FactSet Research Systems Inc.

FactSet reported Q3 fiscal 2026 revenue of $622.9 million, up 6.4% year over year (7% on a like-for-like basis). Adjusted diluted EPS was $4.53, up 6.1% year over year, and adjusted operating income was $211.8 million with a 34% margin, down about 300 basis points from the comparable quarter last year. Organic ASV grew 7.1% to more than $2.48 billion, an increase of $35 million in the quarter, with growth across all regions and client types. Free cash flow was $254 million versus $228 million a year ago, and the company repurchased about 926,000 shares for $203 million during the quarter. For the outlook, management reaffirmed the guidance ranges previously set for ASV, revenue, operating margin and EPS, and said revenue and EPS are tracking toward the high end of those ranges.

Sanoke Viswanathan framed the quarter as evidence that FactSet’s commercial and product transformation is gaining traction, citing stronger pipeline conversion, higher win rates, and better retention/expansion. He emphasized that AI is accelerating demand for FactSet’s connected data, embedded workflows and enterprise agreements, and said the company is becoming “mission-critical AI infrastructure” for institutional finance. His tone was confident and constructive, while still noting that execution remains needed in a dynamic AI market.

Joshua Warren highlighted the core financials: ASV above $2.48 billion, revenue of $622.9 million, adjusted operating income of $211.8 million, a 34% margin, and adjusted EPS of $4.53. He said the margin was pressured by performance incentives tied to ASV momentum, technology spending, marketing, professional services, and an FX hedging swing that created about a 60 basis point drag. He also pointed to $254 million in free cash flow, more than $500 million of share repurchases year to date, a dividend increase for the 27th consecutive year, and leverage of 1.5x gross debt and 1.2x net debt.

Analysts focused on whether Q4 guidance implies a moderation in growth, how FactSet plans to monetize AI, and whether margin pressure in Q3 was temporary or structural. Management said Q4 momentum remains strong, the compare is difficult because last year’s Q4 was the largest ever, and the company is still ahead on bookings and pipeline. On AI, management said monetization is already showing up in higher ASV, enterprise renewals, and paid MCP usage, while on margins they said the company is intentionally retaining flexibility to pay for performance and continue investing.