FactSet Secures Major Barclays Deal Amid Strong Quarterly Performance

FactSet Research US3030751057

Financial data and analytics provider FactSet Research Systems has bolstered its market standing by entering a significant, multi-year partnership with British banking giant Barclays. This strategic move follows a robust quarterly earnings report where the company exceeded market expectations, even as it ramps up investments in technology and artificial intelligence.

The company's fiscal first-quarter results, covering the period ending November 30, 2025, demonstrated solid growth. Revenue climbed 6.9% year-over-year to reach $608 million. Adjusted earnings per share came in at $4.51, surpassing analyst forecasts of $4.35. In a move to return capital to shareholders, FactSet has increased its share repurchase authorization to $1 billion. During the quarter, the company bought back approximately 478,000 of its own shares and paid out a quarterly dividend of $1.10 per share.

A Core Strategic Partnership

The new agreement designates FactSet as a core supplier of data and analytics for Barclays' global client activities. The bank will adopt FactSet's platform as its primary digital solution for enterprise-wide data needs. This deep integration into the workflows of a major institutional client underscores a broader industry trend and reinforces FactSet's competitive positioning.

This operational expansion is reflected in the company's financial metrics. Organic Annual Subscription Value (ASV) grew by 5.9% in Q1 FY2026, contributing to the overall revenue beat.

Guidance and Capital Allocation Strategy

Management reaffirmed its full-year outlook for fiscal 2026 during the recent earnings call. The company anticipates organic ASV growth in the range of $100 million to $150 million. Total revenue is projected to be between $2.42 billion and $2.45 billion, with adjusted EPS expected to land between $16.90 and $17.60.

The increased $1 billion share buyback program, approved in December, signals a commitment to disciplined capital return alongside growth investments.

AI Focus and Margin Outlook

A key pillar of FactSet's forward strategy is the accelerated development of artificial intelligence capabilities. The company reported a sequential growth rate of 45% in AI product launches. CEO Sanoke Viswanathan emphasized that these AI initiatives are designed not to replace the core platform but to enhance its utility and relevance for users.

These investments, however, may pressure profitability in the near term. While the Q1 operating margin stood at 36.2%, it could face slight headwinds in the second quarter due to planned increases in technology infrastructure and content spending aimed at securing long-term growth. The extent to which the AI push affects the cost structure will become clearer when FactSet reports its Q2 FY2026 results on March 18, 2026.

@ boerse-global.de | US3030751057 FACTSET