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Core Insights - FactSet Research reported revenue of $607.62 million for the quarter ended November 2025, marking a year-over-year increase of 6.9% and exceeding the Zacks Consensus Estimate of $599.48 million by 1.36% [1] - The company achieved an EPS of $4.51, up from $4.37 a year ago, with an EPS surprise of 2.73% compared to the consensus estimate of $4.39 [1] Financial Performance Metrics - Total Annual Subscription Value stood at $2.41 billion, aligning with the average estimate from three analysts [4] - The total number of clients reached 9,003, surpassing the average estimate of 8,887 from two analysts [4] - Total users increased to 239,863, exceeding the average estimate of 231,131 from two analysts [4] - Revenue from US clients was reported at $396.2 million, above the average estimate of $390.23 million, reflecting a year-over-year change of 7.9% [4] Stock Performance - FactSet shares have returned +10.9% over the past month, significantly outperforming the Zacks S&P 500 composite's +0.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported a 6.9% year-over-year increase in revenues to $608 million, with organic growth of 6% excluding foreign exchange and M&A impacts [23][29] - Adjusted operating margin was 36.2%, and adjusted diluted EPS increased by 3% year on year to $4.51 [6][24] - Organic ASV growth accelerated to 5.9%, an increase of $6.6 million, driven by strong demand across various sectors [20][29] Business Line Data and Key Metrics Changes - In the Americas, organic ASV grew 6%, primarily driven by asset managers and wealth, with increased demand for portfolio lifecycle solutions and AI-ready data [20] - EMEA saw a 4% organic ASV growth, with higher expansion in performance solutions, offsetting some softness in asset owners [20] - Asia-Pacific experienced an 8% organic ASV growth, up from 7% last quarter, driven by middle office solutions and AI-ready data [21] - Wealth management delivered a 10% organic ASV growth, with significant wins in workstations and analytics [22] Market Data and Key Metrics Changes - Client count grew to over 9,000, a 9% year-over-year increase, with retention rates remaining healthy at 91% for clients and above 95% for ASV [23] - The user base approached 240,000, with wealth and asset managers leading user growth, up 10% compared to the prior year [23] Company Strategy and Development Direction - The company is increasing its share repurchase authorization from $400 million to $1 billion, reflecting confidence in its balance sheet and intrinsic share value [7][28] - Three strategic priorities were outlined: driving commercial excellence, improving productivity, and solidifying long-term strategy for sustainable growth [14][18] - The company is focusing on enhancing its data universe, deepening client workflows, and modernizing core infrastructure to drive operational efficiency [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the pipeline and positive sentiment from clients, indicating a strong demand for new data products [62] - There is a belief that AI will amplify the company's essential offerings rather than replace them, with AI product adoption growing over 45% sequentially [14][68] - Management remains prudent in guidance, emphasizing the importance of executing well in the market while maintaining a strong pipeline [78] Other Important Information - Operating expenses increased by 9% year over year, driven by higher people-related expenses and technology costs [24] - The company is committed to returning capital to shareholders, having returned $554 million over the last 12 months through dividends and buybacks [28] Q&A Session Summary Question: Competitive positioning against AI startups and Big Four data incumbents - Management expressed confidence in proprietary assets and the ability to partner with the AI ecosystem, emphasizing the demand for secure AI solutions [34][36] Question: Changes in sales incentives and early results - Management highlighted renewed vigor in new business development and faster sales motions due to aligned incentives and the resonance of AI products [41][42] Question: Impact of AI on customer headcount and desktop business - Management noted no significant reductions