Thoughts Ahead Of SCHW's (5/14) Institutional Investor Day

Research evidence excerpt

Thoughts Ahead Of SCHW's (5/14) Institutional Investor Day

Broker Dealers: Retail Broker Dealers

Charles Schwab Corp

TD SECURITIES (USA) LLC QUICK TAKE: COMPANY UPDATE

May 12, 2026

Price: $87.83 (05/11/2026) Thoughts Ahead Of SCHW's (5/14)

Price Target: $108.00 Institutional Investor Day

BUY (1)

ESG SCORE: 56/100

Bill Katz THE TD COWEN INSIGHT

212 468 7802

Below, we explore key themes and investor questions we expect to arise at SCHW's 5/14

bill.katz@tdsecurities.com

Institutional Investor Day. While mgmt already noted they will not be updating '26 financial

Robin Holby, CFA guidance (missed opportunity), we expect a constructive update. Yet, we expect the stock

646 562 1401 likely to pivot on agentic AI discussion, and key will likely center on client cash monetization

robin.holby@tdsecurities.com

flexibility.

Bradley Hays

646 562 1487 Key Themes We Expect To Be Delivered - 1) Focus on boosting "ROCA", or Revenue on Client

bradley.hays@tdsecurities.com Accounts, and migration from NII centricity; 2) durable LT NNA growth reflecting further

Sergio Ferreira market segmentation, cross-sell and share gains; 3) driving stronger operating leverage -

646 562 1465 reflecting scale and agentic AI deployment; 4) increased B/S flexibility and ongoing balance

sergio.ferreira@tdsecurities.com between growth (de novo and inorganic) and capital return - and ability to drive higher cross

cycle ROTCE (we currently model to 41% - 43% for '26-27E).

Key Data

Symbol NYSE: SCHW View On Brokers - We remain selective on the sub-sector. While we believe investor angst on

Market Cap $152.7B agentic AI is overly elevated, our concern centers on: 1) seemingly elevated NNA competition

- a theme, reinforced at C's recent investor day (see 5/8); 2) likely slower client cash growth