FactSet (FDS) Q3 2026 earnings summary

Executive summary

• Organic ASV grew 7.1% year-over-year to $2.49B, with broad-based gains and retention above 95%.

• GAAP revenues for Q3 FY26 rose 6.4% to $622.9M, driven by organic growth across all regions and client types.

• Adjusted diluted EPS increased 6.1% to $4.53, while adjusted operating margin was 34.0%.

• Over 90% of top 50 clients use four or more AI solutions, driving retention, expansion, and transition to flexible agreements.

• Returned $243M to shareholders in Q3 and increased quarterly dividend for the 27th consecutive year.

Financial highlights

• Q3 FY26 revenue was $622.9M (+6.4% YoY); organic revenue up 7.0%.

• Adjusted operating income was $211.8M (34% margin), down 1.7% YoY; GAAP operating income fell 14.3% to $166.3M.

• Free cash flow grew 11.1% to $254M for the quarter.

• GAAP diluted EPS was $3.50 (down 9.6%), while adjusted diluted EPS rose 6.1% to $4.53.

• Net income declined 14.7% to $126.7M, mainly due to higher operating expenses and CEO compensation.

Outlook and guidance

• Fiscal 2026 organic ASV growth expected at 5.4%–6.7%, with revenue guidance of $2.45B–$2.47B.

• Adjusted operating margin guidance: 34.0%–35.5%; adjusted diluted EPS: $17.25–$17.75.

• Q4 expected to face tough comps due to record prior-year quarter, but pipeline remains robust and momentum continues.

• AI is a significant tailwind, with multiple large deals outstanding and strong mid-market activity.