in headcount, with increased hiring in banking and strong demand for AI products [50][51] Question: Margin impact from investments - Management discussed balancing structural investments for operating leverage with growth investments aligned to client demand [71][74] Question: Organic ASV growth expectations - Management remains confident in the pipeline but is taking a prudent approach to guidance, acknowledging the significant business still to be acquired [78][79] Question: Proprietary versus non-proprietary products - Management provided a detailed breakdown of proprietary and enriched data, emphasizing the high quality and client loyalty associated with their offerings [81][84]

Financial Data and Key Metrics Changes - The company reported a 6.9% year-over-year increase in revenues to $608 million, with organic growth of 6% excluding foreign exchange and M&A impacts [21][27] - Adjusted operating margin was 36.2%, and adjusted diluted EPS increased by 3% year-over-year to $4.51 [4][21] - Organic ASV growth accelerated to 5.9%, an increase of $6.6 million, driven primarily by expansion with existing clients [17][21] Business Line Data and Key Metrics Changes - In the Americas, organic ASV grew 6%, driven by asset managers and wealth, with increased demand for portfolio lifecycle solutions and AI-ready data [18] - EMEA saw a 4% organic ASV growth, with higher expansion in performance solutions offsetting some softness in asset owners [18] - Asia-Pacific experienced an 8% organic ASV growth, up from 7% last quarter, driven by middle office solutions and AI-ready data [19] - Wealth management delivered a 10% organic ASV growth, with significant wins in workstations and analytics [20] Market Data and Key Metrics Changes - Client count grew to over 9,000, a 9% year-over-year increase, with retention rates remaining healthy at 91% for clients and above 95% for ASV [21] - The user base approached 240,000, with wealth and asset managers leading user growth, up 10% versus the prior year [21] Company Strategy and Development Direction - The company is increasing its share repurchase authorization from $400 million to $1 billion, reflecting confidence in its balance sheet and intrinsic value [6][26] - Three strategic priorities include driving commercial excellence, improving productivity, and solidifying long-term strategy for sustainable growth [12][15] - The company is focused on enhancing its data offerings, modernizing technology infrastructure, and improving client workflows to drive future growth [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the pipeline and positive client sentiment, indicating a strong demand for new data products [61] - The company is seeing increased hiring in banking, driven by a recovery in M&A activity, and is not currently observing reductions in headcount [49][60] - Management is maintaining a prudent approach to guidance, reaffirming previously issued FY26 guidance across all metrics [27][70] Other Important Information - Operating expenses increased by 9% year-over-year, driven by higher people-related expenses and technology costs [22] - The company is allocating roughly two-thirds of its investments to growth and one-third to internal infrastructure [23][25] - The company has returned $554 million to shareholders over the last 12 months through dividends and buybacks [26] Q&A Session Summary Question: Competitive positioning against AI startups and Big Four data incumbents - Management expressed confidence in proprietary assets and emphasized the strength of their data and analytics capabilities, viewing partnerships with the AI ecosystem as complementary [30][32][35] Question: Changes in sales incentives and early results - Management highlighted renewed vigor in new business development and faster sales motions, aided by AI product resonance [38][40] Question: Future hiring picture and AI efficiencies - Management noted no current reductions in headcount, with increased hiring observed, particularly in banking, and strong growth in AI product usage [46][49] Question: Margin impact from investments - Management indicated that investments are aimed at foundational elements and targeted growth areas, expecting benefits to play out in future years [51][54] Question: Organic ASV growth expectations - Management remains confident in the strength of the pipeline but is taking a prudent approach to guidance, anticipating potential deceleration in growth [70] Question: Proprietary versus non-proprietary products - Management clarified that 40% of the business is linked to client proprietary data, with 50% classified as proprietary and enriched data and tools [72][74]

