A：During fiscal 2026, FactSet launched several new products and services, such as trusted factored data through NCP servers, multi-asset class list models, new capabilities in the quant modeling environment, and agents for banking, buy-side, and wealth management clients. They reorganized around a unified product organization, which helped in strengthening their leadership bench and boosting workforce productivity with AI to improve operating leverage and drive future margin expansion.

A：AI has become a key area of focus for FactSet, with solutions contributing a double-digit share of new ASP and exceeding the total AI contribution of fiscal 2020. The addition of AI to the company's offerings has led to most clients with an established workstation relationship increasing their total ASP after adding NCT. This indicates that the investments in AI are complementing existing products and contributing positively to client wins.

A：In terms of commercial excellence, FactSet has seen strong new business growth, maintained a high level ofASP retention (over 95%), and experienced robust expansion data. The company has been successful in moving away from fixed-term contracts to flexible enterprise agreements, resulting in an average contract length increase by roughly 30%. Productivity improvements were evident through net headcount reduction, which allowed capacity to be redeployed into new products and growth opportunities while enhancing the bottom line.

A：AI has driven operational efficiency and cost savings at FactSet, with initiatives like the client assist agent resolving over 30% of user initiated requests without human interaction. Token governance and optimization measures have resulted in increased efficiency, with token use related to coding assistance growing more than 80% and total token spent growing at half that pace. These initiatives are expected to scale in FY 27 and further enhance operating leverage.

A：The acquisition of BCC Group has significantly expanded FactSet's addressable market by opening up new opportunities across the real-time data ecosystem. This acquisition is intended to help the company deepen its investment in real-time data and pricing and reference data, positioning it well for future growth. The details of this strategy and its impact on medium-term growth and financial targets will be discussed at the upcoming Investor Day on November 10.

A：Fiscal 2026 results included an organic ASV of $168 million, which was above the high end of guidance and represented a more than 30% increase over FY 25. Full-year revenue reached $2,476 million, marking a 6.7% growth over 2025. The adjusted operating income was $855 million, within guidance, and adjusted EPS grew 6% to $18.1. The company serves over 9,200 clients in over 80 countries, with 3/4 of the top 100 having been with the company for more than 20 years.

A：In Q4, organic ASV grew across all client types and regions. Institutional and buy-side organic ASV grew 5%, an acceleration of approximately 100 basis points from Q4 2025. The dealmakers category saw organic ASV grow by approximately doubling its growth rate from a year ago, and the market infrastructure category grew by 8%. Geographically, the Americas experienced a 7% increase, EMEA grew by 5%, and Asia Pacific had the fastest growth at over 10%.

A：The company views consistent long-term free cash flow generation as a hallmark of its model, positioning it as a durable compounder across market cycles. Free cash flow for Q4 was $177 million, roughly in line with the prior year period, while for the full fiscal year, it was $707 million, an increase of over 14%. The company expects efficiency gains to reduce complexity and operational risk, improving overall quality for clients and shareholders.

A：The company prioritizes organic investments in high growth projects as its top priority for capital allocation, focusing on opportunities with visibility and a return on capital above demanding hurdle rates. Inorganic activity that meets strategic and financial criteria is considered, with a preference for opportunities within its own ecosystem, which lowers integration risk. Following the close of Q4, the company announced the acquisition of the BCC group to enhance its real-time data offering.

A：The company expects another strong year with organic ASV growth of 5% to 6.5% in FY 27. Revenue growth is expected to be in the low single digits to mid-teens on a reported basis and 100 basis points higher on a like-for-like basis, considering various factors like the exit from the ESG signals business, attribution, and FX rates. The company anticipates a path to increased operating margins, with an expected improvement of between 25 and 75 basis points. Despite two non-operating headwinds, the company expects EPS growth to improve to the high single digits in FY 27 and plans to focus on growing free cash flow, which is expected to compound over time.

A：The company has been at the forefront of innovating data delivery methods, such as being early adopters in the transition to API and cloud shares, and now leading with NCP server endpoints.

A：The NCP server endpoint has received great feedback for its quality, with rapidly scaling adoption. This quarter saw a 40% growth in the number of clients and exponential usage growth, seven times over the last quarter.

A：The adoption of NCP is projected to continue scaling rapidly, with the first couple of dozen data sets available and hundreds more to be released. Traction is strong, with a forecast of more capabilities being delivered through NCP.

A：AI has contributed to more than 10% of the ASV growth in the last quarter, with AI-enabled offerings seeing significant utilization and early stages of modernization.

A：The upcoming analyst day will include details on the transition to human-directed agent executed workflows, showcasing intelligent strategies already developed and adopted by clients. The event will also cover strategy, medium-term outlook, and financial algorithms.

A：The acquisition of Ccc Group aligns with the company's strategy by extending its services into a more robust, diverse, and proportionate pipeline. It aims to open up new opportunities in the real-time data distribution market and enhance the company's market share.

