Factset Research Systems Inc Q4 2025 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Faiza Alwy - Deutsche Bank AG - Analyst : Yes, hi, good morning and welcome Sanoke from me as well. Maybe I'll ask you. You mentioned that you think FactSet is well positioned to become the leading AI-powered financial intelligence platform. And then you talked about significant work ahead of you, and alluded to new competitive dynamics. So maybe expand on that a bit, sort of where do you think the focus will be for you over the next couple of years? And where do you think the end state is for you?

Question: Ashish Sabadra - RBC Capital Markets Inc - Analyst : Thanks for taking my question, Sanoke, let me add my welcome and congratulations as well. I just wanted to parse the strength that we are seeing in wealth. Obviously, very strong momentum, really good displacement up incumbents. But as we think about growth going forward, how do you think about more 7-figure deals there, and as well as ability to add more through improved attach rate at existing clients? Thanks.

Question: Kelsey Zhu - Autonomous Research - Analyst : Hi, good morning. Thanks for taking my questions. I was just wondering if you could maybe talk a little bit more broadly about FactSet's AI strategy, both on enhancing internal efficiencies, as well as driving better client engagement. And in light of this, maybe also talk a little bit more about the notes of access workstation in light of all of these emerging AI companies and startups. I know you previously guided to was 30 to 50 bps ASV growth in 25 from GenAI products. So just wondering actual results, how does that compare to guidance? And if you're expecting the same type of growth from AI products in 2026? Thanks a lot.

Question: Shlomo Rosenbaum - Stifel - Analyst : Sanoke, I want to join the others in welcoming you. And I just want to put this out in terms of -- I know it's early on, but there's been a lot of investment in AI, and it seems like it's very exciting and embedded in a lot of products and a little bit of growth also coming from that. Do you feel that this investment is going to materially accelerate the growth rate for FactSet? Or do you think that with everything going on in the industry, realistically, all these investments that are going on are really to kind of maintain your market position and where you are in realistically, that's what you need to do to just kind of hold on to what's going on? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 18, 2025 / 1:00PM, FDS.N - Q4 2025 Factset Research Systems Inc Earnings Call So trying to figure out, is there going to be -- is this just an increased investment that's necessary to keep you there? Or are we going to see a return to some kind of material growth? I know it's early on, but you must have thought about this before you took this job?

Question: Jason Haas - Wells Fargo - Analyst : Hey, good morning and thanks for taking my question. I'm curious if you could talk about what trends you're seeing in regards to bank hiring, and then we've heard this idea that the banks are already pretty fully staffed. So even if we see a continued rebound in in IPO and M&A activity, that the banks don't need to hire a lot more because they're fully staffed, it's good that you could comment on on that side as well. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 18, 2025 / 1:00PM, FDS.N - Q4 2025 Factset Research Systems Inc Earnings Call Thank you.

Question: Surinder Thind - Jefferies LLC - Analyst : Thank you. Helen, this question is actually for you. Can you help us maybe better understand some of the internal productivity initiatives here? And what you're expecting, if there's anything that you can quantify? It seems that there's a narrative out there that AI should be a material beneficiary to margins. And yet in the near term, we're seeing all of this increased investment. So, is this an idea where maybe you can do a lot more, rather than doing, I guess, the same amount with maybe lower resources? Like how do we think about that trade-off?

Question: Surinder Thind - Jefferies LLC - Analyst : And what it means for head count on a go-forward basis?

Question: Toni Kaplan - Morgan Stanley - Analyst : Thanks so much, and I'll add my welcome to Sanoke as well. My question is for Helen and it's sort of a longer-term question. But at your Investor Day in November, you had expected 37% to 38% adjusted operating margins in the medium term. Obviously, at the midpoint of the guide here, you're below 35%. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 18, 2025 / 1:00PM, FDS.N - Q4 2025 Factset Research Systems Inc Earnings Call My question is, do you think that 37% to 38% is off the table at this point for the next few years? Maybe what has changed from 10 months ago? And so a little bit of a longer-term margin question in terms of where this goes? Thanks.

Question: Scott Wurtzel - Wolfe Research - Analyst : Great, good morning guys and Sanoke Welcome. I just wanted to stick on the investment and margin side of topic here. And Helen, just wondering if you can maybe talk about, especially on the sort of growth investment side, if there are any specific payback periods you are sort of looking for when you guys are making these investments. Thanks.

Question: Manav Patnaik - Barclays Services Corp - Analyst : Thank you. Good morning and Welcome Sanoke as well. Just, Sanoke, maybe just for you, just curious on your thoughts on capital allocation and particularly in this AI rates that you talked about, whether deal making is going to be a focus for you? And Helen, I just wanted to follow up quickly. You mentioned a few times investments in cyber. I was hoping you could elaborate on that on -- I'm guessing it's more internal security, but just some thoughts on that?

Question: George Tong - Goldman Sachs - Analyst : Hi, thanks. Good morning. I'd also like to extend a welcome to Sanoke. So your fiscal 2026 guidance for organic ASV growth of around 5% at the midpoint, points to a deceleration from growth you saw in fiscal '25. Can you talk a little bit more about the drivers of this deceleration? And what you're seeing competitive may be contributing to it?

Question: Andrew Nicholas - William Blair Capital Partners - Analyst : Hi, good morning. Thanks for taking my questions. I wanted to touch again on AI. I hear your conviction on the medium-term opportunity and your belief in your competitive position. But I'm curious, I guess, one, how you'd characterize your suite of AI products and specific kind of execution around that relative to your peers at this early stage? And then maybe conceptually, how important is it for you to be first? Or because the stickiness of your product, how heavily embedded you are with clients allow you to be a little bit more deliberate with product development, product investments, product rollout? Thank you.