Barclays (NYSE:BCS) Issues Earnings Results

Barclays PLC (NYSE:BCS) posted its earnings results on Tuesday. The financial services provider reported $0.39 earnings per share for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.03), FiscalAI reports. Barclays had a return on equity of 8.19% and a net margin of 21.26%.The company had revenue of $72.64 million for the quarter, compared to analysts’ expectations of $9.23 billion.

Here are the key takeaways from Barclays’ conference call:

• Barclays met all its 2025 targets, reporting ROTE 11.3%, revenue up 9% to £29.1bn, a 61% cost–income ratio, a 52bp loan‑loss rate, and announced £3.7bn of shareholder distributions (£1.2bn dividend, £2.5bn buybacks) while finishing the year at the top of its 13–14% CET1 range.
• Management upgraded guidance to ~£31bn group income in 2026, expects >12% ROTE in 2026 and is targeting >14% by 2028, while planning to return >£15bn to shareholders over 2026–28 and doubling discretionary investment to fund cloud, data and AI.
• The structural hedge has become a larger, more predictable income pillar—hedge income rose £1.2bn to £5.9bn (≈46% of group NII ex‑IB/HO), average duration extended to 3.5 years, and £6.4bn of gross hedge income is locked for 2026 (£17bn over three years).
• The group is rebalancing toward higher‑return UK franchises—£20bn of the £30bn RWA growth target delivered, six consecutive quarters of mortgage growth, UK corporate lending +18% YoY, and Barclays UK NII is guided to £8.1–8.3bn in 2026 with >20% ROTE for the UK businesses.
• The U.S. Consumer Bank faces near‑term credit pressures—management expects a higher through‑the‑cycle USCB loan‑loss rate (~500bp–550bp in 2026) due to stage migration after acquisitions and retained American Airlines non‑performers, which will elevate impairment in 2026 before normalizing.

Barclays Trading Down 3.0%

Shares of BCS stock traded down $0.80 during trading hours on Tuesday, hitting $25.91. The company had a trading volume of 4,779,111 shares, compared to its average volume of 5,471,653. Barclays PLC has a fifty-two week low of $12.14 and a fifty-two week high of $27.70. The company has a debt-to-equity ratio of 5.94, a current ratio of 1.41 and a quick ratio of 1.41. The company’s fifty day moving average is $25.47 and its 200 day moving average is $22.32. The stock has a market capitalization of $89.82 billion, a PE ratio of 11.95, a price-to-earnings-growth ratio of 0.40 and a beta of 0.96.

Wall Street Analyst Weigh In

Several research firms have weighed in on BCS. Citigroup reiterated a “neutral” rating on shares of Barclays in a research note on Thursday, January 22nd. Morgan Stanley restated an “overweight” rating on shares of Barclays in a research note on Monday, November 24th. Weiss Ratings reissued a “buy (b-)” rating on shares of Barclays in a report on Tuesday, December 23rd. Zacks Research lowered Barclays from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 28th. Finally, Royal Bank Of Canada reissued an “outperform” rating on shares of Barclays in a report on Thursday, October 23rd. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy”.

Institutional Investors Weigh In On Barclays

A number of institutional investors and hedge funds have recently bought and sold shares of BCS. Johnson Financial Group Inc. purchased a new position in shares of Barclays in the 3rd quarter valued at $44,000. State of Wyoming bought a new position in shares of Barclays during the second quarter worth about $118,000. CIBC Private Wealth Group LLC lifted its holdings in Barclays by 31.7% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 6,616 shares of the financial services provider’s stock worth $137,000 after buying an additional 1,591 shares during the last quarter. Wexford Capital LP acquired a new position in Barclays in the third quarter worth $176,000. Finally, Lido Advisors LLC bought a new stake in shares of Barclays during the 3rd quarter valued at about $208,000. 3.39% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Barclays

Here are the key news stories impacting Barclays this week:

• Positive Sentiment: Bank upgraded guidance and set multi‑year targets through 2028, guiding for sustained income growth and signalling a clearer path to higher returns — a constructive signal for earnings prospects and valuation. Barclays Lifts Income Guidance for This Year, Sets out New Targets Through 2028
• Positive Sentiment: Management announced a plan to return around £15bn to shareholders as part of a refreshed financial reset after a strong fourth quarter and delivery against 2025 targets — supports buyback/dividend expectations. Barclays sets out plan to return £15bn as part of upgraded financial reset
• Positive Sentiment: Reported annual profit rose ~12% and the bank says every division delivered double‑digit ROTE, reinforcing the message that core performance is improving. Barclays reports annual profit rise of 12%, announces new targets
• Neutral Sentiment: Barclays’ research note on recent AI‑led market volatility judged last week’s selloff not a structural inflection — relevant for macro risk but not an immediate company catalyst. Last week’s AI selloff isn’t a major warning sign for markets, Barclays says
• Neutral Sentiment: Analysts/technicals noted the share price formed risk patterns ahead of earnings — signals for traders but not a fundamental change. Barclays share price forms risky patterns ahead of earnings
• Negative Sentiment: Quarterly EPS missed consensus (reported $0.39 vs. $0.42 expected) and revenue details left investors cautious after the release; misses often trigger short‑term selling and re‑rating risk. Barclays earnings report and call materials
• Negative Sentiment: Disclosure that CEO C.S. Venkatakrishnan’s pay rose to ~£15m (up from £11.6m) has drawn investor scrutiny on compensation and governance at a time when costs and returns are under the microscope. Barclays boosts CEO’s pay to more than $20 million

Barclays Company Profile

Barclays PLC (NYSE: BCS) is a British multinational bank and financial services company headquartered in London. The firm provides a broad range of banking and financial products to individual, corporate and institutional customers. Its core activities span retail and business banking, credit cards and payments, corporate and investment banking, and wealth and investment management.

In retail and business banking, Barclays offers deposit accounts, mortgages, personal and business loans, and card services.