Charles Schwab’s Strong Performance in 2025 Outshines Market Trends

Based in Westlake, Texas, The Charles Schwab Corporation (SCHW) serves as a savings and loan holding company. With a market capitalization of $151.2 billion, Schwab offers a range of services including wealth management, securities brokerage, banking, asset management, custody, and financial advisory.

Market Performance Overview

In 2025, Charles Schwab has significantly outperformed the broader market. However, the company has slightly lagged behind in the past year. Year to date, SCHW has surged 11.9%, and over the past 52 weeks, it has increased by 7.8%. In contrast, the S&P 500 Index ($SPX) has seen a 4.7% decline in 2025, although it recorded an 8.2% gain over the last year.

Narrowing the focus, Charles Schwab has also outperformed the SPDR S&P Capital Markets ETF (KCE), which has experienced a 7.4% decline year to date. However, Schwab has underperformed KCE’s 16% growth over the previous year.

Q1 Financial Highlights

Following the release of its impressive Q1 results on April 17, Charles Schwab experienced a marginal uptick in stock prices. The company reported a total client assets increase of 8.9% year-over-year, now totaling $9.9 trillion. Its net interest margin expanded by 20 basis points to 253 basis points, while overall net revenues surged 18.1% year-over-year to $5.6 billion, exceeding street expectations by 1.5%. Adjusted net income soared 36.7% year-over-year to $2 billion, with an adjusted EPS of $1.04, surpassing consensus estimates by 4%.

Future Expectations and Analyst Ratings

For the full fiscal year ending December 2025, analysts anticipate that SCHW will report a 30.2% year-over-year growth in adjusted EPS, projecting it to reach $4.23. The company has a strong history of meeting or exceeding the Street’s earnings estimates in the last four quarters.

The stock has a consensus rating of “Moderate Buy.” Among 22 analysts covering SCHW, there are 15 “Strong Buys,” three “Moderate Buys,” one “Hold,” one “Moderate Sell,” and two “Strong Sells.”

This rating reflects a more bullish sentiment compared to three months ago, when only 12 analysts recommended “Strong Buy” ratings and two suggested “Moderate Buy.”

On April 25, Goldman Sachs (GS) analyst Alexander Blostein upgraded SCHW’s rating to “Buy” while setting a price target of $100.

SCHW’s mean price target of $88.05 suggests a 6.3% premium compared to current price levels, while its street-high target of $103 indicates a potential upside of 24.4%.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For further information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.