stockrowLatest quarter
FactSet reported Q4 FY2026 revenue of $634.7 million, above the consensus of $628.2 million. The company also reported adjusted EPS of $4.52, above the consensus of $4.32. Revenue rose 6.33% from $596.9 million in Q4 FY2025, while reported diluted EPS was $3.41, compared with $4.03 a year earlier.
CFO Josh Warren said Q4 revenue growth reflected ASV growth across client types and regions. He said incentive compensation costs rose as the company generated additional ASV, while the related revenue is recognized over time. FactSet reported gross margin of 48.6%, compared with 51.6% a year earlier, and operating margin of 24.7%, compared with 29.7%. The company reported free cash flow of $177.3 million, compared with $178.1 million in Q4 FY2025.
| Q4 FY2026 | Q4 FY2025 | Change | |
|---|---|---|---|
| Revenue | $634.7 million | $596.9 million | 6.33% |
| Diluted EPS | $3.41 | $4.03 | −15.5% |
| Gross margin | 48.6% | 51.6% | −3.0 percentage points |
| Operating margin | 24.7% | 29.7% | −5.0 percentage points |
| Free cash flow | $177.3 million | $178.1 million | −0.46% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $4.52 | $4.32 | Beat by 4.63% |
| Revenue | $634.7 million | $628.2 million | Beat by 1.03% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
CEO Sanoke Viswanathan said FactSet’s Q4 organic ASV performance reflected client wins across regions, client types and products. He said AI-related solutions accounted for a double-digit share of new ASV in the quarter and that clients using the company’s AI solutions grew ASV faster than the rest of its client base. Viswanathan also said the company was shifting from seat-based contracts toward enterprise agreements, with most renewed ASV in Q4 secured through enterprise agreements or contracts lasting at least three years.
Asked whether Q4 performance had drawn demand forward from FY2027, Viswanathan said FactSet had not pulled anything into FY2026. He said renewal cycles and the increased use of enterprise agreements could make growth uneven from quarter to quarter, and that the company preferred to guide to a range in which it had high confidence. On consumption-based arrangements, he said the industry’s transition from subscriptions to subscriptions plus consumption remained at an early stage and did not quantify the related revenue volume.
Warren said FY2026 margins reflected investments in infrastructure, cybersecurity and resilience, alongside the timing difference between ASV-related incentive costs and revenue recognition. Viswanathan said the company had consolidated business units into a unified product organization, exited businesses where it did not believe it could win, and was applying agentic tools in engineering, client support and data collection. He said those actions were intended to create operating leverage while allowing continued investment in growth opportunities.
On competition, Viswanathan said FactSet was investing in data capabilities and in linking its data with client data. He said the acquisition of BCC Group added technology for distributing real-time data and integrated entitlement management, while the company continued to invest in that market. Asked about MCP adoption, he said FactSet had made only an initial group of datasets available and planned to add more data, analytics and capabilities.
Guidance
For FY2027, FactSet expects reported revenue growth of 5.00% to 6.00% and organic ASV growth of 5.00% to 6.50%. The company expects GAAP operating margin of 31.0% to 32.0% and non-GAAP operating margin of 34.8% to 35.3%. FactSet expects GAAP EPS of $17.00 to $17.50 and non-GAAP EPS of $19.25 to $19.65. Warren said the company expects a slightly higher FY2027 tax rate.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| EPS, non-GAAP | FY2027 | $19.25–$19.65 | — | New |
| EPS, GAAP | FY2027 | $17.00–$17.50 | — | New |
| Operating margin, non-GAAP | FY2027 | 34.8%–35.3% | — | New |
| Operating margin, GAAP | FY2027 | 31.0%–32.0% | — | New |
| Tax rate | FY2027 | FactSet expects its FY2027 tax rate to be slightly higher. | — | — |
| EPS, non-GAAP | FY2027 | FactSet expects FY2027 non-GAAP EPS growth to improve to the high single digits. | — | — |
| Bookings growth, Organic Asv | FY2027 | 5.00%–6.50% | — | New |