1. FDS reported Q1 GAAP revenues of $607.6 million, up 6.9%. 2. Organic ASV increased 5.9% year over year to $2.39 billion. 3. Operating margins declined, GAAP at 31.6% and adjusted at 36.2%. 4. Share repurchase authorization increased from $400 million to $1 billion. 5. FDS maintains growth outlook, expecting $100 million to $150 million in organic ASV.
FAQ
Why Bullish?
Strong revenue and ASV growth, complemented by significant share buybacks, typically bolster stock prices. Historical data shows that increased share repurchase authorizations usually lead to a positive market response.
How important is it?
The comprehensive positive growth metrics and strategic initiatives taken by FDS enhance its appeal, making the article highly relevant to investor sentiment and possible trading actions.
Why Short Term?
The immediate positive impacts from Q1 results and buyback announcements are likely to be reflected in near-term trading. Previous instances show that strong earnings can result in quick stock price increases.
FactSet Reports Strong Q1 Fiscal 2026 Financial Results
NORWALK, Conn., Dec. 18, 2025 — FactSet (NYSE:FDS), a leading global financial digital platform and enterprise solutions provider, announced its financial results for the first quarter of fiscal 2026, which ended on November 30, 2025. The company reported a significant increase in revenue, demonstrating robust growth in its core business operations.
First Quarter Fiscal 2026 Financial Highlights
- GAAP Revenues: $607.6 million, reflecting a 6.9% increase from $568.7 million in Q1 2025.
- Organic Revenues: Grew to $600.0 million, up 6.0% year over year.
- Annual Subscription Value (ASV): Reached $2,411.1 million, compared to $2,265.9 million in the previous year.
- Organic ASV: $2,389.6 million, representing a year-over-year increase of 5.9%.
Key Financial Metrics
FactSet's adjusted operating margins and earnings per share (EPS) showed stable performance despite challenges:
- GAAP Operating Margin: Decreased to 31.6% from 33.6% in the previous year.
- Adjusted Operating Margin: Fell to 36.2% from 37.6%.
- GAAP Diluted EPS: Increased to $4.06 from $3.89 in Q1 2025, a 4.4% rise.
- Adjusted Diluted EPS: Rose to $4.51, up 3.2% year over year.
Operational Performance
FactSet's operational performance remains strong, reflecting effective demand from clients:
- Net Cash from Operating Activities: Increased by 40.4% to $121.3 million.
- Free Cash Flow: Grew by 49.5% to $90.4 million from $60.5 million in the prior year.
- Client Count: Reached 9,003, with a net increase of 7 clients in the last three months.
- User Count: Rose to 239,863, signifying strong growth within institutional asset management.
Strategic Initiatives and Future Outlook
As part of its financial strategy, FactSet's Board of Directors has approved an increase in its share repurchase authorization to $1 billion, up from the previous $400 million. CEO Sanoke Viswanathan emphasized the company's commitment to driving commercial excellence and advancing strategic long-term initiatives.
“FactSet's strong start to the year underscores the quality of our data and products,” said Viswanathan. “We see significant opportunity ahead and are executing with urgency.”
Conclusion
With solid financial results and strategic initiatives underway, FactSet continues to position itself for sustainable growth. The company aims to leverage its strong revenue base and investment in innovation to enhance client services across the financial ecosystem.