FactSet (FDS) Q3 2026 Earnings Call Transcript
FactSet (FDS) reported Q3 fiscal 2026 organic ASV of $2.486B (+7.1% YoY) and GAAP revenue of $622.9M (+6.4%). Adjusted diluted EPS was $4.53 (+6.1%) and adjusted operating margin was 34.0% (down from 36.8%). Free cash flow was $254.0M (+11.1%). Guidance reaffirmed: GAAP revenue $2.45B–$2.47B; adjusted EPS $17.25–$17.75. The company also discussed AI integration with Google Cloud.
How this was made
The 30-second read
Why it matters
The transcript combines (1) quantified operating performance and (2) reaffirmed FY2026 guidance ranges with (3) AI adoption/contract-duration shifts, which together can re-rate expectations for growth durability and margin path.
Market read
Traders can update near-term expectations using the reaffirmed FY2026 guidance ranges and the call’s quantified AI adoption and contract-duration commentary.
What to watch
FX hedging swung from gain to loss, dragging adjusted operating results by ~60 bps; investors may discount AI growth if macro volatility increases hedging costs further.
Background
FactSet’s Q3 FY2026 earnings call emphasizes organic ASV growth, AI product adoption (MCP, agentic workflows), and a strategic Google Cloud partnership to integrate Gemini models.
Ticker impact
FactSet reported Q3 FY2026 results and reaffirmed FY2026 guidance, including adjusted EPS $17.25-$17.75 and operating margin 34.0%-35.5%.
Moderate positive bias for near-term trading as investors weigh reaffirmed EPS/margin range against AI investment drag and FX headwinds.
The article provides concrete Q3 performance, detailed FY2026 guidance ranges, and specific AI partnership/adoption datapoints that can change expectations for subscription growth and margin trajectory.
Market effects
Reinforces the sell-side/data-analytics software theme that AI integrations can expand wallet share and shift contracts toward longer enterprise agreements.
Highlights faster organic ASV growth in Asia Pacific (10%) and wealth (10%), which may influence regional demand expectations for financial data vendors.
Google Cloud/Gemini integration signals continued hyperscaler partnership leverage in enterprise analytics workloads.
Counterpoint
AI infrastructure and performance-based compensation are already compressing operating margin (34.0% vs 36.8% prior year), so upside from AI adoption may take longer to fully translate into sustained margin expansion.
Key entities
- companyFactSet Research Systems Inc.
Reported Q3 FY2026 results, discussed AI infrastructure investments, and reaffirmed FY2026 guidance.
- partnerGoogle Cloud
Partnership to integrate Gemini AI models into FactSet’s data/analytics infrastructure and Gemini Enterprise.
