Jason Haas

Jason Haas inquired about the slowdown in legal recurring growth from Q3 to Q4 and the expected government headwinds for Legal Professionals in 2026. He also asked about the competitive moat protecting Westlaw and Practical Law from replication by AI tools.

Answer

CFO Mike Eastwood attributed the legal recurring growth slowdown to the government business, expecting slower government growth in Q1 2026 but reaffirming 8-9% for full-year Legal Professionals. Head of Investor Relations Gary Bisbee noted a shift from recurring to transactional growth within the government segment. CEO Steve Hasker explained the Westlaw and Practical Law moat, citing decades of proprietary, curated content, thousands of attorney editors providing deep domain expertise, and the inability of general-purpose AI to meet professional-grade standards. He highlighted Westlaw Advantage's success as proof of their differentiated AI solutions.

Jason Haas inquired about the slowdown in legal recurring revenue growth from Q3 to Q4 and the anticipated government headwinds for 2026. He also asked about the competitive moat protecting Westlaw and Practical Law from replication by AI tools.

Answer

CFO Mike Eastwood attributed the legal recurring growth slowdown to the government business, noting expected slower government growth in Q1 2026 due to cancellations, but reaffirmed confidence in 8%-9% legal professionals growth for full-year 2026. Head of Investor Relations Gary Bisbee added that strong transactional growth in Legal was partly government-driven, indicating a shift. CEO Steve Hasker emphasized that Thomson Reuters has not seen changes in competitive dynamics in core franchises, highlighting proprietary content, deep domain expertise, and the proven differentiation of Westlaw Advantage as a 'professional-grade AI' solution that general-purpose models cannot match.

Jason Haas asked for clarification on the comment about incremental competition in the AI assistance space, and inquired about the deceleration of organic revenue growth in the tax and accounting business from 11% to 10%, and confidence in accelerating to 11%-13% in 2026.

Answer

CEO Steve Hasker clarified that new competition is in the 'white space' AI assistance area, where Co-Counsel operates, not in core franchises like legal research or tax engines. He expressed confidence in Co-Counsel's market position and aggressive product development. CFO Mike Eastwood acknowledged quarter-by-quarter fluctuations in tax and accounting but reaffirmed confidence in achieving 11% for 2025 and 11%-13% for 2026, citing strong performance from SafeSend, Materia, Latin America business, and UltraTax. Steve Hasker added that the healthy end market and talent shortages make customers receptive to AI tools like Ready to Review and Ready to Advise, supporting future growth.

Jason Haas asked for clarification on the 'incremental competition in the AI assistance space' comment and about the deceleration of tax and accounting organic revenue growth, and confidence in accelerating to 11%-13% in 2026.

Answer

CEO Steve Hasker clarified that new competition is in the 'AI assistance space,' a white-space opportunity where Co-Counsel is a market leader, with no additional competition in core franchises. CFO Mike Eastwood noted quarter-by-quarter fluctuations in tax and accounting but expressed strong confidence in achieving 11% for 2025 and 11%-13% for 2026, driven by acquisitions like SafeSend and Materia, Latin America business, and new products like Ready to Review and Ready to Advise.

Jason Haas of Wells Fargo inquired about the expected price increase for customers upgrading from Westlaw Precision to the new Westlaw Advantage tier. He also asked how the size and growth of CoCounsel compares to competitors like Harvey, which recently disclosed $100 million in ARR.

Answer

CFO Michael Eastwood explained that the pricing for new commercial packages will involve a premium at the initial sale combined with higher price increases in subsequent years, giving them confidence in sustained acceleration. He declined to disclose specific revenue figures for CoCounsel but stated that the company is 'very, very pleased' with its progress across the total business.

Jason Haas from Wells Fargo asked what is driving the implied acceleration in organic growth for the remainder of the year and if there are further opportunities for GenAI licensing revenue in the Reuters News segment.

Answer

CFO Mike Eastwood attributed the expected acceleration to strong Q1 net sales and bookings, the scaling of recent acquisitions, and a robust product roadmap. Regarding Reuters, Eastwood stated that while additional GenAI licensing deals are possible, none are currently included in the company's forecast or guidance, and updates will be provided if any materialize.

Jason Haas asked about Equifax's philosophy on pricing the credit file, particularly for mortgage, for 2026 and beyond. He also inquired about the drivers behind the strength in the Talent Solutions business despite a soft hiring market, and its expected future trend.

Answer

Mark Begor, Chief Executive Officer, stated that Equifax implements modest, reasonable price increases annually across all products, contrasting this with FICO's dramatic price increases and emphasizing Equifax's balanced approach. John Gamble, Chief Financial Officer, added that modest credit file price increases were accompanied by richer data (Twin Indicator, NCTUE). For Talent Solutions, Mr. Begor attributed its strong performance (mid- to high single-digit growth versus a declining BLS) to continued penetration with income-based products, expansion of education and incarceration products, and the team's ability to build penetration and expand offerings in a challenging market.

Jason Haas inquired about Equifax's philosophy on pricing the credit file, particularly for mortgage, for 2026 and beyond. He also asked what drove the strength in the Talent Solutions business despite a soft hiring market and its expected future trend.

Answer

CEO Mark Begor stated that Equifax implements modest, reasonable annual price increases across all products, contrasting this with FICO's dramatic price hikes. For Talent Solutions, Begor attributed its outperformance to continued penetration with income-based products, expansion of education and incarceration products, and the team's ability to build penetration and expand offerings in a challenging market, resulting in mid-to-high single-digit growth against a declining BLS hiring market.

Jason Haas inquired about the market reception for the new TWIN indicator product for mortgage, the adoption timeline, and the outlook for EWS margins, which are guided to decline year-over-year.

Answer

CEO Mark Begor described the reception for the TWIN indicator as 'super positive' in its first 60 days, enhancing the mortgage shopping process without cannibalizing full verifications. Regarding EWS margins, CFO John Gamble stated that while impacted by the weak mortgage market, they are expected to remain strong at over 50% and are strengthening sequentially, which they are happy with given market conditions.

Jason Haas asked about the talent verification outperformance in Q4, the reasons for the step-down in implied USIS mortgage outperformance in 2025, and the impact of supplier price increases.

