FactSet jumps as Q2 results beat and FY2026 revenue, EPS outlook raised

FactSet Research Systems (FDS) is trading higher as investors react to a “beat-and-raise” quarter. In its fiscal second-quarter 2026 report (quarter ended February 28, 2026), FactSet posted GAAP revenue of $611.0 million, up 7.1% year over year, and adjusted diluted EPS of $4.46, up 4.2% year over year, supported by revenue growth and a lower share count. It also updated (raised) its fiscal 2026 outlook, increasing its ranges for organic ASV growth and GAAP revenue, and lifting both GAAP and adjusted EPS guidance.

Subscription momentum remained central to the bullish read-through. Organic Annual Subscription Value (ASV) was $2,449.1 million as of February 28, 2026, up 6.7% year over year, and the company cited growth driven by institutional buy-side and wealth management clients. Cash generation also improved: net cash from operating activities was $211.7 million for the quarter and free cash flow was $185.7 million, both up more than 20% versus the prior-year period.

FactSet lifted its fiscal 2026 expectations to organic ASV growth of $130 million to $160 million, GAAP revenue of $2,450 million to $2,470 million, GAAP diluted EPS of $14.85 to $15.35, and adjusted diluted EPS of $17.25 to $17.75, while keeping its operating margin ranges unchanged. The company also continued to lean on repurchases, buying back 651,750 shares for $163.0 million during the quarter (average price $250.14), with $697.1 million remaining under its authorization as of February 28, 2026.

With the stock reacting positively, attention turns to whether FactSet can sustain ASV growth and convert that demand into expanding margins as investment spending continues. The next major catalyst will be the company’s next quarterly results and any further changes in its FY2026 outlook, plus updates on buyback pace and AI-related product traction.