As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the investment banking & brokerage industry, including Charles Schwab (NYSE: SCHW) and its peers.
Investment banks and brokerages facilitate capital raises, mergers and acquisitions, and securities trading. The sector benefits from corporate activity during economic expansion, increased retail trading participation, and advisory opportunities in emerging sectors. Headwinds include economic cycle vulnerability affecting deal flow, compressed trading commissions due to electronic platforms, and regulatory capital requirements constraining certain higher-risk activities.
The 15 investment banking & brokerage stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.5% while next quarter’s revenue guidance was 1.1% below.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Charles Schwab (NYSE: SCHW)
Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab (NYSE: SCHW) is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.
Charles Schwab reported revenues of $7.07 billion, up 20.9% year on year. This print exceeded analysts’ expectations by 2.4%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA and EPS estimates.
“Investors continued to engage with Schwab’s expanding set of solutions during 2Q as daily average trades reached a record 11.9 million, net flows into Schwab Wealth Advisory™ increased 80% year-over-year, and Pledged Asset Line™ balances equaled $33.4 billion – up 59% from 2Q25.”
Interestingly, the stock is up 7.3% since reporting and currently trades at $110.00.
Best Q2: Perella Weinberg (NASDAQ: PWP)
Founded in 2006 by veteran investment bankers Joseph Perella and Peter Weinberg during a wave of boutique advisory firm launches, Perella Weinberg Partners (NASDAQ: PWP) is a global independent advisory firm that provides strategic and financial advice to corporations, financial sponsors, and government institutions.
Perella Weinberg reported revenues of $156.5 million, flat year on year, outperforming analysts’ expectations by 8.1%. The business had an incredible quarter with a beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 11.6% since reporting. It currently trades at $16.64.
Is now the time to buy Perella Weinberg? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Houlihan Lokey (NYSE: HLI)
Founded in 1972 and known for its expertise in complex financial situations, Houlihan Lokey (NYSE: HLI) is a global investment bank specializing in mergers and acquisitions, capital markets, financial restructurings, and valuation advisory services.
Houlihan Lokey reported revenues of $511 million, down 15.6% year on year, falling short of analysts’ expectations by 16.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Houlihan Lokey delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 4.1% since the results and currently trades at $133.33.
Read our full analysis of Houlihan Lokey’s results here.
Raymond James (NYSE: RJF)
Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial (NYSE: RJF) is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.
Raymond James reported revenues of $3.93 billion, up 15.6% year on year. This number surpassed analysts’ expectations by 1.4%. Overall, it was a strong quarter as it also put up a beat of analysts’ EPS estimates.
The stock is up 6.1% since reporting and currently trades at $178.18.
Read our full, actionable report on Raymond James here, it’s free.
PJT (NYSE: PJT)
Spun off from Blackstone in 2015 and founded by former Morgan Stanley executive Paul J. Taubman, PJT Partners (NYSE: PJT) is an advisory-focused investment bank that provides strategic advice, restructuring services, and fundraising solutions to corporations, boards, and investment firms.
PJT reported revenues of $486.3 million, up 19.5% year on year. This result beat analysts’ expectations by 14.3%. It was an incredible quarter as it also logged a beat of analysts’ EPS and EBITDA estimates.
The stock is up 6.8% since reporting and currently trades at $180.37.
Read our full, actionable report on PJT here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
