FactSet lifts 2026 outlook as client growth boosts results, shares rise

FactSet Research Systems

31/03/2026 13:25

March 31 (Reuters) - Financial data firm FactSet FDS.N raised its annual profit forecast on Tuesday after reporting strong second-quarter results driven by subscription growth and an increase in the number of corporate and wealth management clients.

Demand for its products, which help investors analyze markets, manage risk and track portfolios, has increased as clients navigate geopolitical tensions, oil price volatility and concerns over large-scale disruption from artificial intelligence.

FactSet shares rose 6% in premarket trading after it forecast fiscal 2026 adjusted earnings per share between $17.25 and $17.75, up from its prior forecast of $16.90 to $17.60.

It also raised its annual revenue outlook to between $2.45 billion and $2.47 billion, up from $2.42 billion to $2.45 billion.

The company's client count rose to 9,101 at the end of the second quarter, a net increase of 98, driven by growth among corporate and wealth management clients. Its user count also increased by 1,489 in the quarter.

FactSet, which provides research solutions including its core desktop offering for buy-side and sell-side asset managers, saw its shares swept up in a broad selloff earlier this year amid worries over AI disrupting software businesses.

Investors remain on edge, with the stock down 29.5% this year as of Monday, even as analysts say legacy firms with proprietary data remain well protected.

The strong second-quarter results and better outlook could help allay some of those fears.

FactSet's buy-side clients, such as institutional asset managers, wealth managers and hedge funds, account for a majority of its annual subscription value (ASV).

Organic ASV, an indicator of revenue potential from subscriptions for the next 12 months, rose 6.7% to $2.45 billion during the three months ended February 28.

On an adjusted basis, quarterly earnings per share stood at $4.46, compared with $4.28 a year earlier.

(Reporting by Pragyan Kalita in Bengaluru; Editing by Jonathan Ananda)

((Pragyan.Kalita@thomsonreuters.com;))