Charles Schwab Corporation (SCHW)
NYSEFinancialsFinancial - Capital MarketsSnapshot 2026-09-04
$109.29-0.99%
Close 2026-09-04 · 1-day change
NYSEFinancialsFinancial - Capital MarketsSnapshot 2026-09-04
Intact: The reason to own it still holds.
Charles Schwab grows revenue about 13% a year with strong client assets. Profit per share is on track to hit a record $1.37 next quarter. The company keeps launching new products and cutting fees to attract more customers. Free cash flow yield is solid at 5%.
Revenue growth could slow if market volatility drops or fee cuts hurt margins. Profit per share might miss if costs rise or client asset growth stalls. Debt issuance increases financial risk. The stock trades expensive versus peers, limiting upside.
The price is about 11% above our fair value near $92, reflecting roughly 13% revenue growth expected by analysts. Our fair value is 28% below the Street median, so the market may be pricing in more optimism than we see.
Breaks if: Client assets decline significantly from record levels
Breaks if: EPS falls below $1.37 in 2026-Q1
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on client asset growth and diversified revenue streams. The current thesis state is intact, driven by recent earnings performance and management's consistent execution on priorities.
The market currently prices SCHW at a premium compared to its peers, reflecting justified expectations based on its strong financial results. There is a slight expectations gap, indicating that while the stock is expensive, it is not overly fragile given the current market conditions.
Fundamentals are likely to remain strong, as management has consistently delivered on key priorities such as client asset growth and earnings per share. However, there is a moderate risk due to the recent decline in company momentum and the potential for industry peers to miss earnings expectations.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the read on SCHW. However, concerns arose as record revenue did not prevent the stock from falling.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Focus on achieving record GAAP Earnings Per Share as a key growth metric.
Breaks if: Fee cuts materially reduce profit margins
Breaks if: revenue falls below $23.9 billion in FY26
The long-term thesis hinges on the performance of sector bellwethers like MS, GS, and HOOD. If these companies continue to beat earnings and guide higher, it could support SCHW's momentum. Conversely, any guidance cuts or misses from these peers could negatively impact SCHW's outlook.
Overall, SCHW's fundamentals appear solid, but the investment thesis is sensitive to broader sector performance. Not investment advice.