Answer

CFO John Gamble stated talent outperformance was 8 points in Q4, impacted by pricing cadence. He explained the lower 2025 mortgage outperformance is due to lapping a year of massive growth in newer pre-qual products. He also noted the dollar impact from the supplier price increase is expected to be similar to 2024.

Jason Haas from Wells Fargo asked for insight into which industries were experiencing the hiring slowdown affecting talent verifications and whether there was any increase in competition. He also questioned when the gap between EWS and USIS mortgage inquiry volumes might close.

Answer

CEO Mark Begor and CFO John Gamble clarified the hiring slowdown was concentrated in white-collar roles rather than specific industries and affirmed they have not seen any change in competitive share. Regarding the mortgage inquiry gap, they explained that it is not expected to converge. This is due to the fundamental nature of the mortgage process, where consumers shop for rates, leading to multiple credit pulls (USIS) for every one or two income and employment verifications (EWS) per closed loan.

Jason Haas asked about internal improvements to institutionalize processes for analysts to collect proprietary insights from customers, specifically how Gartner leverages its "treasure trove of data" and if there's a structured process beyond informal questioning.

Answer

CEO Gene Hall confirmed that this is a core part of the BTI transformation. He explained that Gartner has developed sophisticated systems, including a neural network AI model, to aggregate data from hundreds of thousands of client and vendor conversations, peer interactions, and proprietary surveys. This system helps identify trending topics in real-time and provides relevant assets to analysts, moving beyond informal methods to ensure analysts write on the most impactful topics with the best available information.

Jason Haas inquired about changes to institutionalize processes for analysts to collect proprietary insights from customers, leveraging the extensive data collected.

Answer

CEO Gene Hall confirmed this is a core part of the BTI transformation. He detailed the use of sophisticated systems, including a neural network AI model, to aggregate data from client conversations, vendor interactions, peer interactions, and surveys. This technology helps analysts focus on trending topics and access relevant assets to produce insightful research, moving beyond informal methods.

Jason Haas asked if the use of Ask Gartner is changing the types of reports clients consume and if Gartner plans to change how analysts write reports. He also inquired about the strategic thinking and plans to re-accelerate the non-subscription business, which was moved to the 'other' segment.

Answer

Craig Safian (CFO, Gartner) clarified that Ask Gartner is driving more content usage, not different readership, which is linked to higher retention. He noted that Gartner continuously fine-tunes content structure and topics based on client consumption. Gene Hall (Chairman and CEO, Gartner) explained that the non-subscription business (digital markets) helps small businesses identify software and connects vendors with best-fit clients, adding value to both.

Jason Haas inquired whether the use of AskGartner is changing the types of reports clients consume and if Gartner plans to adapt how analysts write reports. He also asked for strategic insights into the non-subscription business, now reported in the 'other' segment, and plans for its re-acceleration.

Answer

CFO Craig Safian clarified that AskGartner is increasing overall client usage and engagement with content, which is expected to boost retention, rather than altering the specific types of content consumed. He added that Gartner continuously fine-tunes content structure and topics based on client preferences. Chairman and CEO Gene Hall described the non-subscription business (digital markets) as a service that helps small businesses identify suitable software and connects technology vendors with appropriate end-users, providing significant value to both segments.

Jason Haas asked for the percentage of customers not utilizing the full value of their subscription and the percentage of cancellations that cite publicly available large language models as the reason.

Answer

CEO & Chairman Eugene Hall explained that many clients don't use the full suite of high-value services they are entitled to, such as peer networking, simply due to a lack of awareness, which a new training initiative aims to fix. He stated definitively that the number of cancellations citing public LLMs as a reason is 'not material' and 'essentially unmeasurable.'

Jason Haas asked for the reasoning behind reducing the GBS quota-bearing headcount growth guidance to mid-single digits and inquired about plans to roll out an AI-driven chat functionality for customers.

Answer

CFO Craig Safian attributed the headcount adjustment to the impact on the GBS federal business and the broader macro environment, aligning costs with growth expectations. CEO Gene Hall confirmed they are using an internal AI tool and plan a client release only after ensuring it is 'bulletproof' and free of issues like hallucinations.

Jason Haas asked for more color on the drivers behind improved GTS productivity, especially given the increase in headcount. He also sought clarification on whether the Q4 CV growth rate of 7.8% is expected to be the trough for the year.

Answer

Executive Eugene Hall attributed the productivity gains to fundamental execution improvements in recruiting, training, and sales tools. CFO Craig Safian clarified that while the CV growth rate may not increase in a perfectly straight line, the expectation is that the company will exit 2025 with a CV growth rate higher than the 7.8% reported in Q4, with a goal of returning to double-digit growth.

Jason Haas asked for clarification on the full-year outlook for non-subscription revenue, noting it implied a steep Q4 decline. He also asked about the time it takes for new sales hires to reach full productivity.

Answer

CFO Craig Safian confirmed the full-year non-subscription revenue forecast remains about $305 million, acknowledging the math implies a significant Q4 decline. CEO Gene Hall stated that it takes three years for a new salesperson to reach full productivity, positioning current hiring as a long-term investment for 2025 through 2027.

Jason Haas inquired about the timeline and potential structure of the LLPA grids. He also raised concerns from lenders regarding FICO Direct, specifically about resellers improperly calculating scores, and the performance model, concerning how regulators might view passing fees to consumers.

Answer

CEO Will Lansing stated that the timeline for LLPA grids is unknown due to significant challenges with gaming and adverse selection. He addressed concerns about FICO Direct, assuring that scores calculated by resellers will be identical to those from bureaus, with testing underway to build confidence. Regarding the performance model, Will Lansing reiterated that it is an optional approach, and lenders not preferring it can continue with a per-unit price.

Jason Haas from Wells Fargo asked about the timeline for the release of LLPA grids and their potential structure. He also raised concerns from lenders regarding FICO Direct, specifically about resellers improperly calculating scores and legal responsibility, and concerns about regulators' views on passing performance fees to consumers for the performance model.

