FactSet Reports Results for Fourth Quarter and Fiscal 2026
FACTSET RESEARCH SYSTEMS INC (FDS) filed an SEC Form 8-K — Results of Operations and Financial Condition. FactSet Reports Results for Fourth Quarter and Fiscal 2026 Strong commercial execution and AI momentum drive organic ASV growth of 7.0% NORWALK, Conn., September 30, 2026 - FactSet (NYSE: FDS) (NASDAQ: FDS), a leading global intelligence and AI solutions provider to the financial
How this was made
The 30-second read
Why it matters
The earnings release offers fresh guidance on revenue and margins, informing valuation models and short‑term trading decisions.
Market read
The report updates market expectations for a leading data‑service firm, with implications for AI‑related revenue trends.
What to watch
Share repurchase program and dividend continuity provide support despite earnings softness.
Strong commercial execution and AI momentum drive organic ASV growth of 7.0%
Fourth-quarter organic revenue grew 7.1%, organic ASV grew 7.0%, and adjusted diluted EPS increased 11.6%, while GAAP operating margin, GAAP net income, and GAAP diluted EPS declined due in part to compensation costs and non-recurring items.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 GAAP revenuesGAAP | $634.7M | – | 6.3 % |
| Q4 organic revenuesnon-GAAP | $635.5M | – | 7.1 % |
| Fiscal 2026 GAAP revenuesGAAP | $2.48B | – | 6.7 % |
| Fiscal 2026 organic revenuesnon-GAAP | $ 2,464,614 | – | 6.7 % |
| Q4 operating incomeGAAP | $156.6M | – | (11.7) % |
| Q4 adjusted operating incomenon-GAAP | $209.4M | – | 3.8 % |
| Fiscal 2026 operating incomeGAAP | $ 699,957 | – | (6.5) % |
| Fiscal 2026 adjusted operating incomenon-GAAP | $ 855,308 | – | 1.4 % |
| Q4 operating marginGAAP | 24.7 % | – | – |
| Q4 adjusted operating marginnon-GAAP | 33.0 % | – | – |
| Fiscal 2026 operating marginGAAP | 28.3 % | – | – |
| Fiscal 2026 adjusted operating marginnon-GAAP | 34.5 % | – | – |
| Q4 net incomeGAAP | $121.1M | – | (21.1) % |
| Q4 adjusted net incomenon-GAAP | $160.9M | – | 4.1 % |
| Fiscal 2026 net incomeGAAP | $ 533,481 | – | (10.6) % |
| Fiscal 2026 adjusted net incomenon-GAAP | $ 659,498 | – | 1.2 % |
| Q4 diluted EPSGAAP | $ 3.41 | – | (15.4) % |
| Q4 adjusted diluted EPSnon-GAAP | $ 4.52 | – | 11.6 % |
| Fiscal 2026 diluted EPSGAAP | $ 14.57 | – | (6.3) % |
| Fiscal 2026 adjusted diluted EPSnon-GAAP | $ 18.01 | – | 6.1 % |
| Q4 adjusted EBITDAnon-GAAP | $209.2M | – | (14.5) % |
| Fiscal 2026 adjusted EBITDAnon-GAAP | $ 911,407 | – | (2.5) % |
| ASV at August 31, 2026other | $2.57B | – | – |
| Organic ASV at August 31, 2026non-GAAP | $2.57B | – | 7.0% |
| Q4 net cash provided by operating activitiesGAAP | $204.7M | – | (3.5) % |
| Q4 free cash flownon-GAAP | $177.3M | – | (0.5) % |
| Fiscal 2026 net cash provided by operating activitiesGAAP | $822.2M | – | 13.2 % |
| Fiscal 2026 free cash flownon-GAAP | $707.5M | – | 14.6 % |
| Q4 GAAP effective tax rateGAAP | 16.1% | – | – |
| Fiscal 2026 GAAP effective tax rateGAAP | 17.9% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| AmericasOrganic ASV Growth was 7.1%. | $414.3 | – | 6.7% |
| EMEAOrganic ASV Growth was 5.2%. | $154.8 | – | 6.6% |
| APACOrganic ASV Growth was 10.6%. | $65.6 | – | 11.0% |
Fiscal 2027 outlook
- Revenue$2,600 - $2,625 million
- NoteOrganic ASV Growth 5.0% – 6.5%
- NoteGAAP operating income $806 - $840
- NoteGAAP operating margin 31.0% – 32.0%
- NoteAmortization of intangible assets and other discrete items $85 - $97
- NoteAdjusted operating income $903 - $925
- NoteAdjusted operating margin 34.75% – 35.25%
- NoteGAAP diluted earnings per share per common share $17.00 - $17.50
- NoteAmortization of intangible assets and other discrete items $2.15 - $2.25
- NoteAdjusted diluted earnings per common share $19.25 - $19.65
Capital returns
- FactSet returned more than $179 million to shareholders in Q4, including $138 million in share repurchases and more than $41 million in dividends.
