diff --git a/requirements.local.txt b/requirements.local.txt
index a252cdb..8d64146 100644
--- a/requirements.local.txt
+++ b/requirements.local.txt
@@ -24,7 +24,7 @@ python-dotenv==1.0.1
 openpyxl==3.1.5
 
 # Data Validation
-pydantic==2.10.3  # Updated from 2.9.2, fixed compatibility
+pydantic==2.12.3  # Updated from 2.9.2, fixed compatibility
 
 # Date/Time Utilities
 python-dateutil==2.9.0.post0
diff --git a/requirements.txt b/requirements.txt
index 8822f95..d809f5c 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -25,7 +25,7 @@ python-dotenv==1.0.1
 openpyxl==3.1.5
 
 # Data Validation
-pydantic==2.10.3  # Updated from 2.9.2, fixed compatibility
+pydantic==2.12.3  # Updated from 2.9.2, fixed compatibility
 
 # Date/Time Utilities
 python-dateutil==2.9.0.post0