FactSet Reports Results for Fourth Quarter and Fiscal 2026
Fiscal 2027 guidance points to higher GAAP earnings, while expected organic subscription growth is below fiscal 2026's pace.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
FactSet (FDS) reported fourth-quarter fiscal 2026 revenue of $634.7 million, with growth in subscriptions but lower GAAP earnings.
Revenue rose 6.3% year over year for the quarter ended August 31, 2026. Diluted earnings per share fell 15.4% to $3.41, while adjusted diluted EPS rose 11.6% to $4.52. Organic annual subscription value, measuring forward-looking subscription revenue excluding acquisition and currency effects, grew 7.0% to $2,568.2 million.
Full-year revenue increased 6.7% to $2.48 billion. GAAP diluted EPS declined 6.3% to $14.57, while free cash flow rose 14.6% to $707.5 million. FactSet returned $808 million to shareholders during fiscal 2026. For fiscal 2027, the company expects revenue of $2,600–$2,625 million, GAAP diluted EPS of $17.00–$17.50 and organic subscription value growth of 5.0%–6.5%.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointQ4 revenue rose 6.3% year over year to $634.7 million; organic revenue grew 7.1%.
- Moderate pointOrganic annual subscription value grew 7.0%, or $168.2 million, year over year to $2,568.2 million.
- Moderate pointQ4 adjusted diluted EPS increased 11.6% to $4.52 from $4.05 a year earlier.
- Moderate pointFiscal 2026 operating cash flow increased 13.2% year over year to $822.2 million.
- Moderate pointFiscal 2026 free cash flow increased 14.6% year over year to $707.5 million.
- Moderate pointFiscal 2026 shareholder returns totaled $808 million; dividends increased for the twenty-seventh consecutive year. 8.7% of market cap
- Moderate pointQ4 repurchases retired 552,064 shares for $138.0 million at an average price of $249.90. 1.5% of market cap
- Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 revenue guidance is $2,600–$2,625 million, above fiscal 2026 revenue.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 GAAP diluted EPS guidance is $17.00–$17.50, versus $14.57 in fiscal 2026.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 adjusted diluted EPS guidance is $19.25–$19.65, versus $18.01 in fiscal 2026.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 GAAP operating margin guidance is 31.0%–32.0%, versus 28.3% in fiscal 2026.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 adjusted operating margin guidance is 34.75%–35.25%, versus 34.5% in fiscal 2026.
16 minor points
- Minor pointFiscal 2026 revenue rose 6.7% to $2.48 billion, marking 47 consecutive years of increases.
- Minor pointAnnual subscription value retention remained above 95%; average renewal contract length increased ~30% during Q4.
- Minor pointAI solutions subscription value added in fiscal 2026 more than doubled year over year.
- Minor pointFiscal 2026 adjusted diluted EPS rose 6.1% to $18.01, its 30th consecutive annual increase.
- Minor pointQ4 adjusted operating income rose 3.8% year over year to $209.393 million.
- Minor pointFiscal 2026 adjusted operating income increased 1.4% year over year to $855.308 million.
- Minor pointQ4 adjusted net income increased 4.1% year over year to $160.887 million.
- Minor pointFiscal 2026 adjusted net income increased 1.2% year over year to $659.498 million.
- Minor pointRemaining repurchase authorization was $356.0 million at August 31, 2026.
- Minor pointAmericas Q4 revenue reached $414.3 million versus $388.7 million; organic revenue growth was 6.7%.
- Minor pointEMEA Q4 revenue reached $154.8 million versus $147.4 million; organic revenue growth was 6.6%.
- Minor pointAPAC Q4 revenue reached $65.6 million versus $60.8 million; organic revenue growth was 11.0%.
- Minor pointAmericas organic subscription value grew 7.1% to $1,678.2 million at August 31, 2026.
- Minor pointEMEA organic subscription value grew 5.2% to $623.6 million at August 31, 2026.
- Minor pointAPAC organic subscription value grew 10.6% to $266.4 million at August 31, 2026.
- Minor pointQ4 effective tax rate decreased to 16.1% from 18.7% a year earlier.
Negative
- Moderate pointFiscal 2026 GAAP diluted EPS fell 6.3% to $14.57, below latest guidance of $14.85–$15.35.
- Moderate pointQ4 GAAP operating income decreased 11.7% year over year to $156.624 million.
- Moderate pointQ4 GAAP net income decreased 21.1% year over year to $121.127 million.
- Moderate pointFiscal 2026 GAAP operating margin fell to 28.3% from 32.2%, below latest guidance of 29.5%–31.0%.
- Moderate pointFiscal 2026 adjusted operating margin fell to 34.5% from 36.3% a year earlier.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 organic subscription value growth guidance is 5.0%–6.5%, versus 7.0% in fiscal 2026.
