FactSet Research Systems (FDS) Q1 2026 Earnings Report

FactSet delivered a solid start to FY2026 with broad-based momentum across product lines and geographies. Revenue rose 6.9% year over year to $608 million (reported) and organic ASV growth accelerated to 5.9% year over year, helped by expansion with existing clients in trading, workstations and markets data. The company posted an adjusted operating margin of 36.2% and adjusted diluted EPS of $4.51, up 3% year over year, underscored by disciplined cost control and a higher tax rate. Management highlighted AI-driven demand as a key accelerator of the connected data flywheel, citing broad adoption of AI products with sequential growth exceeding 45% and a million-plus custom models and screens used by clients in the last 30 days. The quarterly performance also featured meaningful strategic investments in data, workflows and infrastructure, balanced with productivity programs and a robust capital-return framework, including an uplift in share repurchase authorization to $1 billion and a quarterly dividend of $1.10 per share. Looking ahead, FactSet reaffirmed its FY26 guidance while signaling a prudent approach to quarterly phasing, with Q2 operating margins expected to step up as headcount and technology investments come online. The combination of a deepened client flywheel, ongoing product innovation, and a strong balance sheet underpins a constructive longer-term outlook, though investors should monitor AI-related expenditures and the pace of enterprise AI adoption, client retention dynamics, and execution against growth initiatives.

Key takeaway: FactSet remains one of the most trusted, embedded data and analytics platforms in financial services, with a uniquely governed data foundation, a broad and deep distribution network, and a scalable AI-enabled product strategy that should support durable ASP growth and operating leverage as the year progresses.