Charles Schwab shares surge 4% reaching ATH after Q2 earnings 📈

Charles Schwab Corp. (SCHW.US) shares are up almost 4% in premarket trading Friday, briefly brushing its record closing high of $96 set back in January 2022. The rally came after Schwab posted better-than-expected earnings and revenue for Q2, fueled by a notable resurgence in retail trading activity and a significant inflow of new accounts.

• For the quarter ending June 30, net income came in at $1.98 billion, or $1.08 per share. While down from a year-ago spike of $4.69 billion (or $5.85 per share), the figure still topped analyst expectations. On an adjusted basis, Schwab reported earnings of $1.14 per share, beating the FactSet consensus estimate of $1.10. Total revenue also impressed, rising to a record $5.85 billion, up from $4.69 billion last year and surpassing Wall Street’s $5.73 billion forecast.
• One of the standout metrics for the quarter was a 23% surge in trading revenue, which hit $952 million. The jump reflects intensified market engagement during April’s dramatic equity pullback—dubbed by some as “Liberation Day,” when markets were jolted by a flurry of macroeconomic and geopolitical crosswinds. That Q2 volatility boosted Schwab’s transactional volumes and profits.
• Schwab's client acquisition engine showed no signs of fatigue. The company reported over 1 million new brokerage accounts opened during the quarter. It's a significant figure by any measure—even for one of the largest retail brokerages in the world. Additionally, the firm attracted $80.3 billion in core net new assets, a 31% increase year-over-year. This influx helped push Schwab’s total client assets to a record $10.76 trillion, reflecting 14% annual growth.

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Through Thursday’s close, Schwab’s stock had gained almosg 26% year-to-date—significantly outperforming both the S&P 500 index and the Financial Select Sector SPDR ETF.  The return of active traders, alongside strong account growth and record assets, paints a picture of a firm well-positioned to benefit from both volatility-fueled trading spikes and long-term wealth management flows. As for now, shares in pre-market are higher than during the 2021 high.

Source: xStation5