Charles Schwab (NYSE: SCHW) Q2 Earnings Preview: Can Record Client Assets Drive Another Beat?

Ahead of its second-quarter earnings report on Monday, July 21 after the bell, Charles Schwab (NYSE: SCHW) stock is changing hands around $102.50 after a great performance in 2026. Schwab has profited from higher equity markets, client assets at all-time peaks, a rise in trading and better net interest income, so investors are now wondering whether these factors continued to support Schwab in the second quarter.

Beyond earnings, we expect management’s tone on client cash, deposits and interest income to weigh most on the stock.

Q2 Earnings Expected to Show Solid Growth

Analysts expect Schwab to report earnings per share of $1.56, up from earnings of $1.14 in the same quarter a year ago, and they’re expecting revenue of $6.9 billion, which would also be a jump from the $5.9 billion reported a year ago. Higher equity markets lifted the value of Schwab’s client assets.

Also, higher volatility in the market supported higher trading volume, trading activity and margin lending, which should lead to higher asset-management and advisory fees as well.

Record Client Assets Continue Supporting Growth

Even with the current market volatility, Schwab is still attracting investors. In its latest monthly operating update, Schwab said that total client assets rose 27% year over year to $13.14 trillion, which is another asset-level record, and net new assets reached $49.9 billion, the company’s best result for May.

The firm added 461,000 brokerage accounts in May as it sees continued growth in both its retail brokerage business and its RIA segment. Higher client assets remain important because that can generate more advisory fees, trading commission and interest income.

Net Interest Income Remains the Key Story

As always, investors will be looking closely at Schwab’s net interest income. After the regional banking crisis in 2023, Schwab saw client assets migrate from interest-bearing accounts to higher-yielding money-market mutual funds, so the brokerage’s funding costs have increased. Schwab deposit trends have stabilized since then, and the higher-yielding assets are helping replace older securities that the brokerage purchased during the low-rate cycle.

Schwab has forecast that net interest income will have an average balance of $446 billion, reflecting higher loan growth as the balance sheet expands and a more stable funding base. We expect management’s discussion on cash sorting and deposit trends to be more important for Schwab shares than what Schwab’s net income looks like in the second quarter.

Schwab Continues To Expand Margin Lending And Wealth Management

Schwab posted client margin of $154.6 billion for May, which saw higher investor sentiment and more participation in the market.

Moreover, the wealth management business at Schwab continues to grow, with managed portfolios, securities-backed lending, and financial planning services increasing. These businesses are more consistent revenue sources than just trading and help foster better client retention.

Schwab’s adviser custody also remains a core competitive advantage, driving steady asset retention from independent advisers.

Schwab Is Broadening Crypto And Private Markets Opportunities

Additionally, Charles Schwab broadens its investment platform options. Management recently announced that it is moving forward with direct trading in Bitcoin and Ethereum, not just crypto exchange-traded funds (ETFs) or futures as these assets begin to see broader mainstream acceptance.

The acquisition of Forge Global would also increase Schwab’s participation in private investments, which provides clients with more ways to allocate capital to pre-IPO companies and alternative investments. These initiatives will help drive revenue diversification, as well as better client retention.

Earnings Watch

Earnings will be the focus of this quarter as Schwab’s report looks at the following:

• Net interest income, deposit changes
• Client cash levels
• Client assets flows for June
• Trade volume and margin balances
• Share buybacks and dividends
• H2 2026 management commentary

A beat in this quarter will show that the Charles Schwab has moved past the balance sheet challenges that occurred in 2023.

Charles Schwab Earnings Outlook

Charles Schwab starts this quarter with good fundamentals. Record AUM, solid deposit flows, expanding wealth management, and stabilizing NII should continue to boost earnings growth. The biggest risks include a return of clients moving to money market funds, poor equity performance, and lower trade volumes if volatility cools off.

While the stock is currently trading close to highs, Schwab will have to prove the results will be as solid as the guidance is for the stock to continue its run.

Charles Schwab (NYSE: SCHW) Technical Analysis: Bulls Defend $100 as Uptrend Targets Fresh Highs

Charles Schwab is consolidating after a strong rally, with buyers continuing to defend the $100.06 support area. The broader uptrend remains intact as the stock trades comfortably above both the 50-day EMA ($95.25) and 200-day EMA ($93.54).

The recent pullback appears to reflect profit-taking ahead of earnings rather than a change in trend. Price continues to hold above the 23.6% Fibonacci retracement near $100.10, while the RSI has eased to around 66, suggesting bullish momentum remains healthy without being excessively overbought.

A breakout above $103.96 would confirm renewed buying momentum and expose the next upside targets at $106.17 and $108.06. On the downside, failure to hold the $100.06-$100.10 support zone could trigger a deeper pullback toward $97.72, followed by $95.79, where buyers may look to re-enter.

As long as SCHW remains above $100, the technical outlook continues to favor the bulls, with earnings likely to determine whether the stock can push toward fresh record highs.