A：The company views its relationship with competitors in financial services as complementary, especially with regard to providing data through connectors and partnerships. It does not see a direct competition with New Frontier Lab marketplaces and foresees growth opportunities in partnership with them.

A：Recent investments include moving to a multicloud framework, which is a one-time investment that enhances infrastructure resilience, flexibility, and capabilities. These investments bolster client trust and confidence and are expected to contribute to growth or margin improvement in the future.

A：The company has made one-time investments in changing their data to be machine-ready, which has been supported by significant capacity building throughout the past 6 to 9 months in productivity programs. These efforts have helped achieve success in data delivery through MCP and are expected to contribute to future growth opportunities.

A：The business has been simplified by collapsing different business units into a single unified product organization, which has reduced complexity, interactions, and bureaucracy. The company has also exited businesses that did not align with their strategy for success. These moves have resulted in improved operating leverage across various business segments and positioned the company to make investments in growth opportunities.

A：Implementation expertise, particularly in the form of context engineering, is a key differentiator. The company has an internal capability of consulting teams that provide expert support, which allows for faster and more effective implementations. This advantage is translating into competitive displacements, especially in the banking sector, where the company has been able to displace long-standing incumbents.

A：The company has achieved successful competitive displacements in various sectors, such as with a blue-chip private equity firm that moved from an incumbent to their NCP offering due to its capabilities. They also completed a displacement in a large regional bank's capital markets business on the buy-side. Hedge funds have shown excitement about their NCP data, leading to growth in that segment and displacements in fixed income markets where the company previously struggled.

A：The conversion rate in the company's NCTP program is strong, with a fast-moving pipeline that progresses from initial trials to larger scale trials and then to contracts. The company has been seeing regular 5 and 6 figure deals and has experienced a deal expansion of at least another 20% since the last reported numbers.

A：The industry is in the early days of transitioning from subscription to subscription plus consumption models. The company has contracts geared towards this transition and aims to provide a flexible yet somewhat predictable economic structure for clients. The general structure involves a large subscription base with a volume of data or agentic capability that can be consumed, with any excess being on a consumption-driven pricing basis.

A：The company is experiencing AI-related revenues from its products, which constitute a significant portion of their Q4 flow. They continue to see AI as an exciting opportunity and note growth in their own token consumption. However, a precise quantification of AI's contribution to revenue and profit was not provided in the transcript.

A：The company stays abreast of evolving model characteristics and consumption patterns by monitoring new model types and adjusting their strategies accordingly. They have APIs, cloud shares, and deliver data in multiple formats to accommodate these changes. Innovation comes from partnerships with leading labs and new model providers, which help navigate the AI diffusion across the industry.

A：The shift towards direct data fees and APIs may change the way the company gathers client usage information. It is important to maintain a strong relationship with clients to understand their usage and feedback. However, the company has not provided specifics on the impact of this shift or the degree to which they can still gather the same level of information from clients.

A：APIs and NCP help agents understand what's happening without needing a graphic user interface. These tools are designed to assist agents, who are considered consumers in this context, by providing them with the necessary APIs and feedback loops, reinforcing context at their layer.

A：The absorption of products by clients is a function of the maturity levels of different clients. There is a diverse range of client maturities, with some being very sophisticated and fast-moving, others dealing with significant legacy infrastructure, and the majority falling in between these extremes.

A：The company has simplified and unified its product organization, which is driving pace, clarity of vision, and greater sharing and collaboration internally. This has resulted in the company being able to ship products faster and better, catering to a range of client types including those with various levels of maturity.

A：The key swing factors that would determine whether organic AC growth finishes near the low versus the high end of the 5 to 6.5% guidance range include the 11 months of execution to play out, the weighted nature of renewals (back half weighted), and the data and prudence-based outlook provided by the company.

A：Among the top 100 clients, a significant trend observed is that those using NCP on a paid basis tend to grow faster. On average, the majority of workstation users that have adopted NCP have seen an increase of 20% to 50% in their overall ASP with the company.

A：For FY 27, the company is projecting a tax rate to be around 18%, and interest expense to be impacted by the maturity of $500 million of notes and potential opportunities to refinance at higher rates than the current cost of carry. The combination of these factors is projected to result in a 2% headwind on earnings per share outlook for FY 27.

A：Yes, the company is considering different metrics for incentive-based comp and is evaluating how the rise of consumption-based pricing impacts their structure. They continue to optimize their incentive design and are open to adjusting based on various dimensions including consumption-based pricing and other performance indicators.

A：The ASV outlook is second half weighted and conservative. In the near term, the company feels confident about the momentum due to a diverse and proportionate pipeline. The AI strategy is resonating, and the MCP growth is continuing to accelerate, leading to a confident outlook for the quarter.