- Moderate pointCurrent debt was $499.436 million at August 31, 2026, versus none a year earlier.
10 minor points
- Minor pointQ4 GAAP diluted EPS fell 15.4% year over year to $3.41 from $4.03.
- Minor pointFiscal 2026 GAAP operating income decreased 6.5% year over year to $699.957 million.
- Minor pointFiscal 2026 GAAP net income decreased 10.6% year over year to $533.481 million.
- Minor pointQ4 GAAP operating margin fell to 24.7% from 29.7% a year earlier.
- Minor pointQ4 adjusted operating margin fell to 33.0% from 33.8% a year earlier.
- Minor pointQ4 adjusted EBITDA decreased 14.5% year over year to $209.212 million.
- Minor pointFiscal 2026 adjusted EBITDA decreased 2.5% year over year to $911.407 million.
- Minor pointQ4 operating cash flow decreased 3.5% year over year to $204.7 million.
- Minor pointQ4 free cash flow decreased 0.5% year over year to $177.3 million.
- Minor pointFiscal 2026 effective tax rate increased to 17.9% from 17.2% a year earlier.
News Explained
Despite 6.7% revenue growth, FactSet’s fiscal 2026 GAAP operating margin fell to 28.3% from 32.2% a year earlier.
FactSet has reported completed fiscal 2026 results; its balance sheet at
Key Figures
- Q4 GAAP revenue
- $634.7 million, up 6.3% year over year
- Fourth quarter fiscal 2026
- Organic ASV
- $2,568.2 million, up 7.0% year over year
- At August 31, 2026
- GAAP operating margin
- 24.7%, compared with 29.7%
- Fourth quarter fiscal 2026 versus prior-year period
- GAAP diluted EPS
- $3.41, down 15.4%
- Fourth quarter fiscal 2026 versus prior-year period
- Adjusted diluted EPS
- $4.52, up 11.6%
- Fourth quarter fiscal 2026 versus prior-year period
- Organic ASV growth guidance
- 5.0%–6.5%
- Fiscal 2027 expectations
- Revenue guidance
- $2,600–$2,625 million
- Fiscal 2027 expectations
- Adjusted diluted EPS guidance
- $19.25–$19.65
- Fiscal 2027 expectations
Previous Earnings Reports
-
Revenue and organic ASV grew year over year; adjusted diluted EPS rose.
-
Revenue and organic ASV grew year over year, and fiscal 2026 guidance was raised.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
gaap financial
ebitda financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Strong commercial execution and AI momentum drive organic ASV growth of
NORWALK, Conn., Sept. 30, 2026 (GLOBE NEWSWIRE) -- FactSet (NYSE: FDS) (NASDAQ: FDS), a leading global intelligence and AI solutions provider to the financial markets, today announced results for its fourth quarter and fiscal 2026 ended August 31, 2026.
Q4 and Fiscal 2026 Highlights
|
"FactSet delivered strong results, highlighted by a record increase in organic ASV for both the fourth quarter and fiscal year with continued momentum across our AI and data solutions. During the year, we accelerated innovation, strengthened commercial execution, and improved productivity across the organization.
"As demand for trusted financial intelligence continues to grow, FactSet's high-quality data, embedded workflows, service excellence, and deep client relationships position us to drive sustainable growth and long-term shareholder value."
- Sanoke Viswanathan, CEO
Key Financial Measures*
| (Condensed and Unaudited) | Three Months Ended | Twelve Months Ended | Latest | |||||||||||||
| August 31, | August 31, | FY2026 | ||||||||||||||
| (Results in thousands, except per share data) | 2026 | 2025 | Change | 2026 | 2025 | Change | Guidance | |||||||||
| Revenues | $ | 634,698 | $ | 596,901 | 6.3 % | $ | 2,476,256 | $ | 2,321,748 | 6.7 % | ||||||
| Organic revenues | $ | 635,543 | $ | 593,503 | 7.1 % | $ | 2,464,614 | $ | 2,309,287 | 6.7 % | ||||||
| Operating income | $ | 156,624 | $ | 177,321 | (11.7)% | $ | 699,957 | $ | 748,303 | (6.5)% | ||||||
| Adjusted operating income | $ | 209,393 | $ | 201,701 | 3.8 % | $ | 855,308 | $ | 843,432 | 1.4 % | ||||||
| Operating margin | 24.7 | % | 29.7 | % | 28.3 | % | 32.2 | % | ||||||||
| Adjusted operating margin | 33.0 | % | 33.8 | % | 34.5 | % | 36.3 | % | ||||||||
| Net income | $ | 121,127 | $ | 153,616 | (21.1)% | $ | 533,481 | $ | 597,040 | (10.6)% | ||||||
| Adjusted net income | $ | 160,887 | $ | 154,590 | 4.1 % | $ | 659,498 | $ | 651,617 | 1.2 % | ||||||
| Adjusted EBITDA | $ | 209,212 | $ | 244,555 | (14.5)% | $ | 911,407 | $ | 934,973 | (2.5)% | ||||||
| Diluted EPS | $ | 3.41 | $ | 4.03 | (15.4)% | $ | 14.57 | $ | 15.55 | (6.3)% | ||||||
| Adjusted diluted EPS | $ | 4.52 | $ | 4.05 | 11.6 % | $ | 18.01 | $ | 16.98 | 6.1 % | ||||||
* See reconciliation of U.S. GAAP to adjusted key financial measures in the back of this press release.
