FactSet's Q2 Earnings Beat Estimates, Revenues Increase Y/Y

Core Insights - FactSet (FDS) reported strong second-quarter fiscal 2026 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1][10] - Earnings per share reached $4.46, surpassing estimates by 2.1% and increasing 4.2% year-over-year [1][10] - Revenues totaled $611 million, beating estimates and reflecting a 7.1% year-over-year growth [1][10] Revenue Performance - Organic revenues grew by 6.8% year-over-year to $606.2 million, with regional growth rates of 7.4% in the Americas, 4% in EMEA, and 9.7% in Asia Pacific [3] - Revenue breakdown: Americas segment generated $399.7 million (up 8.1%), EMEA contributed $149.1 million (up 4%), and Asia Pacific brought in $62.2 million (up 8%) [4] Subscription Value and Client Growth - Annual Subscription Value (ASV) plus professional services reached $2.5 billion, with organic ASV at $2.4 billion, a 6.7% increase year-over-year [5] - The company added 98 clients in Q2, bringing the total to 9,101, with a client retention rate of 91% [6] Operating Results - Adjusted operating income was $214.1 million, slightly up from the previous year but below estimates [7] - Adjusted operating margin decreased to 35%, down 230 basis points year-over-year [7] Financial Position - Cash and cash equivalents at the end of the quarter were $268.3 million, down from $275.4 million in the previous quarter [8] - Long-term debt remained stable at $1.4 billion, with cash generated from operating activities at $211.7 million and capital expenditures of $26 million [8] Guidance for Fiscal 2026 - Revenue guidance for fiscal 2026 was raised to $2.45-$2.47 billion, higher than the previous estimate [11] - Earnings per share expectations were increased to $17.25-$17.75, with the adjusted operating margin projected at 34-35.5% [12]