FactSet tops quarterly profit estimates on steady demand for data, analytics services

FactSet tops quarterly profit estimates on steady demand for data, analytics services July 1 : Financial data firm FactSet reported third-quarter profit above Wall Street estimates on Wednesday, buoyed by growth in subscriptions. Geopolitical uncertainty owing to the U.S.-Israeli war with Iran has rattled global markets, boosting demand for FactSet's data and analytics services as investors manage risk and rebalance portfolios. Here are more details: • The Norwalk, Connecticut-based company posted adjusted earnings per share of $4.53 for the quarter ended May 31, above analysts' average estimate of $4.46, according to data compiled by LSEG. • Organic annual subscription value (ASV), a measure of expected revenue for the next 12 months from all client subscriptions, rose 7.1 per cent to $2.49 billion as of May 31. • FactSet reaffirmed its fiscal 2026 outlook for all financial metrics. • "While FDS maintained all FY26 guidance metrics, contrary to our and investor expectations for a raise, we view the guidance as likely conservative and positioned for an upside surprise," said RBC Capital Markets analysts in a research note. • Meanwhile, the firm's operating margin dropped to 26.7 per cent in the quarter, from 33.2 per cent a year ago, largely driven by higher employee compensation costs. • FactSet shares were down 1.8 per cent in premarket trading. They have shed over 20 per cent so far this year, as investor sentiment has been clouded by broader concerns that advances in artificial intelligence could disrupt the traditional financial data and analytics industry.