Charles Schwab Corp published its May 2026 Monthly Activity Report on Friday, reporting a pronounced increase in margin loan balances as clients expanded long/short strategies, according to commentary from William Blair.
The firm noted that the growth in margin lending coincided with a nearly 20% rise in sweep cash during the month. That bump in sweep balances is expected to underpin stronger spread income going forward, the report indicated.
Client trading activity at Schwab reached a new monthly high in May, while client asset levels increased 27%, helped by favorable market moves during the period. Schwab also reported that organic growth for May aligned with its historical seasonal patterns for the month.
In its analysis, William Blair forecasts earnings per share growth of nearly 30% for 2026. The firm added that the current trajectory of client asset accumulation, expanding spread income and robust trading volumes suggests that this nearly 30% EPS projection could be conservative.
What the data show
- Margin loan balances almost doubled in May as long/short strategies expanded.
- Sweep cash rose by nearly 20% during the month, which is expected to support higher spread income.
- Client trading activity hit a record level for May, while client assets climbed 27% aided by rising markets.
Analyst outlook
William Blair projects EPS growth of about 30% for 2026 and notes that the combination of rising client asset levels, expanding spread income and strong trading activity should be supportive of solid earnings performance. The firm also observed that recent trends could mean the current forecast is conservative.
The report provides a snapshot of client behavior in May and how those trends feed into Schwab's income drivers. It does not offer new guidance beyond analyst projections or additional company commentary beyond the activity metrics and William Blair's assessment.