Answer

Will Lansing, CEO, stated that the timeline for LLPA grids is unknown due to significant challenges with gaming and adverse selection. Addressing FICO Direct concerns, Mr. Lansing clarified that scores calculated by resellers use the same algorithm, technology, and data as bureaus, making miscalculation concerns misplaced, with testing underway to ensure confidence. He added that the performance model is optional, offering flexibility, and those who prefer not to use it can continue with a per-unit price. Steve Weber, CFO, noted the revenue model is relatively agnostic.

Jason Haas asked about FICO's long-term outlook on price increases for fiscal 2027 and beyond, and if the direct model changes the pricing runway.

Answer

CEO Will Lansing stated that FICO does not share future pricing details but emphasized that a large value gap still exists between FICO's charges and the value provided. He reiterated FICO's mission to predictably and methodically close this gap without creating dislocations, confirming that the value gap persists and will be addressed in coming years.

Jason Haas asked about FICO's long-term strategy for price increases beyond fiscal 2026 and whether the new direct licensing model changes the pricing runway.

Answer

CEO Will Lansing stated that FICO does not share future pricing details but emphasized a continued mission to close the "value gap" between FICO's charges and the score's value. He reiterated a commitment to predictable, methodical price adjustments without major dislocations, confirming the value gap still exists and will be addressed in coming years.

Jason Haas of Wells Fargo asked whether any lenders have started moving to VantageScore following the FHFA announcement and questioned if FICO's mortgage score pricing strategy has changed.

Answer

CEO Will Lansing stated FICO is unaware of any lenders moving to VantageScore, citing significant technological and modeling challenges for such a switch. He added that while no pricing decisions have been made, FICO still believes a significant value gap exists and will continue its predictable approach to closing it.

Jason Haas from Wells Fargo asked for the magnitude of the price increase in the auto originations business to better understand the mix of volume versus price growth. He also questioned if the moderation in personnel expense growth was due to timing or efficiency gains.

Answer

CEO Will Lansing and CFO Steve Weber confirmed a price increase was a component of the revenue growth but declined to specify the exact percentage split versus volume. Weber explained the moderation in personnel expense was not headcount-related but due to timing on fringe costs and a supplemental retirement plan true-up, which created a temporary benefit.

Jason Haas from Wells Fargo asked for the size of the price increase in auto scores to understand the volume versus price impact and inquired about the moderation in personnel expense growth.

Answer

CEO Will Lansing and CFO Steve Weber confirmed a price increase was implemented but declined to quantify it or provide a price/volume breakdown. Weber explained that the moderation in personnel expense was not due to headcount but to temporary factors like fringe benefit costs and a retirement plan true-up.

Inquired about how Q1 results compared to internal expectations, whether the full-year guidance is now less conservative, and if there is any observed price elasticity from new mortgage and auto score pricing.

Answer

The quarter came in as planned, consistent with their conservative internal forecast for interest rates, so the guidance remains unchanged. Management has socialized new pricing for 2025 and has not seen any price elasticity so far.

Jason Haas of Wells Fargo asked about the analysis that led to the specific $4.95 mortgage score price and the rationale for non-mortgage pricing. He also questioned the slight decline in the non-platform software business.

Answer

CEO William Lansing explained that pricing decisions are not formulaic but are based on a variety of factors, including market conditions, volumes, and a commitment to fair value. Regarding the non-platform business, Mr. Lansing stated the fluctuation was simply due to customer usage volumes and reiterated FICO's strategy of supporting these legacy products for the long term rather than forcing migration, leading to stable but not high-growth performance.

Jason Haas asked for a breakdown of the drivers behind the strength in index recurring subscription revenue outside of asset managers, seeking a stack ranking of these drivers and confidence in their continuation.

Answer

Andy Wiechmann, CFO of MSCI, attributed the strength to the investment industry's shift towards personalization and customization, with indexes serving as an efficient mechanism. He highlighted hedge funds (19% growth in Q4) and broker-dealers (10% growth in Q4) as top growth segments, driven by demand for content and trading ecosystem opportunities. For asset managers/owners, growth stems from licensing more content across their organizations and use cases, fueled by custom outcomes and new tools like Basket Builder.

Jason Haas from Wells Fargo asked for clarification on the drivers behind the strength in index recurring subscription revenue outside of asset managers, seeking a stack rank of these drivers and confidence in their continuation.

Answer

Andy Wiechmann, CFO of MSCI, attributed the strength to the investment industry's move towards personalization and customization, with indexes serving as efficient mechanisms for specific investment views. He highlighted hedge funds (19% growth in Q4) and broker-dealers (10% growth in Q4) as highest-growth segments, driven by demand for content to understand markets, navigate opportunities, and develop index-linked products. Asset managers and asset owners also show strong growth (8% each) by licensing more content for diverse use cases. He emphasized the role of custom outcomes and new capabilities like Basket Builder.

Jason Haas inquired about the timeline for product improvements to translate into net new sales and when AI benefits and efficiencies are expected to show up in improved margins.

Answer

Andy Wiechmann, Chief Financial Officer, MSCI, noted that the financial model moves smoothly, with strong momentum in new product releases already impacting sales, citing approximately $25 million in sales year-to-date from recently released products, including $16 million from Index. He expects this acceleration to be a significant future growth driver. Regarding AI's financial impact, he stated it enhances MSCI's profile by increasing operating leverage and productivity, enabling more investment in growth while maintaining attractive profitability. Henry Fernandez, Chairman and CEO, MSCI, added that the goal is to push operating leverage higher, maintain profit margins, and free up resources for investment in high-growth areas without reducing profitability.

Jason Haas inquired about the timeline for new product improvements to impact net new sales and for AI-driven efficiencies to show up in improved margins.

Answer

Andy Wiechmann (CFO, MSCI) indicated that new product releases are already impacting sales, with approximately $25 million in year-to-date sales from recently launched products ($16 million from index). He expects this acceleration to be a significant future growth driver. Regarding AI, he reiterated that it enhances MSCI's financial profile by increasing operating leverage, productivity, and scale, allowing for continued investment in growth and attractive profitability without reducing margins. Henry Fernandez (Chairman and CEO, MSCI) added that AI will free up resources to invest in growth areas without impacting profit margins.

Jason Haas asked why first-quarter EBITDA expenses came in below expectations.

