FactSet (NYSE:FDS) Q2 2026 Earnings call March 31, 2026 09:00 AM ET Speaker12I'd now like to hand the conference over to your speaker today, Kevin Toomey, Head of Investor Relations. Please go ahead.Speaker10Thank you, and good morning, everyone. Welcome to FactSet's second quarter fiscal 2026 earnings call. Before we begin, the slides we reference during this presentation can be found through the webcast on the investor relations section of our website at factset.com. A replay of today's call will be avail ...

Copyright © 2026 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 2 Copyright © 2026 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only 2 Forward-Looking Statements and Non-GAAP Measures FactSet reports its financial results in accordance with U.S. GAAP. This presentation and oral statements made in connection with this presentation reference non- GAAP financial measures, including organic revenues, adjusted operating income, adjusted operating margin, E ...

Core Viewpoint - Charlie Munger's investment philosophy emphasizes buying high-quality stocks at reasonable prices, and three companies currently stand out as potential investments: S&P Global, Fair Isaac, and Home Depot [1]. Company Summaries S&P Global - S&P Global has a history of over 150 years, showcasing its staying power and generating a subscription-heavy revenue mix through credit ratings, benchmark indexes, and analytics [2]. - The company has a market capitalization of $127 billion, with a current price of $424.43 and a gross margin averaging 65% over the last decade [3][4]. - Despite a price-to-earnings (P/E) ratio of 29, which is around the market average, shares are trading within 10% of their 52-week low, making it an attractive buy for Munger [6]. Fair Isaac - Fair Isaac operates a deep moat around the mortgage application process and is known for its FICO scores, which influence lending rates across various loans [7][8]. - The company has a market capitalization of $27 billion, with a current price of $1,126.34 and an impressive gross margin of 83%, up from 67% a decade ago [12][9]. - Free cash flow has increased by 394% over the last 10 years, now standing at $718 million, although the P/E ratio of 44 is above the market average [9][11]. Home Depot - Home Depot is a leading home improvement retailer with approximately 2,300 stores and a stable gross margin averaging around 32% over the last 25 years [13][14]. - The company has a market capitalization of $319 billion, with a current price of $320.75 and generates over $2 billion in quarterly free cash flow [16]. - However, the company's net debt has increased by over 250% in the last decade to nearly $64 billion, which may concern Munger [15].

Norwalk, Connecticut-based FactSet Research Systems Inc. (FDS) operates as a financial digital platform and enterprise solutions provider for the investment community worldwide. Valued at $7.8 billion by market cap, the company combines databases from multiple suppliers into a single online source of information and analytics, including fundamental data. Companies worth $2 billion or more are generally described as “mid-cap stocks,” and FDS perfectly fits that description, with its market cap exceeding t ...

S&P Global Inc. (NYSE:SPGI) earns a place on the list of the 13 unrivaled stocks of the next 10 years, reflecting its central role in providing benchmarks, data, and analytics to global financial markets. Strong Analyst Sentiment on S&P Global (SPGI) Amid Strong Management Outlook Despite recent underperformance in its share price relative to the industry, investor sentiment about S&P Global Inc. (NYSE:SPGI) remains strong. Over 90% of the covering analysts hold bullish opinions, and a median price targe ...

Market Overview - Major U.S. stock benchmarks closed in the green, with the Nasdaq increasing by 1.29%, Russell 2000 by 1.06%, S&P 500 by 0.78%, and Dow Jones by 0.49% [2] - U.S. stocks showed positive momentum, with about two-thirds of issues advancing, marking a strong day for the markets [4] IPO Market Concerns - A new wave of big tech companies is expected to enter the market this year, seeking historic sums at unprecedented valuations, potentially creating a multi-trillion-dollar issue for American portfolios [3] Winners - Bitcoin rose by 7.08% over the last 24 hours, positively impacting several digital asset firms, including Coinbase (+15.9%), Galaxy Digital (+14.7%), and Hut 8 Corp (+13.77%) [5] - Other notable winners include AST SpaceMobile (+11.97%) and Nebius Group (+11.23%) [5] Losers - ImmunityBio's stock is declining despite a price target increase, following a business update and Q4 earnings report [6] - AXT Inc fell by 7.95% after recent spikes, although it has more than doubled in value over the month [6] - Brown-Forman's stock dropped by 7.34% after reporting declining sales since the pandemic [7] - Gitlab's stock decreased by 7.13% due to slower sales forecasts and rumors regarding competition from OpenAI [7]

Company Overview - Moody's Corporation (MCO) is a New York-based integrated risk assessment firm with a market cap of $84.7 billion, providing credit ratings, research, data, analytical tools, and risk management solutions [1] - MCO is classified as a large-cap stock, emphasizing its size and influence in the financial data and stock exchanges industry [2] Market Position and Performance - MCO dominates the credit rating industry, leveraging its strong brand and global reach to achieve significant revenue growth, particularly in favorable market conditions [2] - The company has experienced a 12.7% decline from its 52-week high of $546.88, reached on January 15, and has seen a 2% stock decline over the past three months, outperforming the Financial Select Sector SPDR Fund's (XLF) 2.9% losses [3][6] - Year-to-date, MCO shares have fallen 6.5% and have dipped 3.1% over the past 52 weeks, underperforming XLF's YTD losses of 6.1% [6] Recent Financial Results - MCO reported Q4 results with revenue of $1.9 billion, reflecting a 13% year-over-year increase, and an adjusted EPS of $3.64, which is a 38.9% growth from the previous year [8] - The company anticipates full-year adjusted EPS to be in the range of $16.40 to $17 [8] Competitive Landscape - In the financial data and stock exchanges sector, Intercontinental Exchange, Inc. (ICE) has shown resilience with a 1.3% uptick year-to-date, although it has experienced 3.9% losses over the past 52 weeks, lagging behind MCO [9] Stock Trends - MCO has been trading below its 50-day and 200-day moving averages since early February, indicating a bearish trend [7]

