- ASP Growth & Margins: ASP increased 5.9% to $2.4B, with adjusted operating margin at 36.2% and adjusted EPS up 3% YoY to $4.51.
- Share Repurchase Boost: Authorization raised from $400M to $1B, reflecting confidence in balance sheet strength and share value.
- Global ASV Expansion: Organic ASV grew 5.9% ($66M increase), with Asia-Pacific up 8%, wealth sector at 10%, and user base near 240K.
- AI Adoption Surge: AI product usage grew 45% QoQ, embedded across workflows, with no cannibalization risk to workstation subscriptions.
- Margin Guidance Adjusted: Full-year FY26 operating margins expected to decline 150 bps due to strategic investments in sales/tech infrastructure.
Segment Performance
The company's organic ASV growth was broad-based across geographies, with The Americas growing 6%, EMEA growing 4%, and Asia Pacific growing 8%. The institutional buy side was a key driver, with 4% organic ASV growth, led by asset managers and hedge funds. Wealth ASV growth was also strong, at 10%, driven by demand for the company's data and analytics solutions. As Helen Shan noted, "Expansion with existing clients was the key component, with strong demand in trading, workstations, and markets data."
Investment and Margin Expansion
FactSet is investing heavily in growth initiatives, including sales and technology infrastructure. While this is expected to drive operating leverage in the long term, it will result in a decline in operating margins in the short term. Operating margins are expected to decline by 150 basis points for full-year fiscal '26. The company's investment priorities remain consistent, with roughly two-thirds allocated to growth and one-third to internal infrastructure.
Valuation and Outlook
FactSet's valuation multiples are relatively high, with a P/E Ratio of 18.0 and a P/S Ratio of 4.62. The company's ROE is 28.0%, indicating strong profitability. Analysts estimate revenue growth at 5.6% next year, which is slightly lower than the current year's growth rate. Given the company's strong track record and competitive positioning, it is well-positioned to continue delivering growth and returns to shareholders.
Dividend and Share Repurchase
The company has a strong balance sheet and is returning capital to shareholders through dividends and share repurchases. The quarterly dividend was $1.10 per share, and the company increased its share repurchase authorization from $400 million to $1 billion, reflecting its conviction in the strength of its balance sheet and intrinsic value of its shares.