Quick Read
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Barclays hiked its price target on Charles Schwab (SCHW), which raised its fiscal 2026 revenue guidance to 14-15% growth, beating consensus of 12%, while Q1 results showed EPS of $1.43 beating expectations and record revenue of $6.5B up 16% year-over-year.
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Charles Schwab’s above-consensus earnings guidance is driving multiple stability on rising earnings as the cash sorting dynamic that pressured net interest income normalizes and equity market resilience boosts asset management fees.
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Barclays raised its price target on Charles Schwab (NYSE:SCHW) to $127 from $117, keeping an Overweight rating after the brokerage giant’s fiscal 2026 revenue and expense guidance came in ahead of consensus. The price target raise reflects continued bullish positioning on a name where the bull thesis hinges on earnings power exceeding Street models.
For long-term investors, the analyst upgrade signals that Schwab’s profit engine is firing on multiple cylinders even as the stock trades well below the new target.
|
Ticker |
Company |
Firm |
Action |
Old Rating |
New Rating |
Old Target |
New Target |
|---|---|---|---|---|---|---|---|
|
SCHW |
Charles Schwab |
Barclays |
Price target raised |
Overweight |
Overweight |
$117 |
$127 |
The Analyst’s Case
Barclays pointed to growth opportunities, attractive valuation, AI-enabled capabilities, and wealth services expansion as the pillars of its bullish view. Schwab’s 2026 revenue growth guidance of 14% to 15% meaningfully exceeds the prior analyst consensus of 12%, which typically drives upward estimate revisions across the sell-side.
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The signal is reinforced by other firms moving in the same direction. TD Cowen lifted its target to $109, Piper Sandler to $105, and Citizens reiterated at $120, with the consensus settling near a Moderate Buy and an average target of $114. Barclays sits at the high end, signaling conviction that Schwab’s earnings trajectory can stretch further than the group expects.
Company Snapshot
Charles Schwab combines a brokerage and asset management franchise with a banking arm, generating revenue from net interest income on customer cash, asset management fees, and trading. Q1 2026 results showcased the model: EPS of $1.43, topping expectations, while revenue hit a record $6.5 billion, up 16% year-over-year.
Schwab’s asset gathering remained robust, with core net new assets of $140 billion and total client assets of $11.77 trillion, up 19% year-over-year. Net interest margin expanded to 3% from 3% as deposit funding costs compressed.
