Charles Schwab vs Fidelity Investments: Revenue, Profit and Business Model
Charles Schwab reported $23.9B of revenue in FY2025 and $8.9B of net income. Fidelity Investments reported $37.7B of revenue in FY2025 and — of net income.
Latest financial snapshot
Charles Schwab
- Latest revenue
- $23.9B (FY2025)
- Net income
- $8.9B
- Net margin
- 37.0%
- Revenue growth
- +15.4% a year, FY2020–FY2025
Fidelity Investments
- Latest revenue
- $37.7B (FY2025)
- Net income
- —
- Net margin
- 0.0%
- Revenue growth
- —
Financial summary
Charles Schwab
Schwab is a spread-and-fee business. In FY2025, net revenues rose 22% to $23.921 billion and net income rose to $8.852 billion from $5.94 billion in 2024, as client cash stabilized, high-cost bank funding was paid down, and trading hit records. Momentum carried into 2026: first-half net revenues reached $13.554 billion (up 18%) and Q2 2026 GAAP EPS hit a record $1.54, with an annualized return on equity of 25%. Schwab returned $11.8 billion of capital to shareholders in 2025 through buybacks and dividends.
Fidelity Investments
Fidelity does not file public financial statements, but it publishes headline results each year. Revenue was $37.7 billion in 2025, up 15%, and operating income rose 24% to a record $12.7 billion. CEO Abigail Johnson credited a resilient stock market and higher interest rates, while pointing to service and market share as the long-term drivers. Assets in Fidelity's own funds rose 19% to $7.1 trillion, net new assets were $657.3 billion, and daily average trades reached 4.4 million. Fidelity does not disclose net income, so this profile uses operating income as its profit measure.
Revenue and profit by year
Charles Schwab
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $23.9B | $8.9B | 37.0% | +22.0% | Source |
| FY2024 | $19.6B | — | 0.0% | +4.1% | Source |
| FY2023 | $18.8B | — | 0.0% | -9.3% | Source |
| FY2022 | $20.8B | — | 0.0% | +12.1% | Source |
| FY2021 | $18.5B | — | 0.0% | +58.4% | Source |
| FY2020 | $11.7B | — | 0.0% | — | Source |
Fidelity Investments
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $37.7B | — | 0.0% | — | Source |
Where the revenue comes from
Charles Schwab
- Net Interest Revenue49%
$11.750 billion in FY2025. The spread between what Schwab earns on client cash swept to Charles Schwab Bank, its investment portfolio, margin loans, Pledged Asset Lines, and mortgages, and what it pays clients on those balances. It is the most rate-sensitive line and fell during the 2023 cash-sorting period before recovering in 2024-2025.
- Asset Management and Administration Fees27%
$6.506 billion in FY2025. Fees on Schwab ETFs, mutual funds, and money market funds, managed and advisory programs such as Schwab Wealth Advisory, and third-party funds on the Mutual Fund OneSource platform. This line grows with markets and net new assets, so it partly offsets rate risk. It reached $1.8 billion in Q2 2026, up 16% year over year.
- Trading Revenue16%
$3.921 billion in FY2025. Options contract fees, payment for order flow, futures, and fixed-income markups. Online stock and ETF trades have been commission-free since October 2019, but record activity (11.9 million daily average trades in Q2 2026) has made trading a growing contributor again.
- Bank Deposit Account Fees4%
$977 million in FY2025, mostly fees earned from the insured deposit account arrangement under which certain client cash is swept to TD Bank.
- Other Revenue3%
$767 million in FY2025, including software and data fees, exchange processing fees, and other items.
Fidelity Investments
- Asset-Based and Advisory Fees
Major stream
Fees tied to mutual funds, ETFs, managed accounts, wealth advice, and institutional assets.
- Brokerage, Cash, and Transaction Economics
Major stream
Revenue from brokerage activity, spreads, cash balances, margin, options, and related investing services.
- Workplace and Retirement Services
Major stream
Employer-plan administration, recordkeeping, participant services, and retirement products.
- Custody, Clearing, and Institutional Services
Important stream
Platform services for advisers, broker-dealers, institutions, and intermediaries.
Business model and strategy
Charles Schwab
How it makes money
Schwab offers $0 online commissions on U.S.-listed stocks and ETFs and earns revenue from five lines (FY2025 figures): 1) Net interest revenue, $11.75 billion: the spread between what Schwab earns on client cash swept to Charles Schwab Bank, margin loans, Pledged Asset Lines, and mortgages, and what it pays on those balances.
Growth strategy
Under CEO Rick Wurster, Schwab is focused on doing more for each client rather than just adding accounts. The playbook: grow wealth and advice (Schwab Wealth Advisory net flows rose 80% year over year in Q2 2026), expand lending through Pledged Asset Lines and mortgages, widen product access with Schwab Crypto and private-company shares via the $660 million Forge Global acquisition (closed March 2, 2026), keep winnin…
Competitive advantage
Schwab's edge is scale plus a low cost base. It held $13.08 trillion in client assets at June 30, 2026, and its expenses run at roughly 0.11% of client assets, so it can charge $0 commissions and still post a 51.9% GAAP pre-tax margin (Q2 2026). It is also the largest custodian for independent registered investment advisors, a sticky business-to-business franchise that grew with the TD Ameritrade deal.
Fidelity Investments
How it makes money
Fidelity makes money from the assets and activity of the people and institutions that use its platforms. The main engines are: 1. Asset management fees on Fidelity mutual funds, ETFs, money market funds and managed accounts ($7.1 trillion in its own funds at the end of 2025). 2.
Growth strategy
Fidelity is growing by deepening relationships rather than winning on price alone. Recent moves include the unified managed household platform launched in 2024, the Fidelity Trader+ platform launched in September 2025 (about 1.4 million average users by year-end), new active ETFs such as the CLO ETFs launched in early 2026, and continued digital-asset products including FBTC and crypto trading.
Competitive advantage
Fidelity's edge is the combination of scale, trust and distribution. Its employer retirement plans bring in new savers every payday, its brokerage and advice business keeps those customers as their wealth grows, and its clearing and custody arm serves outside advisers.
Questions about Charles Schwab vs Fidelity Investments
Which company has higher revenue — The Charles Schwab Corporation or Fidelity Investments?
The Charles Schwab Corporation reported $23.9B (FY2025), while Fidelity Investments reported $37.7B (FY2025). By last reported revenue, Fidelity Investments is the larger business, with The Charles Schwab Corporation reporting a smaller revenue base.
What is the market cap of The Charles Schwab Corporation vs Fidelity Investments?
The Charles Schwab Corporation has a market capitalisation of $171.0B. A public market cap figure for Fidelity Investments was not available (it may be privately held).
Which is more financially efficient — The Charles Schwab Corporation or Fidelity Investments?
The Charles Schwab Corporation generates $725k / employee in revenue per employee, while Fidelity Investments generates $471k / employee. The Charles Schwab Corporation shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do The Charles Schwab Corporation and Fidelity Investments make money?
The Charles Schwab Corporation and Fidelity Investments generate revenue in fundamentally different ways. The Charles Schwab Corporation: Schwab offers $0 online commissions on U. Fidelity Investments: Fidelity makes money from the assets and activity of the people and institutions that use its platforms.
Is The Charles Schwab Corporation bigger than Fidelity Investments?
By last reported revenue, Fidelity Investments ($37.7B (FY2025)) is the larger company compared to The Charles Schwab Corporation ($23.9B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Charles Schwab vs Fidelity Investments overview