FactSet's Q3 FY2026 – Revenue Grows, Profitability Dips

By Hao Liu • Wednesday, July 01 10:47 • Permanent Link

FactSet’s third quarter fiscal 2026 showed revenue growth, stronger cash generation, and a larger annual subscription base, even as profitability measures moved lower from a year ago.

Revenue rose 6.4% to $622.9 million from $585.5 million in the prior-year quarter. Organic revenue increased 7.0% to $622.9 million from $582.2 million. Annual subscription value climbed to $2.484 billion from $2.335 billion a year earlier, while organic ASV rose 7.1% to $2.486 billion, up $165.0 million year over year and $35.4 million in the last three months.

Operating income fell to $166.3 million from $194.2 million, a drop of 14.3%, and operating margin narrowed to 26.7% from 33.2%. Net income declined 14.7% to $126.7 million from $148.5 million. Diluted earnings per share decreased to $3.50 from $3.87, while adjusted diluted EPS increased 6.1% to $4.53 from $4.27.

Adjusted operating income slipped to $211.8 million from $215.3 million, and adjusted operating margin narrowed to 34.0% from 36.8%. Adjusted net income was essentially flat at $163.8 million versus $163.9 million a year earlier. Adjusted EBITDA declined 6.7% to $220.2 million from $235.9 million.

Cash generation improved. Net cash from operating activities rose 12.1% to $284.5 million from the prior-year quarter, and free cash flow increased 11.1% to $254.0 million.

By region, organic ASV grew 7.2% in the Americas to $1.621 billion, 5.6% in EMEA to $608.7 million, and 10.0% in APAC to $255.9 million. Quarterly organic revenue growth was 7.0% in the Americas, 5.3% in EMEA, and 10.5% in APAC.

FactSet returned $243.4 million to shareholders in the quarter, including $203.1 million in share repurchases and $40.3 million in dividends. Fiscal year-to-date capital returned totaled $628.7 million. The company repurchased 926,370 shares at an average price of $219.21, leaving $494.0 million available under its buyback authorization.

Client metrics also improved. Enterprise renewals extended by 30% on average, annual ASV retention remained above 95%, and more than 90% of the top 50 clients were using four or more of FactSet’s AI products. As a result of these announcements, the company's shares have moved 5.23% on the market, and are now trading at a price of $242.12. If you want to know more, read the company's complete 8-K report here.

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