FDS · FactSet Research Systems Inc.

FactSet's Q3 FY2026 results underscore robust operational momentum, with GAAP revenue growing 6.4% to $622.9 million and organic revenue accelerating 7.0% year-over-year. The organic ASV growth of 7.1% ($2,485.6 million) highlights sustained subscription demand, particularly from institutional buy-side and wealth management clients. Geographically, APAC led with organic revenue growth of 10.5%, followed by Americas at 7.0% and EMEA at 5.3%. Margin performance was mixed: GAAP operating margin contracted sharply to 26.7% from 33.2%, impacted by one-time charges including restructuring/severance ($19.6 million) and CEO compensation costs ($4.3 million). Adjusted operating margin also declined to 34.0% from 36.8%, but the 280 basis point drop was largely expected due to higher compensation and technology investments. On a per-share basis, GAAP diluted EPS fell 9.6% to $3.50, while adjusted diluted EPS rose 6.1% to $4.53, benefiting from revenue growth and a 6% reduction in share count. Cash generation remained strong, with operating cash flow of $284.5 million and free cash flow of $254.0 million, both up over 11% year-over-year. FactSet returned $243.4 million to shareholders through dividends and buybacks, and the quarterly dividend was increased by $0.06 to $1.16 per share. Management reaffirmed full-year FY2026 guidance, including GAAP revenue of $2,450-$2,470 million and adjusted diluted EPS of $17.25-$17.75. CEO Sanoke Viswanathan emphasized that clients are expanding relationships and adopting AI solutions, reinforcing confidence in sustained growth. The reaffirmed guidance suggests stable operating trends despite margin headwinds, positioning FactSet for continued long-term value creation.