- Accelerated ASV Growth Achieved 6.7% growth to $2.45 billion, driven by client expansion and pricing increases.
- Strong Financial Outcomes Adjusted operating margin at 35%, EPS rose 4% to $4.46, with revenue up 7.1% to $611 million YoY.
- Strategic AI Integration Over 120 clients actively use MCP Server, part of AI stack solutions, with 500+ basis points of productivity improvements captured.
- Client Retention & Expansion Net Promoter Score improved by five points, 98 net new clients added, total users exceeding 241,000.
- Market Positioning in AI Leverage five data differentiation factors (depth, cohesiveness, etc.) to build AI-enabled infrastructure for institutional finance.
Client Expansion
FactSet added 98 net new clients in Q2, bringing total corporate users to 9,101 and expanding the user base to over 241,000. The growth was fueled by strong expansion within existing accounts, including a major global investment bank’s renewal and an Australian private equity fund’s adoption of FactSet’s private capital data assets.
AI Adoption
Over 120 clients are actively engaged with FactSet’s MCP Server, launched in December, underscoring the company’s early traction in AI solutions. The open architecture and partnerships with AI natives such as Anthropic enable FactSet to embed AI across its data and workflow stack, positioning it as a leading provider for AI‑enabled institutional finance.
Product Wins
FactSet expanded its Portware trading platform usage with Capital Group and secured new wins with large asset managers. Its LiquidityBook order‑management solution is gaining momentum among hedge funds and institutional buy‑side clients, while integrations with premier research firms like JPMorgan, Barclays, and Kepler further deepen the platform’s value proposition.
Margin Drivers
The 35% adjusted operating margin reflects strategic investments in technology infrastructure, professional services, and product development, while cost‑saving initiatives capture over 50% of the targeted 100 basis‑point productivity improvement. These efficiencies, coupled with higher pricing capture in the Americas, sustain margin strength.
Future Outlook
FactSet has raised its fiscal 2026 ASV, revenue, and EPS outlooks, citing sustained momentum across client types and geographies. A five‑point Net Promoter Score lift among investment banking users is expected to fuel ASV retention and expansion, while the company’s focus on AI, data depth, and workflow integration continues to drive demand.
Valuation Snapshot
At a P/E of 14.01 and a P/B of 3.87, FactSet trades at modest multiples that reflect its high‑growth profile and strong cash‑flow generation (Free Cash Flow Yield of 8.26%). With a dividend yield of 1.97% and a robust ROE of 27.22%, the company offers a balanced blend of growth and income for investors.