FactSet Raises Outlook After Strong Quarter

FactSet Research Systems Inc. (NYSE:FDS) on Tuesday reported second-quarter sales of $611.02 million, surpassing analyst expectations of $604.51 million and representing a 7.1% year-over-year (Y/Y) gain. The company reported quarterly adjusted earnings per share of $4.46, exceeding the street view of $4.37. Key Metrics Organic revenues grew 6.8% Y/Y to $606.18 million during the quarter. As of February 28, 2026, the client count was 9,101, a net increase of 98 clients in the past three months, led by corporate and wealth management clients. Annual Subscription Value (ASV) was $2.45 billion at February 28, 2026, compared with $2.31 billion a year ago. FactSet said organic ASV increased by $38.0 million over the last three months. The company reported a quarterly adjusted operating margin of 35.0%, down from 37.3% due to higher compensation, technology-related expenses, and professional fees. Dividend & Liquidity FactSet paid a quarterly dividend of $40.3 million, or $1.10 per share, on March 19, 2026, to shareholders of record as of February 27, 2026. In the second quarter, the company repurchased 651,750 shares for $163.0 million under its existing buyback program. As of February 28, 2026, $697.1 million remained available for share repurchases under this program. FactSet exited the quarter with cash and equivalents worth $285.27 million and long-term debt of $1.37 billion as of February 28, 2026. CEO Sanoke Viswanathan said the company delivered another quarter of accelerating growth, driven by strong data offerings, deep workflow integration, and client trust in its platforms for critical operations. He added that the company is raising its growth outlook for the year and remains focused on disciplined execution and targeted investments to expand opportunities and improve operating leverage over time. Separately, FactSet is unlocking value by partnering with Finster AI and investing in the company to power its new AI-driven banking platform, enabling automation across complex deal workflows. By integrating agentic AI into a unified, secure system, FactSet is streamlining banking processes, enhancing data-driven insights, and helping clients execute transactions more efficiently. Outlook FactSet now expects adjusted EPS of $17.25-$17.75 (up from prior forecast of $16.90–$17.60) versus $17.49 analyst consensus and sales of $2.450 billion-$2.470 billion (up from prior outlook of $2.423 billion–$2.448 billion) versus $2.449 billion consensus estimate. The company now expects organic ASV of $130 million-$160 million (up from prior expectations of $100 million-$150 million) and reiterated adjusted operating margin of 34.0% to 35.5%. FDS Price Action: FactSet Research Systems shares were up 6.09% at $217.00 at the time of publication on Tuesday, according to Benzinga Pro data. Photo via Shutterstock