FactSet Research Systems Inc. (NYSE:FDS) reported better-than-expected first-quarter results on Thursday.The company posted first-quarter sales of $607.6 million, surpassing analyst expectations of $600.5 million and representing a 6.9% year-over-year (Y/Y) gain. The company reported quarterly adjusted earnings per share of $4.51, exceeding the street view of $4.37.FactSet CEO Sanoke Viswanathan said, "FactSet's strong start to the year underscores the quality of our data and products and the strategic role ...

Core Insights - FactSet Research Systems Inc. reported first-quarter sales of $607.6 million, exceeding analyst expectations of $600.5 million, marking a 6.9% year-over-year increase [1] - The company achieved adjusted earnings per share of $4.51, surpassing the consensus estimate of $4.37 [1] Financial Performance - The fiscal 2026 guidance includes projected adjusted EPS of $16.90–$17.60, compared to the consensus of $17.38, and sales expectations of $2.423 billion–$2.448 billion, against a consensus of $2.442 billion [2] - FactSet anticipates organic ASV growth of $100 million-$150 million and an adjusted operating margin of 34.0% to 35.5% [2] Market Reaction - Following the earnings announcement, FactSet Research shares increased by 4.6% to $286.00 [3] - Analysts adjusted their price targets for FactSet Research, with Stifel maintaining a Hold rating and lowering the target from $372 to $295, while Goldman Sachs maintained a Sell rating and reduced the target from $282 to $253 [4]

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]

Financial data firm FactSet posted a rise in first-quarter profit on Thursday, driven by increased demand for its financial data and analytics offerings. ...

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]

With a market cap of around $11 billion, FactSet Research Systems Inc. (FDS) is a global financial digital platform and enterprise solutions provider serving the investment community with data, analytics, and workflow solutions across the entire investment lifecycle. The company delivers subscription-based financial data, market intelligence, and technology through desktop, mobile, cloud, and API platforms to investment professionals worldwide. The Norwalk, Connecticut-based company is set to announce it ...

Core Viewpoint - FactSet Research Systems Inc. (FDS) is experiencing significant stock underperformance despite its strong market position and high client retention in the financial data and analytics sector [1][3][4]. Company Overview - FactSet has a market capitalization of $10.9 billion, classifying it as a large-cap stock, which highlights its size and influence in the financial sector [1][2]. - The company operates a subscription-based model, serving asset managers, banks, hedge funds, and corporations globally [1]. Stock Performance - FactSet's stock has declined 41% from its 52-week high of $496.90, with a 15.1% drop over the past three months, underperforming the Financial Select Sector SPDR Fund (XLF), which rose by 2% during the same period [3]. - Over the past year, FDS shares have decreased by 39.9%, and by 30.5% in the last six months, while XLF advanced by 10.5% and 8.1% respectively [4]. - The stock has remained below its 200-day moving average since early June, although a recent move above the 50-day moving average indicates potential short-term stabilization [4]. Recent Developments - On December 4, FactSet announced its market intelligence is now available through Amazon Quick Research, allowing clients to integrate FactSet data with AWS cloud environments, which supports AI-driven strategies [6]. - Following this announcement, FDS shares rose more than 4% in the next trading session [6]. Competitive Position - In comparison, rival S&P Global Inc. (SPGI) has only seen a marginal decline over the past year and a 1% dip over the past six months, emphasizing FactSet's relative underperformance in the market [7].

Core Insights - FactSet has launched the industry's first production-grade model context protocol (MCP) server, providing real-time access to financial intelligence for AI systems without intermediaries [1][2][3] - The MCP server allows direct interaction with curated financial datasets, facilitating the integration of authoritative market intelligence into AI workflows [2][3] - Initial client feedback indicates the transformative potential of the MCP server, with plans for an aggressive roadmap to enhance AI-driven innovation in the financial sector [3][4] Company Overview - FactSet is a global financial digital platform and enterprise solutions provider, serving approximately 9,000 global clients and over 237,000 individual users [6] - The company integrates proprietary financial data, client datasets, and third-party sources to deliver tailored solutions across various sectors, including buy-side, sell-side, and private equity [6] - With over 47 years of expertise and a presence in 19 countries, FactSet leverages advanced data connectivity and AI tools to enhance decision-making and productivity [6] Product Features - The MCP server provides seamless access to nine key datasets, including fundamentals, consensus estimates, ownership information, and global M&A intelligence [4][7] - Unlike demo MCP servers, FactSet's solution offers direct, governed, production access to financial intelligence, specifically designed for AI systems [4] - The MCP server is positioned to add value for CTOs, CIOs, and innovation leaders in building enterprise AI strategies [3]

Wall Street analysts forecast that FactSet Research (FDS) will report quarterly earnings of $4.39 per share in its upcoming release, pointing to a year-over-year increase of 0.5%. It is anticipated that revenues will amount to $599.48 million, exhibiting an increase of 5.4% compared to the year-ago quarter.The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their ini ...

Core Insights - LSEG is integrating its financial data and analytics into ChatGPT, enhancing its commitment to artificial intelligence in financial markets [1][2] - The partnership will allow ChatGPT users with LSEG credentials to access market data and news from LSEG's products, starting with a phased rollout on December 8 [2] Company Strategy - LSEG aims to distribute its licensed data more widely through AI platforms, responding to the financial services industry's push to adopt generative AI tools for rapid market analysis [2] - The integration will utilize a Model Context Protocol connector, facilitating seamless communication between AI models and various tools and data [2]