Operator: Welcome to the FactSet Third Quarter Earnings Call. At this time, participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 on your telephone. You will then hear an automated message advising your hand is raised, To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Kevin Toomey, Head of Investor Relations. Please go ahead.

Kevin Toomey: Thank you, and good morning, everyone. Welcome to FactSet's Third Quarter Fiscal 2026 Earnings Call. Before we begin, the slides we reference during this presentation can be found through the webcast on the Investor Relations section of our website at factset.com. After our prepared remarks, we will open the call to questions. The call is scheduled to last for 1 hour. To be fair to everyone, please limit yourself to one question. Joining me today are Sanoke Viswanathan, Chief Executive Officer, and Josh Warren, Chief Financial Officer. I will now turn the discussion over to Sanoke.

Sanoke Viswanathan: Thank you, Kevin. Good morning, everybody, and thank you for joining the call. Q3 performance was strong with our fifth consecutive quarter of acceleration in organic ASV growth. We grew ASV by 7.1% to $2.48 billion across all regions and client types. Adjusted operating margin was 34%, reflecting the investments that we've made this year. Adjusted diluted EPS was $4.53, up 6.1% year-over-year. Our client engagement and growth trends this quarter show that our 4 foundational strengths of connected data, embedded workflows, service excellence and broad and deep distribution are becoming even more valuable as our clients deploy AI widely. Five example client wins from this quarter demonstrate the breadth and depth of our solutions. We won a mandate to deliver turnkey performance, risk and reporting managed services to one of the largest global sovereign wealth funds. We expanded our engagement with a large global OCIO to provide comprehensive reporting and digital capabilities wrapped with managed services. We signed a 5-year enterprise contract renewal at a major global bank with scope increased to include more data consumption with Deep Sector content playing a key role. LPL Financial, the largest independent broker-dealer in the U.S. supporting over 32,000 financial advisers, selected our real-time data platform to support their cloud-native trading application and intraday portfolio P&L workflows. We displaced a long-standing incumbent to expand our presence at a large global investment manager across their front and middle office. Each of these 5 wins represents an existing client expanding their relationship with FactSet. Last quarter, I shared the 3 priorities guiding a transformation in how we do business: commercial excellence, productivity improvement and long-term strategy. This quarter shows tangible commercial and productivity outcomes and our AI road map taking shape. First, the commercial excellence initiative is resulting in stronger new business growth, retention and expansion of ASV. Our new website resulted in more top-of-funnel demand generation — bounce rates improved by 8%, engagement increased by 8% and prospects, marketing qualified leads and sales qualified leads grew by double digits. In Q3, our pipeline conversion from marketing activity increased 15% year-over-year, and win rates for these opportunities improved by 27%, with 76% of the resulting ASV coming from new business. The corporates, asset owners and institutional asset management client types were particularly strong. We are rolling out a new AI-powered sales enablement platform targeted at improving the quality of our sales pitches, increasing deal velocity and improving win rates. Q3 was the fourth consecutive quarter of double-digit growth in ASV for our data solutions with MCP contributing to the momentum. Over 90% of our top 50 clients are now using 4 or more FactSet AI solutions. And quarter-over-quarter, overall ASV growth among clients using our AI solutions was 50% higher than for the rest of the book, early evidence that our AI adoption is helping drive retention and expansion opportunities. The AI transition is also accelerating the shift of our business model from seat-linked contracts to flexible enterprise agreements. The majority of ASV renewed in Q3 was in the form of enterprise agreements or renewed for durations of 3 years or more. Average contract term extended by roughly 30%, while broadly preserving pricing, underscoring the foundational value attributed to FactSet by our clients as they adopt AI. Second, we are rolling out AI agents, streamlining operations and reducing complexity to generate sustainable productivity improvements. In engineering, coding-related token use grew 5x quarter-over-quarter, while committed lines of AI-written code grew almost 10x. Coding agents now author 27% of committed code. With these efficiency gains, we initiated a roughly 10% reduction in our technology workforce and freed up significant capacity to accelerate strategic product development. In data operations, where we have fully implemented new tools, we have reduced operator touch time for data table extraction by more than 50%. Within FactSet Fundamentals, we've consolidated multiple data pipelines into one, allowing us to redeploy significant capacity and reduce the size of this team by 5%. In client service, our digitization pilots have reduced the need for manual onboarding activities, enabling consultants to spend more time on strategic user health and retention. In Q3, approximately 4,000 bankers used our digital onboarding tools, and the capacity unlocked resulted in a 22% quarter-over-quarter increase in live user interactions by our consultants, helping drive a 5-point increase in Net Promoter Score among our junior banker population in Q3. Third, we are developing our strategy based on our strong foundation. We have launched our AI solutions under the banner of FactSet Intelligence, consisting of 3 layers. First, a trusted data ecosystem including FactSet, client and third-party data. Our MCP server has over 450 clients actively engaged under contracts and trials. API call volume is experiencing rapid growth with Q3 volumes at 13x the level we experienced in Q2. Clients can now access our data through all major frontier lab platforms including Anthropic, OpenAI, Google and Microsoft. We launched our Portfolio Analytics MCP just last week, bringing our signature Portfolio Analytics into agentic workflows. Second, governed and optimized agentic infrastructure. We already support millions of models and billions of formulas and data points across nearly 250,000 workstation users every day. Users can discover our agents, soon build, test and publish their own agents and integrate third-party agents, all while maintaining the security standards, data entitlements, audit logs and cost optimization that clients expect. Third, intelligent workflows for hybrid workforces. Through the partnership we announced with Finster in March, we have launched Capital Markets Intelligence — senior bankers can now send an e-mail to an agent describing what they need and receive insights and artifacts directly built on current FactSet data, comparable company analysis and deal precedents, automatically generated and delivered back. What used to take hours or days now happens in minutes. We are seeing strong early engagement with active or pipeline trials at over 30 of our top 100 banking clients. We will roll out similar capabilities to our buy-side and wealth clients with our Institutional Research Intelligence and Adviser Intelligence product suites. We announced strategic partnerships with InSync Analytics, Genios AI and TIFIN.AI to advance these capabilities. We also announced a strategic partnership with Google Cloud this week, expanding our distribution through Google Cloud's enterprise channels. The partnership will focus on enhancing FactSet's Workstation with Google's enterprise search, Deep Research API, Grounding and other multimodal capabilities; bringing financial intelligence directly into Gemini Enterprise and expanding our MCP and agent sharing functionalities; and developing a new generation of agents using the Gemini Enterprise Agent platform. As AI reshapes financial institutions, FactSet is becoming mission-critical AI infrastructure. We look forward to sharing our strategy and medium-term business plan at our upcoming Investor Day. I'd like to now welcome Josh Warren to FactSet. Congratulations, Josh, on your first earnings call as CFO of FactSet. He will now discuss our Q3 performance in more detail.

