Charles Schwab Corp.

Record Q2 performance (strong upside momentum): Schwab posted $7.1B total revenue (+21% YoY) and record adjusted EPS of $1.62 (+42% YoY). Key drivers included net interest revenue +19% YoY, asset management/admin fees +16% YoY to $1.8B, and trading revenue +28% YoY to $1.2B, helped by 11.9M daily average trades (+28% YoY). Management emphasized this is evidence of durable operating leverage and client engagement.

Client growth & mix improvement (core demand signal): 1.4M new brokerage accounts and $120B core net new assets (~+50% YoY). Depth of relationships improved: managed investing net flows increased to 53% of flows (up vs. prior year), bank lending balances reached $67B (+33% YoY), and they highlighted a convergence toward consolidated “one-stop” financial lives (convenience bull market for investing + banking). They repeatedly framed NNA staying ≥5% long-term as the key expectation.

Trading strength viewed as partly structural (but still cyclical): Engagement was exceptionally high (12M-class daily trades) and management expects it to be sustainable based on: (1) broader participation from commission-free era, (2) greater familiarity with options, (3) rule change effects, and (4) AI-driven research/trading workflows. They also said IPO-driven enthusiasm (e.g., SpaceX) did not meaningfully boost NNA for Schwab—more a reflection of broad market/client interest.