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FactSet Tops Q1 Estimates, Reaffirms 2026 Outlook as Board Boosts Buybacks

Management signals continued AI investment that pressures margins despite expanding buybacks.

Overview

  • Fiscal Q1 revenue rose 6.9% to $607.6 million and adjusted EPS reached $4.51, both ahead of consensus.
  • Guidance was maintained for fiscal 2026, with adjusted EPS of $16.90–$17.60 and sales of $2.423–$2.448 billion, alongside targets for $100–$150 million in organic ASV and a 34.0%–35.5% adjusted operating margin.
  • Adjusted operating margin declined to 36.2% from 37.6% on higher technology and third‑party content costs.
  • Capital returns included a $1.10 quarterly dividend and $139.9 million of repurchases, and the Board authorized an additional $600 million to $1 billion in buybacks.
  • CEO Sanoke Viswanathan said AI enhances FactSet’s offerings without major headcount cuts, and the stock fell about 7.7% after the report as cautious analyst views persist with an average price target near $322.