FactSet Research Systems Inc. reported first‑quarter fiscal 2026 revenue of $607.6 million, a 6.9% year‑over‑year increase that exceeded the consensus estimate of $606.5 million by $1.1 million. Non‑GAAP earnings per share rose to $4.51, beating the consensus of $4.36 by $0.15 or 3.5%. The company’s annual subscription value (ASV) reached $2,411.1 million, up $145.2 million from the same period a year earlier and reflecting robust demand for its data and analytics platform.
The company’s operating margin slipped to 31.6% from 33.6% in the prior year, while adjusted operating margin fell to 36.2% from 37.6%. The decline is largely attributable to increased spending on artificial‑intelligence development, technology infrastructure, and employee compensation, as well as higher amortization of intangible assets and third‑party content costs. Management emphasized that these investments are intended to accelerate the transition to an AI‑enabled workflow platform and are expected to generate long‑term revenue growth, even though they compress short‑term margins.
FactSet reaffirmed its fiscal 2026 guidance, maintaining a full‑year revenue outlook of $2.44 billion and adjusted operating margin guidance of 34%‑35.5%. The guidance reflects confidence in continued subscription growth and the scalability of the AI platform, while acknowledging that the investment phase will temporarily compress margins. The company’s prior guidance for the year was unchanged, indicating a steady outlook despite the margin compression.
During the quarter FactSet repurchased 478,100 shares for $139.9 million and added $600 million in additional repurchase authority on December 16, 2025. The share‑repurchase program underscores management’s conviction in the company’s long‑term value and provides a mechanism to return capital to shareholders while the company continues to invest in growth initiatives.
CEO Sanoke Viswanathan said, “We are investing thoughtfully in product and infrastructure to drive sustainable growth. At the same time, expanding our share repurchase authorization reinforces the conviction we have in our financial strength and the long‑term value of our business.” CFO Helen Shan added, “Our first‑quarter performance demonstrates the robustness of client demand and solid execution, and we remain focused on balancing investments with disciplined execution to drive durable, long‑term shareholder value.” The comments highlight the company’s dual focus on short‑term profitability and long‑term strategic positioning.
Market reaction to the results was muted to slightly negative, with analysts noting that the earnings beat was largely offset by the margin compression and the continued investment in AI. While revenue and EPS exceeded expectations, the decline in operating margin and the emphasis on a temporary investment phase tempered enthusiasm, leading to a cautious response from investors.
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