FactSet Reports Results for Second Quarter 2026

Core Insights - FactSet reported a strong second quarter for fiscal 2026, with accelerating growth driven by robust data offerings and client trust, prompting an upward revision of the growth outlook for the year [3][4]. Financial Performance - Q2 GAAP revenues reached $611.0 million, reflecting a 7.1% increase from $570.7 million in Q2 2025 [4][5]. - Organic Annual Subscription Value (ASV) was $2,449.1 million, up 6.7% year-over-year, with a quarterly increase of $38.0 million [4][8]. - GAAP operating margin decreased to 30.3%, down approximately 220 basis points year-over-year, while adjusted operating margin fell to 35.0%, down 230 basis points [4][5]. - GAAP diluted EPS was $3.59, a decrease of 4.5% from the prior year, while adjusted diluted EPS increased by 4.2% to $4.46 [4][5]. Business Outlook - The company updated its fiscal 2026 guidance, expecting organic ASV growth of $130 million to $160 million, GAAP revenues between $2,450 million and $2,470 million, and GAAP diluted EPS in the range of $14.85 to $15.35 [4][18]. - The annual effective tax rate is anticipated to remain between 18.0% and 19.0% [18]. Operational Highlights - Client count increased to 9,101, with a net addition of 98 clients in the last three months, primarily from corporate and wealth management sectors [11]. - User count rose to 241,352, reflecting a net increase of 1,489 users, driven by growth in wealth management and dealmakers [11]. - Annual ASV retention was greater than 95%, with client retention at 91% [11]. Share Repurchase Program - FactSet repurchased 651,750 shares for $163.0 million at an average price of $250.14 during Q2 2026, with $697.1 million remaining available for future repurchases [13]. Strategic Developments - A multi-year strategic agreement was announced with Barclays to provide access to FactSet's financial data and technology solutions [17]. - The launch of AI Doc Ingest for Cobalt aims to enhance data extraction for private capital clients [17].