$FDS · FACTSET RESEARCH SYSTEMS INC
FactSet filed its FY2026 10-K (year ended August 31, 2026) reporting revenue of $2.476B (+6.7% YoY), GAAP EPS of $14.57, net income of $533.5M, and operating margin of 28.3%. Operating income declined 6.5% YoY to $700.0M despite revenue growth, driven by cost of services rising 11.4% to $1.223B and SG&A climbing 16.3% to $553.2M. Net income fell 10.6% YoY from $597.0M in FY2025.
- Revenue grew 6.7% to $2.476B; Americas segment contributed 65%, EMEA 24%, Asia Pacific 11%
- Operating margin compressed 490 bps to 28.3% from 32.2% in FY2025
- Cost of services jumped 11.4% YoY to $1.223B, outpacing revenue growth
- Net income declined 10.6% to $533.5M; diluted EPS of $14.57 vs. $15.55 prior year
- Stock-based compensation rose 37.4% to $84.1M; intangible amortization increased 16.3% to $155.3M
Extended-hours trade at $305.60 reflects +0.79% vs. regular close and +0.68% vs. filing time. The modest uptick suggests investors are weighing steady revenue growth against margin compression and double-digit expense acceleration.
Operating margin contracted sharply despite revenue growth, signaling rising AI and infrastructure costs are outpacing top-line gains at a major financial data provider.
Financial data providers face rising AI infrastructure and talent costs; FactSet's 11.4% cost-of-services growth and 37% stock-comp increase mirror sector-wide investments in AI-powered workflows and enterprise data platforms.
Margin pressure persists if cost growth continues to outpace revenue; SG&A rose 16.3% YoY, and operating leverage turned negative. Elevated intangible amortization ($155.3M) and interest expense ($54.7M) weigh on profitability.
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