FactSet Research Systems Inc.

Revenue grew 7.1% year-over-year to $611.0 million in Q2 FY2026, primarily driven by strength in data solutions, workstations, and middle office solutions. This topline expansion reflects execution on the company's strategy to scale its data ecosystem with comprehensive industry, proprietary, and third-party data offerings. However, the revenue increase was partially offset by a decline from a business disposition, highlighting the impact of portfolio changes on growth dynamics.

Gross profit increased 4.4% to $314.3 million, yielding a gross margin of 51.4%. The slower gross profit growth relative to revenue stemmed from higher employee compensation costs—primarily annual merit-driven base salary increases—and elevated other expenses within cost of services. These cost dynamics, which outpaced topline growth to some extent, pressured gross margin expansion and underscore the trade-offs in investing in talent to support data and delivery capabilities.

Net income declined 8.1% to $133.1 million, with diluted EPS of $3.59 versus $3.76 last year. These bottom-line results reflect the operating margin pressures amid revenue growth, compounded by any shifts in effective tax dynamics though not detailed here.