FactSet Earnings Beat Estimates in Q1, Revenues Increase Y/Y

Core Insights - FactSet (FDS) reported strong first-quarter fiscal 2026 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1][10] - Earnings per share (EPS) reached $4.51, surpassing the consensus by 2.7% and increasing 3.2% year-over-year [1][10] - Revenues totaled $607.6 million, beating the consensus estimate by 1.4% and rising 6.9% from the previous year [1][10] Revenue Performance - Organic revenues grew 6% year-over-year to $600 million, with regional growth of 6.5% in the Americas, 4% in EMEA, and 8.3% in Asia Pacific [3] - Revenues from the Americas segment were $396.2 million, up 7.9% year-over-year, exceeding the estimate of $389.5 million [4] - EMEA revenues reached $149.5 million, a 4% increase from the previous year, surpassing the estimate of $146.7 million [4] - Asia Pacific revenues were $61.9 million, marking a 7.3% growth year-over-year, outpacing the estimate of $61.7 million [4] Subscription and Client Metrics - FactSet's Annual Subscription Value (ASV) plus professional services amounted to $2.4 billion, reflecting a 5.9% year-over-year increase [5] - Organic ASV from the United States was $1.6 billion, up 6.4% year-over-year [5] - The company added seven clients in the first quarter, bringing the total to 9,003, with an annual client retention rate of 91% [6] Operating Results - Adjusted operating income was $220.1 million, a 3% increase from the previous year, exceeding the estimate of $207.6 million [7] - The adjusted operating margin was 36.2%, down 60 basis points from the year-ago quarter [7] Financial Position - The company ended the quarter with a cash and cash-equivalent balance of $275.4 million, down from $337.7 million in the previous quarter [8] - Long-term debt remained flat at $1.4 billion [8] - Cash generated from operating activities was $121.3 million, with capital expenditures of $30.8 million, resulting in a free cash flow utilization of $90.4 million [8] Fiscal Year 2026 Guidance - For fiscal 2026, FactSet anticipates revenues between $2.423 billion and $2.448 billion, with the midpoint lower than the Zacks Consensus Estimate of $2.44 billion [11] - EPS guidance is set between $16.9 and $17.6, with the midpoint also below the consensus estimate of $17.31 [11] - The adjusted operating margin is projected to be between 34% and 35.5% [11]