FactSet earnings for the fourth quarter of fiscal 2026 showed growing subscription revenue and stronger AI-related business, but higher costs weighed on reported profit. In results announced September 30 for the period ended August 31, the financial information and analytics provider reported revenue of $634.7 million, up 6.3%, while adjusted diluted earnings rose 11.6% to $4.52 per share.
Key Takeaways
- Organic annual subscription value grew 7.0%, with annual retention remaining above 95%.
- Adjusted quarterly earnings increased, but GAAP earnings and operating margins declined.
- Fiscal 2027 guidance calls for organic subscription growth of 5.0%–6.5%, below fiscal 2026’s pace.
Table of Contents
- FactSet earnings reflect stronger subscription relationships
- Higher costs separate adjusted growth from reported profit
- Fiscal 2027 outlook sets a slower subscription-growth target
- Conclusion
FactSet earnings reflect stronger subscription relationships
FactSet’s fourth-quarter and fiscal 2026 results announcement put organic annual subscription value, or ASV, at $2.568 billion, an increase of $168.2 million from a year earlier. ASV represents forward-looking revenue for the next 12 months from subscription services currently supplied to clients; it is not revenue already recognized.
Annual ASV retention remained above 95%, and average renewal contract length increased by approximately 30% during the fourth quarter. Those measures point to continuity in existing client relationships alongside subscription growth.
FactSet also said AI solutions ASV added during fiscal 2026 more than doubled year over year. That measures growth in subscription value added, rather than a doubling of total company revenue or the entire AI business. The release did not disclose an absolute dollar amount for those additions.
Chief Executive Officer Sanoke Viswanathan said the company recorded its largest organic ASV increase for both the fourth quarter and fiscal year, with continued momentum across AI and data solutions.
| Item | Details |
|---|---|
| Fourth-quarter share repurchases | $138.0 million for 552,064 shares. |
| Fourth-quarter dividends | More than $41 million paid to shareholders. |
| Full-year capital returns | $808 million through repurchases and dividends. |
| Remaining repurchase authorization | $356.0 million as of August 31, 2026. |
Higher costs separate adjusted growth from reported profit
Quarterly GAAP diluted earnings fell 15.4% to $3.41 per share. FactSet attributed the decline mainly to higher operating expenses, including non-recurring items, and a business-divestiture gain in the prior-year period. Revenue growth and a lower share count provided partial offsets.
GAAP operating margin narrowed to 24.7% from 29.7%, reflecting higher employee compensation costs, including one-time restructuring charges and ASV-linked incentive plans. Adjusted operating margin also declined, to 33.0% from 33.8%, as compensation and technology expenses increased.
For the full fiscal year, revenue rose 6.7% to $2.476 billion. Adjusted diluted earnings increased 6.1% to $18.01, exceeding management’s latest guidance range of $17.25–$17.75. GAAP diluted earnings, however, fell to $14.57 and finished below the $14.85–$15.35 guidance range.
The distinction matters: stronger subscriptions and share-count reductions supported adjusted per-share earnings, but did not prevent a decline in reported profitability. Full-year free cash flow nevertheless increased 14.6% to $707.5 million.
Fiscal 2027 outlook sets a slower subscription-growth target
Management forecast fiscal 2027 organic ASV growth of 5.0%–6.5%, compared with the 7.0% achieved in fiscal 2026. Revenue guidance was $2.600 billion–$2.625 billion.
The company projected GAAP diluted earnings of $17.00–$17.50 per share and adjusted diluted earnings of $19.25–$19.65. Its adjusted operating-margin target of 34.75%–35.25% compares with 34.5% in fiscal 2026.
These figures are management expectations, not completed results. The adjusted guidance excludes certain effects of non-recurring benefits or charges that may arise during fiscal 2027.
Conclusion
The next benchmark is FactSet’s fiscal 2027 outlook: slower organic subscription growth alongside higher targeted adjusted margins. Subsequent results will show whether continued AI-related additions and client retention translate into the profitability improvement management expects.
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