FactSet Research Systems Inc. reported its financial results for the second quarter of fiscal 2026, revealing a revenue of $611.0 million, a 7.1% increase from $570.7 million in the same period last year. The growth was primarily driven by a 6.8% rise in organic revenues, totaling $606.2 million, alongside a 0.3% contribution from foreign currency exchange fluctuations. The Americas segment led this growth, with revenues increasing by 8.1% to $399.7 million, while EMEA and Asia Pacific segments saw revenue growth of 4.0% and 8.0%, respectively.
Despite the revenue increase, net income for the quarter fell to $133.1 million, down 8.1% from $144.9 million a year earlier. This decline was attributed to higher operating expenses, which rose by 10.6% to $426.1 million, driven mainly by increased employee compensation costs. Consequently, diluted earnings per share decreased by 4.5% to $3.59, compared to $3.76 in the prior year. The operating margin also contracted to 30.3% from 32.5% in the previous year, reflecting the impact of rising costs.
FactSet's operational metrics showed a total client count of 9,101, an increase of 5.3% year-over-year, with user numbers rising by 10.1% to 241,352. The company’s employee headcount grew by 1.9% to 12,840, with notable increases in Asia Pacific and the Americas. The annual subscription value (ASV) reached $2.45 billion, marking a 6.7% increase, primarily driven by data solutions and workstations.
Strategically, FactSet completed two significant acquisitions: LiquidityBook for $243.2 million and Irwin for $120.2 million, enhancing its capabilities in trading solutions and investor relations, respectively. The company also returned $204.0 million to shareholders through share repurchases and dividends during the quarter. Looking ahead, FactSet anticipates continued growth in organic revenues and ASV, supported by its focus on expanding data offerings and integrating AI into client workflows, despite facing challenges related to rising operational costs and a material weakness in internal controls over financial reporting.
About FACTSET RESEARCH SYSTEMS INC
FactSet Research Systems Inc. provides global financial data, analytics, and enterprise solutions to investment professionals, including asset managers, bankers, and wealth managers. Its platform offers comprehensive market intelligence, portfolio analysis, risk management, and workflow automation across asset classes and regions. With a focus on data integration, AI innovation, and client workflow embedding, FactSet supports investment decision-making and operational efficiency in the financial services industry.
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