SCHWAB REPORTS RECORD QUARTERLY REVENUE AND EARNINGS (Form 8-K)

SCHWAB REPORTS RECORD QUARTERLY REVENUE AND EARNINGS Record June Core Net New Assets Grew 47% Year-Over-Year to $62.7 Billion 2Q Net Revenues Reached a Record $7.1 Billion, Up 21% Year-Over-Year Record GAAP Earnings Per Share of $1.54; $1.62 Adjusted (1) - up 42% versus 2Q25

WESTLAKE, Texas, July 21, 2026 - The Charles Schwab Corporation reported net income for the second quarter totaling $2.8 billion, or earnings per share of $1.54. Excluding $170 million of pre-tax transaction-related costs, adjusted (1) net income and earnings per share equaled $2.9 billion and $1.62, respectively.

Client Driven Growth						$120B 2Q26 Core Net New Assets			"Schwab's leading value proposition continued to resonate in 2Q26, as investors opened 1.4 million new brokerage accounts and brought $120 billion in core net new assets to the firm. June core asset gathering totaled a record $62.7 billion - an annualized organic growth rate of 5.8%." President & CEO Rick Wurster
Deepen Client Relationships						53% 2Q26 Managed Investing Net Flows Growth			"Investors continued to engage with Schwab's expanding set of solutions during 2Q as daily average trades reached a record 11.9 million, net flows into Schwab Wealth AdvisoryTM increased 80% year-over-year, and Pledged Asset LineTM balances equaled $33.4 billion - up 59% from 2Q25." President & CEO Rick Wurster
Diversified Revenue Growth						21% 2Q26 Revenue Growth vs. 2Q25			"Our ability to do more for clients throughout their financial lives enables Schwab to deliver robust results across a range of environments. During the second quarter, strong client engagement helped drive year-over-year revenue growth of 21% to a record $7.1 billion." CFO Mike Verdeschi
Strong Earnings Momentum						43% 2Q26 GAAP EPS Growth vs. 2Q25			"During 2Q26, the strength of Schwab's diversified business model, our industry-leading scale, and opportunistic capital return in multiple forms combined to deliver year-over-year GAAP earnings growth of 43% to a record $1.54 per share, or $1.62 on an adjusted (1) basis." CFO Mike Verdeschi

2Q26 Client and Business Highlights

•Total client assets increased 22% year-over-year to $13.08 trillion

•Core net new assets totaled $119.8 billion, up 49% versus 2Q25

•New brokerage account openings equaled 1.4 million, helping bring total client accounts to 48.0 million

•Managed Investing Solutions net flows grew 53% versus 2Q25

•Bank loan balances equaled $67.0 billion at June month-end, up 33% year-over-year

•Margin loan balances increased 30% quarter-over-quarter to $165.1 billion at quarter-end

•Long/short strategy interest remained strong amongst RIA clients (2), with margin loan debits and short cash credits equaling $42.1 billion and $43.7 billion, respectively, as of June 30, 2026

•Daily average trading volume reached a record 11.9 million - up 57% versus 2Q25

•Launched Schwab CryptoTM, providing direct access to Bitcoin and Ethereum trading for retail clients

•Introduced Portfolio Insights, a generative AI-powered capability that helps investors understand portfolio performance (3)

•Schwab recognized as the Best Investing Platform by U.S. News for the 4th consecutive year (4)

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			Three Months Ended June 30,												%						Six Months Ended June 30,												%
Financial Highlights			2026						2025						Change						2026						2025						Change
Net revenues (in millions)			$	7,072					$	5,851					21%						$	13,554					$	11,450					18%
Net income (in millions)
GAAP			$	2,800					$	2,126					32%						$	5,279					$	4,035					31%
Adjusted			$	2,930					$	2,222					32%						$	5,518					$	4,230					30%
Diluted earnings per common share
GAAP			$	1.54					$	1.08					43%						$	2.91					$	2.07					41%
Adjusted			$	1.62					$	1.14					42%						$	3.05					$	2.17					41%
Pre-tax profit margin
GAAP			51.9		%				47.9		%										50.6		%				45.9		%
Adjusted			54.3		%				50.1		%										52.9		%				48.2		%
Return on average common
stockholders' equity (annualized)			25		%				19		%										23		%				18		%
Return on tangible
common equity (annualized)			44		%				35		%										41		%				34		%
Note: Items labeled "adjusted" are non-GAAP financial measures; further details are included on pages 10-12 of this release. All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding.

2Q26 Financial Commentary

•Quarterly net revenues grew year-over-year by 21% to a record $7.1 billion

•Net interest margin for the quarter expanded 12 basis points quarter-over-quarter to 3.00%

•Client transactional sweep cash balances ended June at $485.7 billion, an increase of $24.2 billion versus the prior quarter-end, reflecting typical 2Q tax seasonality, organic growth, and client asset allocation decisions

•Average interest-earning assets for the quarter equaled $445.0 billion, up 5% versus 2Q25

•Asset management and administration fees grew by 16% year-over-year to $1.8 billion, powered by the firm's organic growth and investors' increased utilization of our wealth and asset management solutions

•Record client trading activity drove trading revenue of $1.2 billion, up 28% year-over-year

•GAAP expenses for the quarter increased 12% year-over-year; excluding acquisition and integration-related costs and the amortization of acquired intangibles of $170 million, adjusted total expenses (1) were up 11% relative to 2Q25

•Capital ratios across the firm remained strong - including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) equaling 8.7% and 6.8%, respectively

•Redeemed $2.1 billion Series I Preferred Stock and issued $1.5 billion Series L Preferred Stock

•Repurchased 11.2 million shares of our common stock for $1.0 billion during the quarter

(1) Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-12 of this release.

(2) Client margin loans and short credits related to certain long/short strategies utilized by RIAs are excluded from interest-earning assets and company funding sources.

(3) Portfolio Insights (Insights) is a generative artificial intelligence feature designed to provide: (1) a narrative snapshot of a client's Portfolio's Day Change performance as of now versus the prior trading day's close; (2) a recap of recent news about the top S&P 500® equity movers (up to five securities) most affecting the value of a client's portfolio; and (3) snippets of the day's Schwab Center for Financial Research and other Schwab expert content related to a client's portfolio. The summaries can be refreshed throughout the day. Insights into specific securities are not necessarily representative of a client's portfolio. The securities referenced to prepare each Insight vary and certain asset types are excluded. Insights should not be construed as investment advice or recommendations and are for informational and educational purposes only. Generative AI output may be inaccurate, containing hallucinated, stale, or incomplete information. Clients should consult their Account Statement(s) for complete account information. For more information about Schwab Portfolio Insights, please visit https://www.schwab.com/legal/portfolio-insights-disclosure.

(4) U.S. News & World Report's Best Investing Platforms awards were given on 04/16/2026. The criteria, evaluation, and ranking were determined by U.S. News & World Report. See https://money.usnews.com/investing/best-brokers/methodology for more information. Schwab paid a licensing fee to U.S. News & World Report for use of the award and logos.

Summer Business Update

The company will host its Summer Business Update for institutional investors this morning from 7:30 a.m. - 8:30 a.m. CT, 8:30 a.m. - 9:30 a.m. ET.

Registration for this Update webcast is accessible at https://www.aboutschwab.com/schwabevents.

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