Core Insights - CME Group Inc. is a leading player in the financial data and stock exchanges industry, with a market capitalization of $115.2 billion, offering a wide range of futures and options products across various asset classes [1][2] Group 1: Company Overview - CME operates contract markets for trading futures and options on futures contracts, facilitating trading through various platforms including trading floors and electronic systems [1] - The company holds exclusive rights to trade and clear S&P futures contracts, enhancing its competitive advantage in the derivatives market [2] Group 2: Stock Performance - CME's stock has experienced a 17% increase year-to-date and a 27.9% rise over the past 52 weeks, significantly outperforming the Dow Jones Industrials Average [4] - Despite a recent slip of 1% from its 52-week high of $322.57, CME stock has gained 13.8% over the past three months, compared to the Dow's 3.3% increase [3] Group 3: Market Trends and Drivers - The strong performance of CME is attributed to broad-based growth across asset classes and increased retail participation, particularly in interest rates, energy, metals, agriculture, and crypto products [5] - The company is focused on launching new initiatives such as securities clearing and 24/7 crypto trading, while maintaining cost discipline and driving innovation [5]

Company Overview - Intercontinental Exchange, Inc. (ICE) is based in Atlanta, Georgia, and provides technology and data to financial institutions, corporations, and government entities both in the U.S. and internationally. The company has a market capitalization of $91.1 billion and operates through three segments: Exchanges, Fixed Income and Data Services, and Mortgage Technology [1]. Market Position - ICE is categorized as a "large-cap stock" due to its market cap exceeding $10 billion, indicating its substantial size and influence in the financial data and stock exchanges industry [2]. Stock Performance - The stock reached a 52-week high of $189.35 on August 8, 2025, and is currently trading 14% below that peak. Over the past three months, ICE stock has increased by 4.2%, outperforming the S&P 500 Index, which saw a 1.4% increase during the same period [3]. - However, ICE has underperformed the broader market over the past year, with a decline of 4.8%, while the S&P 500 delivered a 16% return. The stock has been trading below its 200-day and 50-day moving averages since February, indicating bearish momentum [6]. Financial Performance - On February 5, ICE shares rose by 2.1% following the release of better-than-expected Q4 2025 earnings. The company's revenue increased by 3.7% year-over-year to $3.1 billion, surpassing analysts' estimates. The adjusted EPS for the quarter was $1.71, also exceeding Wall Street expectations. Management attributed the results to broad-based growth across its segments [7]. Competitive Analysis - Compared to its peer, CME Group Inc. (CME), ICE has lagged in performance. Over the past year, CME's shares have increased by 27.6%, significantly outperforming ICE. In the shorter term, CME has risen by 12.7% over the past three months, indicating stronger momentum [8]. Analyst Sentiment - Sentiment on ICE remains positive, with a consensus rating of "Strong Buy" among 16 analysts covering the stock. The mean price target of $197.13 suggests a 21% upside potential from current price levels [9].

Company Overview - S&P Global Inc. is based in New York and provides benchmarks, data, analytics, and workflow solutions in the global capital, energy, and commodity markets, with a market cap of $126.6 billion [1]. Market Position - Companies valued at $10 billion or more are classified as "large-cap stocks," and S&P Global fits this classification, highlighting its size, influence, and dominance in the financial data and stock exchanges industry [2]. Stock Performance - S&P Global's shares have decreased by 26.8% from its 52-week high of $579.05, reached on August 14, 2025, and have dropped 14.3% over the past three months, underperforming the State Street Financial Select Sector SPDR ETF's (XLF) 1.3% decline during the same period [3][6]. - Year-to-date, shares of S&P Global are down 18.9%, compared to XLF's 5.3% loss, and have declined 20.6% over the past 52 weeks, significantly lagging behind XLF's 1.8% rise [6]. Financial Results - On February 10, S&P Global's shares fell by 9.7% after the release of its Q4 results, which showed a total revenue increase of 9% year-over-year to $3.9 billion, meeting consensus estimates. However, its adjusted EPS of $4.30, a 14.1% increase from the previous year, missed analyst expectations of $4.34, causing investor concern [7]. Competitive Analysis - S&P Global has underperformed compared to its rival, Moody's Corporation, which saw a decrease of 7.7% over the past 52 weeks and 9.3% year-to-date [8]. - Despite recent underperformance, analysts maintain a positive outlook, with a consensus rating of "Strong Buy" from 26 analysts and a mean price target of $546.18, indicating a potential 28.9% premium to current price levels [8].