Answer

Chief Financial Officer Andrew Wiechmann attributed the result to the timing and magnitude of lumpy expenses typical in Q1, primarily related to compensation and benefits. He reiterated that the full-year expense guidance remains unchanged and that Q1 expenses were on the expected trajectory to meet that guidance.

Jason Haas asked why MSCI did not raise its full-year expense guidance range, given that higher AUM levels would likely push spending towards the high end.

Answer

CFO Andrew Wiechmann confirmed that expenses are likely to be at the higher end of the current range, reflecting increased investment in key growth areas like private markets and AI. He explained that the company is constantly balancing long-term investment with profitability growth, and that there can be a lag in deploying new investments, making a guidance raise premature.

Jason Haas inquired about the timing and future impact of tariff costs, industry reactions, and Cintas's pricing strategy. He also asked about the timing of SAP S/4HANA implementation costs and expected margin headwinds for the Fire Protection business in the second half.

Answer

Todd Schneider, President and CEO, explained that Cintas actively mitigates tariff impacts through supply chain optionality and efficiency, rather than simply passing costs, due to the competitive market and a long-term pricing approach focused on volume growth. He confirmed ongoing SAP S/4HANA implementation costs, with more expected in the future, particularly for the Fire business, which is also undergoing geographic expansion through M&A. Scott Garula, Executive Vice President and Chief Financial Officer, clarified that the Fire rollout extends into fiscal year 2027, with an estimated 100 basis point impact for that fiscal year.

Jason Haas sought details on the timing of tariff costs flowing through the P&L, industry reaction, and Cintas's pricing strategies, and inquired about the timing and expected margin headwind from SAP S/4HANA implementation costs in the second half and next fiscal year.

Answer

President and CEO Todd Schneider explained that Cintas actively mitigates tariff impacts through supply chain flexibility and efficiency improvements, rather than simply passing costs. He reiterated a long-term pricing approach focused on volume growth and value, not just price increases. Regarding SAP S/4HANA, Todd Schneider noted ongoing costs and future investments, particularly in the Fire business, which also experiences margin pressure from geographic M&A expansion. Executive Vice President and CFO Scott Garula added that the Fire rollout will continue into next fiscal year, with an expected impact of around 100 basis points for fiscal year 2027.

Jason Haas from Wells Fargo & Company asked if the industry might increase prices in fiscal 2026 due to tariffs, whether this was factored into guidance, and if Cintas was experiencing an increase in competitive wins.

Answer

President & CEO Todd Schneider stated that Cintas's pricing is back to historical levels, which is reflected in the guidance. He emphasized a focus on internal efficiencies over simply passing on costs. Regarding competition, he noted no real change in the landscape and reiterated that Cintas's primary focus is on the large, untapped market of businesses that currently self-provide services.

Jason Haas from Wells Fargo asked whether the industry might implement higher price increases in fiscal 2026 due to tariffs and if Cintas is experiencing an increase in competitive wins against its larger rivals.

Answer

President & CEO Todd Schneider stated that Cintas's pricing is at historical levels, which is what is reflected in the guidance. He emphasized a focus on internal efficiencies to offset costs rather than relying solely on price increases. Regarding competition, he noted no real change in the landscape and reiterated that Cintas's primary focus is on the large market of 'no-programmers' who currently self-source, not just on direct competitors.

Jason Haas sought clarification on pricing being at 'historical levels' and asked what factors would cause the currently high incremental margins to normalize back to the 25-35% target range.

Answer

President and CEO Todd Schneider reiterated that pricing is unchanged from last quarter. He and CFO Mike Hansen explained that incremental margins will moderate due to ongoing investments in technology and infrastructure, the non-recurring nature of the Q3 land sale, and tougher year-over-year margin comparisons.

Jason Haas asked for quantification of where current price increases stand relative to the historical 0-2% range and if any verticals offer better pricing power. He also asked for the specific drivers behind the expected moderation in incremental margins in the second half.

Answer

CEO Todd Schneider confirmed that price increases are now back within the historical 0-2% range across the board, without singling out any specific vertical. Regarding margins, he and CFO Mike Hansen cited the non-linear nature of the business, tough year-over-year comps, the timing of investments, and a return to the long-term target of 25-35% as reasons for the expected moderation.

Jason Haas of Wells Fargo Securities inquired about the level of price increases being implemented this year and the customer reception to them. He also asked about the current state of the hiring market for Cintas's own operations.

Answer

President and CEO Todd Schneider stated that price adjustments are now much closer to historical levels after peaking with inflation and that customer conversations are always challenging. Regarding hiring, he described the market as having eased from the 'pandemic craziness' but noted that finding great people remains a constant challenge, for which the company continues to invest.

Jason Haas asked about the potential for increased sales of AI-ready data through feeds and APIs to cannibalize workstation subscriptions, as clients use this data with their own AI solutions. He also inquired about how the margins of the data feed business compare to those of workstation products.

Answer

CEO Sanoke Viswanathan stated that FactSet does not see AI-ready data distribution cannibalizing existing channels, viewing the Workstation as a flagship distribution channel among others. He expects increased demand for both, as digital adoption typically leads to more consumption in multiple ways. He emphasized the Workstation's deep embedding in client workflows, with other channels complementing it. He also noted strong margin opportunities for both Workstation products and data feeds through other channels.

Jason Haas (Wells Fargo) asked about the potential for AI-ready data sold via feeds and APIs to cannibalize FactSet's workstation subscriptions, and how the margins of the data feed business compare to those of workstation products.

Answer

Sanoke Viswanathan, CEO of FactSet, stated that the distribution of AI-ready data is a growing opportunity and not seen as cannibalizing existing channels, as the workstation is a flagship distribution channel. He expects increased demand for both, with digital adoption scaling consumption. He also noted strong margin opportunities for both workstation products and data feeds.

Jason Haas asked about current trends in bank hiring, specifically addressing the notion that banks are already fully staffed and may not need significant additional hires even with a rebound in IPO and M&A activity.

Answer

Sanoke Viswanathan, CEO & Director, FactSet, observed ongoing strategic convergence across banking activities, increased integration at universal banks, a strong focus on CRM convergence, and enhanced banker productivity driven by AI advancements. He noted the highest intensity of technology and data application in banking he has ever seen. Goran Skoko, EVP & Chief Revenue Officer, FactSet, confirmed that Q4 hiring was better than expected, contributing to results, and similar improved hiring trends are carrying into Q1, with FactSet's productivity and GenAI tools receiving significant attention.

