The quarter cleared consensus, but only modestly. Adjusted diluted EPS reached $4.53 versus the published consensus of roughly $4.44, while revenue was $622.9 million versus roughly $617.9 million expected.
| Metric | Q3 FY26 | Q3 FY25 / expectation | Read |
|---|---|---|---|
| Revenue | $622.9M (Financial Highlights) | $585.5M prior year; ~$617.9M consensus | Beat |
| Organic revenue growth | 7.0% (Financial Highlights) | — | Solid growth |
| Organic ASV growth | 7.1% (ASV section) | — | Recurring growth held up |
| Adjusted diluted EPS | $4.53 (Adjusted results reconciliation) | $4.27 prior year; ~$4.44 consensus | Beat |
| Adjusted operating margin | 34.0% (Adjusted results reconciliation) | 36.8% prior year | Compressed |
| Free cash flow | $254.0M (Free Cash Flow reconciliation) | $228.6M prior year | Up 11.1% |
Underlying growth was healthy, but profitability deteriorated. Organic revenue grew 7.0% and organic ASV grew 7.1%, supported by broad regional growth and continued client adoption. However, adjusted operating income fell 1.7% and adjusted operating margin dropped to 34.0% from 36.8%, as compensation and technology costs outpaced revenue growth (Adjusted results reconciliation). GAAP results were weaker still because of restructuring, CEO compensation, and other one-time charges (Adjusted results reconciliation).
The outlook was maintained rather than raised. Fiscal 2026 guidance remains $2.450-$2.470 billion of revenue and $17.25-$17.75 of adjusted diluted EPS, with adjusted operating margin guided to 34.0%-35.5% (Fiscal 2026 Guidance). That makes the quarter a modest execution beat, not a clear upward reset of expectations.
Capital returns and cash generation soften the margin concern, but do not erase it. FactSet generated $254.0 million of quarterly free cash flow, repurchased $203.1 million of stock, and raised its quarterly dividend to $1.16 (Free Cash Flow reconciliation; Capital Returns section). Net, the result lands narrowly above expectations because revenue and adjusted EPS beat, while margin compression and unchanged guidance limit the upside signal.
Read the original 8-K on SEC EDGAR ↗