Joshua Warren: Thank you, Sanoke. It's great to be here with everyone this morning. Before getting into the financials, I want to take this opportunity to thank all the FactSetters who have made me feel so welcome since I joined in April. I would also like to specifically recognize Helen Shan, whose leadership over the last 8 years as CFO and Chief Revenue Officer has put FactSet on firm footing as we embark on a new chapter. This week marks the 30th anniversary of FactSet's IPO, and I'm excited to join the firm at this moment. As AI and agents reshape how information is sourced, synthesized and acted upon, FactSet is positioned for durable structural growth. Our ASV exceeded $2.48 billion at the close of fiscal Q3, representing 7.1% organic growth, an acceleration by more than 250 basis points over the comparable growth rate in 2025. Revenue was $622.9 million, representing 6.4% growth over the previous year. Adjusted operating income was $211.8 million, representing a 34% margin, down approximately 300 basis points relative to the comparable quarter in 2025 due to targeted investments to improve operating leverage, marketing and performance-related compensation linked to ASV momentum. Adjusted EPS grew 6.1% to $4.53. FactSet serves clients across over 80 countries, including 95 of the top 100 asset managers, more than 85% of the top 50 global investment banks and the world's top wealth managers, corporations, exchanges, central banks and sovereign wealth funds. With an average client relationship spanning more than 16 years and 9 of our top 10 clients by ASV having been with us for more than 2 decades, we grow with our clients and our longest-standing relationships have some of the most exciting opportunities for growth. ASV retention rates above 95% reflect the strength of our client relationships. Today, most of our recurring revenue comes from fixed subscription and license revenue. A growing portion of our recurring revenue streams are driven by initiatives that are activity based. We are seeing more client interest in consumption-oriented pricing, particularly for emerging AI-enabled offerings. These revenue streams introduce a dynamic and growth-oriented dimension to ASV forecasting that complements the traditional subscription base. As our delivery model evolves, we expect to review our approach to reporting to preserve transparency and alignment with our go-forward strategy. Organic ASV accelerated to 7.1% year-over-year, an increase of $35 million during the quarter, FactSet's highest ASV growth rate since Q1 2024. Growth was evident across all regions and client types. Americas grew 7%, EMEA grew 5%, and Asia Pacific, our fastest-growing region, grew 10%. By client type — the institutional buy side accelerated to 6% organic ASV growth, representing slightly less than half of our overall ASV. Wealth remains our fastest-growing category and delivered 10% organic ASV growth. Organic ASV for Dealmakers grew 9%, representing nearly 40% of clients and less than 20% of ASV. Our market infrastructure category saw organic ASV grow 7%. Third quarter revenues grew 6.4% year-over-year or 7% on a like-for-like basis. Adjusted operating margin was 34% for the quarter, compared to 35% in Q2 and nearly 37% a year ago, reflecting deliberate investments expected to deliver growth and operating leverage over time. Compensation-related expenses typically account for approximately 60% of our total cost base. Our Q3 margin reflects a 7% year-over-year increase in compensation-related expenses driven by performance incentives linked to ASV acceleration, not additional headcount. Despite increased overall compensation expense during Q3, FactSet reduced its overall headcount by approximately 1%. While compensation-related expenses accounted for approximately 40% of the increase in operating expenses, the majority of the year-over-year growth came from noncompensation items tied to growth and productivity initiatives. More than 1/3 of that noncompensation expense increase was technology spending, including strengthening core infrastructure and token costs. Margin this quarter was also negatively impacted by our FX hedging program going from a gain in Q3 2025 to a loss in Q3 2026, creating an overall drag of approximately 60 basis points. Adjusted EPS increased 6% year-over-year to $4.53. We've launched a range of strategic projects aimed at running FactSet with greater discipline and efficiency. We recently rightsized certain engineering teams as we standardize how we build and run software and take advantage of AI-assisted coding. Additionally, we entered into an arrangement with RepRisk to support our clients' needs as we discontinued the Signals attribution service following the 2020 acquisition of Truvalue Labs. We are continuing to review our product portfolio against appropriate hurdle rates. Free cash flow grew to $254 million for the third quarter of fiscal 2026 compared with $228 million for the prior period, an increase of 11%. During Q3, we accelerated our repurchase activity, buying back approximately 926,000 shares for $203 million. Fiscal year-to-date, we've deployed over $500 million to repurchase shares. Additionally, we increased our quarterly dividend for the 27th consecutive year. In total during fiscal 2026 year-to-date, we have returned over $625 million to shareholders, approximately double the amount returned over the same period last year. Our balance sheet continues to strengthen with gross debt leverage at 1.5x and net debt leverage at 1.2x. Fitch reaffirmed our investment-grade rating with a stable outlook this quarter. On our outlook — we remain confident in the guidance ranges previously set for ASV, revenue, operating margin and EPS. On revenue and EPS in particular, we are tracking toward the high end of those ranges based on our business trajectory. Our focus remains firmly on delivering long-term value for our clients and shareholders. With that, I'll hand it to the operator to open the line for questions.

