Charles Schwab shares drop as record Q1 results underwhelm

(Sharecast News) - Shares in Charles Schwab fell on Thursday despite a record first quarter from the US investment services firm as top-line results came in below market forecasts. Net revenues rose to a record $6.48bn over the three months to 31 March, up 16% year-on-year, helped by client engagement across the company's wealth, trading and lending solutions, with total client assets up 19% at $11.77trn.

Analysts, however, had pencilled in a top-line result of $6.50bn.

Managed investing net flows were 46% ahead of last year, while bank loans jumped 29% to $60.9bn.

"Schwab's strong business momentum continued into 2026 as investors opened 1.3 million new brokerage accounts and brought $140 billion of core net new assets to the firm during the first quarter," said president and chief executive Rick Wurster.

"Clients continue to turn to us for more of their financial lives, helping wealth and banking solutions reach record levels in 1Q."

Despite the top line miss, adjusted net income was 29% higher than the year before at $2.59bn, equating to adjusted earnings per share of $1.43, ahead of the $1.40 consensus forecast.

The stock was down 3.9% at $96.41 by 0940 BST.