Fidelity Investments
Fidelity runs 401(k) recordkeeping, brokerage, and wealth management for 57 million customers.
On the record
Checkpoint: CFPB Section 1033 ruling on open 401(k) account-data access (Pontera dispute)
The call
Fidelity's regulated licenses and 401(k) recordkeeping keep it central to retirement money, while Schwab and open-data rules press at the edges.
Fidelity runs the behind-the-scenes record-keeping system for over 28,000 company retirement plans, holds multiple licenses that take years to obtain, and controls how employees access their accounts. No startup or AI tool can easily copy this combination because the law requires specific licenses and companies have locked in their choices over decades. What could matter: new government rules might force Fidelity to let third-party apps connect to retirement accounts more freely, which could weaken Fidelity's hold on those customers but would not put the company at risk.
Why
01
AI pressure: AI-native wealth and advisory tools (robo-advisors, AI portfolio agents). AI can automate portfolio advice, but it can't get a broker-dealer license or replace 401(k) recordkeeping contracts. Could AI do the core job? Unlikely.
02
Bigger players: Charles Schwab. Schwab pulled in $519B in net new assets in 2025 and grew total client assets 18% to $11.9T, closing the gap with Fidelity. Could a giant copy it? No, they are blocked.
03
What protects it. Fidelity holds broker-dealer, transfer agent, and trust-bank licenses plus recordkeeping for 28,800+ employer 401(k) plans, both hard to duplicate at once.
What would change this call
CFPB Section 1033 ruling on account-data portability (Pontera dispute) resolves within 6 months. Would show whether regulators force open access to Fidelity's account data, weakening its gatekeeper control.
Schwab launches or expands a 401(k) plan-sponsor recordkeeping product with disclosed plan migrations. Would show a peer directly targeting Fidelity's retirement recordkeeping base.
Fidelity's 2026 net new assets or discretionary AUM figures drop versus Schwab's reported NNA. Would show relative share shifting toward a named peer amid market conditions.
Schwab launches or expands a 401(k) plan-sponsor recordkeeping product with disclosed plan migrations. Would show a peer directly targeting Fidelity's retirement recordkeeping base.
Fidelity's 2026 net new assets or discretionary AUM figures drop versus Schwab's reported NNA. Would show relative share shifting toward a named peer amid market conditions.
Key numbers
- $37.7B revenue, record year
- 57 million customers
- $657.3B in net new assets
Named risks
- CFPB Section 1033 rulemaking could force open 401(k) data access, eroding gatekeeper control.
- Record 2025 revenue is tied to a bull market and elevated trading; a correction would compress trading and AUM fee revenue.
- Execution risk from simultaneous ~25,000-role tech reorganization, ~1,000 job cuts, and 5,300 new hires through 2026.
- Full five-day RTO mandate starting September 2026 could trigger attrition and morale issues.
- Lagging BlackRock, State Street, and JPMorgan in nascent tokenization and stablecoin infrastructure race.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Charles Schwab | contesting | Schwab drew $519B net new assets in 2025 vs Fidelity's $657.3B, both records as of Dec 2025 |
| Morgan Stanley | contesting | Morgan Stanley wealth unit drew $356B net new assets in 2025 vs Fidelity's larger $657.3B |
| BlackRock | losing to | BlackRock's BUIDL tokenized fund reported larger than Fidelity's FILQ as of mid-2026 |
| State Street | losing to | State Street launched GENIUS Act stablecoin fund June 8, 2026, one week before Fidelity's June 15 launch |
| Pontera | contesting | Fidelity blocked Pontera's 401(k) credential-sharing access in late 2025; dispute now before CFPB |
Questions people ask
- Is Fidelity Investments profitable in 2025?
- Yes. Fidelity posted record FY2025 revenue of $37.7 billion, up 15% year over year, with operating income of $12.7 billion, up 24%, as of December 31, 2025, driven by a bull market and record retail trading volume.
- Is Fidelity laying off employees in 2026?
- Fidelity announced in May 2026 it would cut roughly 800 to 1,000 jobs tied to a technology operating-model overhaul, while simultaneously opening 2,000 new roles and planning 3,300+ hires in 2026, netting about 5,300 new hires against the cuts.
- Could AI replace Fidelity Investments?
- Unlikely for its core business. Fidelity explicitly said AI was not the driver of its May 2026 layoffs and is hiring thousands of engineers. Its regulated licenses, 28,800+ employer 401(k) plans, and gatekeeper control of account access are not replicable by AI-native competitors.
- Who is Fidelity Investments' biggest competitor?
- Charles Schwab is Fidelity's closest rival, posting $519 billion in net new assets in 2025 versus Fidelity's $657.3 billion, with Schwab's total client assets reaching $11.9 trillion, up 18%, as of December 31, 2025.
- Who owns Fidelity Investments?
- Fidelity has been privately held since its 1946 founding by Edward C. Johnson II. As of 2026, Abigail Johnson and the Johnson family hold roughly 40%, with the remainder held by current and former executives and employees. Abigail Johnson has been Chairman and CEO since 2014.
- How much money does Fidelity manage?
- Fidelity reported roughly $18 trillion in assets under administration at end of 2025, with discretionary assets under management of $7.1 trillion, slightly dipping to $7.0 trillion by Q1 2026, and 57 million customers as of December 31, 2025.
Timeline
- 2026-07-18Fidelity files trade-secrets lawsuit against Tampa advisory firm over alleged client list theft
- 2026-07-09$2.5 million class-action data breach settlement receives final court approval
- 2026-06-15Fidelity launches Fidelity Digital Dollar and Reserves Digital Fund for stablecoin issuers
- 2026-06-08State Street launches GENIUS Act stablecoin-reserve fund ahead of Fidelity
- 2026-05-13Fidelity International's FILQ tokenized fund receives Moody's AAA-mf rating
- 2026-05-11Fidelity mandates full five-day in-office return for Boston staff starting September 2026
- 2026-05-07Fidelity announces ~1,000 job cuts alongside plan to net 5,300 new hires
- 2026-03-02Fidelity reports record FY2025 revenue of $37.7 billion, up 15% YoY
- 2025-12-31Fidelity ends 2025 with $657.3 billion in net new assets and 57 million customers
- 2025-12-10Fidelity-Pontera 401(k) credential-sharing access dispute becomes public
Revision history
22 July 2026
First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Fidelity earnings surge as bull market, retail trading power growth (2026-03-02)
- Fidelity Investments (2026-07-20)
- Boston-based financial company Fidelity laying off 800 employees (2026-05-08)
- Abigail P. Johnson (2026-05-22)
- About Fidelity Investments
- Fidelity Investments - Headcount, Funding & Open Jobs (2026-07-08)
- Fidelity announces job cuts and hiring spree, all at once (2026-05-07)
- AI isn't stopping Fidelity from adding thousands of new jobs (2026-05-13)
- Fidelity reorganizes its workplace with new hires, and a few cuts (2026-05-11)
- Fidelity Investments Increases Revenue 15% (2026-03-03)
- Fidelity Solana Fund (FSOL)
- Fidelity International's first tokenized fund receives top-tier AAA-mf rating from Moodys (2026-05-13)