FactSet Research Systems Inc. (NYSE:FDS) reported second-quarter results on Tuesday that topped analyst forecasts, sending the financial data provider’s shares sharply higher in early trading.
The stock rose about 6.7% in pre-market trading after the company posted stronger growth across several segments of its business.
FactSet reported adjusted earnings per share of $4.46 for the quarter ending February 28, beating the analyst consensus estimate of $4.37 by $0.09.
Quarterly revenue totaled $611.0 million, exceeding analysts’ expectations of $604.62 million and marking a 7.1% increase from $570.7 million in the same period last year. The company said growth was primarily driven by demand from institutional buy-side and wealth management clients.
FactSet also raised its full-year fiscal 2026 outlook. The company now expects adjusted EPS between $17.25 and $17.75, with the midpoint of $17.50 aligning with the analyst consensus estimate of $17.50.
Revenue guidance was also lifted, with the company projecting $2.45 billion to $2.47 billion in revenue, compared with its previous forecast of $2.423 billion to $2.448 billion. The midpoint of $2.46 billion is above the $2.45 billion consensus estimate.
“FactSet delivered another quarter of accelerating growth, driven by the strength of our data, the depth of our workflow integration, and the trust our clients place in us to run their most critical processes,” said Sanoke Viswanathan, CEO of FactSet.
Organic Annual Subscription Value (ASV) rose 6.7% year-over-year to $2,449.1 million as of February 28, 2026. The company also increased its full-year organic ASV growth outlook to between $130 million and $160 million, up from the previous range of $100 million to $150 million.
However, GAAP diluted EPS declined 4.5% to $3.59, compared with $3.76 in the prior-year period, mainly due to higher operating costs and an impairment charge.
Operating margin fell to 30.3% from 32.5%, while adjusted operating margin declined to 35.0% from 37.3%, largely reflecting increased compensation and technology-related expenses.