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# Schwab's Third-Quarter Net Income Rises 23% To $2.9 Billion On Record $190.4 Billion In Core Net New Assets
- URL: https://www.bullished.co/schwabs-third-quarter-net-income-rises-23-to-2-9-billion-on-record-190-4-billion-in-core-f81d608e/
- Published: 2026-10-15T20:36:29.000Z
- Updated: 2026-10-28T21:06:04.000Z
- Description: Revenue rose 17% to $7.2 billion, and bank loans grew 35% from a year earlier, the company said.
- Author: Matteo Parrino
- Tags: Earnings, SCHW, Industry: Financials

[Charles Schwab](https://www.bullished.co/tag/schw/) reported third-quarter net income of [$2.9 billion](https://www.sec.gov/Archives/edgar/data/0000316709/000031670926000035/a3q26exhibit991.htm?ref=bullished.co), or $1.62 per share on a standard-accounting basis, in an [8-K filed Thursday](https://www.sec.gov/Archives/edgar/data/0000316709/000031670926000035/schw-20261015.htm?ref=bullished.co). Adjusted earnings were $1.69 per share, up 29% from a year earlier, and clients brought in a record $190.4 billion in core net new assets.

## What the results show

Net revenues reached a [record $7.2 billion](https://www.theglobeandmail.com/investing/markets/markets-news/Motley%20Fool/7921975/schwab-schw-q3-2026-earnings-call-transcript/?ref=bullished.co), up 17%. Net interest revenue rose 14% to $3.5 billion, asset management and administration fees rose 14% to $1.9 billion, and trading revenue rose 16% to $1.2 billion, according to the company's press release.

GAAP net income rose 23% from $2.358 billion a year earlier; adjusted net income was [$3.0 billion](https://qz.com/charles-schwab-record-revenue-net-new-assets-earnings-101526?ref=bullished.co) after excluding $151 million of pre-tax transaction-related costs. The adjusted pre-tax profit margin was 54.8%, versus 51.3% a year earlier.

Core net new assets, up 38% from the third quarter of 2025, equaled an annualized growth rate of [5.8%](https://qz.com/charles-schwab-record-revenue-net-new-assets-earnings-101526?ref=bullished.co). Clients opened 1.2 million new brokerage accounts, bringing total client accounts to 48.6 million, and total client assets rose 15% to $13.33 trillion.

CEO Rick Wurster said clients "entrusted Schwab with [$190.4 billion](https://qz.com/charles-schwab-record-revenue-net-new-assets-earnings-101526?ref=bullished.co) in core net new assets."

## Lending and trading activity

Bank loan balances reached [$72.3 billion](https://www.theglobeandmail.com/investing/markets/markets-news/Motley%20Fool/7921975/schwab-schw-q3-2026-earnings-call-transcript/?ref=bullished.co) at September month-end, up 35% year over year. Margin loans rose 14% from the prior quarter to $187.9 billion, including $60.7 billion tied to long/short strategies. Pledged Asset Line balances grew to $37.3 billion, up 59%.

Daily average trades reached 10.7 million, up 44% from the third quarter of 2025\. The net interest margin widened to 3.04% from the prior quarter.

Expenses rose 9% year over year. Schwab repurchased 4.7 million shares for $0.5 billion, and its preliminary consolidated Tier 1 leverage ratio was 8.9%.

## What to watch

Schwab hosted its Fall Business Update for institutional investors Thursday morning, per the release. Shares closed at $94.16 on Thursday, and the filing was accepted at 4:18 p.m. ET, after the close.

The release also lists a new AI assistant called Charley and a partnership with Anthropic to bring Claude for Financial Advisors to independent advisors Schwab serves.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — SCHWAB CHARLES CORP (SCHW)](https://www.sec.gov/Archives/edgar/data/0000316709/000031670926000035/schw-20261015.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit a3q26exhibit991.htm — SCHWAB CHARLES CORP 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000316709/000031670926000035/a3q26exhibit991.htm?ref=bullished.co) — SEC EDGAR
- [Schwab earnings beat estimates despite revenue miss](https://finance.yahoo.com/markets/stocks/articles/schwab-earnings-beat-estimates-despite-121018855.html?ref=bullished.co) — Yahoo Finance
- [Charles Schwab Profits Climb On New Assets, More Lending](https://www.wsj.com/livecoverage/stock-market-today-dow-sp-500-nasdaq-10-15-2026/card/charles-schwab-profits-climb-on-new-assets-more-lending-1RoEDYWlQO1mS8WqDVMg?ref=bullished.co) — The Wall Street Journal
- [Schwab (SCHW) Q3 2026 Earnings Call Transcript - The Globe and Mail](https://www.theglobeandmail.com/investing/markets/markets-news/Motley%20Fool/7921975/schwab-schw-q3-2026-earnings-call-transcript/?ref=bullished.co) — theglobeandmail.com
- [Charles Schwab reported record revenue in Q3 2026 earnings](https://qz.com/charles-schwab-record-revenue-net-new-assets-earnings-101526?ref=bullished.co) — qz.com
- [Can Robust Trading, Higher NIR Support Schwab's Q3 Earnings?](https://finance.yahoo.com/markets/stocks/articles/robust-trading-higher-nir-support-134100585.html?ref=bullished.co) — Yahoo Finance

### More on Charles Schwab

- [Schwab CEO Calls Building Trading Algorithms For Clients 'A Fool's Errand' And Maps Prediction Markets Rollout](https://www.bullished.co/schwab-ceo-calls-building-trading-algorithms-for-clients-a-fools-errand-and-maps-b1f7bdad/)

[All Charles Schwab (SCHW) coverage →](https://www.bullished.co/tag/schw/)