FactSet reported a solid start to fiscal year 2026 with revenue growth driven by institutional buy-side and dealmakers clients, alongside strong free cash flow generation. However, operating margins saw a year-over-year decline due to increased expenses.
GAAP revenues increased 6.9% to $607.6 million, driven by institutional buy-side and dealmakers clients.
positiveOrganic ASV grew 5.9% year over year to $2,389.6 million, indicating continued subscription value.
positiveNet cash provided by operating activities increased 40.4% to $121.3 million.
positiveFree cash flow increased 49.5% to $90.4 million.
positiveGAAP operating margin decreased to 31.6% from 33.6% year over year, primarily due to higher amortization, compensation, and technology expenses.
attentionAdjusted operating margin decreased to 36.2% from 37.6% year over year, mainly due to higher technology and third-party content expenses.
attentionGAAP diluted EPS increased 4.4% to $4.06, but adjusted diluted EPS increased only 3.2% to $4.51, indicating slower growth in adjusted earnings.
attentionThe GAAP effective tax rate increased to 19.7% from 16.5% year over year, impacting net income.
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Americas | $396200.0B | $367200.0B | +6.5% | 65.2% |
EMEA | $149500.0B | $143800.0B | +4.0% | 24.6% |
Asia Pacific | $61900.0B | $57700.0B | +8.3% | 10.2% |
| Total Revenue | $607600.0B | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
FactSet's strong start to the year underscores the quality of our data and products and the strategic role our platform and analytical services play across the financial ecosystem.
We see significant opportunity ahead and are executing with urgency to deliver tangible results, with three clear priorities: driving commercial excellence, increasing productivity, and advancing our long-term strategy.
Our first quarter performance demonstrates the robustness of client demand and solid execution.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.