Operator: Our first question comes from the line of Ashish Sabadra with RBC Capital Markets.

Ashish Sabadra: Really strong momentum on ASV and it seems pretty broad-based. But the guidance implies a moderation in the fourth quarter. Is that just conservatism and tougher comps, or are there any puts and takes you could flag?

Sanoke Viswanathan: Thanks, Ashish. The momentum continues into Q4. Just a month into the quarter, we see continued momentum. We continue to see a strong diverse pipeline across regions and across all different client types, maintaining the growth trajectory that we've seen. It is a tough compare — Q4 of last year was our largest quarter ever. But as we stand today, at the end of June, early July, we are ahead of last year in terms of our bookings, and we see a pipeline as robust as we saw at this time last year. AI is a tailwind for us. In terms of reaffirming guidance, we don't change guidance quarter-to-quarter, and there is a lot to execute ahead of us. There are multiple 7-figure deals outstanding. There are also tons of mid-market deals, which we are actually quite excited about because they are faster to close. AI is very dynamic. So we are reaffirming the guidance and are very confident in our delivery.

Operator: Our next question comes from the line of Faiza Alwy with Deutsche Bank.

Faiza Alwy: I wanted to talk more about your AI monetization strategy. Thanks for the detail — 90% of your top 50 clients use 4-plus AI products and 50% faster ASV growth. Can you give context around the monetization? Is it a direct price for AI usage, access to more data sets? You also talked about clients consolidating their AI workflows with you. Are you agnostic as to whether they're using your MCPs or your specific tools inside FactSet workstation?

