The Charles Schwab Corporation announced record third-quarter financial results, with revenue rising 17% year-over-year to $7.17 billion and adjusted earnings per share of $1.69, which beat analyst consensus. The company also saw a 38% year-over-year increase in core net new assets, which reached a record $190.4 billion.
Despite the strong headline numbers, the stock experienced a decline following the announcement. Analysts expressed some concerns, characterizing the quarter as "somewhat low quality" and pointing to potential weakness in net-interest-revenue trends. Concerns were also raised about declining deposits and an increased reliance on more expensive wholesale funding to meet strong loan demand. JPMorgan lowered its price target, citing these rising funding costs.