Fourth Quarter Fiscal 2026 Highlights
- GAAP revenues increased
6.3% or$37.8 million to$634.7 million compared with$596.9 million in the prior year period. - Organic revenues grew
7.1% year over year to$635.5 million . - Annual Subscription Value ("ASV") was
$2,565.2 million at August 31, 2026. - Organic ASV was
$2,568.2 million at August 31, 2026, up7.0% or$168.2 million year over year. - GAAP operating margin was
24.7% compared with29.7% in the prior year period, primarily due to higher employee compensation costs, mainly driven by one-time restructuring charges and ASV-linked incentive plans, partially offset by an increase in revenues. - Adjusted operating margin, which excludes acquisition-related intangible asset amortization and non-recurring items, was
33.0% compared with33.8% in the prior year period, mainly due to higher compensation expense from ASV-linked incentive plans and technology-related expenses. - GAAP diluted EPS was
$3.41 compared with$4.03 for the same period in fiscal 2025, mainly driven by higher operating expenses, including non-recurring items, and a gain on the divestiture of a business in the prior year, partially offset by growth in revenues and a lower share count. - Adjusted diluted EPS increased
11.6% to$4.52 compared with$4.05 in the prior year period, driven by growth in revenues and a lower share count. - Net cash provided by operating activities was
$204.7 million for the fourth quarter of fiscal 2026, a decrease of3.5% compared with the prior year period. - Free cash flow was
$177.3 million for the fourth quarter of fiscal 2026, a decrease of0.5% compared with the prior year period. - GAAP effective tax rate decreased to
16.1% compared with18.7% for the prior year period primarily due to the favorable resolution of uncertain tax positions in the U.S.
Full Year Fiscal 2026 Highlights
- GAAP revenues increased
6.7% or$154.5 million to$2.48 billion . This result continues FactSet's track record of 47 consecutive years of increased revenues for the Company. - GAAP operating margin was
28.3% compared with32.2% for the prior year, primarily due to higher employee compensation costs, mainly driven by one-time restructuring charges, ASV-linked incentive plans and one-time CEO compensation costs, partially offset by growth in revenues. - Adjusted operating margin was
34.5% compared with36.3% in the prior year, mainly due to higher compensation expense from ASV-linked incentive plans and technology expenses. - GAAP diluted EPS was
$14.57 compared with$15.55 in the prior year period, mainly driven by higher operating expenses, including non-recurring items, partially offset by growth in revenues and a lower share count. - Adjusted diluted EPS increased
6.1% to$18.01 , primarily driven by growth in revenues and a lower share count. Fiscal 2026 marks the 30th consecutive year that FactSet has increased its adjusted diluted EPS. - Net cash provided by operating activities was
$822.2 million for fiscal 2026, an increase of13.2% compared with the prior year period. - Free cash flow was
$707.5 million for fiscal 2026, an increase of14.6% compared with the prior year period. - GAAP effective tax rate increased to
17.9% compared with17.2% for the prior year period primarily due to a stock-based compensation tax shortfall and the limitation on the deductibility of executive compensation, partially offset by the favorable resolution of uncertain tax positions in the U.S.
Annual Subscription Value (ASV)
ASV at any given point in time represents the forward-looking revenues for the next 12 months from all subscription services currently supplied to clients. Organic ASV at any point in time equals our ASV excluding ASV from acquisitions and the comparable impact of dispositions and discontinued lines of business effected within the last 12 months and the impact of foreign currency movements.
ASV was
Segment Revenues and ASV
| (Results in millions) | Aug. 31, 2026 ASV | Aug. 31, 2025 ASV | Aug. 31, 2026 Organic ASV | Organic ASV Growth | Q4 FY26 Revenues | Q4 FY25 Revenues | Organic Revenues Growth | |||||
| Americas | ||||||||||||
| EMEA | ||||||||||||
| APAC | ||||||||||||
Share Repurchase Program
FactSet repurchased 552,064 shares of its common stock for
Annual Business Outlook
Fiscal 2027 Expectations:
| Metric | Guidance | |
| Organic ASV Growth | ||
| Revenues | ||
| GAAP | Adjusted | |
| Operating Margin | ||
| Diluted EPS | ||
Adjusted operating margin and adjusted diluted EPS guidance do not include certain effects of any non-recurring benefits or charges that may arise in fiscal 2027. Please see the back of this press release for a reconciliation of GAAP to adjusted metrics.