Jason Haas asked about current trends in bank hiring, specifically whether banks are fully staffed and if a rebound in IPO and M&A activity would necessitate significant new hiring.

Answer

Sanoke Viswanathan, CEO, observed ongoing strategic convergence across banking activities, increased integration at universal banks, a focus on CRM convergence, and heightened demand for banker productivity tools, particularly those enabled by AI. Goran Skoko, CRO, confirmed that Q4 hiring was better than expected, contributing to results, and improved hiring trends are continuing into Q1, with FactSet's productivity and GenAI tools receiving significant attention in this sector.

Jason Haas inquired about current trends in bank hiring, specifically addressing the notion that banks are already fully staffed and may not need to hire significantly more even with a rebound in IPO and M&A activity, and the potential impact on FactSet.

Answer

Sanoke Viswanathan, CEO, observed ongoing strategic convergence across banking activities, a strong focus on CRM integration, and increasing banker productivity driven by AI. He noted the highest intensity of technology and data application in banking he has ever seen. Goran Skoko, Chief Revenue Officer, confirmed that Q4 hiring was better than expected, contributing to results, with similar positive trends continuing into Q1. He also highlighted significant attention on FactSet's productivity tools and GenAI offerings in this sector.

Jason Haas from Wells Fargo noted that while EMEA was cited as a Q4 growth driver, its organic ASV has been decelerating, and asked for the source of management's confidence in the region.

Answer

Chief Revenue Officer Goran Skoko projected a reacceleration in EMEA for Q4, citing improved retention and a strong, diverse pipeline. CFO Helen Shan added that the year-over-year comparison in Q4 will be more favorable as the headwind from a lower annual price increase diminishes.

Jason Haas pointed out the dynamic of rising client count but declining users per client and asked for an explanation of the underlying drivers.

Answer

Chief Revenue Officer Goran Skoko attributed the trend to success in adding new private equity clients, which typically have a smaller number of users per firm. CEO Phil Snow and CFO Helen Shan added that the inclusion of clients from the recent Irwin acquisition without their corresponding users in this quarter's count also contributed to the decline in the average.

Jason Haas asked to reconcile commentary about a better pipeline with the expectation that client budgets will remain flat, and questioned why budgets are not increasing given strong markets.

Answer

Chief Revenue Officer Goran Skoko clarified that improved M&A activity should lead to some upward movement in sell-side budgets. Chief Financial Officer Helen Shan added that even with flat overall budgets, there is a spending shift toward technology, and the strong pipeline reflects an opportunity to gain market share as clients re-evaluate providers.

Jason Haas of Wells Fargo & Company sought to reconcile management's optimism on client engagement and pipeline with the statement that client budgets are expected to remain flat, and questioned why budgets aren't increasing given positive market trends.

Answer

Chief Revenue Officer Goran Skoko clarified his budget comments might have been too pessimistic, acknowledging that improved M&A activity should help sell-side budgets. CFO Helen Shan added that even with flat budgets, there is a shift in spending towards technology, and FactSet is well-positioned to gain market share, as evidenced by higher RFP and trial activity.

Jason Haas inquired about the current competitive environment, specifically asking if FactSet is observing any aggressive pricing from competitors amid the tough backdrop.

Answer

Executive Goran Skoko stated that the competitive environment has not significantly changed from the past, with pricing aggressiveness remaining at similar levels. CFO Helen Shan added that FactSet is being strategic with its own pricing, sometimes using it competitively in new business situations to displace incumbents and lock in longer-term contracts, particularly in wealth, banking, and corporates.

Jason Haas noted that Q4 guidance implies an organic deceleration from Q3 despite easier comparisons, asking about the factors driving this. He also questioned the rationale behind expecting significant margin expansion next year and if any one-time benefits influenced this year's margins.

Answer

CEO Jim Peck affirmed confidence in NIQ's growth algorithm, stating the Q4 guidance is conservative as a new public company establishing a track record, denying any systemic slowdown. He confirmed that comments on significant margin expansion for next year are deliberate, driven by continued GfK synergies and accelerating AI contributions. CFO Mike Burwell added that NIQ aims for mid-20s margins in the midterm, with GfK synergies driving two-thirds of margin improvement and organic revenue growth contributing 50-100 basis points.

Jason Haas asked if Market Intelligence's ACV growth of 6.5%-7.5% is a good indicator for underlying subscription growth and whether the long-term target of 7%-9% MI revenue growth still holds.

Answer

Eric Aboaf, CFO and EVP, confirmed that ACV growth is an important proxy for organic revenue growth and has been ticking up, aligning with increased sales. He noted that while the work isn't finished, the stabilization and acceleration in MI bode well for future organic revenue and ACV growth. He deferred discussion of 2026 guidance and multi-year targets to the upcoming Investor Day.

Jason Haas asked about Market Intelligence's ACV growth (6.5-7.5%) as an indicator for underlying subscription growth, and whether the long-term target of 7-9% MI revenue growth still holds or is under review.

Answer

Eric Aboaf, CFO and EVP, confirmed ACV growth (6.5-7%) is a key proxy for organic revenue growth and has been ticking up with sales acceleration. He stated it's "premature" to discuss 2026 guidance or multi-year targets, deferring to Investor Day. He expressed confidence in MI's stabilization and acceleration, boding well for future organic revenue and ACV growth.

Jason Haas asked about the S&P Dow Jones Indices segment, noting that the guidance implies some margin pressure in the second half of the year and questioning the source of incremental expenses in a relatively fixed-cost business.

Answer

CFO Eric Abouaf explained that the margin outlook reflects the planned patterning of investment spending. The company is reinvesting in the division's technology and operating infrastructure, which is a necessary periodic refresh. Additionally, they are funding the launch of new products, which requires upfront workload intensity for benefits that accrue over multiple years.

Jason Haas inquired about the implied margin pressure for the S&P Dow Jones Indices segment in the second half of the year, which seems counterintuitive given its strong revenue and relatively fixed cost base.

