The Charles Schwab Corporation

Strong Q3 momentum + record results (what’s good): - Total net revenues $7.2B, +17% YoY (record). - Adjusted EPS $1.69, +29% YoY (record). - Adjusted pre-tax profit margin 54.8%, expanding ~350 bps YoY. - Core business drivers: Core NNA $190B in Q3 (+38% YoY, ~6% annualized organic growth), managed investing net flows $24B (quarter record), bank lending $72B (+35% YoY). - Client engagement remains extremely high: 1.2M brokerage accounts opened in Q3; 1.8B client interactions YTD; “through clients’ eyes” performance measures climbing.

Full-year 2026 outlook improved modestly; Q4 expectations (what to expect): - Management expects strong full-year revenue growth and NIM expansion. - With one quarter left, they expect revenue/NIM to land toward the lower end of prior guidance ranges, but still positive. - Expenses expected at the low end of the range. - Positive operating leverage ~800 bps for the year (about double what they expected earlier).

NIM / balance-sheet dynamics explained (forecast mechanics + some risk factors): - NIM already expanding; they expect ~25–30 bps YoY NIM expansion from 4Q25 to 4Q26. - Lending is growing faster than deposits this year (loan balances ahead of securities portfolio, and loan balances exceeded securities), supported by strong demand for secured lending (margin/PAL). - Cash movements are volatile quarter-to-quarter: cash declined in September but management attributes this mainly to client buying activity and improving sentiment (not “cash sorting”). They still expect organic cash build + seasonal inflow into year-end.