Conference Call
Fourth Quarter 2026 Conference Call Details
| Date: | Wednesday, September 30, 2026 |
| Time: | 9:00 a.m. Eastern Time |
| Participant Registration: | FactSet Q4 2026 Earnings Call Registration |
Please register for the conference call using the above link in advance of the call start time. Upon registration, you will receive dial-in information and a unique access PIN. The earnings presentation will be available on FactSet’s Investor Relations website at 8:30 a.m. Eastern Time on September 30, 2026, 30 minutes before the earnings call begins.
A replay will be available on the Investor Relations website after 1:00 p.m. Eastern Time on September 30, 2026, and will remain accessible through September 30, 2027. A transcript of the earnings call will be available via FactSet CallStreet.
Forward-looking Statements
This press release contains forward-looking statements based on management's current expectations, estimates, forecasts and projections about future events, trends, contingencies, and circumstances, industries in which FactSet operates and the beliefs and assumptions of management. All statements that address expectations, guidance, outlook or projections about the future, including statements about the Company's strategy, product development, revenues, future financial results, anticipated growth, market position, subscriptions, expected expenditures or investments, trends in FactSet’s business and financial results, are forward-looking statements. Forward-looking statements may be identified by words like "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "intends," "projects," "indicates," "predicts," "potential," or "continue," the negative of those terms, and similar expressions. Forward-looking statements are not guarantees of future performance, outcomes, events, or actions and involve a number of known and unknown risks, uncertainties, and assumptions. Many factors, including those discussed more fully elsewhere in this release and in FactSet's filings with the Securities and Exchange Commission, particularly its latest annual report on Form 10-K, including Item 1A, Risk Factors, and quarterly reports on Form 10-Q, as well as others, could cause results, performance, achievements, or activities to differ materially from those expressed or implied by the forward-looking statements. Accordingly, the Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. FactSet assumes no duty to and does not undertake to update or revise any forward-looking statement to reflect events or circumstances arising after the date on which it is made, except as required by applicable law. Future results could differ materially from historical performance.
About Non-GAAP Financial Measures
The Company reports its financial results in accordance with U.S. GAAP. The Company also refers to and presents certain additional non-GAAP financial measures. These measures include: organic revenues, adjusted operating margin, adjusted operating income, adjusted net income, EBITDA, adjusted EBITDA, adjusted diluted EPS, and free cash flow. The Company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP at the back of this release.
FactSet uses these non-GAAP financial measures both in presenting its results to stockholders and the investment community and in its internal evaluation and management of the business. The Company believes that these non-GAAP financial measures provide useful supplemental information to investors because they permit investors to view the Company’s performance using the same tools that management uses to gauge progress in achieving its goals. Investors may benefit from referring to these non-GAAP financial measures in assessing the Company’s performance and when planning, forecasting and analyzing future periods, and such measures may also facilitate comparisons to historical performance. The Company believes that organic revenues, adjusted operating margin, adjusted operating income, adjusted net income, EBITDA, adjusted EBITDA, and adjusted diluted EPS help to fully reflect the underlying economic performance of FactSet. The Company believes that free cash flow is useful to investors because it is an indication of cash flow that may be available to pay debt obligations, make strategic acquisitions and investments, pay dividends, repurchase stock, and strengthen the balance sheet. The presentation of this non-GAAP financial information should not be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with GAAP. We are not able to provide reconciliations of certain forward-looking non-GAAP financial measures to comparable GAAP measures because certain items required for such reconciliations are outside of our control and/or cannot be reasonably predicted without unreasonable effort.
About FactSet
FactSet (NYSE: FDS | NASDAQ: FDS) supercharges financial intelligence, offering enterprise data and information solutions that help our clients maximize their potential. Our digital platform seamlessly integrates proprietary data, third-party sources, and flexible technology to deliver tailored solutions across the buy side, sell side, wealth, and corporate sectors. With over 48 years of expertise, we leverage advanced data connectivity, AI, and next-generation tools to streamline workflows and enable smarter decision-making. As an S&P 500 company serving more than 9,200 global clients and over 260,000 individual users, we are dedicated to innovation and long-term client success. Learn more at www.factset.com and follow us on X and LinkedIn.