Answer

CFO Eric Aboaf clarified that the second-half margin profile is a direct result of planned investment patterning. The division is making strategic investments in its technology and operating infrastructure, as well as launching new products. This spending is front-loaded to plant seeds for future growth, which will drive inflows and revenue in subsequent years.

Jason Haas asked about the Mobility business's sensitivity to potential auto tariffs, whether any impact has been observed, and how the situation is expected to trend.

Answer

CEO Martina Cheung stated that while they are watching the situation closely and anticipate potential budget pressures on OEM clients, the business is largely insulated. She noted that over 70% of Mobility revenue is tied to the more resilient used car market, which could even benefit. Furthermore, demand for their critical data sets often increases in such uncertain environments.

Jason Haas of Wells Fargo Securities, LLC asked for clarification on why the three-year refinancing wall is now down 1% and questioned why the 2025 Mobility growth guidance isn't stronger, given it will lap the 2024 recall business headwinds.

Answer

President and CEO Martina Cheung explained the 1% decline in the three-year refi wall is context reflecting the issuance pull-forward seen in Q4 2024 and is factored into guidance. For Mobility, she noted the guidance considers minor headwinds like vehicle affordability, which can pressure OEMs, even as it creates opportunities for other S&P Global solutions.

Jason Haas inquired about the pace of AI adoption among customers, what might be holding them back, and what S&P Global has learned from its own internal AI implementation.

Answer

Incoming President and CEO Martina Cheung emphasized that S&P Global's high-quality data is a key differentiator for AI. She noted strong client engagement, with customers seeking insights from S&P's own AI journey. Internally, she highlighted the success of the 'Spark AI Academy' and 'Spark Assist' tool in driving productivity and creating use cases that can be shared with clients.

Jason Haas sought to understand the cause of the OCC growth deceleration from 7.9% in the prior quarter to a normalized 6.5% in Q3, given that auto competition levels were reportedly similar. He asked for an unpacking of factors to gain confidence in future growth acceleration.

Answer

Elizabeth Mann, Verisk's Chief Financial Officer, explained that the government contract and auto softness were anticipated factors impacting the second half, while light weather activity in Q3 was an additional, unexpected factor. She stressed that strong subscription growth and sales momentum indicate no customer hesitation, reinforcing confidence in the business's underlying health. Lee Shavel, President and Chief Executive Officer, reiterated confidence in the 6-8% growth range.

Jason Haas sought to understand the deceleration of OCC growth from 7.9% in the prior quarter to the current 5.5% (6.5% normalized), asking about the impact of auto competition, light weather, potential customer hesitation, and confidence in future acceleration.

Answer

CFO Elizabeth Mann explained that the government contract and auto softness played out as anticipated from Q2, with light weather being an additional, unanticipated factor. She emphasized that strong subscription growth and sales momentum indicate no customer hesitation. President and CEO Lee Shavel reiterated confidence in achieving the 6-8% long-term growth range.

Jason Haas from Wells Fargo & Company inquired if moderating net written premium growth in the insurance industry could impact Verisk's ability to maintain its pricing power in the future.

Answer

Co-President of Underwriting Solutions, Saurabh Khemka, explained that while premium growth is a factor, many long-term contracts are structured to smooth out these cycles. He stressed that pricing is increasingly tied to the value delivered through investments like the Core Lines Reimagined program. CEO Lee Shavel added that Verisk has a history of delivering consistent growth through various market cycles.

Jason Haas of Wells Fargo asked if there has been a change in client conversations due to macro uncertainty and which parts of Verisk's business are most economically sensitive.

Answer

CEO Lee Shavel stated there has been no fundamental change, though clients are more focused on the impact of tariffs on claims costs. CFO Elizabeth Mann identified non-carrier segments, like federal government and marketing, as more economically sensitive. However, Lee Shavel reiterated that the vast majority of revenue comes from insurance clients and is relatively insensitive to these factors.

Jason Haas inquired about the performance of Verisk's marketing business in Q4 and the outlook for 2025, noting strong advertising spending trends in the insurance industry.

Answer

CFO Elizabeth Mann reported that the insurance customer segment of the marketing business saw strong growth with positive tailwinds expected for next year. However, she noted that performance in the rest of the customer base was more muted, reflecting broader advertising market trends.

Jason Haas requested a walk-through of the moving parts within the full-year guidance, citing the potential hurricane benefit, the Q3 FX margin benefit, and higher interest expense.

Answer

Chief Financial Officer Elizabeth Mann reiterated that guidance is for the full year and quarterly fluctuations are relatively minor. She confirmed the 60 basis point Q3 FX benefit was not forecasted and is not projected for Q4. For interest expense, she suggested the Q3 level of $32 million is a 'reasonable run rate.' Mann concluded by stating that the underlying business outlook remains unchanged from previous guidance.

Jason Haas asked about the Pest Elimination business, specifically if there has been an increase in customer acquisition costs or heightened competition recently.

Answer

Christophe Beck, Ecolab's Chairman and CEO, stated that customer acquisition has become easier due to the company's early lead in Pest Intelligence technology. He highlighted securing major retailers in the U.S., which validates the offering and attracts other customers. Beck emphasized that Ecolab's digital technology and AI-powered Pest Intelligence, backed by Ecolab 3D, provide a leading offering ahead of competitors. He also noted that the shift from physical device checks to system monitoring improves operating costs and allows more time for customer acquisition and service, contributing to margin improvement.

Jason Haas asked about the Pest Elimination business, specifically inquiring whether Ecolab has observed increasing customer acquisition costs or heightened competition in the market recently.

Answer

Christophe Beck, Chairman and CEO of Ecolab, stated that customer acquisition has become easier due to the company's leading Pest Intelligence technology, which has attracted major retailers. He emphasized that Ecolab's digital technology and AI-backed solutions provide a unique offering ahead of competitors, leading to a healthy competitive environment. Beck also highlighted that the new model, which reduces time spent on physical checks, improves operating costs and allows more time for customer acquisition and service, contributing to improving margins.

Jason Haas from Wells Fargo requested specific examples of the cost savings and efficiencies being generated by the One Ecolab initiative.

