Schwab Expense Discipline Drove The Beat For The Quarter - Fair Value Now $135 Per Share

Schwab reported their calendar Q2 '25 financial results last Friday morning. Net revenue beat by 2% ($5.85 actual vs. %.73 est), and EPS beat by 4%, ($1.14 actual vs. $1.10 est). The big savings came from compensation, which fell 8% sequentially to $1.54 billion versus the previous quarter's $1.67, although the same expense line rose 7% YoY. The other stat that jumped out was the net interest margin, or NIM, which rose 62 basis points YoY.