FactSet Q4 Revenue Rises 6.3% as Organic ASV Hits $2.57B

FactSet reported fourth-quarter fiscal 2026 revenue of $634.7 million on 30 September 2026, a 6.3% increase from $596.9 million a year earlier, while organic annual subscription value rose 7.0% to $2.57 billion. The Norwalk-based financial data and AI solutions provider said adjusted diluted earnings per share climbed 11.6% to $4.52, even as GAAP net income fell 21.1% to $121.1 million. FactSet also guided fiscal 2027 revenue to $2.60–$2.63 billion, implying growth of roughly 5% to 6%.

Context — why this matters now

FactSet's fiscal 2026 closed with organic ASV growth of 7.0%, a record annual increase for the company, according to the report. That compares with GAAP revenue growth of 6.7% for the full year to $2.48 billion — FactSet's 47th consecutive year of rising revenue. The company said the ASV figure excludes acquisitions, dispositions and foreign-currency movements.

The quarter's GAAP operating margin compressed to 24.7% from 29.7% a year earlier. FactSet attributed the decline to one-time restructuring charges and ASV-linked incentive compensation, partly offset by higher revenue. Adjusted operating margin, which strips out those items, slipped to 33.0% from 33.8%.

For the full year, GAAP operating margin fell to 28.3% from 32.2%, again driven by restructuring, incentive plans and one-time CEO compensation costs. Adjusted operating margin was 34.5% versus 36.3%. The gap between GAAP and adjusted results widened, reflecting charges the company classifies as non-recurring.

The timing matters because FactSet sits inside a financial-data sector where pricing power and retention drive valuation. FactSet said annual ASV retention stayed above 95% in the quarter, and average renewal contract length rose about 30% year over year — a signal that clients are committing for longer periods.

Data — what the numbers show

Revenue for the quarter reached $634.7 million on a GAAP basis and $635.5 million on an organic basis. Organic revenue growth of 7.1% outpaced reported growth of 6.3%, as currency and portfolio effects subtracted from the headline figure.

Metric	Q4 FY26	Q4 FY25	Change
Revenue	$634.7M	$596.9M	+6.3%
Organic revenue	$635.5M	$593.5M	+7.1%
Adjusted diluted EPS	$4.52	$4.05	+11.6%
GAAP diluted EPS	$3.41	$4.03	-15.4%

Segment ASV showed the Americas at $1.68 billion with 7.1% organic growth, EMEA at $623.6 million with 5.2% growth, and APAC at $266.4 million with 10.6% growth. APAC led regional expansion, while EMEA lagged.

Capital returns were substantial. FactSet returned more than $179 million to shareholders in the quarter, including $138 million in buybacks at an average price of $249.90 and over $41 million in dividends. For the full year, returns totaled $808 million, and the company recorded its 27th consecutive year of dividend increases. Free cash flow for the year rose 14.6% to $707.5 million.

Analysis — what it means for markets and sectors

FactSet's results land against a backdrop where data and analytics vendors face both AI-driven demand and margin pressure from technology spending. The company said AI solutions ASV added in fiscal 2026 more than doubled year over year, though it did not break out the absolute dollar figure. That growth suggests AI products are moving from pilot to production budgets.

The margin compression is the clearest counterpoint. GAAP operating margin fell 5 percentage points in the quarter, and full-year adjusted operating margin declined 1.8 points. FactSet blamed incentive plans tied to ASV and higher technology expenses. If those costs persist, the company's ability to convert revenue growth into profit could stay constrained.

CEO Sanoke Viswanathan said in the report that FactSet "accelerated innovation, strengthened commercial execution, and improved productivity." He pointed to high-quality data and embedded workflows as drivers of sustainable growth.

For investors in financial-data peers, FactSet's 95%-plus retention and longer renewal terms support the sector's subscription model. But the fiscal 2027 organic ASV guidance of 5.0% to 6.5% sits below fiscal 2026's 7.0%, implying management expects some deceleration. The company did not disclose what drives that step-down.

Positioning-wise, FactSet's buyback pace — $138 million in the quarter — signals management views the shares as attractively valued, though the report does not state that rationale explicitly.

Outlook — what to watch next

FactSet's fiscal 2027 guidance points to revenue of $2.60–$2.63 billion, adjusted operating margin of 34.75%–35.25%, and adjusted diluted EPS of $19.25–$19.65. On a GAAP basis, the company expects operating margin of 31.0%–32.0% and diluted EPS of $17.00–$17.50.

The company will host its fourth-quarter earnings call on 30 September 2026 at 9:00 a.m. Eastern Time, with a replay available through September 2027. That call is the next scheduled venue for management to address the margin trajectory and AI monetization.

Watch the gap between organic ASV growth and reported revenue. In fiscal 2026, organic ASV grew 7.0% while GAAP revenue grew 6.7%. If that spread narrows or reverses, it could signal slower conversion of subscription value into recognized revenue. The report does not give a specific level to monitor.

Frequently Asked Questions

What does FactSet's Q4 earnings mean for retail investors?

FactSet is a financial-data provider whose shares trade under FDS on the NYSE and NASDAQ. Its Q4 showed revenue growth of 6.3% and adjusted EPS up 11.6%, but GAAP net income fell 21.1% on restructuring and incentive costs. The company returned $179 million to shareholders in the quarter. The report does not give per-share buyback yield or valuation multiples.

Why did FactSet's GAAP net income fall while adjusted EPS rose?

GAAP net income dropped 21.1% to $121.1 million, mainly from higher operating expenses including one-time restructuring charges and a prior-year gain on a business divestiture. Adjusted net income, which excludes those items, rose 4.1% to $160.9 million. The difference reflects how the company classifies non-recurring costs versus ongoing operations.

What is organic ASV and why does FactSet emphasize it?

Organic ASV represents forward-looking revenue for the next 12 months from subscription services, excluding acquisitions, dispositions and currency effects. FactSet reported organic ASV of $2.57 billion at August 31, 2026, up 7.0% year over year. The metric strips out portfolio changes, giving a cleaner view of underlying subscription growth than headline revenue.

Bottom Line

FactSet's record organic ASV growth of 7.0% masks margin pressure that fiscal 2027 guidance suggests will persist.

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