Andrew Nicholas

Craig Safian called AskGartner table stakes within the broader digital experience and said the impact is all positive, but gave no specific renewal-rate comparison.

Craig confirmed targets unchanged. Q1 typically sees a step back from promotions. Hiring biased toward business developers over account managers. 2026 hiring is really about 2027-2028 capacity.

Craig explained Jan-Feb 2025 were semi-normal so the lapping hasn't fully kicked in yet. Q2 is when they truly start lapping significant challenges. Exited Q1 with $114M federal CV; renewal rates improved significantly year-over-year.

Craig reiterated all four reacceleration factors (federal lapping, tariff normalization, tech vendor recovery, operational adaptations) remain intact. Environment still chaotic but guide assumes CV growth rate accelerating throughout 2026.

Craig confirmed non-tariff industries growing about 200bps faster than tariff-affected, roughly same gap as Q2. Gene added tariff-impacted industries improving as tariff certainty increases in certain geographies.

Gene said tariff-impacted industries are improving as certainty increases. Clients still need help with AI, cybersecurity, data analytics and are now able to make decisions they couldn't before.

Gene confirmed about 50 internal AI applications with promising early results but said it's too early to quantify long-term cost structure impact.

Craig quantified tariff-affected industries at 35-40% of CV across GTS and GBS, defined as industries relying heavily on importing/exporting with U.S. as major trade partner.

Craig said the OpEx approach is their normal method, not more conservative than usual. Prepared to invest more or tighten further depending on environment.

Craig gave phasing: Q1 largest, Q3 next (~75% of Q1 size, aligns with US Fed fiscal), Q2 less than half of Q1, Q4 very small. Modeled ~50% retention forward.

Gene described tens of internal AI initiatives across training, translations, and client-facing tools. Each delivers small productivity gains; no single transformational application.

Gene said no difference from Q4 trends in US public sector, acknowledging it could change in the future.

Bob said MS came in slightly below plan, driven by ASO-to-PEO upgrades and ~50% higher HCM referral activity into PEO, which he framed as favorable economics.

Schrader contrasted FY27's no-required-ramp setup with FY26's back-half acceleration, citing exit momentum; answered directly.

Gibson: AI predecessors have been used for decades to achieve industry-leading margins. Goal is making people more productive for advisory conversations, not replacement. Growing business with less incremental headcount, went from 400K to 800K clients with proportionally fewer service people. Model will continue: advisory-embedded technology differentiates.

Gibson: PEO mix roughly 50/50 inside/outside base, consistent. Very pleased with Paycor client receptivity to PEO. Surprised by size of deals being secured, both ASO and PEO. Working with Paycor customer success leaders and brokers to position PEO where insurance renewals are high.

Management addressed PEO second-half ramp and Florida MPP attach dynamics.

Follow-up on PEO second-half ramp and Florida MPP attach dynamics.

Follow-up on Revenue synergies in FY26 outlook and cost synergy cadence.

Management addressed Revenue synergies in FY26 outlook and cost synergy cadence.

Gibson said conservative underwriting decision drove flat MPP. Insurance penetration and employee attachment both expanded. Agency provides alternative channel for higher-risk clients.

Gibson said PEO is balanced inside/outside base, tilted slightly more inside in Q2 due to insurance renewal AI analytics targeting. ASO is almost all inside-base upsell.

Gibson confirmed pricing stability applies across all segments including PEO, despite peers signaling increased pricing aggressiveness.

Management detailed operations, technology and G&A AI deployment driving the increase from $75M to $150M.

Management addressed the question directly with specific data points.

Management addressed the question directly with specific data points.

Management addressed the question directly with specific data points.

Management addressed the question directly with specific data points.

Management addressed the question directly with specific data points.

Management addressed the question directly with specific data points.

Management addressed the question directly with specific data points.

Management addressed the question directly with specific data points.

Management addressed the question directly with specific data points.

Cited FactSet's consulting teams as forward-deployed experts that speed agentic implementations, plus a flexible full-stack open architecture.

Mgmt sees the wealth AI opportunity in powering the adviser experience (Tiffin partnership) and directly serving end customers, still at early stages.

Sanoke reframed disadvantages as opportunities, highlighting partnerships with Anthropic (fastest-growing marketing channel), hyperscalers, and content providers. Open architecture strategy suits AI environment.

Sanoke said AI products are finely tuned to existing solutions (Portfolio Commentary, Pitch Creator). Believes competitiveness is high. Acknowledged trade-off between first mover risk and missing opportunity. Early to judge if balance is right but confident in FactSet talent.

Phil outlined internal AI: developer coding tools, client-facing productivity, automated data collection. Helen cited cost events coverage doubled to 15,000, 10% engineering output improvement, projects in 1/3 time. Head count flat to down ex-acquisitions.

Goran outlined multi-pronged expansion: geographic (Switzerland, UK, Asia), more users in home office replacing higher-end terminals, layering additional workflow services like lead generation tools, and portfolio management workflows.

Phil said high M&A appetite with product gaps to fill, but targets are mostly not AI-related. Helen noted strong balance sheet with room for inorganic growth.

Lee Shavel noted no scalability differentiation across channels, citing cloud migration, data standardization, and API/MCP protocol adaptation as enabling flexible delivery. Clients range from frontier model users to smaller firms using Verisk's pre-built AI.

Elizabeth Mann cited storm comps, subscription conversions, and auto softness as factors, noting a positive three-year CAGR and expectation for transactional revenue to be a long-term strength.

Lee Shavel confirmed positive client feedback on AccuLynx's strategic merits. Elizabeth Mann added discussions have been high-level and appropriate given separate-company operating requirements.

Lee Shavel cited value delivery and strategic engagement as key drivers. Elizabeth Mann dimensionalized: pricing at high end of range, cross-sell/upsell strength, and lower attrition as three factors, noting these create tough near-term comps.

Lee Shavel explained the go-to-market review initially focused on largest businesses (Claims, Extreme Events, Underwriting Decision Analytics) and is now extending to Life Insurance, SBS, and Marketing Solutions.

Elizabeth Mann characterized it as gradual evolution, not drastic change. Lee added that longer contracts reflect deeper strategic relationships and client confidence in Verisk's value.

Noemie framed cheaper frontier models as a tailwind (usage expansion over price compression) and stressed regulated banking customers want proven, well-controlled model providers.

Fauber said regulators are comfortable with AI for process acceleration but have heightened sensitivity around AI making decisions. Noted strong control environment and active regulatory engagement.

Rob stressed private credit methodologies go through standard regulated process with same analysts rating public and private credit. Added headcount in fund finance and ABF teams. Global Head of Private Credit coordinates across franchise.