Investor Relations:
Kevin Toomey
+1.212.209.5259
Kevin.Toomey@factset.com
Media Relations:
Adam Dalezman
+1.203.810.1035
media_request@factset.com
Consolidated Statements of Income(Unaudited) | ||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||
| August 31, | August 31, | |||||||||||||
| (In thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Revenues | $ | 634,698 | $ | 596,901 | $ | 2,476,256 | $ | 2,321,748 | ||||||
| Operating expenses | ||||||||||||||
| Cost of services | 326,298 | 288,670 | 1,223,146 | 1,097,782 | ||||||||||
| Selling, general and administrative | 151,776 | 130,910 | 553,153 | 475,663 | ||||||||||
| Total operating expenses | 478,074 | 419,580 | 1,776,299 | 1,573,445 | ||||||||||
| Operating income | 156,624 | 177,321 | 699,957 | 748,303 | ||||||||||
| Other income (expense), net | ||||||||||||||
| Interest income | 1,442 | 2,050 | 4,064 | 6,533 | ||||||||||
| Interest expense | (14,398 | ) | (12,886 | ) | (54,684 | ) | (56,324 | ) | ||||||
| Other income (expense), net | 703 | 22,466 | 379 | 22,446 | ||||||||||
| Total other income (expense), net | (12,253 | ) | 11,630 | (50,241 | ) | (27,345 | ) | |||||||
| Income before income taxes | 144,371 | 188,951 | 649,716 | 720,958 | ||||||||||
| Provision for income taxes | 23,244 | 35,335 | 116,235 | 123,918 | ||||||||||
| Net income | $ | 121,127 | $ | 153,616 | $ | 533,481 | $ | 597,040 | ||||||
| Basic earnings per common share | $ | 3.42 | $ | 4.07 | $ | 14.63 | $ | 15.74 | ||||||
| Diluted earnings per common share | $ | 3.41 | $ | 4.03 | $ | 14.57 | $ | 15.55 | ||||||
| Basic weighted average common shares | 35,403 | 37,757 | 36,467 | 37,924 | ||||||||||
| Diluted weighted average common shares | 35,572 | 38,158 | 36,612 | 38,385 | ||||||||||
Consolidated Balance Sheets(Unaudited) | ||||
| (In thousands) | August 31, 2026 | August 31, 2025 | ||
| ASSETS | ||||
| Cash and cash equivalents | $ | 233,339 | $ | 337,651 |
| Investments | 31,993 | 17,445 | ||
| Accounts receivable, net of reserves of | 301,439 | 270,684 | ||
| Prepaid taxes | 11,406 | 33,600 | ||
| Prepaid expenses and other current assets | 76,536 | 70,379 | ||
| Total current assets | 654,713 | 729,759 | ||
| Property, equipment and leasehold improvements, net | 79,246 | 85,203 | ||
| Goodwill | 1,283,025 | 1,284,708 | ||
| Intangible assets, net | 1,849,510 | 1,916,102 | ||
| Deferred tax assets | 74,550 | 61,226 | ||
| Lease right-of-use assets, net | 113,275 | 121,776 | ||
| Other assets | 88,524 | 105,498 | ||
| TOTAL ASSETS | $ | 4,142,843 | $ | 4,304,272 |
| LIABILITIES | ||||
| Accounts payable and accrued expenses | $ | 136,104 | $ | 135,262 |
| Current debt | 499,436 | — | ||
| Current lease liabilities | 34,253 | 33,145 | ||
| Accrued compensation | 192,352 | 130,596 | ||
| Deferred revenues | 184,264 | 167,852 | ||
| Current taxes payable | 5,012 | 13,041 | ||
| Dividends payable | 40,901 | 41,410 | ||
| Total current liabilities | 1,092,322 | 521,306 | ||
| Long-term debt | 870,586 | 1,368,260 | ||
| Deferred tax liabilities | 11,279 | 14,902 | ||
| Taxes payable | 25,502 | 45,095 | ||
| Long-term lease liabilities | 138,139 | 157,104 | ||
| Other liabilities | 3,149 | 11,192 | ||
| TOTAL LIABILITIES | $ | 2,140,977 | $ | 2,117,859 |
| STOCKHOLDERS’ EQUITY | ||||
| TOTAL STOCKHOLDERS’ EQUITY | $ | 2,001,866 | $ | 2,186,413 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 4,142,843 | $ | 4,304,272 |
Certain prior year figures have been conformed to the current year's presentation.