- FactSet returned $808 million to shareholders during fiscal 2026.
- FactSet repurchased 552,064 shares of its common stock for $138.0 million at an average price of $249.90 during the fourth quarter of fiscal 2026.
- $356.0 million remained available for share repurchases as of August 31, 2026.
- Dividend payments were $ 164,184 for fiscal 2026, compared with $ 159,973 for fiscal 2025.
- Repurchases of common stock were $ 643,961 for fiscal 2026, compared with $ 300,457 for fiscal 2025.
What drove it
- Organic ASV increased by $168.2 million year over year to $2,568.2 million, up 7.0%.
- Annual ASV retention remained above 95%.
- During Q4, average renewal contract length increased by ~30%.
- AI solutions ASV added in fiscal 2026 more than doubled year over year.
- Q4 adjusted diluted EPS growth was driven by growth in revenues and a lower share count.
- Q4 GAAP effective tax rate decreased primarily due to the favorable resolution of uncertain tax positions in the U.S.
Concerns
- Q4 GAAP operating margin was 24.7% compared with 29.7% in the prior year period, primarily due to higher employee compensation costs, mainly driven by one-time restructuring charges and ASV-linked incentive plans.
- Q4 adjusted operating margin was 33.0% compared with 33.8% in the prior year period, mainly due to higher compensation expense from ASV-linked incentive plans and technology-related expenses.
- Fiscal 2026 GAAP operating margin was 28.3% compared with 32.2% in the prior year.
- Q4 GAAP net income decreased 21.1% and GAAP diluted EPS decreased 15.4%, including the effect of higher operating expenses and a gain on the divestiture of a business in the prior year.
- Q4 adjusted EBITDA decreased 14.5% to $ 209,212.
- Q4 net cash provided by operating activities decreased 3.5% and Q4 free cash flow decreased 0.5%.
What to watch
- Organic ASV Growth guidance of 5.0% – 6.5% for fiscal 2027.
- Fiscal 2027 GAAP operating margin guidance of 31.0% – 32.0% and adjusted operating margin guidance of 34.75% – 35.25%.
- Fiscal 2027 revenue guidance of $2,600 - $2,625 million.
- Compensation expense from ASV-linked incentive plans, technology-related expenses, restructuring charges, and one-time CEO compensation costs.
- AI solutions ASV momentum and renewal contract length.
Balance sheet and cash flow
- Cash and cash equivalents were $ 233,339 at August 31, 2026, compared with $ 337,651 at August 31, 2025.
- Investments were $ 31,993 at August 31, 2026, compared with $ 17,445 at August 31, 2025.
- Current debt was $ 499,436 at August 31, 2026.
- Long-term debt was $ 870,586 at August 31, 2026, compared with $ 1,368,260 at August 31, 2025.
- Total liabilities were $ 2,140,977 at August 31, 2026, compared with $ 2,117,859 at August 31, 2025.
- Total stockholders’ equity was $ 2,001,866 at August 31, 2026, compared with $ 2,186,413 at August 31, 2025.
- Purchases of property, equipment, leasehold improvements and capitalized internal-use software were $ 114,720 for fiscal 2026, compared with $ 108,806 for fiscal 2025.
Analysis
FactSet closed fiscal 2026 with Q4 GAAP revenues of $ 634,698, up 6.3 %, while organic revenues grew 7.1 % to $ 635,543. Organic ASV reached $2,568.2 million and increased $168.2 million year over year, or 7.0%. The commercial indicators cited in the release were constructive: annual ASV retention remained above 95%, average renewal contract length increased by ~30% during Q4, and AI solutions ASV added in fiscal 2026 more than doubled year over year. APAC delivered the fastest reported segment growth, with Q4 revenue growth of 11.0% and organic ASV growth of 10.6%.
