FactSet (FDS) investor relations material

Executive summary

• Q1 FY26 revenues reached $608 million, up 6.9% year-over-year, with organic ASV growth of 5.9%–6.0% and adjusted operating margin of 36.2%.

• Adjusted diluted EPS rose 3.2% to $4.51, while GAAP diluted EPS increased 4.4% to $4.06; net income grew 1.7% to $152.6 million.

• Key client wins included mandates with a top wirehouse breakaway team, a global top-10 bank, and a major investment manager.

• Share repurchase authorization increased from $400 million to $1 billion, with $860 million capacity remaining.

• Strategic investments focused on scaling data, AI, workflow integration, and foundational enablers.

Financial highlights

• Q1 organic revenues were $600 million, up 6.0% year-over-year; GAAP revenues were $607.6–$608 million, up 6.9%.

• Adjusted operating margin was 36.2% (down 137 bps); GAAP operating margin was 31.6% (down 200 bps).

• Adjusted EBITDA for Q1 was $248.8 million, up 8.3% year-over-year.

• Free cash flow for the quarter was $90.4 million, up 49.5% year-over-year.

• Operating expenses and cost of services increased, mainly due to higher compensation, technology, and amortization.

Outlook and guidance

• Fiscal 2026 guidance reaffirmed: organic ASV growth of 4.2%–6.2%, GAAP revenues of $2,423–$2,448 million, adjusted diluted EPS of $16.90–$17.60.

• Adjusted operating margin forecasted at 34.0%–35.5%; GAAP margin at 29.5%–31.0%.

• Effective tax rate projected at 18.0%–19.0%.

• Q2 margins expected to reflect increased investment, but full-year targets remain on track.

• No material impact anticipated from new accounting pronouncements or recent tax legislation.