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Investing.com - Piper Sandler has raised its price target on Charles Schwab Corp. (NYSE:SCHW) to $96.00 from $92.00 while maintaining a Neutral rating following the company’s second-quarter earnings report. The financial services giant, currently valued at $172.7 billion, has seen its stock surge over 51% in the past year, trading near its 52-week high. According to InvestingPro data, 12 analysts have recently revised their earnings estimates upward for the upcoming period.
The financial services company reported net revenues of $5.85 billion for the second quarter of 2025, exceeding Piper Sandler’s estimate by approximately $81 million or 1%. Adjusted expenses came in at $2.92 billion, about $137 million or 4% lower than anticipated. This performance reflects Schwab’s strong operational efficiency, with the company maintaining an impressive 97% gross profit margin and achieving 10.9% year-over-year revenue growth.
Charles Schwab’s net interest income performed 2% above estimates, with a net interest margin of 2.65% compared to the expected 2.66%. Trading revenues and bank deposit account fees slightly missed projections, according to Piper Sandler’s analysis.
The company reported core net new assets of $42.6 billion in June, representing an annualized growth rate of approximately 5%. For the entire second quarter, core net new assets reached $80.3 billion, translating to an annualized growth rate of about 3%.
Following these results, Charles Schwab has raised its fiscal year 2025 guidance for both revenue growth and earnings per share, prompting Piper Sandler to update its earnings per share estimates from $4.38 to $4.55 for 2025 and from $5.14 to $5.32 for 2026.
In other recent news, Charles Schwab Corporation reported second-quarter earnings that surpassed analyst expectations, with non-GAAP earnings per share of $1.14, exceeding the consensus estimate of $1.10. The company’s total revenues reached $5.851 billion, driven by stronger-than-anticipated net interest income and lower operating expenses. Raymond (NSE:RYMD) James maintained its Outperform rating on Charles Schwab and raised its price target to $99, citing improved net interest margins and asset growth. Additionally, Truist Securities increased its price target for the company to $100, noting solid fundamentals despite some moderation in net new assets and trading volumes.
Charles Schwab’s May data release highlighted a record $35 billion in core net new assets, a 13% increase compared to the previous year. The company managed $10.35 trillion in client assets as of May 31, 2025, across 37.4 million active brokerage accounts. In regulatory news, Charles Schwab announced that its stress capital buffer would remain at the 2.5% minimum following the Federal Reserve’s stress test. The company reported a Common Equity Tier 1 ratio of 32%, significantly above the regulatory minimum. These developments reflect Charles Schwab’s continued growth and strong capital position.
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