiscal period ended 2026-06-30

## Grade

**A+** on the balance-sheet rubric used for lenders, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | $10.1B |  |
| Earnings growing overall | passed | $10.1B | $6.9B |
| Earnings growing recently | passed | $10.1B | $8.9B |
| Earns well on its assets | passed | 2.0% |  |
| Book value per share growing | passed | $27.32 | $19.33 |

Business quality (the + / − mark): 5 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 38.8% |  |
| Healthy profit margin | passed | 38.8% |  |
| Good return on equity | passed | 20.4% |  |
| Debt under control | passed | 0.51 |  |
| Turns sales into cash | passed | 41.5% |  |
| Earns a wide spread on lending | failed | 2.6% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $26B |
| Net income, trailing twelve months | $10.1B |
| Free cash flow, trailing twelve months | $10.8B |
| Net margin | 38.8% |
| Return on equity | 20.4% |
| Debt to equity | 0.51 |
| Diluted EPS, trailing twelve months | $5.49 |
| Share price | $98.29 |
| Market value | $170B |
| Price / earnings | 17.9x |
| Price / sales | 6.5x |

## What the business does

Schwab lets individuals buy and sell investments, get financial advice, and use bank accounts and loans. It also provides retirement-plan services to employers and holds and services investment accounts for independent registered investment advisors (RIAs) and their clients. Schwab earns money from interest on loans and client cash, investment-related fees, trading, and fees for banking and account services.

### How it makes money

- **Investor Services: brokerage, advice, banking, trust, and workplace services for individuals, employers, and their employees** (78.3% (quarter ended March 31, 2026)) — Revenue comes mainly from interest on client cash and loans, fees on investment funds and managed accounts, trading, and bank deposit account fees. The supplied segment figures do not reconcile to consolidated revenue.
- **Advisor Services: custody, trading, banking, trust, and support for independent financial advisors and recordkeepers** (21.7% (quarter ended March 31, 2026)) — Schwab holds and services client accounts for advisors. It earns mainly interest revenue tied to client assets and fees for managing and administering investments; it does not charge a custody fee.

### Products

- **Brokerage accounts and trading** — Accounts for buying and selling stocks, bonds, mutual funds, exchange-traded funds, options, futures, and foreign currencies, with cash management features.
- **Managed investing and financial advice** — Advice, financial planning, and portfolios managed by Schwab or outside investment managers, including portfolios built from mutual funds and exchange-traded funds.
- **Banking and lending** — Checking and savings accounts, home loans, home-equity credit lines, and loans secured by clients’ investments.
- **Workplace retirement and stock plans** — Retirement-plan recordkeeping and investment services for employers and workers, plus administration and participant support for employer stock plans.
- **Custody and tools for independent advisors** — Account safekeeping, trading, account records, and software and support that help independent advisors manage their clients’ accounts.
- **Schwab Crypto** — A service being rolled out to retail clients for direct bitcoin and ether trading. Schwab’s bank subsidiary keeps the digital assets and uses Paxos for sub-custody and trade execution.

### Customers

- Individual investors who open brokerage or bank accounts directly and trade, invest on their own, or use Schwab’s financial advice.
- Employers that use Schwab for retirement plans, worker accounts, or administration of employee stock plans.
- Independent financial advisors who use Schwab to hold and service their clients’ accounts and access trading, banking, and business support.
- Independent retirement advisors and recordkeepers that use Schwab’s custody, trust, software, and plan services.

### Competitors

- Fidelity Investments — Retail brokerage, investment advice, workplace retirement plans, and custody services for independent advisors.
- The Vanguard Group — Investment funds, managed investing, retirement services, and accounts for individual investors.
- Morgan Stanley, including its E*TRADE division (MS) — Retail brokerage, trading, wealth advice, and investment services.
- Interactive Brokers Group (IBKR) — Online brokerage and trading for individual and institutional clients.
- Robinhood Markets (HOOD) — App-based brokerage and trading for individual investors.

### What it depends on

- Interest income depends in part on client cash held at Schwab and on the amount and terms of loans to brokerage and bank clients.
- Bank deposit account fees depend on Schwab’s deposit agreement with TD Bank USA and TD Bank.
- Schwab Crypto currently relies on Paxos for digital-asset sub-custody and trade execution.

### What could go wrong

- If clients move cash out of Schwab’s accounts or choose different cash options, Schwab may have less cash to earn interest on and may receive lower bank deposit account fees.
- Changes in interest rates can change both what Schwab earns on loans and investments and what it pays on client cash and other funding, affecting its interest income.
- A security breach or technology or operational failure at Schwab or a service provider could disrupt account services, expose client information or assets, and lead to financial, legal, or reputational harm.

## More on this company

- [Overview](https://inspectstocks.com/stocks/schw)
- [Financial statements](https://inspectstocks.com/stocks/schw/financials)
- [Competitors](https://inspectstocks.com/stocks/schw/peers)
- [Earnings](https://inspectstocks.com/stocks/schw/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.