Adjusted earnings per share reached $1.39, up from $1.01 a year ago and exceeding the consensus estimate of $1.36 by 2.31%. This 38% year-over-year EPS growth reflects Schwab’s ability to leverage rising interest income and strong fee performance while managing expenses, which rose just 6% on an adjusted basis. The firm’s 52.2% adjusted pre-tax profit margin marks a five-point improvement over the prior year, highlighting operational leverage in its brokerage, banking and advisory segments. Barclays analyst Benjamin Budish has raised his 12-month target for Charles Schwab shares to $125, implying a potential upside of 22.8%. This represents the highest target among major Wall Street brokers and underscores confidence in Schwab’s diversified revenue streams and expanding client base. Budish cited the firm’s resilient net interest margin and continued fee growth as drivers of the premium valuation, noting that Schwab’s capital return plan and consistent share repurchases bolster shareholder returns even in a rising rate environment. For the quarter ended December 31, 2025, Schwab reported revenue of $6.34 billion, up 18.9% year-over-year and slightly above the Zacks consensus of $6.33 billion. Net interest revenue led the growth, rising 25% to $3.17 billion, while asset management and administration fees increased 15% to $1.73 billion. Trading revenue jumped 22% to $1.07 billion on robust client engagement, driven by a 31% increase in average daily trading volume to 8.3 million trades. Total client assets climbed 18% year-over-year to a record $11.90 trillion, supported by $163.9 billion in core net new assets during the quarter. Full-year net new asset gathering reached $519.4 billion, a 42% increase over 2024 and equivalent to 5.1% organic growth. Schwab opened over 1 million new brokerage accounts for the fifth consecutive quarter, lifting active brokerage relationships to 38.5 million and total client accounts to 46.5 million. Margin loan balances also grew 34% to $112.3 billion, reflecting heightened retail participation in leveraged strategies.