Did Schwab's (SCHW) Crypto Ambitions and Client Growth Just Shift Its Investment Narrative?

• The Charles Schwab Corporation recently reported third-quarter 2025 results, highlighting net income of US$2.36 billion and 1.1 million new brokerage accounts, following ongoing Ameritrade client integration and substantial net new assets.
• Schwab is preparing to launch direct crypto trading in 2026, seeking to attract younger investors with new products such as Bitcoin and Ethereum trading capabilities.
• We'll examine how Schwab's strong client growth and new digital offerings may reshape its long-term investment narrative.

We've found 17 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Charles Schwab Investment Narrative Recap

To be a Charles Schwab shareholder today, you need to believe that the company's scale, digital transformation, and strong client acquisition will help maintain its leadership as competition from digital-first brokers intensifies. The latest Q3 earnings report showed robust net income growth and continued client momentum, but near-term results did not fundamentally shift the key catalyst: sustaining net new asset growth while expanding margins. However, recent insider selling highlights a lingering risk to consider.

Among recent announcements, Schwab's plan to offer direct crypto trading in 2026 stands out as particularly relevant. This move addresses investor demand from younger demographics and digital natives, tying directly to near-term growth catalysts around platform expansion and deeper client engagement. It complements the firm's ongoing push for digital innovation and fee-based revenue growth.

By contrast, investors should be aware of the potential impact on margin expansion if technology investments outpace revenue growth and ...

Read the full narrative on Charles Schwab (it's free!)

Charles Schwab's outlook anticipates $30.2 billion in revenue and $11.0 billion in earnings by 2028. This scenario reflects an 11.8% annual revenue growth rate and a $4.2 billion increase in earnings from the current $6.8 billion level.

Uncover how Charles Schwab's forecasts yield a $109.60 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Eight members of the Simply Wall St Community valued Schwab between US$76.36 and US$109.60 per share, revealing considerable variation in outlooks. Many highlight client and asset growth, though some stress the risk of higher costs from expanding digital platforms.

Explore 8 other fair value estimates on Charles Schwab - why the stock might be worth as much as 15% more than the current price!

Build Your Own Charles Schwab Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Charles Schwab research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Charles Schwab research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Charles Schwab's overall financial health at a glance.

No Opportunity In Charles Schwab?

Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

• Find companies with promising cash flow potential yet trading below their fair value.
• Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 37 best rare earth metal stocks of the very few that mine this essential strategic resource.
• These 12 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com