Charles Schwab's Q2 Earnings Beat Expectations, Dividend Payout and Share Repurchase Program Approved

Charles Schwab Corporation reported Q2 2025 revenue of $5.85 billion, a 24.75% increase YoY. The company added over one million new accounts and total client assets reached a record high of $10.76 trillion. Schwab declared a quarterly dividend of $0.27 per share and approved a new share repurchase program of up to $20 billion. Its dividend yield is 1.10%.

Charles Schwab Corporation (NYSE: SCHW) reported robust financial results for the second quarter of 2025, highlighting the company's continued growth and resilience. The financial services giant reported quarterly revenue of $5.85 billion, a 24.75% increase year-over-year (YoY) [1]. This strong performance was driven by a 25% growth in revenues across multiple segments, according to Keefe, Bruyette & Woods (KBW) [1].

The company also added over one million new accounts, contributing to a record high in total client assets, which reached $10.76 trillion. This expansion underscores Schwab's ability to attract and retain clients in a competitive financial services landscape.

In addition to its financial performance, Schwab announced a quarterly dividend of $0.27 per share, bringing its dividend yield to 1.10%. The company also approved a new share repurchase program of up to $20 billion, demonstrating confidence in its stock's undervaluation [1]. This move is a strategic decision by the company to return capital to shareholders, which can boost shareholder value and potentially increase the stock's price.

Schwab's earnings beat and strong financial performance have garnered attention from major research firms. Morgan Stanley, for instance, increased its price target for Schwab stock from $117.00 to $131.00, indicating a potential upside of 33.81% from the previous close [2]. This positive outlook reflects the firm's belief in Schwab's strong fundamentals and growth prospects.

Several other research analysts have also commented positively on Schwab's stock. Keefe, Bruyette & Woods increased their price target on Schwab from $102.00 to $108.00 and gave the stock an "outperform" rating [1]. UBS Group, Citigroup, and Bank of America also raised their price targets and ratings, reflecting a consensus among analysts that Schwab is a solid investment [2].

Despite the positive sentiment, some analysts believe that certain AI stocks offer greater upside potential and carry less downside risk. However, Schwab's strong performance and strategic initiatives suggest that it remains a solid investment choice for those looking for stability and growth in the financial services sector.

References:

[1] https://finance.yahoo.com/news/charles-schwab-corporation-schw-price-161008924.html

[2] https://www.marketbeat.com/instant-alerts/morgan-stanley-forecasts-strong-price-appreciation-for-charles-schwab-nyseschw-stock-2025-07-29/