EarningsQ3 2026 Earnings Report
MX:FDS Q3 2026 EPS Results
Actual EPS$78.03
Consensus EPS$76.65
Beat/MissBeat by +$1.38
One Year Ago EPS$73.55
MX:FDS Q3 2026 Revenue Results
Actual Revenue$10.73B
Expected Revenue$10.64B
Beat/MissBeat by +$86.33M
YoY Revenue Growth+6.39%
Earnings Announcement Details
QuarterQ3 2026
Date07/01/2026
TimeBefore Open
Conference CallWednesday, July 1, 2026
MX:FDS Upcoming Earnings
Factset Research's next earnings date is estimated for September 30, 2026, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:FDS Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presents a largely positive picture: FactSet delivered accelerating ASV growth (7.1%), revenue and EPS expansion, strong cash flow, significant AI adoption and client wins, and meaningful productivity gains driven by AI and MCP traction. Offsetting these positives are near-term margin compression (down ~300 bps) from targeted investments, higher token and technology costs, an FX hedging loss (~60 bps), and workforce restructuring (notably ~10% reduction in technology headcount). Management reaffirmed guidance and expects margin improvement as productivity initiatives scale. Overall, the strengths (accelerating growth, AI-led expansion, cash generation, client retention/expansion, and partnerships) outweigh the temporary cost and execution headwinds.Company Guidance
ASV Growth and Acceleration
Annual Subscription Value (ASV) grew 7.1% organically to $2.48 billion, an increase of ~$35 million during the quarter and the highest ASV growth rate since Q1 2024.
Revenue and EPS Growth
Revenue was $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.
Strong Client Retention and Expansion
ASV retention exceeded 95%; majority of ASV renewals were enterprise agreements or multi-year terms with average contract term extended by ~30%. Notable client expansions included a sovereign wealth fund managed services win, a 5-year enterprise renewal at a major global bank, LPL selecting FactSet's real-time data platform, and a large investment manager consolidating front and middle office with FactSet.
AI Adoption Driving Upside
Over 90% of the top 50 clients use 4+ FactSet AI solutions; clients using FactSet AI saw ASP growth ~50% higher quarter-over-quarter versus the rest of the book. More than 10% of ASV growth in the quarter came directly from AI SKUs and MCP-related deals.
MCP and API Traction
MCP has 450+ clients engaged under contracts and trials; Q3 API call volumes were ~13x Q2 levels. ~20% of top 100 clients are using MCP on a paid basis, and a portfolio analytics MCP was launched to bring analytics into agentic workflows.
Productivity and Engineering Gains from AI
Coding-related token use grew 5x QoQ, committed lines of AI-written code grew ~10x, and coding agents authored ~27% of committed code in teams using them. Where new tools were implemented, operator touch time for data table extraction was reduced by >50%.
Customer Experience and Adoption Metrics
Approximately 4,000 bankers used digital onboarding tools in Q3; consultant live user interactions rose 22% QoQ; Net Promoter Score among junior bankers increased by 5 points in Q3.
Strong Cash Generation and Capital Return
Free cash flow was $254 million, up 11% YoY. Repurchased ~926,000 shares for $203 million in Q3 and deployed >$500 million in repurchases fiscal YTD; total returned to shareholders YTD was >$625 million and dividend was increased (20th consecutive year).
Strategic Partnerships and Distribution
Announced strategic partnership with Google Cloud to integrate FactSet datasets and agent capabilities (Gemini Enterprise), expanding distribution and potential token/infrastructure efficiencies; additional partnerships (FinStir, Tiffin AI, others) aim to accelerate agentic workflows across banking, buy-side, and wealth.
Balance Sheet Strength
Maintained investment grade rating (Fitch reaffirmed) with conservative leverage: gross debt leverage ~1.5x and net debt leverage ~1.2x, providing capacity for growth and capital returns.
MX:FDS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed