Charles Schwab Just Announced Major Changes—Here’s How Your Investments Could Benefit

Charles Schwab Corporation (NYSE: SCHW) kicked off 2025 with record-breaking numbers, affirming its position as the largest U.S. online brokerage by client assets. The Westlake-based firm reported first-quarter net revenue of $5.6 billion, up 18% year over year, and net income of $1.9 billion, or $0.99 per diluted share, smashing Wall Street expectations. Strong interest income and resilient trading activity A steep yield curve continued to supercharge Schwab’s net interest income, which climbed 24% to $3.4 billion. Daily average trades hit 7.39 million, a 24% jump that management attributed to heightened equity-market volatility and growing retail engagement. Asset-management and administration fees rose 12% on surging inflows to Schwab’s low-cost index funds and ETFs. Historic client asset growth Investors continued to funnel money into Schwab’s platform despite macro uncertainty. Core net new assets totaled $137.7 billion for the quarter, with $59.1 billion arriving in March alone—both all-time highs. Total client assets now stand at $9.4 trillion, solidifying the company’s scale advantage as it finishes migrating TD Ameritrade accounts. Stock reaction and analyst outlook SCHW stock rallied roughly 2.7% to $77.76 after the results, extending its 2025 year-to-date gain to 2.3% even as the S&P 500 lagged. Wall Street remains bullish: the average 12-month price target sits near $91, implying double-digit upside for shareholders. What’s next for Charles Schwab? Management guided to low-teens revenue growth for full-year 2025, citing sustained asset gathering, higher short-term rates, and cross-selling opportunities as TD Ameritrade clients adopt Schwab’s robo-advice and banking products. The firm’s next catalyst will be second-quarter results, expected July 15. Key takeaways for investors and traders • Record Q1 revenue and profit underscore Schwab’s rate-sensitive earnings power. • Net new assets are accelerating, proving clients remain sticky during platform conversion. • SCHW stock still trades below pre-rate-hike valuation multiples, offering potential upside if interest rates stay elevated. With scalable technology, a fortress balance sheet, and a rapidly expanding customer base, Charles Schwab is positioning itself as a long-term winner in the evolving brokerage and wealth-management landscape.