Proactive Investors
15 Oct 2026, 13:39 UTC · 1h ago
Charles Schwab reports record $7.2bn revenue as quarterly profit rises 23%
Impact · against what's priced in
The record results and NIM expansion are catalysts for SCHW because they provide concrete evidence for the bull case the market had previously rejected. Specifically, the 16bps widening of the net interest margin directly validates the primary driver the price had declined to pay for.
- SCHW+0.60
Challenges what's priced in
- The price assumes
Net interest margin expanding by 15-20 basis points or more
The market had explicitly declined to pay for NIM expansion of 15-20bps; however, Schwab reported a widening from 2.88% to 3.04% (16bps) in a single quarter.
What SCHW's price assumes · Aug 26
