Charles Schwab reported fourth-quarter revenue of $6.34 billion, representing an 18.9% year-over-year increase and slightly surpassing consensus estimates. Adjusted earnings per share came in at $1.39, beating the Zacks Consensus Estimate of $1.36 and up from $1.01 a year ago. Net interest margin expanded by 57 basis points to 2.90%, reflecting improved net interest income as client cash balances and interest rate benefits continued to grow.

Total client assets rose 18% year-over-year to a new high of $11.90 trillion. Core net new assets for the quarter reached $163.9 billion, bringing full-year net inflows to $519.4 billion, or organic growth of 5.1%. Asset management and administration fees climbed 15% year-over-year to $1.7 billion, while trading revenue increased by 22%, underscoring sustained client engagement across brokerage, advisory, and banking services.

In a new study of 533 independent registered investment advisors custodying at Schwab, 63% now use AI tools—more than double the adoption rate in 2023. However, most firms remain in pilot stages, focusing on administrative tasks such as notetaking and email drafting. Only about 10% of users have fully integrated AI into their broader business strategy. To bridge this gap, Schwab Advisor Services has launched the ‘AI in Action’ program, offering webcasts, regional summits, executive education, and vendor partnerships to help firms transform AI from a tactical experiment into a strategic advantage.