Charles Schwab’s second-quarter results delivered a clear message to the wealth management industry: asset growth and client engagement remain robust, even amid a volatile market backdrop.
The firm reported adjusted earnings per share of $1.14 on revenue of $5.9 billion—surpassing Wall Street expectations of $1.10 EPS and $5.7 billion in revenue. Shares rose 2.2% in premarket trading.
The standout figure: $80.3 billion in core net new assets, representing a 31% increase from a year earlier. Schwab’s asset growth is a key indicator of advisor confidence and client demand, and this quarter’s performance puts the company well within range of its long-term goal of 5% to 7% annualized net new asset growth.
“Schwab delivered growth on all fronts during the second quarter,” said CEO Rick Wurster. “The firm’s diversified revenue model, coupled with our best-in-class scale and efficiency, produced quarterly records for both revenue and earnings per share.”
Advisors watching interest rate dynamics will note Schwab’s net interest revenue surged to $2.8 billion, up from $2.1 billion in the same quarter last year. The lift came largely from lower funding costs as the company continued to pay down the short-term debt it accumulated in 2023 and 2024. Schwab reduced those borrowings by $10.4 billion in Q2, bringing its short-term debt balance to $27.7 billion as of June 30.
Revenue from asset management fees also contributed to the firm’s strong top line. Schwab’s total client assets hit a record $10.76 trillion by quarter-end, driven by both market gains and new inflows from a wide range of investors, including individual clients and independent RIAs on Schwab’s custodial and technology platforms.
While April saw softer flows due to tax season and equity market volatility linked to the Trump administration’s trade policies, flows rebounded in May and June. Schwab’s June asset-gathering pace translated into a 5% annualized growth rate, according to a research note from J.P. Morgan analyst Kenneth Worthington. “The initial take is that the Schwab results look good,” Worthington wrote.
The strong quarter also highlighted heightened investor engagement across Schwab’s platform. Daily average trades reached 7.6 million—up 38% year-over-year—while the firm added 1.1 million new brokerage accounts, marking an 11% increase. Active brokerage accounts reached 37.5 million, and total client accounts grew to 45.2 million.
RIAs will note that Schwab’s platform continues to attract significant advisor and client interest, bolstered by its custodial capabilities, digital infrastructure, and trading tools. The asset growth reaffirms Schwab’s positioning as a core partner for independent advisors seeking to scale operations while keeping costs low.
Industry-wide, investor activity remained high. Interactive Brokers, a Schwab competitor, also reported elevated client engagement in Q2, with notable increases in account openings, margin trading, and trading frequency. But Schwab’s scale—across both retail and institutional channels—continues to set it apart.
For advisors, the message is clear: Schwab’s earnings strength and asset inflows highlight persistent demand for scalable wealth management solutions. The firm’s ongoing reduction in short-term debt and gains in interest income could also offer margin tailwinds if rates remain elevated.
Looking ahead, Schwab’s steady progress toward its asset growth target and continued investment in its advisor platform will be closely watched—particularly as consolidation and competition in the custodial space intensify.