| Consolidated Statements of Cash Flows (Unaudited) | ||||||
| Twelve Months Ended | ||||||
| August 31, | ||||||
| (In thousands) | 2026 | 2025 | ||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
| Net income | $ | 533,481 | $ | 597,040 | ||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||
| Depreciation and amortization | 180,830 | 157,691 | ||||
| Amortization of lease right-of-use assets | 32,268 | 30,982 | ||||
| Stock-based compensation expense | 84,099 | 61,229 | ||||
| Deferred income taxes | (14,284 | ) | (3,545 | ) | ||
| Gain on divestiture of a business | — | (23,238 | ) | |||
| Other, net | 17,415 | 11,867 | ||||
| Changes in assets and liabilities, net of effects of acquisitions | ||||||
| Accounts receivable | (37,387 | ) | (42,540 | ) | ||
| Prepaid expenses and other assets | (2,209 | ) | 65 | |||
| Accounts payable and accrued expenses | (4,405 | ) | (59,400 | ) | ||
| Accrued compensation | 62,553 | 35,666 | ||||
| Deferred revenues | 15,813 | 2,249 | ||||
| Taxes payable, net of prepaid taxes | (5,079 | ) | (1,161 | ) | ||
| Lease liabilities, net | (40,895 | ) | (40,645 | ) | ||
| Net cash provided by operating activities | 822,200 | 726,260 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
| Purchases of property, equipment, leasehold improvements and capitalized internal-use software | (114,720 | ) | (108,806 | ) | ||
| Acquisition of businesses, net of cash and cash equivalents acquired | — | (348,255 | ) | |||
| Purchases of investments | (53,834 | ) | (18,867 | ) | ||
| Proceeds from maturity or sale of investments | 36,050 | 58,155 | ||||
| Proceeds from divestiture | — | 25,000 | ||||
| Net cash provided by (used in) investing activities | (132,504 | ) | (392,773 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
| Proceeds from debt | 240,933 | 803,410 | ||||
| Repayments of debt | (242,500 | ) | (805,000 | ) | ||
| Dividend payments | (164,184 | ) | (159,973 | ) | ||
| Proceeds from employee stock plans | 33,289 | 81,688 | ||||
| Repurchases of common stock | (643,961 | ) | (300,457 | ) | ||
| Deferred acquisition consideration | (15,327 | ) | (10,199 | ) | ||
| Other financing activities | (7,697 | ) | (17,290 | ) | ||
| Net cash provided by (used in) financing activities | (799,447 | ) | (407,821 | ) | ||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,309 | ) | 3,050 | |||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (112,060 | ) | (71,284 | ) | ||
| Cash, cash equivalents and restricted cash at beginning of period | 351,695 | 422,979 | ||||
| Cash, cash equivalents and restricted cash at end of period | $ | 239,635 | $ | 351,695 | ||
| Reconciliation of total cash, cash equivalents and restricted cash: | ||||||
| Cash and cash equivalents | $ | 233,339 | $ | 337,651 | ||
| Restricted cash included in Prepaid expenses and other current assets | 6,296 | 6,522 | ||||
| Restricted cash included in Other assets | — | 7,522 | ||||
| Total cash, cash equivalents and restricted cash | $ | 239,635 | $ | 351,695 | ||
Certain prior year figures have been conformed to the current year's presentation.
Reconciliation of U.S. GAAP Results to Adjusted Financial Measures
Organic Revenues
Organic revenues exclude the current year impact of revenues from acquisitions and the comparable impact of dispositions and discontinued lines of business, effected within the past 12 months and the current year impact of foreign currency movements. The table below provides a reconciliation of revenues to organic revenues:
| (Unaudited) | Three Months Ended | Twelve Months Ended | ||||||||||||||
| August 31, | August 31, | |||||||||||||||
| (In thousands) | 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||
| Revenues | $ | 634,698 | $ | 596,901 | 6.3 | % | $ | 2,476,256 | $ | 2,321,748 | 6.7 | % | ||||
| Acquisition revenues | — | — | (10,066 | ) | — | |||||||||||
| Disposition revenues | — | (3,398 | ) | — | (12,461 | ) | ||||||||||
| Currency impact | 845 | — | (1,576 | ) | — | |||||||||||
| Organic revenues | $ | 635,543 | $ | 593,503 | 7.1 | % | $ | 2,464,614 | $ | 2,309,287 | 6.7 | % | ||||
Non-GAAP Financial Measures
The table below provides a reconciliation of operating income, operating margin, net income and diluted EPS to adjusted operating income, adjusted operating margin, adjusted net income, EBITDA, adjusted EBITDA, and adjusted diluted EPS.
Adjusted operating income and margin, adjusted net income, and adjusted diluted earnings per share exclude acquisition-related intangible asset amortization and non-recurring items. EBITDA represents earnings before interest expense, provision for income taxes and depreciation and amortization expense, while adjusted EBITDA further excludes non-recurring non-cash expenses.
