DailyIQ
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Sector:Financial ServicesAll sectors
Last updated 3 minutes ago

SCHW·The Charles Schwab Corporation

$.
+. (+.%)
High
$103.80
Open
$103.40
Market Cap
179.22B
52W High
$107.50
Low
$101.51
P. Close
$102.79
P/E
19.02
52W Low
$83.96
Fwd P/E
13.66
DailyIQ Est.
$125.23
Technical Score (1D)
91
BUY
News Sentiment
73
BULLISH
Analysts have just lifted their earnings expectations for Charles Schwab, citing confidence that the firm will monetize its expanding client base and digital initiatives ahead of the June‑quarter report on July 21. This upward bias could translate into a stronger‑than‑expected earnings surprise, which would reinforce the narrative that fee income and trading volumes are on a solid trajectory. The revision also raises the company’s valuation relative to the current market price, with models now projecting roughly a 21 % upside on the intrinsic‑value basis. A higher valuation gap, combined with the firm’s stable earnings outlook, suggests that the market still has room to price in a rally if the June results confirm the guidance. JPMorgan’s recent upgrade of Schwab’s price target to $137 from $131, while keeping an overweight rating, underscores the belief that fee‑income growth will continue to underpin the brokerage’s competitive positioning. Meanwhile, Piper Sandler’s modest lift of the target to $112 and its neutral stance signal that, under current market volatility, upside potential may be limited and that risk assessment remains unchanged. The company’s own projections of higher trading revenue, net‑interest income, and asset‑management fees point to a solid earnings trajectory that could support the stock in the short term. Over the next 1–10 trading days, traders should watch the June earnings release for confirmation of the revised guidance, particularly the details on fee structures and digital growth. Additionally, monitoring trading volumes and net‑interest revenue in the earnings report will be key to assessing whether the firm’s projected upside materializes and whether the valuation gap narrows.
Earnings Summary
Charles Schwab Corporation operates as a holding company offering wealth management, brokerage, and banking services, with core segments in Investor Services and Advisor Services that provide trading platforms, advisory solutions, and banking products; it functions within the broader financial services and capital markets sector. In the most recent quarters with complete data, Schwab reported Q1 2026 revenue of $6.482 billion and EPS of $1.43, up from Q3 2025 revenue of $6.135 billion and EPS of $1.31, reflecting a 5.5% revenue increase and a 9.7% EPS rise; compared to the prior two quarters (Q4 2025 revenue $6.336 billion, EPS $1.39 and Q2 2025 revenue $5.851 billion, EPS $1.14), revenue growth slowed to 2.0% and EPS growth decelerated to 2.9%, yet the company maintained a strong earnings beat pattern—four of the last six quarters exceeded analyst expectations, with Q4 2024, Q1 2025, Q2 2025, and Q3 2025 all beating estimates, while Q4 2025 and Q1 2026 fell short. Historically, Schwab has shown a consistent upward trajectory in revenue, moving from $5.329 billion in Q4 2024 to $6.482 billion in Q1 2026, and EPS has trended higher overall, though the most recent two quarters have missed guidance; this pattern underscores robust fee income growth even when earnings guidance is conservative. Recent analyst commentary—JPMorgan’s upgrade to $137 and Piper Sandler’s modest lift to $112—highlights confidence in fee‑income expansion and digital initiatives, while Rothschild & Co’s target bump to $112 signals a slight bullish tilt; these updates suggest that market sentiment remains supportive of Schwab’s fee‑based model amid a recovering client base. Investors should watch the forthcoming Q2 2026 earnings release for confirmation of fee growth, trading volume trends, and net‑interest revenue, as well as any commentary on regulatory changes that could impact brokerage activity; key will be whether the firm can sustain its revenue momentum and translate it into earnings that meet or exceed the revised guidance, thereby narrowing the valuation gap highlighted by recent analyst revisions.}}

EPS

EstBeatMiss
$0.93$1.10$1.28$1.45$1.63Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$1.55 - -
Q1'26$1.47$1.43-2.4%
Q4'25$1.42$1.39-1.9%
Q3'25$1.25$1.31+5.2%
Q2'25$1.10$1.14+3.8%
Q1'25$1.01$1.04+3.2%

Revenue

EstBeatMiss
$5.4B$5.8B$6.3B$6.8B$7.2BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$7.0B - -
Q1'26$6.6B$6.5B-1.7%
Q4'25$6.5B$6.3B-2.5%
Q3'25 - $6.1B -
Q2'25 - $5.9B -
Q1'25 - $5.6B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

SCHW Stock Snapshot

SCHW is currently trading at $103.16, giving The Charles Schwab Corporation a market cap of 179.22B and a P/E ratio of 19.0. Today's range spans $101.51–$103.80, with shares opening at $103.40 and moving up $0.37 (0.4%) from the prior close. DailyIQ's technical score sits at 91/100 (BUY) with a news sentiment reading of 73/100.

Over the past year SCHW has traded between $83.96 and $107.50 - the current price is +22.9% off the 52-week low and -4.0% from the high. 29 analysts cover the stock with a Buy consensus and a mean 12-month target of $120.05 (range $86.00–$137.00), implying upside of +16.4%.

The earnings revision cycle for The Charles Schwab Corporation (SCHW) may be in an upward phase - large-cap Financial Services names (179.22B market cap) showing bullish technicals (91/100, BUY) alongside bullish sentiment (73/100) often see analyst target increases in the weeks following this kind of dual-signal alignment. Price: $103.16 (in the upper portion of its 52-week range). (P/E: 19.0) Range: $83.96–$107.50. The chart frequently leads the fundamental revision, and the chart is bullish.

What makes SCHW's BUY setup (91/100) particularly actionable at 179.22B in Financial Services capitalization is the scale-to-move ratio: large enough to feature on institutional mandates but not so large that the percentage upside is already compressed by index inertia. At $103.16 (in the upper portion of its 52-week range in $83.96–$107.50), with sentiment running bullish at 73/100, the setup rewards conviction-sized positioning more than it does speculative small bets.