Schwab’s 1Q26: A Quiet Engine of Growth with $140B Core Net New Assets and $6.5B in Revenue

Key figures at a glance

• GAAP net income: $2.5 billion
• EPS (GAAP): $1.37; EPS (adjusted): $1.43
• Net revenues: $6.5 billion, up 16% year over year
• Core Net New Assets: $140 billion in 1Q26
• Asset gathering: $158 billion excluding planned mutual fund clearing deconversion, annualized growth ~5.4%
• 1Q26 Managed Investing net flows: up 46% year over year
• Brokerage activity: 1.3 million new accounts opened in the quarter
• Implied backdrop: robust engagement across wealth, trading, and lending platforms

The narrative behind the numbers

The quarter reads like a disciplined expansion of Schwab’s client-focused platform. Net revenues rose meaningfully, driven by active client engagement and a diversified revenue mix that spans wealth management, trading, and lending. The firm highlighted strong momentum into 2026, with about 1.3 million new brokerage accounts opened in the quarter and core net new assets totaling $140 billion—an indicator that client onboarding and asset accumulation remain central to the growth story.

On the asset-gathering front, excluding a planned mutual fund clearing deconversion, Schwab tallied roughly $158 billion in asset gathering, translating to an annualized growth rate of 5.4%. In practical terms, this is a signal that clients are continuing to use Schwab as a one-stop shop for a broad set of financial needs, rather than moving assets piecemeal to separate platforms.

Within the revenue mix, the press release emphasizes “Client Driven Growth” and “Diversified Revenue Growth,” showcasing the stability of Schwab’s model even as macro headwinds loom. The 46% year-over-year increase in Managed Investing net flows underscores a meaningful shift toward actively managed client portfolios and advisory solutions, a trajectory that could reinforce fee-based revenue as a complement to trading and interest income.

What management framed as the story

"Schwab's strong business momentum continued into 2026 as investors opened 1.3 million new brokerage accounts and brought $140 billion of core net new assets to the firm during the first quarter. Excluding a planned mutual fund clearing deconversion, asset gathering totaled $158 billion – an annualized growth rate of 5.4%." — President & CEO Rick Wurster

The remarks frame a disciplined emphasis on client relationships and product breadth. The company presents a narrative of momentum that’s not dependent on a single product line, but rather a tapestry of wealth management, banking-ready capabilities, and trading activity that keeps client engagement high across the cycle.

Implications for Schwab and sector peers

Schwab’s quarter reinforces the appeal of a diversified revenue model in the standalone wealth and brokerage space. The growth in core net new assets and the large inflows into managed investing hint at ongoing client preference for integrated wealth platforms that combine custodial services, advisory capabilities, and liquidity solutions. For peers, this sets a benchmark for client acquisition velocity and asset-gathering efficiency, especially in a period of macro uncertainty where cross-sell and stickiness matter more than episodic trading spikes.

The press release also flags a one-off dynamic—the planned mutual fund clearing deconversion—that could temporarily affect asset flows and revenue. How peers manage similar migrations or IT transitions could become a differentiator in execution quality and timing costs.

From a market structure perspective, the numbers imply that a large, diversified platform with scalable digital onboarding can continue to convert engagement into durable fee and net interest income streams, even as core product cycles evolve. In other words, the Schwabs of the world may keep pressuring peers to extend their client relationships beyond the traditional brokerage envelope.

Earnings context and forward-looking notes

In this release, Schwab provides both GAAP and adjusted earnings per share figures, noting $2.5 billion of net income and an adjusted EPS of $1.43 after excluding $143 million of pre-tax transaction-related costs. The explicit figure for revenue forecast in this release isn’t stated; instead, the company anchors its outlook on the momentum in client activity and the asset-gathering trajectory it demonstrated in 1Q26. Investors and analysts will likely compare reported EPS against either the consensus or future guidance as the quarter-to-quarter cadence unfolds.

Analysts will also parse the 16% revenue growth alongside the 46% growth in managed investing net flows to assess how much of the top-line strength is coming from core advisory services versus transactional activity. The pace of new account openings, while encouraging, will also invite scrutiny of client churn, funding sources, and the sustainability of the asset mix over the next few quarters.

A note on tone and style

Schwab’s results are presented with a confident, client-centric framing: momentum driven by engagement, breadth of product solutions, and a disciplined approach to growth. The story reads less like a quarterly surprise and more like a reaffirmation of strategy—that a diversified, scalable platform can translate client activity into multi-channel revenue even amid slower macro momentum. For sector peers, the implicit challenge is clear: maintain cross-sell engines and onboarding velocity while managing transitional costs and integration risk.