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| August 31, | August 31, | ||||||||||||||||
| (in thousands, except per share data) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | |||||||||||
| Operating income | $ | 156,624 | $ | 177,321 | (11.7)% | $ | 699,957 | $ | 748,303 | (6.5)% | |||||||
| Intangible asset amortization | 18,875 | 19,136 | 76,205 | 73,036 | |||||||||||||
| Restructuring/severance | 26,899 | 576 | 46,200 | 259 | |||||||||||||
| CEO onboarding costs(1) | 4,565 | 1,675 | 19,521 | 1,675 | |||||||||||||
| Business disposition, acquisitions and related costs | 1,780 | 2,993 | 8,255 | 17,761 | |||||||||||||
| India labor codes reform | — | — | 2,883 | — | |||||||||||||
| Asset impairment | — | — | 887 | — | |||||||||||||
| Client bankruptcy charges | — | — | 750 | — | |||||||||||||
| Litigation reserve | 650 | — | 650 | — | |||||||||||||
| Sales tax dispute(2) | — | — | — | 2,398 | |||||||||||||
| Adjusted operating income | $ | 209,393 | $ | 201,701 | 3.8 | % | $ | 855,308 | $ | 843,432 | 1.4 | % | |||||
| Operating margin | 24.7 | % | 29.7 | % | 28.3 | % | 32.2 | % | |||||||||
| Adjusted operating margin(3) | 33.0 | % | 33.8 | % | 34.5 | % | 36.3 | % | |||||||||
| Net income | $ | 121,127 | $ | 153,616 | (21.1)% | $ | 533,481 | $ | 597,040 | (10.6)% | |||||||
| Intangible asset amortization | 14,142 | 16,301 | 58,762 | 54,074 | |||||||||||||
| Restructuring/severance | 20,154 | 491 | 35,625 | 192 | |||||||||||||
| CEO onboarding costs(1) | 3,420 | 1,427 | 15,053 | 1,240 | |||||||||||||
| Impairment within Other assets(4) | — | — | 12,338 | — | |||||||||||||
| Business disposition, acquisitions and related costs | 1,334 | 2,550 | 6,365 | 13,150 | |||||||||||||
| India labor codes reform | — | — | 2,223 | — | |||||||||||||
| Asset impairment | — | — | 684 | — | |||||||||||||
| Client bankruptcy charges | — | — | 578 | — | |||||||||||||
| Litigation reserve | 487 | — | 501 | — | |||||||||||||
| Sales tax dispute(2) | — | — | — | 1,775 | |||||||||||||
| Gain on business divestiture | — | (19,795 | ) | — | (17,205 | ) | |||||||||||
| Gain on sale of investments | — | — | (5,015 | ) | — | ||||||||||||
| Non-operating income from business disposition | (136 | ) | — | (604 | ) | — | |||||||||||
| Income tax items | 359 | — | (493 | ) | 1,351 | ||||||||||||
| Adjusted net income(5) | $ | 160,887 | $ | 154,590 | 4.1 | % | $ | 659,498 | $ | 651,617 | 1.2 | % | |||||
| Net income | $ | 121,127 | $ | 153,616 | (21.1)% | $ | 533,481 | $ | 597,040 | (10.6)% | |||||||
| Interest expense | 14,398 | 12,886 | 54,684 | 56,324 | |||||||||||||
| Income taxes | 23,244 | 35,335 | 116,235 | 123,918 | |||||||||||||
| Depreciation and amortization expense | 47,123 | 42,718 | 180,830 | 157,691 | |||||||||||||
| EBITDA | $ | 205,892 | $ | 244,555 | (15.8)% | $ | 885,230 | $ | 934,973 | (5.3)% | |||||||
| Non-recurring non-cash expenses(6) | 3,320 | — | 26,177 | — | |||||||||||||
| Adjusted EBITDA | $ | 209,212 | $ | 244,555 | (14.5)% | $ | 911,407 | $ | 934,973 | (2.5)% | |||||||
| Diluted EPS | $ | 3.41 | $ | 4.03 | (15.4)% | $ | 14.57 | $ | 15.55 | (6.3)% | |||||||
| Intangible asset amortization | 0.40 | 0.43 | 1.60 | 1.41 | |||||||||||||
| Restructuring/severance | 0.57 | 0.01 | 0.97 | 0.01 | |||||||||||||
| CEO onboarding costs(1) | 0.09 | 0.03 | 0.41 | 0.03 | |||||||||||||
| Impairment within Other assets(4) | — | — | 0.34 | — | |||||||||||||
| Business disposition, acquisitions and related costs | 0.04 | 0.07 | 0.18 | 0.34 | |||||||||||||
| India labor codes reform | — | — | 0.06 | — | |||||||||||||
| Asset impairment | — | — | 0.02 | — | |||||||||||||
| Client bankruptcy charges | — | — | 0.02 | — | |||||||||||||
| Litigation reserve | 0.01 | — | 0.01 | — | |||||||||||||
| Sales tax dispute(2) | — | — | — | 0.05 | |||||||||||||
| Gain on business divestiture | — | (0.52 | ) | — | (0.45 | ) | |||||||||||
| Gain on sale of investments | — | — | (0.14 | ) | — | ||||||||||||
| Non-operating income from business disposition | (0.01 | ) | — | (0.02 | ) | — | |||||||||||
| Income tax items | 0.01 | — | (0.01 | ) | 0.04 | ||||||||||||
