FactSet Research Systems Posts $285.6M Net Income in H1 FY2026, Down 3.1% Year-Over-Year

FactSet Research Systems Inc. (NYSE: FDS), a financial data and analytics provider, reported net income of $285.6 million for the six months ending February 28, 2026, down 3.1% from $294.9 million in the same period a year earlier. The decline came even as revenue rose 7% to $1.22 billion from $1.14 billion. Read more earnings reports.

For the fiscal second quarter ending February 28, 2026, net income fell 8.1% to $133.1 million from $144.9 million in the prior-year quarter. Revenue for the quarter climbed 7.1% to $611.0 million from $570.7 million.

Operating income for the six-month period held essentially flat at $377.0 million, compared with $376.8 million a year earlier. The company's operating margin compressed as cost of goods sold rose 10.7% to $584.7 million from $528.4 million, while selling, general and administrative expenses increased 9.7% to $257.0 million from $234.1 million.

Revenue by Segment

The company's Americas segment generated $795.9 million in revenue for the six months ending February 28, 2026, up 8% from $736.9 million in the prior-year period. EMEA revenue rose 4% to $298.6 million from $287.1 million, while Asia Pacific revenue jumped 7.7% to $124.1 million from $115.3 million.

Balance Sheet and Cash Flow

Total assets declined to $4.22 billion as of February 28, 2026, from $4.30 billion at the end of fiscal 2025 on August 31, 2025. Cash and cash equivalents fell to $268.3 million from $337.7 million over the same period.

Long-term debt stood at $1.37 billion as of February 28, 2026, essentially unchanged from $1.37 billion six months earlier. Total stockholders' equity decreased to $2.13 billion from $2.19 billion.

Cash from operations surged 27.9% to $333.0 million for the six-month period from $260.3 million a year earlier. Cash used in financing activities totaled $386.7 million, compared with $45.5 million in the prior-year period, reflecting increased capital returns to shareholders.

Per Share Metrics

Diluted earnings per share for the six months ending February 28, 2026, came in at $7.65, compared with $7.66 in the prior-year period. For the fiscal second quarter, diluted EPS was $3.59 versus $3.76 a year earlier.

Weighted average diluted shares outstanding declined to 37.3 million from 38.5 million, reflecting the company's share repurchase activity. Common shares outstanding fell to 36.6 million as of February 28, 2026, from 37.6 million at the end of fiscal 2025.

Key Financial Metrics

The company's effective tax rate for the six-month period was 18.7%, compared with 16.2% in the prior-year period. Income tax expense rose to $65.6 million from $57.2 million.