FactSet Research Systems Inc (NYSE:FDS) Reports Q1 2026 Earnings Beat Amid Muted Market Reaction

Financial data and analytics provider FactSet Research Systems Inc (NYSE:FDS) reported fiscal first-quarter 2026 results that narrowly surpassed Wall Street's expectations on the top line and delivered a more decisive beat on profitability. The market's initial reaction, however, has been muted to slightly negative.

Earnings and Revenue Performance Versus Estimates

For the quarter ended November 30, 2025, FactSet posted revenue of $607.6 million, representing a 6.9% increase compared to the same period last year. This figure edged past the consensus analyst estimate of approximately $606.5 million.

The company's non-GAAP earnings per share (EPS) came in at $4.51. This result was 3.5% higher than the $4.36 analysts had anticipated, marking a more substantial beat on the bottom line.

Key quarterly figures versus estimates:

• Reported Revenue: $607.6 million
• Estimated Revenue: ~$606.5 million
• Reported Non-GAAP EPS: $4.51
• Estimated Non-GAAP EPS: $4.36

Market Reaction and Price Action

Despite the earnings beat, investor sentiment in pre-market trading appears cautious. The stock is indicated to open slightly lower. This tepid reaction suggests that while the results met or exceeded targets, they may not have provided the positive surprise needed to drive the stock meaningfully higher, or that any optimism was already priced in following a steady recent climb.

Recent performance context:

• The stock has gained approximately 8.8% over the past month.
• It is up about 6.1% over the last two weeks and 2.8% in the past week.
• The pre-market dip of roughly 0.7% following the report indicates a pause or minor profit-taking after this run-up.

Key Highlights from the Quarterly Report

Beyond the headline numbers, management highlighted the growth in Annual Subscription Value (ASV), a critical forward-looking metric for the company. Organic ASV, which excludes the impacts of acquisitions, divestitures, and foreign currency movement, reached $2.39 billion as of November 30, 2025. This represents a solid year-over-year increase of 5.9%, indicating sustained underlying demand for FactSet's platform and services.

Forward-Looking Guidance and Analyst Expectations

FactSet provided its revenue outlook for the full 2026 fiscal year, anticipating sales to be around $2.44 billion. This guidance aligns closely with the current consensus analyst estimate of $2.465 billion, suggesting management's expectations are in line with the market's view.

Looking ahead to the next quarter, analysts are currently modeling for Q2 fiscal 2026 revenue of approximately $609.4 million and earnings per share of around $4.38. Investors will be watching closely to see if the company can maintain its momentum and continue to deliver results at or above these levels.

For a detailed breakdown of historical earnings, future estimates, and analyst revisions, you can review the data on the FactSet earnings estimates page.

Conclusion

FactSet's first-quarter performance demonstrates consistent execution, with revenue and earnings growth meeting or exceeding expectations. The solid organic ASV growth points to healthy client retention and expansion. However, the subdued market reaction implies that these results were largely anticipated by investors. The focus now shifts to the company's ability to maintain its growth trajectory in the coming quarters against the backdrop of its own guidance and analyst forecasts, which currently appear to be in close agreement.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.