The Charles Schwab Corporation (SCHW) AI Stock Analysis

The Charles Schwab Corporation provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. It operates through two segments: Investor Services and Advisor Services. Investor Services offers retail brokerage, investment advisory, banking, trust services, corporate brokerage, and equity compensation plans. Advisor Services provides custodial, trading, and support services to independent financial advisors and retirement plan sponsors. Clients have access to equity and fixed-income securities, margin lending, options, futures, forex trading, cash management, and banking products like checking accounts and residential mortgages across roughly 400 domestic branches and international locations.

Schwab delivered a 5-year revenue CAGR of 18.0% between FY2020 and FY2025. Annual revenue expanded from $19.00B in FY2021 to $27.68B in FY2025, while net income rose from $5.86B to $8.85B over the same span. Although revenue growth slowed to 1.9% in FY2024, it rebounded by 6.4% in FY2025 alongside a gross margin of 86.4% and an operating margin of 41.4%. For the quarter ending September 30, 2026, quarterly revenue grew 16.9% year-over-year, and quarterly earnings grew 28.6% year-over-year, bringing trailing twelve-month EPS to $5.85.

As of September 30, 2026, Schwab held $696.0M in cash and short-term investments against $420.0M in total debt, resulting in a net cash position of $276.0M. The company reported a current ratio of 4.70 and a debt-to-equity ratio of 0.14 on shareholders' equity of $3.10B. In FY2025, operating cash flow reached $9.31B and free cash flow was $8.76B. Cash utilization in FY2025 included $548.0M for capital expenditures, $2.33B in dividends paid, and $9.80B spent on share buybacks, which contributed to an 8.9% reduction in share count over 5 years.

Schwab trades at a trailing P/E of 15.7x and a forward P/E of 12.9x, compared to medians of 14.2x and 12.2x for its S&P 500 Financial Services peers. Its price-to-sales multiple is 5.9x, which is above the peer median of 3.1x, while its PEG ratio sits at 0.84. Over the past year, SCHW fell 0.3%, trailing the S&P 500 return of 16.8%. Over a 5-year period, the stock gained 21.5%, compared to an 83.0% gain for the benchmark.

Schwab pays an annual forward dividend of $1.28 per share, which corresponds to a dividend yield of 1.39% and a payout ratio of 16.5%. Dividends are distributed quarterly and have been paid for 38 consecutive years. The annualized dividend growth rate over the last 5 years stands at 8.4%, and the last ex-dividend date occurred on August 14, 2026.

Wall Street coverage includes 11 Strong Buy, 7 Buy, 5 Hold, and 1 Sell ratings, with no Strong Sell ratings. The mean price target is $118.41, representing a 28.8% upside relative to the last close of $91.96. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $6.44 on revenue of $28.10B. For the next fiscal year, 24 analysts estimate EPS to grow 21.9% to $7.85 and revenue to rise 13.2% to $31.80B. The company beat EPS estimates in 3 of the last 4 quarters.

This page is an AI-written research summary of The Charles Schwab Corporation (SCHW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: SCHW income statement, SCHW balance sheet, SCHW key metrics, SCHW analyst forecast, SCHW chart. See the SCHW stock overview for the latest quote and news.