Answer

Scott Kirkland, CFO, reported that the One Ecolab program is driving significant SG&A leverage (50 bps in Q2) and is ahead of schedule on its $140M savings target. Key efficiency drivers include leveraging five global centers of excellence, creating scalable processes, and using 'hygienic AI' to automate tasks. These savings are enabling reinvestment while positioning the company for above-average SG&A leverage in the future.

Jason Haas of Wells Fargo asked about the current trends in the Life Sciences segment and whether its growth is expected to accelerate throughout the year.

Answer

Christophe Beck, Chairman and CEO, confirmed that the Life Sciences business is now turning up in a very nice way after years of investment in innovation, expertise, and manufacturing capacity. He noted that while the market is improving, Ecolab's business is doing even better. Despite near-term margin impact from ongoing investments, the underlying margin is in the mid-20s, giving him confidence that the business will continue to accelerate its top line and eventually reach its target of nearly 30% operating income margin.

Jason Haas inquired about the necessary steps to accelerate volume growth from the current 2% level to the company's long-term target of 3-4%.

Answer

Christophe Beck, Chairman and CEO, outlined that growth acceleration depends on two key factors: the 'One Ecolab' initiative to increase penetration within the existing $55 billion customer opportunity, and momentum from new growth engines like Global High-Tech and Life Sciences. He emphasized that this pursuit of higher volume will be balanced with maintaining strong value pricing, stating he would not sacrifice price for volume.

Jason Haas asked for commentary on the slight deceleration in the Water segment's growth, questioning if it was driven by mining and when an improvement could be expected.

Answer

CEO Christophe Beck confirmed that the modest slowdown in the Water segment was entirely due to the mining business, which he described as their smallest and most 'lumpy' business within the segment. He assured that the other water businesses are performing well and trending upwards.

Jason Haas asked about companies' reported low ROI on AI projects, whether ASGN is hearing similar feedback from clients, and how ASGN helps address these roadblocks to improve ROI. He also inquired about the impact and timing of the 'One Big Beautiful Bill' on federal government bookings and revenue.

Answer

President Shiv Iyer confirmed hearing about ROI challenges in AI projects, attributing them to integration complexities, data issues, workflow integration, and technical talent gaps. He emphasized that ASGN focuses on harnessing core platform capabilities for faster ROI. CEO Ted Hanson explained that the 'One Big Beautiful Bill' would primarily benefit defense, intelligence, and national security sectors, with increased funding expected to translate into new awards and revenue contributions in the first half of next year, following resolution of the government shutdown.

Jason Haas inquired about ASGN's perspective on companies not seeing strong ROI from AI projects, where ASGN can help overcome roadblocks, and the expected timing for the 'One Big Beautiful Bill' to translate into revenue for the federal government segment.

Answer

President Shiv Iyer acknowledged hearing about AI ROI challenges, attributing them to integration complexity, data quality, workflow integration, and talent gaps. He emphasized that ASGN helps by harnessing core platform capabilities for faster ROI. CEO Ted Hanson explained that the 'One Big Beautiful Bill' benefits defense/intel/national security, with revenue contributions expected mid-to-second half of next year, following resolution of the shutdown and a final budget.

Jason Haas from Wells Fargo asked about the specific drivers behind the strength in the consumer and industrial segments and inquired about ASGN's internal use of AI to achieve operational efficiencies.

Answer

President Shiv Iyer attributed the consumer and industrial strength to demand in materials and utilities for cloud, data, and AI solutions, as well as successful partnerships with firms like Databricks. CEO Ted Hanson added that ASGN is an 'AI-led organization,' actively using AI to enhance productivity in its own front and back-office systems, recruiting processes, and cybersecurity operations, leveraging expertise first developed in its federal business.

Jason Haas asked about the proprietary data sets within Moody's KYC solutions business and whether the longer tail of competitors is strengthening due to AI integration.

Answer

Rob Fauber, President and Chief Executive Officer of Moody's Corporation, identified key proprietary data sets for KYC solutions: Orbis (derived, cleansed, and normalized company data), politically exposed persons and risk-relevant people data (from RDC acquisition), and AI-curated news. He emphasized that the unique linking of these datasets provides a comprehensive view of beneficial ownership and hierarchy, offering a distinct market advantage.

Jason Haas questioned the proprietary data sets within Moody's KYC solutions business and whether the longer tail of competitors is strengthening due to AI integration.

Answer

Rob Fauber, President and Chief Executive Officer, detailed the proprietary data sets for KYC solutions, including Orbis (derived, cleansed, normalized company data), politically exposed persons/risk-relevant people data from the RDC business, and AI-curated news. He emphasized the unique value of linking these to provide beneficial ownership and hierarchy data for a 360-degree customer view.

An analyst on behalf of Jason Haas at Wells Fargo asked about the countercyclical nature of the Moody's Analytics (MA) profile and which subsegments, like insurance, hold up best during downturns.

Answer

CEO Robert Fauber described the MA portfolio as 'acyclical' rather than countercyclical, citing its 68 consecutive quarters of growth. He explained that core use cases in banking (stress testing, CECL), research (demand rises with uncertainty), and insurance (driven by uncorrelated weather events) are very sticky. He added that KYC is also acyclical, as banks must maintain compliance while also seeking efficiency, which drives demand for new AI-powered tools.

Jason Haas from Wells Fargo questioned the disparity in Q4 between the 42% growth in MIS-rated issuance and the lower 29% growth in MIS transaction revenue, seeking an explanation for the delta.

Answer

CEO Robert Fauber explained that the difference was almost entirely due to the mix of issuance. A very high volume of bank loan repricings, which have much lower economics for Moody's, made up 55% of bank loan volume in the quarter. He clarified that if bank loans were excluded, transaction revenue growth would have been approximately 30%, more closely aligned with the underlying issuance growth.

Jason Haas asked why the full-year Moody's Analytics guidance was maintained despite weaker-than-expected ARR in Data & Information and Research & Insights, and what is driving the expected Q4 acceleration.

Answer

CFO Noemie Heuland reaffirmed the full-year guidance, explaining that the year is more back-end loaded, with the pipeline entering Q4 being 50% larger than a year ago. She pointed to a large book of December renewals and a healthy new business pipeline, particularly in KYC and Data & Information, as key factors underpinning the Q4 outlook.

