Schwab's Record Revenue is Fueled by Market Volatility, and Its Stock Surges

Charles Schwab Corp.’s stock saw a noticeable lift in early Thursday trading after the company released an impressive quarterly report and revealed that its strong trading activity had carried over into April. The online brokerage and wealth management giant credited a surge in client engagement and market activity for its latest success, with trading volume jumping amid recent market volatility fueled by tariff concerns and global trade tensions.

‍

Between April 7 and April 11, Schwab reported an average of 10.74 million trades per day. This marked a sharp rise from the prior week — March 31 to April 4 — when the average daily trades stood at 9.17 million. Both these figures surpassed the company's already elevated first-quarter average of 7.39 million trades per day, which itself represented a 17% increase from the previous quarter’s average of 6.31 million.

‍

Rick Wurster, Schwab’s Chief Executive Officer, stated in a prepared remark that investors have increasingly looked to Schwab for guidance and execution as they navigate a more uncertain financial landscape in the first quarter of 2025. This uptick in trading activity and overall engagement appears to reflect investor anxiety over macroeconomic and geopolitical developments, particularly surrounding trade policies.

‍

Shares of Charles Schwab rose by 3% in early Thursday action, reaching $78.07 apiece. This marked a positive turn for the company, especially when compared to broader market performance. As of Wednesday’s market close, Schwab’s stock was up 2.3% for the year — a contrast to the S&P 500 index, which has fallen 10.3% over the same period.

‍

The company’s financial performance for the first quarter of 2025 beat expectations across the board. Net income rose significantly to $1.91 billion, or 99 cents per share, up from $1.36 billion, or 68 cents per share, during the same quarter last year. On an adjusted basis, Schwab reported earnings of $1.04 per share, topping analysts’ consensus estimate of $1.01 per share, according to FactSet.

‍

Revenue also hit a new record for the company, reaching $5.6 billion in the first quarter. This was a considerable increase from $4.74 billion during the same period last year and exceeded Wall Street’s forecast of $5.53 billion. The strong revenue growth was fueled by higher levels of client activity, greater interest in financial markets, and the continued expansion of Schwab’s asset base.

‍

In terms of client assets, the firm also reported solid growth. Total client assets rose 9% year-over-year, coming in at $9.93 trillion by the end of the first quarter. Schwab also added $137.7 billion in core net new assets during the quarter, translating into an annualized growth rate of 5.5%. This metric, which excludes assets from recent acquisitions and short-term money movement, reflects the continued trust Schwab enjoys among its client base and its ability to attract new funds even amid a challenging market backdrop.

‍

These numbers suggest that Schwab is benefiting from its dual role as both a brokerage platform and a financial advisory firm. When markets become more volatile, retail and institutional investors alike tend to increase trading activity and seek expert advice — two areas where Schwab has been able to capitalize. Additionally, the company’s investment in technology and customer service continues to pay off, drawing in new clients and keeping existing ones actively engaged.

‍

Overall, the company’s first-quarter performance paints a picture of resilience and growth, driven by strong client activity, higher-than-expected earnings, and a record revenue figure. As April continues with elevated trading levels, Schwab appears to be well-positioned to maintain its momentum into the second quarter. The early stock price gains on Thursday signal investor confidence in the firm’s direction, even as broader market sentiment remains cautious.

‍