SCHW 2026 Investor Day Recap: What is Schwabvious is Not Always Known

Research evidence excerpt

SCHW 2026 Investor Day Recap: What is Schwabvious is Not Always Known

May 14, 2026

ESTIMATES DECEMBER FYE

($) 2025A 2026E 2027E

Numbers may not add up due to rounding; Fiscal Year Ends December

Investment Conclusion

Share Performance: SCHW shares are down -10% YTD, underperforming the S&P 500 (+10%), the S&P Fins. (-7%),

and Retail Broker peers ex-HOOD (-8%). In 2025, SCHW shares were up +35%, outperforming the S&P 500 (+23%),

S&P Fins. (+28%), and Retail Broker peers (+6% ex-HOOD).

SCHW Investment Case: SCHW is a best-in-class U.S Self-Directed / RIA franchise with a strong competitive position

relative to other Retail Brokers, Neo-brokers, and FinTechs. Despite industry concerns around potential AI disruption

within Traditional Wealth management, commentary from the 1Q26 earnings call / 2026 Investor Day reinforces our

view that SCHW can monetize its platform even if the industry migrates away from cash monetization as a stream of

revenue. In the medium-term, commentary from SCHW's Investor day suggest that the firm is accelerating growth in

several ROCA accretive LOBs (Workplace, Advice, Alts.), or is looking to better monetize its platform in areas where

the firm is underearning (3rd Party ETFs). We see several other underappreciated tailwinds (BDA repricing, higher

buyback, resilient trading activity) that supports a more differentiated EPS outlook vs. Traditional IBD / eBroker peers.

At ~12x WR 2027 EPS, shares screen too heavily discounted vs. peers given SCHW's strong competitive position,

differentiated growth outlook, and more resilient earnings profile. Reiterate Outperform rating.

Raising 2026 / 2027 EPS: PT to $114 from $113 on EPS revisions. We are raising 2026 / 2027 EPS to $6.23 / $7.27

from $6.10 / $7.00 (Ex.