The period showed a substantial GAAP-to-adjusted earnings divergence. Q4 GAAP operating income declined 11.7 % to $ 156,624 and GAAP net income declined 21.1 % to $ 121,127. GAAP operating margin fell to 24.7 % from 29.7 %. Management attributed the GAAP margin decline principally to higher employee compensation costs, including one-time restructuring charges and ASV-linked incentive plans. Q4 adjusted operating income nevertheless rose 3.8 % to $ 209,393, and adjusted diluted EPS rose 11.6 % to $ 4.52, supported by revenue growth and a lower share count.
For fiscal 2026, GAAP revenues increased 6.7 % to $ 2,476,256, while organic revenues increased 6.7 % to $ 2,464,614. Full-year GAAP operating income fell 6.5 % to $ 699,957 and GAAP diluted EPS fell 6.3 % to $ 14.57. Adjusted operating income increased 1.4 % to $ 855,308 and adjusted diluted EPS rose 6.1 % to $ 18.01. The full-year GAAP operating margin of 28.3 % and adjusted operating margin of 34.5 % were both below the prior-year levels of 32.2 % and 36.3 %, respectively, reflecting compensation, technology expenses, restructuring charges, and one-time CEO compensation costs cited in the release.
Cash conversion improved over the full year despite a softer fourth quarter. Fiscal 2026 net cash provided by operating activities increased 13.2 % to $ 822,200 and free cash flow increased 14.6 % to $ 707,480. In Q4, operating cash flow was $ 204,708, down 3.5 %, and free cash flow was $ 177,307, down 0.5 %. FactSet returned $808 million to shareholders in fiscal 2026, including $ 643,961 of common-stock repurchases and $ 164,184 of dividend payments. Cash and cash equivalents were $ 233,339 at August 31, 2026, while current debt was $ 499,436 and long-term debt was $ 870,586.
Fiscal 2027 guidance calls for revenue of $2,600 - $2,625 million, organic ASV growth of 5.0% – 6.5%, GAAP operating margin of 31.0% – 32.0%, and adjusted operating margin of 34.75% – 35.25%. FactSet also guided to GAAP diluted earnings per share per common share of $17.00 - $17.50 and adjusted diluted earnings per common share of $19.25 - $19.65. The guide places emphasis on sustaining subscription and AI-led ASV growth while improving margins from the fiscal 2026 levels.
Management, verbatim
FactSet delivered strong results, highlighted by a record increase in organic ASV for both the fourth quarter and fiscal year with continued momentum across our AI and data solutions. During the year, we accelerated innovation, strengthened commercial execution, and improved productivity across the organization.
Sanoke Viswanathan, CEO
As demand for trusted financial intelligence continues to grow, FactSet's high-quality data, embedded workflows, service excellence, and deep client relationships position us to drive sustainable growth and long-term shareholder value.
Sanoke Viswanathan, CEO
Not in the filing
stated, not guessed- Gross profit and gross margin for Q4 and fiscal 2026
- Prior-quarter comparisons for reported operating metrics
- Q4 and fiscal 2026 revenue, operating income, net income, and EPS by customer type or product line
- Fiscal 2027 gross-margin guidance
- Fiscal 2027 operating-expense guidance
- Fiscal 2027 tax-rate guidance
- Fiscal 2027 cash-flow, free-cash-flow, capital-expenditure, dividend, and share-repurchase guidance
- Previous-release outlook for comparison with actual results
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
FactSet filed an 8‑K reporting its Q4 and FY2026 financial results, highlighting AI‑driven ASV growth and capital returns.
Ticker impact
FactSet disclosed Q4 and FY2026 results with revenue up 6.3% YoY and lowered operating margin.
likely pressure as the market prices in weaker margins and modest earnings growth
Revenue growth is solid, yet GAAP operating margin fell from 29.7% to 24.7% and EPS declined, suggesting mixed investor reaction.
Market effects
Strong AI momentum may benefit the broader financial data and analytics sector.
North American markets may see modest volatility in data‑service stocks.
FactSet's AI growth signals continued demand for enterprise data worldwide.
Counterpoint
Margin compression could signal over‑investment in AI initiatives, prompting a short‑term pullback.
Key entities
- companyFactSet Research Systems Inc.
Provider of financial data and analytics platforms.