Financial Data and Key Metrics Changes - The company reported a revenue growth of 6.9% year over year, reaching $608 million, with organic growth of 6% excluding foreign exchange and M&A impacts [22][27] - Adjusted operating margin was 36.2%, and adjusted diluted EPS increased by 3% year on year to $4.51 [4][22] - Organic ASV growth accelerated to 5.9%, an increase of $6.6 million, driven by strong demand in trading, workstations, and market data [18][22] Business Line Data and Key Metrics Changes - In the Americas, organic ASV grew 6%, primarily driven by asset managers and wealth [18] - EMEA saw a 4% organic ASV growth, with improved retention and expansion in performance solutions [18] - Asia-Pacific experienced an 8% organic ASV growth, up from 7% last quarter, driven by middle office solutions and AI-ready data [19] - Wealth management delivered a 10% organic ASV growth, with significant wins in workstations and analytics [20] Market Data and Key Metrics Changes - Client count grew to over 9,000, a 9% increase year over year, with retention rates at 91% for clients and above 95% for ASV [22] - The user base approached 240,000, with wealth and asset managers leading user growth, up 10% versus the prior year [22] Company Strategy and Development Direction - The company is increasing its share repurchase authorization from $400 million to $1 billion, reflecting confidence in its balance sheet and long-term growth potential [5][26] - Three strategic priorities include driving commercial excellence, improving productivity, and solidifying long-term strategy for sustainable growth [12][17] - The company is focused on enhancing its data offerings and integrating AI capabilities to maintain competitive differentiation [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the pipeline and client demand, indicating a positive sentiment in the market [46][48] - The company is maintaining a prudent approach to guidance, reaffirming previously issued FY26 guidance across all metrics [27][56] - There is an expectation of continued growth in AI product adoption, with a reported sequential growth of over 45% in AI products launched earlier this year [12][51] Other Important Information - Operating expenses increased by 9% year over year, driven by higher people-related expenses and technology costs [23][24] - The company is allocating roughly two-thirds of its investments to growth initiatives and one-third to internal infrastructure [24][25] Q&A Session Summary Question: Competitive positioning versus AI startups and Big Four data incumbents - Management emphasized confidence in proprietary assets and the ability to partner with the AI ecosystem, viewing distribution through various channels as complementary [29][30] Question: Changes in sales incentives and early results - Management highlighted alignment of sales incentives with desired outcomes, leading to faster sales motions and a richer pipeline [33][34] Question: AI's impact on customer hiring and desktop business - Management noted no significant reductions in headcount, with increased hiring observed in banking and strong demand for AI products [37][39] Question: Margin impact from investments - Management discussed the balance between structural investments for operating leverage and growth investments aligned with client demand [52][54] Question: Organic ASV growth expectations - Management expressed confidence in the pipeline but maintained a conservative approach to guidance, acknowledging the need for prudent execution [55][56] Question: Proprietary versus non-proprietary products - Management provided insights into the classification of proprietary data and the importance of proprietary methodologies in delivering high-quality outputs [57][59]

