FactSet Q2 ASV Growth 6.7% and Revenue Surges 7.1% to $611M
FactSet’s Q2 2026 organic Annual Subscription Value rose 6.7% year-over-year, driven by balanced global performance and a realigned sales incentive program that boosted win rates by 29%. GAAP revenue increased 7.1% to $611 million with adjusted diluted EPS up 4.2% to $4.46, while enterprise agreements extended contract lengths by over 30%.
1. Accelerating ASV and Sales Win Rates
FactSet recorded a 6.7% increase in organic Annual Subscription Value (ASV) in Q2, marking the fourth consecutive quarter of acceleration. Management credits strategic sales incentive realignment and a focus on commercial excellence for a 29% year-over-year improvement in marketing lead win rates.
2. Revenue and EPS Performance
FactSet’s GAAP revenue climbed 7.1% year-over-year to $611 million, surpassing estimates, while adjusted diluted EPS rose 4.2% to $4.46. GAAP diluted EPS declined 4.5% to $3.59, reflecting margin pressures in a higher investment environment.
3. Shift to Enterprise Agreements
Direct seat-based revenue now represents less than 20% of the subscription base as enterprise agreements formed the majority of renewed ASV. Average contract lengths increased by over 30% during the quarter, signaling deeper client commitments and revenue visibility.
4. AI Partnership and Updated Guidance
The company announced a strategic partnership with Finster AI to enhance its AI-driven workflow automation platform, reinforcing its technology leadership. FactSet updated fiscal 2026 guidance to $130 million–$160 million in organic ASV growth and GAAP revenue of $2.45 billion–$2.47 billion.