Record Earnings and $20 Billion Buyback Could Be a Game Changer for Charles Schwab (SCHW)

• In late July 2025, Charles Schwab announced record second-quarter earnings, a new US$20 billion share buyback program, and quarterly dividends for both common and preferred stock, building on strong client asset inflows and operating results.
• The Board's decision to authorize a major repurchase plan alongside robust earnings signals management's continued emphasis on shareholder returns and long-term confidence in the company's business direction.
• We'll explore how the new US$20 billion share buyback program strengthens the investment narrative for Charles Schwab.

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Charles Schwab Investment Narrative Recap

Being a shareholder in Charles Schwab means believing in the company's ability to drive sustained asset growth, integrate acquisitions smoothly, and maintain strong revenue and profit performance. While the new share buyback program and record earnings boost confidence in Schwab's discipline and focus on returning capital to shareholders, the main short-term catalyst remains asset flows from Ameritrade clients, an area where further risks around client retention and platform transition still exist. The potential impact of these recent announcements on that key risk appears limited for now.

Among the latest announcements, the launch of a new US$20 billion share buyback stands out as most relevant. This substantial buyback reflects strong capital generation and supports shareholder returns, reinforcing Schwab’s commitment to financial strength amid a period of rising client assets and higher earnings.

Yet, investors should not overlook the risk that, despite headline results, unforeseen challenges in transitioning Ameritrade clients could disrupt underlying growth...

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

Charles Schwab's outlook anticipates $30.3 billion in revenue and $10.9 billion in earnings by 2028. This is based on an 11.9% annual revenue growth rate and a $4.1 billion increase in earnings from the current $6.8 billion.

Uncover how Charles Schwab's forecasts yield a $107.11 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community estimates for Schwab’s fair value range from US$60.32 to US$107.11 across 9 investor opinions. Strong recent performance and capital initiatives highlight why opinions can vary so widely, see how different participants assess Schwab’s future potential.

Explore 9 other fair value estimates on Charles Schwab - why the stock might be worth 39% less 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.

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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.

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