| Adjusted diluted EPS(5) | $ | 4.52 | $ | 4.05 | 11.6 | % | $ | 18.01 | $ | 16.98 | 6.1 | % | |||||
| Weighted average common shares (diluted) | 35,572 | 38,158 | 36,612 | 38,385 | |||||||||||||
| (1) | For fiscal 2026, these costs are related to the recognition, over their respective service periods, of one-time make-whole cash and equity awards issued to our CEO. |
| (2) | Related to a resolved matter with the Massachusetts Department of Revenue. |
| (3) | Adjusted operating margin is calculated as Adjusted operating income divided by Revenues. |
| (4) | Related to the impairment of an equity investment. |
| (5) | For purposes of calculating Adjusted net income and Adjusted diluted EPS, all adjustments for the three months ended August 31, 2026 and August 31, 2025, were taxed at an adjusted tax rate of |
| (6) | Primarily related to the impairment of an equity investment and the recognition, over their respective service periods, of one-time equity awards issued to our CEO. |
Business Outlook Reconciliation
| (Unaudited) | |
| Figures may not foot due to rounding | Annual Fiscal 2027 Guidance |
| (In millions, except per share data) | |
| Revenues | |
| Operating income | |
| Operating margin | |
| Amortization of intangible assets and other discrete items | |
| Adjusted operating income | |
| Adjusted operating margin(a) | |
| Diluted earnings per share per common share | |
| Amortization of intangible assets and other discrete items | |
| Adjusted diluted earnings per common share |
(a) Adjusted operating margin is calculated as Adjusted operating income divided by Revenues.
Free Cash Flow
Cash flows provided by operating activities have been reduced by purchases of property, equipment, leasehold improvements and capitalized internal-use software to report non-GAAP free cash flow.
| (Unaudited) | Three Months Ended | Twelve Months Ended | ||||||||||||||
| August 31, | August 31, | |||||||||||||||
| (In thousands) | 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||
| Net Cash Provided for Operating Activities | $ | 204,708 | $ | 212,100 | (3.5)% | $ | 822,200 | $ | 726,260 | 13.2 | % | |||||
| Less: purchases of property, equipment, leasehold improvements and capitalized internal-use software | (27,401 | ) | (33,966 | ) | (19.3)% | (114,720 | ) | (108,806 | ) | 5.4 | % | |||||
| Free Cash Flow | $ | 177,307 | $ | 178,134 | (0.5)% | $ | 707,480 | $ | 617,454 | 14.6 | % | |||||
Organic ASV
The following table presents the calculation of organic ASV.
| (In millions) | As of August 31, 2026 | ||
| As reported ASV | $ | 2,565.2 | |
| Impact from foreign currency movements | 3.0 | ||
| Organic ASV | $ | 2,568.2 | |
| Organic ASV annual growth rate(a) | 7.0 | % | |
| (a) | For comparability purposes, in calculating the organic ASV annual growth rate, the prior year excludes ASV from dispositions and discontinued lines of business effected within the last 12 months. |
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were FactSet's fourth-quarter fiscal 2026 earnings?
FactSet reported GAAP diluted EPS of $3.41, down 15.4% year over year, and adjusted diluted EPS of $4.52, up 11.6%. Fourth-quarter revenue rose 6.3% to $634.7 million.
What is FactSet's fiscal 2027 outlook?
FactSet expects revenue of $2,600–$2,625 million and GAAP diluted EPS of $17.00–$17.50. Its outlook also includes adjusted diluted EPS of $19.25–$19.65, GAAP operating margin of 31.0%–32.0%, adjusted operating margin of 34.75%–35.25% and organic annual subscription value growth of 5.0%–6.5%.
Why did FactSet's fiscal 2026 operating margin decline?
FactSet attributed the GAAP operating margin decline primarily to higher employee compensation costs, including one-time restructuring charges, subscription-value-linked incentive plans and one-time CEO compensation costs, partly offset by revenue growth. Adjusted operating margin declined mainly because of higher incentive compensation and technology expenses.
What does FactSet exclude from its adjusted fiscal 2027 guidance?
FactSet's adjusted operating margin and adjusted diluted EPS guidance exclude certain effects of any non-recurring benefits or charges that may arise in fiscal 2027.