Q1 2026 Factset Research Systems Inc Earnings Call Transcript
Key Points
- FactSet Research Systems Inc (FDS) reported strong ASP growth of 5.9% to $2.4 billion, indicating robust demand for its solutions.
- The company achieved an adjusted operating margin of 36.2% and an adjusted diluted EPS of $4.51, up 3% year-on-year.
- FactSet secured significant client wins, including a mandate with a large warehouse breakaway team and a major win with a top investment manager.
- The company increased its share repurchase authorization from $400 million to $1 billion, reflecting confidence in its financial strength.
- FactSet's AI products have seen broad-based user adoption with sequential growth of more than 45%, highlighting the successful integration of AI into its offerings.
- Operating expenses increased by 9% year-over-year, driven by higher people-related costs and technology expenses.
- The company faces challenges in maintaining its competitive position among larger data incumbents and AI startups.
- FactSet's net new client additions were relatively low, with only 7 new clients added in the quarter.
- There is a potential risk of cannibalization of workstation subscriptions as clients increasingly use AI-ready data through feeds and APIs.
- The company anticipates a decline in operating margins by about 150 basis points for the full year fiscal '26 due to ongoing investments.
Good day and thank you for standing by. Welcome to the fact that 1st quarter earnings call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Kevin Toomey, head of investor relations. Please go ahead.
Thank you and good morning everyone. Welcome to FactSett's first quarter fiscal 2026 earnings call. Before we begin, the slides we referenced during this presentation can be found through the webcast on the investor relations section of our website at factset.com. A replay of today's call will be available on our website. After our prepared remarks, we will open the call to questions
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