SCHW · Q2 FY2026
SCHWAB CHARLES CORP Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $7.07B | $5.85B (yr ago) | Beat |
| EPS | $1.54 | $1.08 (yr ago) | Beat |
| Free Cash Flow | $4.12B | $3.05B (yr ago) | Beat |
| Gross Margin | N/M (financial company) | N/M (yr ago) | Miss |
| Operating Margin | 51.9% pre-tax margin | 47.9% pre-tax margin (yr ago) | Beat |
What changed
Revenue increased 20.9% year over year to $7.07 billion, while EPS rose 42.6% to $1.54 as pre-tax margin expanded 4.0 percentage points to 51.9%. Free cash flow increased to $4.12 billion from $3.05 billion, although cash flow is not a reliable stand-alone performance measure for a financial company.
Impact on the investment thesis
There is no prior SageNoodle fair value to revise. We initiate fair value at $111 per share; the stronger revenue, EPS and margin profile supports that level, but the current price already reflects most of the improvement.