Jason Haas of Wells Fargo sought clarification on the financials of the transformation program, asking to confirm that the associated investments will cease after this year and requesting details on how much of the projected OpEx savings will be incremental for next year.

Answer

EVP and CFO Todd Cello confirmed the one-time transformation investments will conclude in 2025 as planned. He explained that the primary benefit in 2026 will be a $200 million improvement in free cash flow, with most OpEx savings already realized in 2024 and the remainder coming in 2026. He also noted CapEx will drop to 6% of revenue, driving free cash flow conversion to 90%+. CEO Chris Cartwright added that the program is on track and also fuels innovation.

Jason Haas of Wells Fargo sought confirmation on the transformation program's financials, asking if the one-time investments will cease next year and how much of the OpEx savings will be incremental in 2026.

Answer

EVP and CFO Todd Cello confirmed that the one-time transformation investments are on track to conclude in 2025. He clarified that the primary focus for 2026 is achieving a $200 million free cash flow benefit. A significant portion of OpEx savings was realized in 2024, with the remainder coming in 2026. He also reiterated that CapEx will drop to 6% of revenue in 2026, driving free cash flow conversion to 90% or more.

Jason Haas noted that guidance implies a moderation in the outperformance of mortgage revenue versus inquiry volumes and asked for the reasoning behind this dynamic.

Answer

EVP and CFO Todd Cello explained that the significant outperformance in Q1 (27% revenue growth vs. -10% inquiries) was driven by strong pricing and the inclusion of non-origination revenue like prequalification and batch marketing. He stated the full-year guidance for 20% revenue growth against modestly down volumes reflects a more normalized, though still positive, gap between revenue and inquiry trends, with no assumption of interest rate benefits.

Jason Haas asked for an update on the regulatory environment and whether TransUnion has seen or expects any changes from the new administration that could impact the company or its customers.

Answer

CEO Christopher Cartwright acknowledged the new administration's 'radically different views' on regulation, noting the CFPB has been asked to pause activities pending new leadership. He described the current environment as being in 'limbo' and stated that TransUnion's operational focus remains on serving customers correctly while awaiting clarity on the future regulatory landscape.

Jason Haas of Wells Fargo & Company asked about the performance of the Consumer Interactive segment, questioning if underlying trends ex-breach had worsened and what initiatives could drive future improvement, particularly in the direct-to-consumer (D2C) channel.

Answer

President and CEO Christopher Cartwright acknowledged the segment is an area of intense focus. He outlined a strategy to return the business to growth by broadening the value proposition beyond credit to include identity protection and, in the near future, financial and insurance offers. He stated the company is fine-tuning its go-to-market strategy to better monetize its audience and expects to share more progress on an upcoming call.

Jason Haas of Wells Fargo sought to clarify the full-year incremental margin guidance, noting it implied a significant step-up in the second half. He also asked about the performance of the ancillary services business as a bellwether for consumer health.

Answer

EVP & CFO Kenneth Krause focused on the goal of delivering double-digit earnings growth and strong cash flow compounding, which is the primary focus over a specific incremental margin number, but affirmed they feel good about driving margin improvement in H2. Regarding ancillary services, President & CEO Jerry Gahlhoff said the business remains strong, and Krause added that its 10.3% organic growth, with June being even higher, shows no signs of a consumer slowdown.

Jason Haas inquired about Rollins' playbook for driving synergies with acquisitions like Saela and asked what incremental margins might have looked like in Q1 without certain impacts like FX, fewer workdays, and strategic investments.

Answer

CFO Ken Krause described a pragmatic integration approach, focusing on areas like fleet and materials, with future opportunities in back-office modernization. CEO Jerry Gahlhoff added that synergies are also about enabling growth, such as deploying Rollins' sales technology, not just cutting costs. Regarding margins, management explained that excluding the pull-forward of selling and marketing expenses, the incremental margin profile would have been within their 25-30% target range and is expected to improve throughout the year.

Jason Haas of Wells Fargo asked about organic growth trends year-to-date in 2025 and whether severe January cold weather could mute the upcoming spring selling season. He also requested a detailed bridge to the 30% incremental margin target for 2025, given the lower adjusted rate in Q4, and the path to the long-term 30-35% goal.

Answer

CEO Jerry Gahlhoff dismissed weather concerns, noting pests are highly adaptive and that business started 2025 strong. CFO Ken Krause added that January 2024 also had tough weather, making for a fair comparison. To bridge the margins, Krause identified ~$12-15M in Q4 headwinds from claims and investments. He expressed confidence in hitting 30%+ margins, pointing to stronger performance in H1 2024 and explaining that current investments in customer acquisition will yield long-term value.

An analyst on behalf of Jason Haas asked for an update on the commercial strategy, including brand separation and sales force additions, and inquired about trends between national accounts and SMEs.

Answer

President and CEO Jerry Gahlhoff described the commercial strategy as being in its "first 2 or 3 innings," with a long runway for growth and margin opportunities from a sticky customer base. He noted no significant competitive shifts but confirmed a concerted marketing effort toward the commercial space. EVP and CFO Kenneth Krause highlighted strong performance in both U.S. and Canadian commercial businesses.

Jason Haas of Wells Fargo asked about the drivers behind the acceleration in the Software & Advisory business. He also inquired about the rationale for setting the 2025 CapEx guidance at 7% to 8% of revenue, given the strong ROI on investments.

Answer

CEO Jennifer Scanlon attributed the software growth to the ULTRUS platform and strength in retail product compliance and ESG data solutions, noting that key metrics like renewal churn and bookings are improving. She explained that the CapEx plan follows a disciplined process to evaluate durable demand and ensure great returns before committing capital.

Jason Haas inquired about the company's progress with value-based pricing and future opportunities. He also asked about the outlook for capital expenditures and if the current elevated level of 8-8.5% of revenue is the new normal.

Answer

President and CEO Jennifer Scanlon confirmed a strong focus on value-based pricing, enabled by new Oracle CPQ and Salesforce tools. EVP and CFO Ryan Robinson explained that while CapEx is currently elevated to capture opportunities in areas like energy transition, it remains discretionary, and he did not commit to the 8-8.5% level as a permanent new normal.