FactSet Reports Strong Third Quarter Results for Fiscal 2026
New York, NY — July 1, 2026 — FactSet Research Systems Inc. (NYSE:FDS) (NASDAQ:FDS), a premier global provider of data and AI solutions for financial markets, has released its financial results for the third quarter of fiscal 2026, which ended on May 31, 2026. The report highlights robust revenue growth, strengthened enterprise relationships, and continued momentum in artificial intelligence (AI) adoption among its client base.
1. Q3 2026 Highlights
FactSet's third-quarter performance reflects the company’s strategic focus and operational excellence. Key financial highlights include:
- Revenue Growth: GAAP revenues increased by 6.4% year over year, reaching $622.9 million. Organic revenues also saw a healthy growth of 7.0%, driven primarily by institutional buy-side and wealth management clients.
- Annual Subscription Value (ASV): The organic ASV reached $2,485.6 million, marking a 7.1% increase from the previous year.
- Client Engagement: FactSet has deepened its enterprise relationships, with renewal lengths increasing by an average of 30%. The annual ASV retention rate remains impressively above 95%.
- AI Product Adoption: Over 90% of FactSet's Top 50 clients are now utilizing four or more AI products, underscoring the growing reliance on AI solutions in financial services.
2. Strategic Appointments and Initiatives
In a strategic move, FactSet appointed Joshua B. Warren as Chief Financial Officer, effective April 13, 2026. Warren brings extensive experience from his previous roles in asset management and financial technology, which is expected to enhance FactSet's financial leadership.
The firm is also expanding its AI capabilities through partnerships with technology leaders such as Google Cloud, Finster AI, and TIFIN.AI. This initiative aims to create a comprehensive ecosystem for AI-enabled financial workflows, reinforcing FactSet’s position as a trusted partner in the industry.
3. Financial Performance Overview
Here’s a closer look at FactSet's financial metrics for the third quarter of fiscal 2026:
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Revenues | $622.9 million | $585.5 million | +6.4% |
| Operating Income | $166.3 million | $194.2 million | -14.3% |
| Adjusted Operating Income | $211.8 million | $215.3 million | -1.7% |
| Net Income | $126.7 million | $148.5 million | -14.7% |
| Diluted EPS | $3.50 | $3.87 | -9.6% |
| Adjusted Diluted EPS | $4.53 | $4.27 | +6.1% |
While GAAP operating income and net income decreased primarily due to higher employee compensation costs and one-time charges, adjusted metrics remained relatively stable, reflecting strong revenue growth.
4. Shareholder Returns
FactSet continues to demonstrate its commitment to returning capital to shareholders. During the third quarter, the company returned over $243 million through share repurchases and dividends, marking its twenty-seventh consecutive year of dividend increases. The quarterly dividend was increased by $0.06 to $1.16 per share, highlighting the company’s strong cash flow generation.
5. Annual Business Outlook
Looking ahead, FactSet reaffirmed its fiscal 2026 guidance, projecting:
- Organic ASV Growth: $130 million - $160 million
- GAAP Revenues: $2,450 million - $2,470 million
- GAAP Operating Margin: 29.5% - 31.0%
- GAAP Diluted EPS: $14.85 - $15.35
This outlook reflects the company’s confidence in its growth trajectory and the increasing demand for its solutions across the financial sector.
6. Conference Call Details
FactSet will host a conference call to discuss its third-quarter results on July 1, 2026, at 9:00 a.m. ET. Participants can register for the call through the Investor Relations website, with a replay available later that day.
7. Conclusion
FactSet’s third-quarter results for fiscal 2026 showcase a company well-positioned for sustained growth amid a dynamic financial landscape. With increasing revenues, strong client retention, and a deep commitment to innovation through AI, FactSet continues to enhance its role as a key player in the financial services industry. As the company navigates through the remainder of the fiscal year, its strategic initiatives and solid operational execution will be essential in driving future performance.
