10-Q · July 1, 2026
FactSet Research Systems Inc. reported a strong Q3 2026 with a revenue of $622.9 million, up 6.4% from the previous year, driven primarily by organic growth. However, diluted EPS fell to $3.50, a decrease of 9.6% year…
Earnings analysis · 10-K
FDS earnings analysis
Filed October 20, 2026 · Our reading of the company's report
The latest report
FactSet delivered solid recurring-revenue momentum in fiscal 2026, with revenue up 6.7%, organic ASV up 7.0%, broad geographic growth and free cash flow up 14.6%. However, higher compensation, restructuring and…
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FactSet delivered solid recurring-revenue momentum in fiscal 2026, with revenue up 6.7%, organic ASV up 7.0%, broad geographic growth and free cash flow up 14.6%. However, higher compensation, restructuring and CEO-related costs drove operating-margin compression from 32.2% to 28.3% and diluted EPS down 6.3% to $14.57. Strong cash generation and shareholder returns are positives, but the upcoming $500.0 million debt maturity, foreign-exchange sensitivity and cloud-provider concentration temper the outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $14.57
What stood out
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Broad financial-data and AI platform
FactSet positions itself as an open, flexible financial-data and AI platform spanning workstations, enterprise data, portfolio analytics, managed services, APIs and MCP servers. As of August 31, 2026, it served more than 9,200 clients and 260,671 users, with AI embedded to improve data discovery and automate workflows.
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Recurring revenue growth remained healthy
Fiscal 2026 revenue rose 6.7% to $2.476 billion, with organic revenue also increasing 6.7% to $2.465 billion. Growth was primarily driven by workstations and data solutions, with portfolio management and trading solutions contributing to a lesser extent.
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ASV growth and retention support visibility
Organic ASV increased 7.0% to $2.568 billion, led by data solutions and supported by workstations and middle-office solutions. ASV retention remained greater than 95%, while users increased 9.8% to 260,671.
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All regions contributed to growth
Growth was broad geographically: Americas revenue increased 7.4%, EMEA increased 4.3%, and Asia Pacific increased 7.7%. Asia Pacific had the fastest organic revenue growth at 9.9%, while the Americas remained the largest region at 65.3% of consolidated revenue.
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Cash generation improved materially
Free cash flow increased 14.6% to $707.5 million from $617.5 million, despite capital expenditures rising to $114.7 million. Net cash from operating activities increased to $822.2 million from $726.3 million.
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Aggressive shareholder returns
FactSet returned $808.1 million to stockholders through repurchases and dividends, including $644.0 million of repurchases and $164.2 million of dividends. The quarterly dividend increased 5% from $1.10 to $1.16 per share, marking the 27th consecutive fiscal year of dividend increases.
What to watch
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Compensation costs compressed margins
Profitability deteriorated despite revenue growth: operating margin fell to 28.3% from 32.2%, operating income declined 6.5% to $700.0 million, and diluted EPS declined 6.3% to $14.57. Fiscal 2026 included $46.2 million of restructuring/severance charges and $19.5 million of CEO onboarding costs.
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Upcoming debt maturity and new borrowing
The company faces a substantial near-term refinancing or repayment requirement, with $500.0 million of 2.900% Senior Notes contractually maturing on March 1, 2027. FactSet also borrowed $90.0 million under its revolving facility after August 31, 2026, while total debt at year-end was $1.370 billion.
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Foreign exchange exposure remains material
Foreign exchange sensitivity could materially affect profitability: management estimates that a hypothetical 10% U.S. dollar devaluation would have reduced fiscal 2026 operating income, excluding forward contracts, by approximately $51 million. The company also reported a $2.1 million operating-income reduction from fiscal-year currency movements and hedge activity.
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Concentration in cloud infrastructure
FactSet states that one supplier provided the majority of its cloud computing support in fiscal 2026. A disruption at that provider could affect delivery of time-sensitive data and applications, although the company maintains backup facilities and redundancies.
Management's outlook
The 10-K does not provide quantitative fiscal 2027 guidance; annual outlook was provided in the fiscal fourth-quarter earnings materials rather than this filing.
Earlier filings 4
10-Q · April 2, 2026
FactSet delivered revenue of $611,019 (in thousands) in the quarter, up 7.1% year-over-year from $570,660 (in thousands), but reported margin compression (gross margin 51.4% and operating margin 30.3%) and diluted EPS…
10-Q · July 3, 2025
FactSet reported quarterly revenue of $585,520 (in thousands) for the three months ended May 31, 2025, up from $552,708 (in thousands) a year earlier, while gross margin and operating margin compressed and diluted EPS…
10-Q · April 3, 2024
In Q2 2024, FactSet reported revenues of $545.9 million, marking a 5.9% increase year-over-year. Gross margin returned to 53.3%, while diluted EPS improved to $3.65. The Americas segment drove growth with revenue of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.