Sanoke Viswanathan: Lots of questions in there. Let me start with the short-term picture on AI monetization and then transition to how we see this in the longer term. At the moment, we are maximizing our AI monetization with a lens of maximizing enterprise value — it's all leading to the growth acceleration in ASV, increased retention and expansion in existing clients. Just in this quarter, over 10% of the ASV growth came directly from AI SKUs, and there was a much bigger impact in the broader ASV growth as well. One of the top 10 banks literally doubled their data subscriptions with us because of AI — multiyear contracts. A top hedge fund grew 6x with us because of our MCP delivery. Over 20% of our top 100 clients are using MCP on a paid basis. When we think longer term, we are really now starting to see our moats in evidence — it's no longer a theory. We have a strong moat in our connected data and in our embedded workflows. We see this as a leapfrog moment for us on a stable subscription base. Our whole data solutions business — historically delivering standard data feeds, APIs and sharing on environments like Snowflake and Databricks — is perfectly set up for this. We are able to flex all of this into commercial agreements that are not just seat linked, but are true enterprise agreements with a stable, large subscription base and a flexible construct on top to capture upside from consumption in the future. The momentum is picking up.

Operator: Our next question comes from the line of Alex Kramm with UBS.

Alex Kramm: I need to switch over to margins for a second. Previously you made comments about hoping to get somewhat close to the midpoint of your adjusted operating margin guide. With some of the things we've done, like that FX hedge which was a bit onetime, is that still what you're shooting for? And I know you're not giving guidance for next year, but maybe remind us which items this year are somewhat onetime-ish, like professional services and some infrastructure investments you had tagged for this year, and dimensionalize those.

Sanoke Viswanathan: As you noted, we came in at 34% adjusted operating margin this quarter, reflecting a combination of things — the strong investments we've been making throughout the year, which are second half weighted, and the performance incentives we are accruing given the ASV outperformance. We're very happy with the pace of the investments and we are seeing really strong progress on both growth-oriented and foundational investments, both of which we see starting to deliver operating leverage. We don't manage to a quarterly margin and don't guide to a quarterly margin, but we see significant acceleration in AI and continued opportunities for investment. With all that said, we see a clear line of sight now on margin improvement coming in future quarters. We are still clearly focused on the midpoint of the guide for this year. I'll ask Josh to build on that.

Joshua Warren: The biggest single dynamic in the quarter is timing, specifically around pay-for-performance arrangements, not headcount growth. Compensation-related expenses was the single biggest item in terms of our increased expenses. Technology spending is our second biggest category — a combination of our increased focus on core infrastructure, cybersecurity, ITDR and also token spending. Sanoke mentioned some of the return we're seeing on our token spending. There is also a series of other initiatives — increased marketing spending, professional services arrangements. But looking forward, we see a clear path to expanding our margins and the momentum we see in the business will position us well both on the top line and on our margins.

Operator: Our next question comes from the line of Kelsey Zhu with Autonomous.

Kelsey Zhu: Welcome to the call, Josh. A lot of info services companies have talked about AI implementation driving accelerated data demand. Can you talk more about FactSet's strategy to monetize on this trend, both near term and long term? And how should we think about incremental revenue opportunities from MCP, especially around the expansion of new user personas?

Sanoke Viswanathan: The short-term monetization we see is an acceleration in our ASV growth. MCP is a real accelerant — we see whenever there are deals with an MCP component, more often than not, in about 90% of cases, we've seen contract value improvements. At the moment, it's playing out in the overall broad ASV acceleration. As we go along, we are going to see more and more discrete AI SKUs — more than 10% of the ASV this quarter came from that, up from virtually 0 last year. On new user personas — around 20% of the users of our endpoints in both MCP trials and paid implementations are net new users, whether in existing clients or new clients. These are new workflows and new workloads coming on thanks to our ability to deliver data to new AI workloads. We are also available on all the different frontier lab marketplaces as first-class data connectors, enabling easy discovery and connectivity. An important and key indicator for us is how this translates into broader growth and product penetration — whenever there is AI consumption through MCP, it is actually leading to an upsizing of our existing products, whether workstations, APIs or other standard data feeds. There is a multiplier effect on the existing business. We spoke about the AI flywheel effect a couple of quarters ago — it is still very early stages, but we are starting to see that in action.

Operator: Our next question comes from the line of Manav Patnaik with Barclays.

Manav Patnaik: I wanted to understand the partnership strategy and maybe part of broader capital allocation as well. I understand all the frontier lab partnerships, but with all these other partners announced, are these a step 1 into potentially making some of these into deals?

