Truist Securities has elevated its price target on Charles Schwab Corp. (NYSE:SCHW), increasing it to $122.00 from the previous $120.00, while reaffirming its Buy rating on the stock. Currently, Charles Schwab shares trade at $104.88, just shy of its 52-week peak of $104.98.
This revised estimate is underpinned by Truist's enhanced forecasts of the company's net interest income (NII). While higher expenses are anticipated to partially offset gains, overall expectations remain bullish. Notably, Truist's projected revenue growth for 2026 stands at 10.6% year-over-year, slightly above Schwab's official guidance range of 9.5% to 10.5%. This positive outlook is consistent with the broader analyst consensus; data from InvestingPro assigns Charles Schwab a strong Buy consensus rating of 1.75.
Regarding operating costs, Truist models a 5.9% year-over-year increase in expenses for 2026, aligning with the midpoint of Schwab’s adjusted guidance spanning 5.5% to 6.5%. The firm estimates an adjusted pretax margin of 52% for 2026, which fits within Schwab's forecasted "low 50s range."
Truist has also upped its 2026 adjusted earnings per share (EPS) estimate to $5.90 from $5.77, and for 2027, the EPS estimate has been revised to $6.85 from $6.73. The firm's financial model includes $8.25 billion in share repurchases for 2026, equating to about 4.6% of the company's market capitalization.
The $122 price target corresponds to a multiple of 17.8 times Truist’s adjusted 2027 EPS forecast for Charles Schwab.
Supporting these recommendations, Charles Schwab recently reported stable Q4 2025 results with earnings per share of $1.39 and revenues totaling $6.34 billion, both meeting expectations. For the full fiscal year, Schwab reached record net revenues of $23.9 billion, marking a 22% increase year-over-year, along with a 50% growth in adjusted EPS to $4.87.
Following these earnings, several other financial firms adjusted their price targets upwards. TD Cowen raised its target to $138, citing strong fourth quarter performance and a favorable outlook through 2027. Jefferies similarly elevated its price target to $122, emphasizing surpassing metrics including higher average daily trade volumes and record client asset totals. Raymond James set its price target slightly lower at $121, noting that while quarterly results were marginally below expectations, important client indicators such as net new assets and account openings remain solid. Citizens reiterated its Market Outperform rating with a $120 target, highlighting Schwab’s sustained momentum entering 2026.
Altogether, these evaluations reveal a generally positive analyst sentiment regarding Charles Schwab’s growth trajectory and financial stability in the near term.