Core Viewpoint - FactSet Research reported quarterly earnings of $4.51 per share, exceeding the Zacks Consensus Estimate of $4.39 per share, and showing an increase from $4.37 per share a year ago, representing an earnings surprise of +2.73% [1] Financial Performance - The company posted revenues of $607.62 million for the quarter ended November 2025, surpassing the Zacks Consensus Estimate by 1.36%, compared to revenues of $568.67 million in the same quarter last year [2] - Over the last four quarters, FactSet has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - FactSet shares have declined approximately 38.3% since the beginning of the year, while the S&P 500 has gained 14.3% [3] - The current Zacks Rank for FactSet is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $4.32 on revenues of $601.7 million, and for the current fiscal year, it is $17.31 on revenues of $2.44 billion [7] - The trend of earnings estimate revisions is mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Business - Information Services industry, to which FactSet belongs, is currently in the top 41% of over 250 Zacks industries, suggesting that companies in the top half tend to outperform those in the bottom half by more than 2 to 1 [8]

Financial Performance - Q1 Fiscal Year 2026 - Organic ASV (Annual Subscription Value)增长5.9%[7]，达到23.9亿美元[19] - 调整后的营业利润率为36.2%[7] - 调整后的摊薄每股收益为4.51美元[7] - 营收为6.08亿美元，同比增长6.9%[26]；有机营收为6.00亿美元，同比增长6.0%[26, 38] - 调整后的营业收入为2.20亿美元，同比增长3.0%[26] - 调整后的净利润为1.70亿美元，同比增长0.9%[26] Key Operational Metrics - 客户ASV保留率超过95%[24] - 用户数量达到239,863，同比增长10%[24] - 客户保留率为91%，比2025年第一季度上升约30个基点[24] - ASV大于1万美元的客户数量为9,003，同比增长9%[24] Growth by Global Segments and Firm Type - 美洲地区的ASV为15.57亿美元，增长6%[20] - 欧洲、中东和非洲地区（EMEA）的ASV为5.88亿美元，增长4%[20] - 亚太地区的ASV为2.45亿美元，增长8%[20] - 机构买方的ASV为11.57亿美元，增长4%[20] - Dealmakers的ASV为4.56亿美元，增长6%[20] - 财富管理的ASV为3.74亿美元，增长10%[20] - 市场基础设施的ASV为4.03亿美元，增长7%[20] Fiscal Year 2026 Guidance - 有机ASV增长预计为1亿至1.5亿美元，约占4.2%至6.2%[32] - 营收预计为24.23亿至24.48亿美元[32] - GAAP营业利润率预计为29.5%至31.0%[32] - 调整后的营业利润率预计为34.0%至35.5%[32] - GAAP摊薄每股收益预计为14.55美元至15.25美元[32] - 调整后的摊薄每股收益预计为16.90美元至17.60美元[32]

Core Insights - FactSet reported an increase in first-quarter profit, attributed to heightened demand for its financial data and analytics services [1] Financial Performance - The company's profit growth was driven by a surge in demand for its offerings, indicating a positive trend in the financial data sector [1]

Core Insights - FactSet reported a strong start to fiscal 2026, with revenues of $607.6 million, reflecting a 6.9% increase year-over-year, driven by institutional buy-side and dealmaker clients [4][5][6] - The company emphasizes three strategic priorities: driving commercial excellence, increasing productivity, and advancing long-term strategy [3] - FactSet's Board of Directors approved an increase in share repurchase authorization from $400 million to $1 billion, indicating confidence in the company's financial strength [4][11] Financial Performance - Q1 GAAP revenues reached $607.6 million, up from $568.7 million in Q1 2025, marking a $38.9 million increase [4][5] - Organic revenues grew by 6.0% year-over-year to $600.0 million [5][30] - GAAP diluted EPS increased by 4.4% to $4.06, while adjusted diluted EPS rose by 3.2% to $4.51 [4][34] Operating Metrics - GAAP operating margin decreased to 31.6%, down from 33.6% in the prior year, primarily due to higher amortization of intangible assets and increased employee compensation costs [4][5] - Adjusted operating margin also decreased to 36.2% from 37.6% year-over-year [4][5] - Net cash provided by operating activities was $121.3 million, a 40.4% increase compared to the prior year [4][27] Annual Subscription Value (ASV) - ASV was reported at $2,411.1 million, up from $2,265.9 million a year earlier, with organic ASV increasing by 5.9% to $2,389.6 million [6][39] - ASV from the Americas was $1,575.8 million, with a 6.4% organic growth rate [7] - ASV from EMEA was $591.0 million, reflecting a 3.7% organic increase, while Asia Pacific ASV reached $244.3 million, up 8.4% [8][9] Client and User Metrics - The client count as of November 30, 2025, was 9,003, with a net increase of 7 clients in the past three months [10] - User count increased to 239,863, with a net addition of 2,539 users [10] - Annual ASV retention was greater than 95%, with a client retention rate of 91% [10] Share Repurchase and Dividend - FactSet repurchased 478,100 shares for $139.9 million at an average price of $292.61 during Q1 [11] - A quarterly dividend of $41.0 million, or $1.10 per share, was paid on December 18, 2025 [10][11] Business Outlook - FactSet reaffirms its fiscal 2026 outlook, expecting GAAP revenues between $2,423 million and $2,448 million [12][17] - Organic ASV is projected to grow by $100 million to $150 million during fiscal 2026 [17]

