With a net income margin of 33.26% and upside potential of 27.70%, The Charles Schwab Corporation (NYSE:SCHW) ranks among the best extremely profitable stocks to buy according to Wall Street analysts. The company reported net income of $8.85 billion for the recently completed fiscal year (FY25).
The company managed to carry that momentum into 2026.
On April 16, 2026, The Charles Schwab Corporation (NYSE:SCHW) reported first-quarter net income of $2.48 billion, or $1.37 per share, up from $1.91 billion, or $0.99 per share, a year earlier. Quarterly revenue surged 16% to a record $6.48 billion, supported by client engagement across wealth, trading, and lending. Schwab also announced a phased rollout of spot crypto trading, covering bitcoin and Ethereum, for retail clients in the coming weeks.
Trading stood out in the quarter.
Daily average trading volume jumped 34% to a record 9.9 million, with trading revenue rising 20% on record engagement, despite a volatile first quarter marked by the U.S.–Israel–Iran conflict, which rattled investors and revived stagflation fears amid oil supply concerns. Investors opened 1.3 million new brokerage accounts and brought $140 billion in net new assets to the company during the period.
That client momentum carried into April, according to Schwab’s Monthly Activity Report, published on May 14, 2026. Daily average trades hit a record 10.3 million, while total client assets reached $12.61 trillion at month-end, up 27% from April 2025. Client margin loan balances rose 21% from year-end to $136.0 billion, and core net new assets for the month totaled $7.2 billion.
On May 15, Piper Sandler analyst Patrick Moley made a small adjustment, raising the firm’s target to $105 from $103 while maintaining a “Neutral” rating. The firm pointed to revenue upside from net interest margin improvement, while noting management’s pushback against the AI cash optimization narrative that had weighed on the stock. Piper Sandler also cited momentum in advisor services, opportunity in workplace services, and strength across Schwab’s self-directed trading and wealth businesses.
The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company. Through its subsidiaries, it provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services.
While we acknowledge the risk and potential of SCHW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SCHW and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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