- Revenue Growth: FactSet (NYSE:FDS) reported GAAP revenues of $611 million for Q2 2026, a 7.1% year-over-year increase, surpassing estimates.
- Margin and EPS Performance: Despite a decline in operating margins, adjusted diluted EPS rose by 4.2% to $4.46, while GAAP diluted EPS fell by 4.5% to $3.59.
- AI-Driven Innovation: FactSet announced a strategic partnership with Finster AI to enhance its AI-driven workflow automation platform, reinforcing its leadership in financial technology.
FactSet Research Systems Inc. (NYSE:FDS) is a prominent player in the financial data and analytics sector. The company provides integrated data and software solutions to investment professionals worldwide and competes with other financial data providers like Bloomberg and Thomson Reuters. On March 31, 2026, FactSet reported earnings per share (EPS) of $3.60, which fell short of the estimated $4.37. However, the company generated revenue of approximately $611 million, surpassing the estimated $604.5 million.
FactSet’s financial results for the second quarter of fiscal 2026 highlight a positive performance. The company’s GAAP revenues reached $611 million, marking a 7.1% increase compared to the same quarter in 2025. This growth is supported by FactSet’s Organic Annual Subscription Value (ASV), which was $2.44 billion as of February 28, 2026, reflecting a 6.7% year-over-year growth. Despite these achievements, FactSet’s GAAP operating margin decreased by approximately 220 basis points to 30.3%, while the adjusted operating margin fell by 230 basis points to 35.0%.
Despite the decline in operating margins, FactSet’s adjusted diluted EPS rose by 4.2% year over year to $4.46. However, the GAAP diluted EPS saw a decline of 4.5%, settling at $3.59. Looking ahead, FactSet has updated its fiscal 2026 guidance, anticipating organic ASV growth between $130 million and $160 million, translating to an approximate growth rate of 5.4% to 6.7%. GAAP revenues are expected to range from $2.45 billion to $2.47 billion.
FactSet has announced a strategic partnership with Finster AI to enhance its newly launched AI-driven workflow automation platform for banking. This collaboration aims to revolutionize investment banking workflows by integrating Finster AI’s advanced agentic infrastructure and workflow intelligence capabilities. The partnership signifies FactSet’s commitment to next-generation innovation and solidifies its leadership in AI-driven solutions for institutional finance.
FactSet’s financial metrics provide insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 12.93 and a price-to-sales ratio of about 3.19. Its enterprise value to sales ratio is around 3.72, while the enterprise value to operating cash flow ratio is approximately 11.19. FactSet’s earnings yield is about 7.73%, and its debt-to-equity ratio is approximately 0.73, indicating a moderate level of debt relative to equity. Additionally, FactSet has a current ratio of about 1.43, reflecting its ability to cover short-term liabilities with short-term assets.