Financial Performance - Q1 GAAP revenues were $607.6 million, up 6.9% from Q1 2025, driven by institutional buy-side and dealmakers clients [4] - Q1 GAAP diluted EPS increased 4.4% to $4.06, while adjusted diluted EPS rose 3.2% to $4.51 compared to the prior year [4] - Revenues for the three months ended November 30, 2025, increased to $607,621,000, a 6.9% rise from $568,667,000 in the same period of 2024 [26] - Net income for the same period was $152,580,000, reflecting a 1.7% increase compared to $150,022,000 in 2024 [26] - Basic earnings per share rose to $4.08, up from $3.95, marking a 3.3% increase [26] - Organic revenues, excluding the impact of acquisitions and currency changes, were $600,029,000, a 6.0% increase from $566,017,000 [30] - Adjusted operating income for the quarter was $220,094,000, a 3.0% increase from $213,750,000 in the previous year [33] - EBITDA for the three months ended November 30, 2025, was $247,646,000, representing a 7.7% increase from $229,856,000 in 2024 [33] Cash Flow and Operating Activities - Net cash provided by operating activities was $121.3 million, a 40.4% increase year-over-year, with free cash flow rising 49.5% to $90.4 million [4] - The company reported a net cash provided by operating activities of $121,284,000, compared to $86,372,000 in the same period last year [29] - Free cash flow for the three months ended November 30, 2025, increased by 49.5% to $90,437 thousand compared to $60,498 thousand in the prior year [36] - Net cash provided for operating activities rose by 40.4% to $121,284 thousand from $86,372 thousand year-over-year [36] Annual Subscription Value (ASV) - Organic ASV was $2,389.6 million at November 30, 2025, reflecting a year-over-year increase of 5.9% or $132.9 million [4] - Annual ASV retention was greater than 95%, with a client count of 9,003 as of November 30, 2025 [11] - ASV from the Americas was $1,575.8 million, with organic ASV increasing 6.4% to $1,556.5 million [8] - Organic Annual Subscription Value (ASV) as of November 30, 2025, is reported at $2,389.6 million, reflecting an organic ASV annual growth rate of 5.9% [39] Guidance and Projections - Fiscal 2026 expectations include GAAP revenues projected between $2,423 million and $2,448 million [17] - Organic ASV is expected to grow between $100 million and $150 million during fiscal 2026 [17] - Fiscal 2026 revenue guidance ranges from $2,423 million to $2,448 million [34] - Adjusted operating income is projected between $832 million and $860 million, with an adjusted operating margin of 34.0% to 35.5% [34] - Net income guidance is set between $550 million and $577 million, with adjusted net income ranging from $640 million to $665 million [34] - Diluted earnings per share are expected to be between $14.55 and $15.25, with adjusted diluted EPS ranging from $16.90 to $17.60 [34] Costs and Margins - GAAP operating margin decreased to 31.6%, down approximately 200 bps year-over-year, primarily due to higher costs [4] - The adjusted tax rates for calculating adjusted net income and adjusted diluted EPS were 19.6% for the three months ended November 30, 2025, and 25.2% for the same period in 2024 [37] - The company reported intangible asset amortization of $75 million for fiscal 2026 guidance [34] Balance Sheet - Total assets decreased to $4,220,784,000 from $4,304,272,000 since August 31, 2025 [28] - Total liabilities decreased to $2,052,900,000 from $2,117,859,000 since August 31, 2025 [28] - Cash and cash equivalents at the end of the period were $275,448,000, down from $337,651,000 [28] Share Repurchase - FactSet's Board approved an increase in share repurchase authorization from $400 million to $1 billion [4] Foreign Currency and Acquisitions - The impact from foreign currency movements on ASV was $2.4 million, while acquisition ASV decreased by $23.9 million [39]