Barclays analyst Benjamin Budish set a new price target of $125 for Charles Schwab, implying a potential upside of 22.8% from current levels. In his note, Budish highlighted Schwab’s diversified revenue streams across brokerage, banking and advisory services, and cited the firm’s ability to capture market share from traditional competitors. The analyst also pointed to the company’s disciplined expense management, noting that operating expenses grew 7.2% year-over-year in the most recent quarter, well below the 12% revenue increase during the same period.

For the quarter ending December 2025, Charles Schwab reported revenue of $6.34 billion, an 18.9% increase compared with the prior year, slightly exceeding the consensus estimate of $6.33 billion and delivering a 0.1% positive surprise. Net income rose 29% to $1.9 billion, driving earnings per share of $1.39 versus $1.01 a year earlier and topping the consensus forecast of $1.36 by 2.3%. The double-digit growth was driven by record net new assets of $52 billion and a 14% increase in fee-based assets under management, underscoring strong client engagement and fee revenue resilience amid competitive fee pressures.

A new Schwab Advisor Services study of 533 independent Registered Investment Advisors found that 63% now use AI tools in some capacity, more than doubling adoption since 2023. Among these firms, 82% report relying on generative AI for administrative tasks such as meeting preparation and client correspondence, while only 10% have fully integrated AI into their strategic planning. Nearly 60% of advisors believe AI will measurably improve client relationships within 12 months, and 68% expect it to transform financial advice over the next three years. In response, Schwab Advisor Services has launched its Advisor AI in Action program to provide education, peer networking and vendor discounts aimed at accelerating meaningful adoption among RIA firms.