Financial data provider FactSet beats Q1 revenue estimates, increases share buyback

Overview

• Financial data provider's Q1 revenue rose 6.9%, beating analyst expectations

• Adjusted EPS for Q1 beat analyst expectations

• Company increased share repurchase authorization to $1 bln

Outlook

• FactSet expects fiscal 2026 GAAP revenues between $2,423 mln and $2,448 mln

• Company projects fiscal 2026 GAAP diluted EPS between $14.55 and $15.25

• FactSet sees fiscal 2026 adjusted operating margin between 34.0% and 35.5%

Result Drivers

• REVENUE GROWTH - Growth in institutional buy-side and dealmakers clients drove a 6.9% increase in GAAP revenue

• OPERATING MARGIN DECLINE - Higher amortization, employee compensation, and technology expenses led to a decrease in GAAP operating margin

• EPS INCREASE - Revenue growth and a gain on sale of equity investments contributed to a 4.4% rise in GAAP diluted EPS

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 12 "hold" and 5 "sell" or "strong sell"

• The average consensus recommendation for the professional information services peer group is "buy."

• Wall Street's median 12-month price target for Factset Research Systems Inc is $316.50, about 6.9% above its December 17 closing price of $296.13

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 20 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)