Sanoke Viswanathan: It's a deliberate strategy, consistent with how we've thought about our network and ecosystem historically. We've always been open architecture, and any M&A we've done, we've had a history of connecting it with partners we've already worked with where there's a clear understanding of the value creation potential. In this cycle, we're very focused on 3 things that connect back to FactSet Intelligence. At the data layer, there are a number of initiatives to help clients advance their data meshes and build enterprise knowledge graphs, requiring us to partner with firms like Snowflake and Databricks. At the agentic workflow layer, some of the recently announced partnerships help us accelerate the agentic workflows we are building for specific user personas. The Google partnership cuts across the whole stack — we infuse Gemini throughout the FactSet workstation, get early releases of the most advanced frontier models, preferential token pricing, better infrastructure and joint product development and innovation. The idea is we are accelerating product development, being very prudent in our capital allocation, and working actively to ensure we are leading the market as our clients make this AI transition. Josh, do you want to comment on capital allocation?

Joshua Warren: We're very focused on operational execution, and our capital allocation framework provides a road map to value creation. Specifically, that means prioritizing the investments that offer the highest risk-adjusted returns — investing in growth means building out the products and solutions that we deliver to our clients. Beyond that, we consider all excess uses of free cash flow, whether buybacks, dividends or M&A. On our acquisition philosophy, we intend to be very surgical. Because of FactSet's open architecture approach and our rich ecosystem, a lot of our inorganic activity we expect to be derisked — we are already likely having a technology integration or client integration with a particular partner. So you should expect a pipeline that flows from a lot of the day-to-day execution activity we are engaged in.

Operator: Our next question comes from the line of Shlomo Rosenbaum with Stifel.

Shlomo Rosenbaum: I want to ask about the commentary that Q3 '26 renewals extended the length of contracts by 30% on average. Are you trading anything like price to get the extended term? With the evolving monetization model, is there any risk of locking yourself into something that might not be ideal a couple of years down the line? And clients going out that far given how quickly models are evolving — might you have to open up these contracts later? And Josh, welcome — I noted you're not reporting client count, user count and employee count. Is that just less relevant as you've assessed the metrics driving the business?

Joshua Warren: In terms of client count and user count — more than happy to share, our user count is up 12% year-over-year, and you should expect to see those numbers in our Q that we are filing likely after market today. We're committed to transparency and giving you the metrics that matter. User count tends to be in the long tail and not really flow through to the revenue or profitability that impacts the return we provide.

Sanoke Viswanathan: The operative word between us and our clients is flexibility, because it is an uncertain future — clients are unclear about where their own consumption will be. At the same time, there is a high degree of trust working with us, and we've been able to parlay that into structuring these contracts. The contracts are all value-based and any price improvement is based on the value we deliver. I can definitely confirm we are not taking any price compression in return for contract extensions. We have a lot of new functionality, new data sets we are launching, and we are delivering through more and more new channels. In an AI world right now, there is a lot of value that clients are placing on that. There is a large subscription base to these contracts, and there are provisions for new consumption patterns in terms of diversity of data sets or increased volume tiers. We feel pretty good about this transition. It is still early days and we'll keep you updated in future quarters.

Operator: Our next question comes from the line of Surinder Thind with Jefferies.

Surinder Thind: Can you discuss the commentary on the review of the product portfolio? How expansive is it, and where does M&A fit into that strategy?

Sanoke Viswanathan: On the AI stack, we see us playing across the full stack and positioning ourselves as the AI infrastructure for institutional finance. We see our capabilities in data concordance, the quality of the data we deliver and our ability to integrate with internal and third-party data as world-class and as an essential ingredient as clients build enterprise knowledge graphs. The workstation we view as a container with capabilities desired in this AI world — trusted infrastructure, trusted data positioned to support new agentic workloads, the right entitlements, the right model libraries, the right security standards. The user interface itself may very well adapt, and we are actively adapting it into a more agentic infrastructure and agentic user interface fully infused with the best AI capabilities. As clients explore and experiment with lots of horizontal and vertical AIs, they are starting to come back and consolidate on our own agentic infrastructure. On the broader data and analytics product axis — we are continuing to invest and grow. This is a big driver of our growth in fixed income analytics, performance analytics and portfolio analytics capabilities now also being brought to the front office where we are winning and taking market share from incumbents. We are extending capabilities in private capital, where our private market data sets are some of the fastest-growing SKUs. We're continuing to invest in Deep Sector data as well as in real-time, pricing and reference data capabilities.

