FactSet (FDS) investor relations material

Executive summary

• Q2 FY26 revenues rose 7.1% year-over-year to $611 million, with organic ASV growth of 6.7% to $2.45 billion, driven by balanced growth across geographies and client types.

• Adjusted diluted EPS increased 4.2% to $4.46, while GAAP diluted EPS fell 4.5% to $3.59; adjusted operating margin was 35.0%, down from 37.3% a year ago due to higher compensation and technology expenses.

• Major client wins, renewals, and expansions with global investment banks, wealth managers, and asset managers, alongside new AI-driven solutions and strategic partnerships, highlight product breadth and innovation.

• AI integration is driving client value and internal productivity, with significant adoption and the appointment of a Chief AI Officer and CTO.

• Retention rates remained strong at 91% for clients and above 95% for ASV, with user count up 10% year-over-year.

Financial highlights

• Q2 revenues were $611 million (+7.1% YoY); adjusted operating income was $214.07 million (+0.7% YoY); adjusted EBITDA was $233.19 million (+3.8% YoY).

• Net income for Q2 was $133.1 million, down 8.1% year-over-year; adjusted net income was $165.27 million, up 0.2%.

• Free cash flow for Q2 was $185.7 million, up 23.6% year-over-year; net cash from operating activities increased 21.7% to $211.7 million.

• Diluted EPS for Q2 was $3.59 (down 4.5% YoY); adjusted EPS was $4.46 (up 4.2% YoY).

• Gross debt leverage at 1.4x, with cash and cash equivalents at $268.3 million as of February 28, 2026.

Outlook and guidance

• Fiscal 2026 organic ASV growth guidance raised to $130M–$160M (5.4%–6.7%), with GAAP revenue guidance at $2,450M–$2,470M.

• GAAP EPS guidance increased to $14.85–$15.35; adjusted EPS to $17.25–$17.75; adjusted operating margin expected at 34.0%–35.5%.

• Operating margin guidance maintained, balancing investments with productivity gains.

• Annual effective tax rate expected at 18.0%–19.0%.