Charles Schwab Corp.

Record growth + operating leverage (good): - 3Q 2026 total net revenues: $7.2B, +17% YoY (record). - Adjusted EPS: $1.69, +29% YoY (record). - Adjusted pre-tax profit margin: 54.8%, up ~350 bps YoY (≈ +3.5% margin expansion). - Client engagement drove costs (expenses +$9% YoY to ~$3.2B) but efficiency still helped—management expects continued reinvestment of efficiency savings.

Net interest margin (NIM) & earnings outlook (forecast): - 3Q net interest revenue: nearly $3.5B, +14% YoY. - Management expects NIM to expand in 4Q and into 2027, supported by higher rates and secured lending growth. - 4Q NIM guidance (relative to 4Q25): ~+25 to +30 bps YoY. - For full-year 2026: expects strong full-year revenue growth and NIM expansion; with one quarter left, revenue/NIM expected toward the lower end of the prior ranges (but expenses also expected toward the low end). - 2026 operating leverage: expects ~800 bps positive, ~double what was expected earlier in the year.

Balance sheet / lending-driven mix shift (good, with nuance): - Margin balances: $187.9B at quarter end; bank loans: $72.3B, +35% YoY (notably Pledged Asset Line). - Deposits trend: management acknowledged deposits have been pressured through the year (question raised by analysts), but they emphasized cash builds from net new assets and seasonal inflows. - Cash dynamics (surprising to some but explained): transactional sweep cash: $492.8B, up $7.1B QoQ in 3Q; explained as improving sentiment + IPO activity driving cash back into markets, while still expecting organic cash build and seasonal pickup from mid-November onward.