FactSet FDS has reported impressive results for second-quarter fiscal 2026, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
FDS’ earnings per share of $4.46 beat the consensus mark by 2.1% and increased 4.2% from the year-ago quarter. Revenues of $611 million beat the Zacks Consensus Estimate by a slight margin and rose 7.1% from the year-ago quarter.
The company’s shares have lost 54.4% in the past year compared with the 25.7% fall of the industry it belongs to. However, the Zacks S&P 500 composite has increased 18% during the same timeframe.
FactSet Research Systems Inc. Price, Consensus and EPS Surprise
FactSet Research Systems Inc. price-consensus-eps-surprise-chart | FactSet Research Systems Inc. Quote
FactSet’s Q2 Revenues in Detail
Organic revenues increased 6.8% year over year to $606.2 million. Region-wise, organic revenue growth was 7.4% for the Americas, 4% for the EMEA and 9.7% for the Asia Pacific.
Revenues generated from the Americas segment were $399.7 million, up 8.1% from the year-ago quarter, surpassing our estimate of $396.2 million. Revenues from the EMEA were $149.1 million, an increase of 4% from the year-ago quarter. The figure beat our estimate of $145.2 million. Revenues from the Asia Pacific were $62.2 million, marking 8% growth on a year-over-year basis, surpassing our estimate of $61.8 million.
FDS’ ASV Plus Professional Services
FactSet’s Annual Subscription Value (ASV) plus professional services was $2.5 billion. Organic ASV was $2.4 billion, up 6.7% from the year-ago quarter.
Organic ASV generated from the United States was $1.6 billion, increasing 7% from the year-ago quarter. Organic ASV from the EMEA was $594.2 million, gaining 4.3% year over year. Organic ASV from the Asia Pacific was $249.1 million, up 10% on a year-over-year basis.
FactSet added 98 clients in the second quarter of fiscal 2026, driven by corporate and wealth management clients, taking the total to 9,101. The annual client retention rate is 91%.
FactSet’s Q2 Operating Results
The adjusted operating income was $214.1 million, which moved up marginally from the year-ago quarter and missed our estimate of $216.3 million. The adjusted operating margin of 35% declined 230 basis points from the year-ago quarter.
FDS’ Balance Sheet & Cash Flow
The company exited the quarter with a cash and cash-equivalent balance of $268.3 million compared with $275.4 million in the first quarter of fiscal 2026. The long-term debt was $1.4 billion, flat with the preceding quarter.
FDS generated $211.7 million in cash from operating activities. However, its capital expenditure was $26 million. The free cash flow utilized was $185.7 million.
FY26 Guidance by FactSet
For fiscal 2026, the company hiked revenue expectations to $2.45-$2.47 billion compared with the preceding quarter’s view of $2.423-$2.448 billion. The mid-point ($2.46 billion) of the guided range is higher than the Zacks Consensus Estimate of $2.45 billion.
FDS raised earnings per share expectations to $17.25-$17.75 compared with the preceding quarter’s $16.9-$17.6. The mid-point ($17.5) of the guided range is higher than the Zacks Consensus Estimate of $17.42. The adjusted operating margin is projected to be 34-35.5%.
FactSet carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshot
Accenture plc ACN has reported impressive second-quarter fiscal 2026 results.
ACN reported earnings of $2.93 per share, beating the Zacks Consensus Estimate by 2.4%. The metric increased 3.9% from the year-ago quarter. Accenture’s total revenues of $18 billion beat the consensus estimate by 1.2% and rose 8.2% on a year-over-year basis.
ABM ABM has reported mixed first-quarter fiscal 2026 results.
ABM recorded EPS (excluding 19 cents from non-recurring items) of 83 cents, which missed the Zacks Consensus Estimate by 4.6% and declined 4.6% year over year. ABM’s total revenues of $2.3 billion surpassed the consensus mark by 1.3% and increased 6.1% from the year-ago quarter.
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