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FactSet Earnings Beat Estimates in Q1, Revenues Increase Y/Y
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Key Takeaways
FDS posted 1Q26 EPS of $4.51 and revenues of $607.6M, beating estimates and rising y/y.
FactSet delivered 6% organic revenue growth, with gains across Americas, EMEA and the Asia Pacific.
FDS guided FY26 revenues of $2.423-$2.448B and EPS of $16.9-$17.6, both below consensus midpoints.
FactSet (FDS - Free Report) has reported impressive results for the first-quarter fiscal 2026, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
FDS’s earnings per share of $4.51 beat the consensus mark by 2.7% and increased 3.2% from the year-ago quarter. Revenues of $607.6 million beat the Zacks Consensus Estimate by 1.4% and rose 6.9% from the year-ago quarter.
The company’s shares have gained 2.8% in the past three months compared with the 10.6% fall of the industry it belongs to and the 1.8% increase of the Zacks S&P 500 composite.
FactSet Research Systems Inc. Price and EPS Surprise
Organic revenues increased 6% year over year to $600 million. Region-wise, organic revenue growth was 6.5% for the Americas, 4% for the EMEA and 8.3% for the Asia Pacific.
Revenues generated from the Americas segment were $396.2 million, up 7.9% from the year-ago quarter, surpassing our estimate of $389.5 million. Revenues from the EMEA were $149.5 million, an increase of 4% from the year-ago quarter. The figure beat our estimate of $146.7 million. Revenues from the Asia Pacific were $61.9 million, marking 7.3% growth on a year-over-year basis, outpacing our estimate of $61.7 million.
FDS’s ASV Plus Professional Services
FactSet’s Annual Subscription Value (“ASV”) plus professional services were $2.4 billion. Organic ASV plus professional services were $2.4 billion, up 5.9% from the year-ago quarter.
Organic ASV generated from the United States was $1.6 billion, increasing 6.4% from the year-ago quarter. Organic ASV from the EMEA was $588.5 million, gaining 3.7% year over year. Organic ASV from the Asia Pacific was $244.6 million, up 8.4% on a year-over-year basis.
FactSet added seven clients in the first quarter of fiscal 2026, driven by corporate and wealth management clients, taking the total to 9,003. The annual client retention rate is 91%.
FactSet’s Operating Results
The adjusted operating income was $220.1 million, which moved up 3% from the year-ago quarter and surpassed our estimate of $207.6 million. The adjusted operating margin of 36.2% declined 60 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 $275.4 million compared with $337.7 million in the fourth quarter of fiscal 2025. The long-term debt was $1.4 billion, flat with the preceding quarter.
FDS generated $121.3 million in cash from operating activities. However, its capital expenditure was $30.8 million. The free cash flow utilized was $90.4 million.
FY26 Guidance for FactSet
For fiscal 2026, the company anticipates revenues of $2.423-$2.448 billion. The mid-point ($2.435 billion) of the guided range is lower than the Zacks Consensus Estimate of $2.44 billion.
FDS anticipates earnings per share of $16.9-$17.6. The mid-point ($17.25) of the guided range is lower than the Zacks Consensus Estimate of $17.31. The adjusted operating margin is projected to be 34-35.5%.
Waste Connections’ adjusted earnings (excluding 33 cents from non-recurring items) of $1.44 per share surpassed the Zacks Consensus Estimate by 4.4% and increased 6.7% year over year. Revenues of $2.5 billion beat the consensus estimate marginally and grew 5.1% from the year-ago quarter.
VRSK’s adjusted earnings were $1.72 per share, surpassing the Zacks Consensus Estimate by 1.8% and increasing 3% from the year-ago quarter. Total revenues of $768.3 million missed the consensus estimate marginally but increased 5.9% on a year-over-year basis.
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FactSet Earnings Beat Estimates in Q1, Revenues Increase Y/Y
Key Takeaways
FactSet (FDS - Free Report) has reported impressive results for the first-quarter fiscal 2026, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
FDS’s earnings per share of $4.51 beat the consensus mark by 2.7% and increased 3.2% from the year-ago quarter. Revenues of $607.6 million beat the Zacks Consensus Estimate by 1.4% and rose 6.9% from the year-ago quarter.
The company’s shares have gained 2.8% in the past three months compared with the 10.6% fall of the industry it belongs to and the 1.8% increase of the Zacks S&P 500 composite.
FactSet Research Systems Inc. Price and EPS Surprise
FactSet Research Systems Inc. price-eps-surprise | FactSet Research Systems Inc. Quote
FactSet’s Revenues in Detail
Organic revenues increased 6% year over year to $600 million. Region-wise, organic revenue growth was 6.5% for the Americas, 4% for the EMEA and 8.3% for the Asia Pacific.
Revenues generated from the Americas segment were $396.2 million, up 7.9% from the year-ago quarter, surpassing our estimate of $389.5 million. Revenues from the EMEA were $149.5 million, an increase of 4% from the year-ago quarter. The figure beat our estimate of $146.7 million. Revenues from the Asia Pacific were $61.9 million, marking 7.3% growth on a year-over-year basis, outpacing our estimate of $61.7 million.
FDS’s ASV Plus Professional Services
FactSet’s Annual Subscription Value (“ASV”) plus professional services were $2.4 billion. Organic ASV plus professional services were $2.4 billion, up 5.9% from the year-ago quarter.
Organic ASV generated from the United States was $1.6 billion, increasing 6.4% from the year-ago quarter. Organic ASV from the EMEA was $588.5 million, gaining 3.7% year over year. Organic ASV from the Asia Pacific was $244.6 million, up 8.4% on a year-over-year basis.
FactSet added seven clients in the first quarter of fiscal 2026, driven by corporate and wealth management clients, taking the total to 9,003. The annual client retention rate is 91%.
FactSet’s Operating Results
The adjusted operating income was $220.1 million, which moved up 3% from the year-ago quarter and surpassed our estimate of $207.6 million. The adjusted operating margin of 36.2% declined 60 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 $275.4 million compared with $337.7 million in the fourth quarter of fiscal 2025. The long-term debt was $1.4 billion, flat with the preceding quarter.
FDS generated $121.3 million in cash from operating activities. However, its capital expenditure was $30.8 million. The free cash flow utilized was $90.4 million.
FY26 Guidance for FactSet
For fiscal 2026, the company anticipates revenues of $2.423-$2.448 billion. The mid-point ($2.435 billion) of the guided range is lower than the Zacks Consensus Estimate of $2.44 billion.
FDS anticipates earnings per share of $16.9-$17.6. The mid-point ($17.25) of the guided range is lower than the Zacks Consensus Estimate of $17.31. The adjusted operating margin is projected to be 34-35.5%.
FactSet carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Waste Connections, Inc. (WCN - Free Report) reported impressive third-quarter 2025 results.
Waste Connections’ adjusted earnings (excluding 33 cents from non-recurring items) of $1.44 per share surpassed the Zacks Consensus Estimate by 4.4% and increased 6.7% year over year. Revenues of $2.5 billion beat the consensus estimate marginally and grew 5.1% from the year-ago quarter.
Verisk (VRSK - Free Report) posted impressive third-quarter 2025 results.
VRSK’s adjusted earnings were $1.72 per share, surpassing the Zacks Consensus Estimate by 1.8% and increasing 3% from the year-ago quarter. Total revenues of $768.3 million missed the consensus estimate marginally but increased 5.9% on a year-over-year basis.