Operator: Our next question comes from the line of Toni Kaplan with Morgan Stanley.

Yehuda Silverman: This is Yehuda Silverman on for Toni. Just had a quick question on the payback period. You previously mentioned 3 years for some of the heavier investments. Is there any difference in the payback period around the more recent AI-related investments, and where do we currently stand on the timeline for some of the investments made over past quarters and years?

Sanoke Viswanathan: Two things. We are making investments in a number of different areas. There are investments in improving our sales productivity, our tooling, our marketing capabilities and our website — these are very fast payback initiatives that pay back in a matter of months. Then there are structural investments deep in the core infrastructure of the company, which generally tend to take longer, but we still believe they are well in line with what we've said before.

Operator: Our next question comes from the line of Andrew Nicholas with William Blair.

Andrew Nicholas: I'm curious how you think about any differences in the opportunity, pace of adoption and right to win within wealth. The TIFIN.AI partnership is part of that answer, I imagine. Josh, given your background, do you have any additional insights on market positioning?

Sanoke Viswanathan: We are seeing differences in the trends. Institutional progress is very related to the stack we talked about earlier. In wealth and the broader consumer finance market, there is an exciting opportunity both to power up the adviser experience, which is going through a transformation, and to directly serve the end customer's experience, especially in wealth management. One of the largest business problems for advisers is how to stay on top of customer portfolios, market events and all the analytics associated with them in order to deliver high-quality experiences and improve their coverage ratios. This is precisely where the TIFIN agents will help — we can marry that with our market data signals, internal data, internal research and deliver high-quality adviser experiences.

Joshua Warren: Clients are in different stages of evolution. Every sector is in a different stage. Across the board, whether it's wealth, sell side or buy side, what we're seeing is people are starting to recognize that as more work shifts from humans to agents, the quality of the output depends on the quality of the data going in. That creates a real opportunity for FactSet to play a significant role.

Operator: Our next question comes from the line of George Tong with Goldman Sachs.

Keen Fai Tong: Can you unpack the contribution of pricing to organic ASV growth this quarter? And how much is coming from realized pricing increases versus seat expansion, product mix or broader workflow adoption as you roll out your AI capabilities?

Sanoke Viswanathan: Price increases we view in the context of value increase for our clients — our real focus is on retention and expansion of our existing enterprise client base, not just inflationary price increases. That said, our price increase this quarter was better than what we were able to achieve at the same quarter last year, and that just reflects the continued increase in value and flexibility we are delivering to our clients.

Operator: Our next question comes from the line of Jason Haas with Wells Fargo.

Jason Haas: I wanted to circle back to the implied margin cadence for the rest of the year. Modeling to the midpoint of guidance, I'm getting about flat year-over-year adjusted operating margins versus down over 250 basis points in fiscal 3Q. Was there a pull forward of compensation expense from Q4 into Q3? Or is it because you did the headcount reduction so now the run rate of expenses is lower?

Sanoke Viswanathan: We have a big quarter ahead of us and continue to see strong ASV growth and a lot of momentum. What we have left ourselves in terms of flexibility in the margin range is that if we continue to outperform on our ASV delivery and want to pay for performance, we are retaining the flexibility in the margin range.

Operator: Our next question comes from the line of Curtis Nagle with Bank of America.

Curtis Nagle: Maybe just talk about the impact of higher token costs on margin in the quarter. You mentioned an expectation to get higher returns on that spend, and the Google partnership might help. Can you unpack that a little more?

Joshua Warren: Tokens are interesting in that they were not a line item we really thought about in 2025 — all of the token spending is net new. But we treat tokens like any other resource. We have a series of operational controls around monitoring them — there's a whole regime around developer training, intelligent model routing, using the right tool for the right job, budgeting. Sanoke mentioned the ROI we're seeing on tokens. We are very pleased to be growing our investment in them.

Operator: I would now like to hand the call back over to Sanoke Viswanathan for closing remarks.

Sanoke Viswanathan: Thank you, operator, and thank you all for joining us today. Accelerating ASV growth, strengthening commercial performance and measurable productivity gains are positioning us well for the remainder of the year and beyond. Before I close, I want to thank every FactSetter for their continued focus and commitment to delivering for our clients. We are executing from a position of strength, and we look forward to updating you on our progress next quarter. Operator, this concludes today's call.

Operator: Thank you. This concludes today's conference. Thank you for your participation. You may now disconnect.