How does Charles Schwab (SCHW) make money?

Charles Schwab (SCHW) primarily makes money through Investor Services, which accounts for 79.4% of total revenue. For TTM through Q1 2026, Charles Schwab generated $28.32B in total revenue with a net profit margin of 33.3%.

What is Charles Schwab (SCHW) gross profit margin?

Charles Schwab (SCHW) reported a gross profit margin of 85.8% for TTM through Q1 2026, equivalent to $24.32B in gross profit. This means Charles Schwab retains 85.8% of each revenue unit after direct costs of production.

What is Charles Schwab (SCHW) operating profit margin?

Charles Schwab (SCHW) reported an operating profit margin of 44.9% for TTM through Q1 2026, equivalent to $12.71B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is Charles Schwab (SCHW) net profit margin?

Charles Schwab (SCHW) reported a net profit margin of 33.3% for TTM through Q1 2026, equivalent to $9.42B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does Charles Schwab (SCHW) spend on capital expenditures?

Charles Schwab (SCHW) spent $431.00M on capital expenditures in TTM through Q1 2026 (1.5% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is Charles Schwab (SCHW) free cash flow?

Charles Schwab (SCHW) generated $2.52B in free cash flow for TTM through Q1 2026 (8.9% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is Charles Schwab (SCHW) effective tax rate?

Charles Schwab (SCHW) had an effective tax rate of 22.7% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

How Charles Schwab (SCHW) Makes Money: A Visual Guide

Charles Schwab (SCHW) generated $28.32B in revenue, earning $9.42B in net profit (33.3% margin). Its largest revenue source is Investor Services (79.4% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Charles Schwab (SCHW) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 16, 2026).

Frequently asked questions

How does Charles Schwab (SCHW) make money?: Charles Schwab (SCHW) primarily makes money through Investor Services, which accounts for 79.4% of total revenue. For TTM through Q1 2026, Charles Schwab generated $28.32B in total revenue with a net profit margin of 33.3%.
What is Charles Schwab (SCHW) gross profit margin?: Charles Schwab (SCHW) reported a gross profit margin of 85.8% for TTM through Q1 2026, equivalent to $24.32B in gross profit. This means Charles Schwab retains 85.8% of each revenue unit after direct costs of production.
What is Charles Schwab (SCHW) operating profit margin?: Charles Schwab (SCHW) reported an operating profit margin of 44.9% for TTM through Q1 2026, equivalent to $12.71B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Charles Schwab (SCHW) net profit margin?: Charles Schwab (SCHW) reported a net profit margin of 33.3% for TTM through Q1 2026, equivalent to $9.42B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Charles Schwab (SCHW) spend on capital expenditures?: Charles Schwab (SCHW) spent $431.00M on capital expenditures in TTM through Q1 2026 (1.5% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Charles Schwab (SCHW) free cash flow?: Charles Schwab (SCHW) generated $2.52B in free cash flow for TTM through Q1 2026 (8.9% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Charles Schwab (SCHW) effective tax rate?: Charles Schwab (SCHW) had an effective tax rate of 22.7% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q1 2026.