Charles Schwab Corp. posted third-quarter earnings that exceeded market expectations, thanks to a surge in retail investment activity.
The firm recorded total net new assets of $134.4 billion, marking a 48% increase from the same period last year, surpassing analysts' projections of $130.2 billion for the three months ending in September.
Average daily trading volume rose by 30% to 7.42 million trades, also exceeding analysts’ expectations of 7.25 million trades.
CEO Rick Wurster stated in a release on Thursday, “The strengthening of organic growth trends, higher adoption of wealth solutions, and favorable macroeconomic winds all contributed to record revenue and earnings per share this quarter.”
The appetite for investing among retail clients has consistently benefitted Charles Schwab. The number of new brokerage accounts opened has surpassed one million for the fourth consecutive quarter. Wurster mentioned last month that as many companies opt to extend their private stages (avoiding public listings), retail investors increasingly demand access to private investments, and Charles Schwab is exploring ways to offer more of these investment channels to its clients.
Wurster noted that despite competition from native digital investment platforms like Robinhood Markets Inc., Charles Schwab continues to attract younger clients. In a call with analysts on Thursday, he revealed that one-third of the firm’s new retail client households belong to Generation Z (those aged under 28). Moreover, Charles Schwab plans to launch spot cryptocurrency trading services in the first half of 2026.
“I believe the cryptocurrency business will become a driver of incremental growth for the company, and we currently hold an advantage among younger clientele,” Wurster said.
As a financial institution with both brokerage and banking attributes, Charles Schwab is expanding its digital services while also increasing investment in physical branches. Last month, the company, based in Westlake, Texas, announced plans to add 16 branches while also expanding or relocating 25 existing locations.
Schwab’s earnings report followed the announcements from major Wall Street banks earlier this week, with several top banks reporting their third-quarter performance. These banks also benefited from strong client interest in the stock market and other investment areas; for instance, Morgan Stanley's Global Wealth Management business generated $8.2 billion in revenue, exceeding analysts' expectations.
In trading on the New York Stock Exchange, Charles Schwab shares rose by 0.5%. In July of this year, Charles Schwab announced a $20 billion stock buyback program, stating that it had repurchased 28.9 million shares for a total of $2.7 billion in the third quarter.