Charles Schwab (SCHW) Stock Forecast & Price Target

Charles Schwab is positioned favorably because its underlying franchise is compounding through record organic growth, with 3Q26 adjusted EPS of $1.69, revenue of $7.17B, and core net new assets of $190.4B, while client assets reached $13.3T and active brokerage accounts rose to 40.3M. Despite a softer near-term NIM of 3.04% and lower-than-expected buybacks, the business mix is improving as bank loans grew 35% YoY to $72.3B, asset management and administration fees hit a record $1.91B, and expense discipline helped expand the adjusted pretax margin to 54.8%. The outlook is further strengthened by broad-based asset gathering across Advisor Services and Investor Services, over 1,100 RIA firms added in 2025, and growing wealth and AI-enabled engagement that should support operating leverage and capital return capacity over time.

Charles Schwab is facing a fundamentally weaker earnings setup as management now expects 4Q26E NIM of 3.15% to 3.20%, below the prior 3.25% to 3.30% guide, implying softer net interest income from its sweep-funded banking model. Even with 2026FY revenue still expected to beat the low end of the prior 17.5% to 18.5% guide and 800 bps of leverage, the need for higher wholesale funding, deeper securities runoff, and only modest client cash growth points to slower NII expansion. That leaves the stock vulnerable to rate-driven cash sorting, lower cross-cycle NIMs, and weaker returns if market activity or capital markets soften.