Schwab: 3 Key Takeaways for Long-Term Investors

On its fall business update call held on Oct. 15, 2026, Schwab (NYSE:SCHW) announced record quarterly net revenue of $7.2 billion and adjusted earnings per share of $1.69. The business is expanding its market share across retail and advisory channels while converting scale into operating leverage. Three key takeaways from management stand out for long-term investors.

1. Artificial Intelligence Drives Client Engagement and Developer Efficiency

Software developers at the firm are 25% more productive using large language models, which are software programs trained on vast data sets to generate text and code. Internal efficiency wins let the firm reinvest savings into client tools without expanding its core overhead.

AI is an opportunity for Schwab. It is attracting more people to investing while amplifying our strengths.
-- Rick Wurster, President and CEO

2. Record Organic Inflows Fuel Wealth Management Growth

Clients brought $190 billion in core net new assets, which represents fresh capital for the firm, excluding market movements. High client retention and deep wealth management relationships keep expanding the franchise across generations.

Managed investing net flows reached a quarterly record of $24 billion, and bank lending reached $72 billion, up 35% year over year.
-- Rick Wurster, President and CEO

3. High-Margin Secured Lending Expands Net Interest Income

Bank lending and margin loans grew as clients tapped non-purpose lines backed by securities. These loans carry higher yields than traditional fixed-income securities, boosting net interest revenue, which is the interest earned on assets minus interest paid on deposits.

Net interest revenue grew 14% year-over-year to nearly $3.5 billion, reflecting sustained interest in our secured lending programs, including margin loans and the Bank's Pledged Asset Line.
-- Mike Verdeschi, CFO

Looking Ahead

Client engagement remains high, with top-line growth and net interest margin, or net yield on earning assets, expanding. Scale and client trust deliver clear operating leverage.

We expect many of the positive trends to continue in the fourth quarter, driven by strong client engagement and growth across the platform, including in lending and trading.
-- Mike Verdeschi, CFO

Expanding digital trading tools and wealth management services positions the firm for multiyear growth across market cycles.

Taken together, we are in a position of strength, hard for any competitor to match, and we have compelling growth opportunities ahead.
-- Rick Wurster, President and CEO

Charles Schwab is an advertising partner of Motley Fool Money. The Motley Fool recommends Charles Schwab and recommends the following options: short September 2026 $95 calls on Charles Schwab. The Motley Fool has a disclosure policy.