Schwab Reacceleration Confirmed by Record Q1, Asset Growth

What happened

Charles Schwab's reacceleration is confirmed by record Q1 results with 16% revenue growth and 38% EPS growth, alongside $49.9B in net new assets in May and total client assets reaching $13.1T. The DeepValue master report underscores a rebounding fundamentals phase with TTM revenue up ~16.9% YoY to ~$21.6B and EPS improving, supported by strong liquidity and declining long-term debt. The company has moved past the cash-sorting cycle and completed the TD Ameritrade platform sunset, positioning for operating leverage across retail, RIA custody, and thinkorswim. Regulatory modernization through enhanced Rule 605 disclosures and tick-size/access-fee changes (effective Nov 2025) likely rewards Schwab's scale, routing analytics, and post-trade stack. The Buy stance is maintained with a 12-month price target of $107.80, reflecting robust growth and multiple revenue drivers.

Implication

Investors should view Schwab's reacceleration as a confirmation of the turnaround thesis, with record client assets and strong net new asset flows driving fee income acceleration. The completion of the Ameritrade integration and recovering activity-based revenues provide clear operating leverage. Near-term, watch for stabilization in net interest revenue (NIR) as rate volatility moderates, and monitor the impact of regulatory changes on order-routing economics. The company's scale and diversified model (brokerage, custody, banking) offer a margin of safety, but deposit betas and trading engagement remain key watch items. For long-term holders, the secular trends in RIA custody and digital investing, combined with regulatory tailwinds that favor large platforms, support steady compounding at current valuation (~23x TTM P/E).

Thesis delta

The thesis remains firmly BUY with no material shift; the news reinforces the reacceleration narrative with record Q1 results and robust asset gathering. Key drivers—record client assets, operating leverage from platform consolidation, and regulatory modernization—are now more visible and supported by tangible data. The stance is unchanged, with conviction increasing as fundamental improvements align with earlier projections.