FactSet (FDS) Q3 2026 earnings summary

Executive summary

• Organic ASV grew 7.1% year-over-year to $2.49B, with strong client retention above 95% and broad-based strength across all regions and client types.

• Adjusted diluted EPS rose 6.1% to $4.53, while adjusted operating margin was 34.0%; GAAP diluted EPS was $3.50, down 9.6% due to higher operating expenses and CEO compensation.

• Over 90% of top 50 clients use four or more AI solutions, driving retention, expansion, and productivity improvements.

• Strategic partnerships with Google Cloud, Finster AI, TIFIN.AI, and others are accelerating product innovation and expanding distribution.

• Returned $243M to shareholders in Q3 and over $625M year-to-date via dividends and buybacks, marking 27 consecutive years of dividend increases.

Financial highlights

• Q3 FY26 revenue was $622.9M, up 6.4% year-over-year, with organic revenue growth of 7.0%.

• Adjusted operating income was $211.8M (34% margin), down 1.7% year-over-year; GAAP operating income was $166.3M (26.7% margin), down 14.3% due to higher compensation and one-time CEO costs.

• Free cash flow grew 11.1% to $254M; net cash from operations for Q3 was $284.5M, up 12.1% year-over-year.

• Net income for Q3 was $126.7M, down 14.7% year-over-year, mainly due to higher operating expenses.

• EBITDA for Q3 was $214M, down 9.4% year-over-year; adjusted EBITDA down 6.7%.

Outlook and guidance

• Fiscal 2026 organic ASV growth expected between $130M and $160M; revenue guidance is $2.45B–$2.47B.

• Adjusted operating margin guidance: 34.0%–35.5%; GAAP operating margin: 29.5%–31.0%.

• Adjusted diluted EPS forecasted at $17.25–$17.75; GAAP diluted EPS: $14.85–$15.35.

• Effective tax rate expected between 18.0% and 19.0%.

• Q4 expected to face tough comps due to last year's record quarter, but pipeline remains robust.