Financial services giant Charles Schwab (NYSE: SCHW) announced better-than-expected revenue in Q3 CY2025, with sales up 26.6% year on year to $6.14 billion. Its non-GAAP profit of $1.31 per share was 5.2% above analysts’ consensus estimates.
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Charles Schwab (SCHW) Q3 CY2025 Highlights:
- Revenue: $6.14 billion vs analyst estimates of $6 billion (26.6% year-on-year growth, 2.2% beat)
- Pre-tax Profit: $3.02 billion (49.2% margin, 64% year-on-year growth)
- Adjusted EPS: $1.31 vs analyst estimates of $1.25 (5.2% beat)
- Market Capitalization: $171.2 billion
“Our unwavering focus on delivering for clients helped us attract $137.5 billion in 3Q core net new assets plus over 1 million new brokerage accounts for the fourth straight quarter.”
Company Overview
Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab (NYSE: SCHW) is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Charles Schwab grew its revenue at an impressive 17.8% compounded annual growth rate. Its growth beat the average financials company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Charles Schwab’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 7.4% over the last two years was well below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Charles Schwab reported robust year-on-year revenue growth of 26.6%, and its $6.14 billion of revenue topped Wall Street estimates by 2.2%.
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Key Takeaways from Charles Schwab’s Q3 Results
It was encouraging to see Charles Schwab beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock traded up 4.2% to $98.30 immediately after reporting.
Sure, Charles Schwab had a solid quarter, but if we look at the bigger picture, is this stock a buy? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
