FDS Q3 Earnings Beat Estimates on Organic Revenue Growth

FactSet Research Systems Inc. FDS has reported third-quarter fiscal 2026 adjusted earnings of $4.53 per share, beating the Zacks Consensus Estimate of $4.44 by 2%. The figure increased 6.1% from the year-ago quarter.Revenues of $622.9 million surpassed the consensus mark of $617.2 million by 0.9% and rose 6.4% year over year. Organic revenues grew 7%, while organic ASV rallied 7.1% to $2.49 billion.FactSet Research Systems Inc. Price, Consensus and EPS Surprise FactSet Research Systems Inc. price-consensus-eps-surprise-chart | FactSet Research Systems Inc. QuoteFDS’s Revenue Growth Gains TractionFactSet’s top line benefited from continued demand across institutional buy-side and wealth management clients. Organic revenues were $622.9 million, up from $582.2 million in the prior-year period.The company’s revenue growth reflected stronger client engagement and expanding enterprise relationships. Management noted that clients continued to choose FactSet for differentiated content, analytics and workflow solutions.FactSet’s ASV Momentum Remains HealthyAnnual Subscription Value, or ASV, was $2.48 billion as of May 31, 2026, compared with $2.34 billion a year ago. Organic ASV came in at $2.49 billion, increasing $165 million year over year.Organic ASV increased $35.4 million over the past three months. FactSet’s annual ASV retention remained above 95%, while enterprise renewals in the quarter extended 30% in length on average.FDS’ Regional Revenues Show Broad GrowthRevenues from the Americas were $407.2 million in the third quarter of fiscal 2026, up 7% on an organic basis from the year-ago quarter. The region remained FactSet’s largest revenue contributor, supported by an ASV base of $1.62 billion.EMEA revenues were $152 million, with organic revenue growth of 5.3%. The Asia Pacific revenues rose 10.5% organically to $63.7 million, whereas organic ASV growth in the region was 10%, the strongest among FactSet’s reported regions.FactSet’s Margins Reflect Cost PressureAdjusted operating income was $211.8 million, down 1.7% from the prior-year quarter. The adjusted operating margin contracted to 34% from 36.8% a year earlier.The margin decline reflected higher compensation and technology-related expenses. The GAAP operating margin was 26.7%, down from 33.2% due to higher employee compensation costs, including one-time charges and CEO compensation costs.FDS’ Cash Flow & Capital Returns ImproveFactSet generated $284.5 million in net cash from operating activities during the quarter, up 12.1% year over year. The free cash flow increased 11.1% to $254 million.The company returned $243.4 million to shareholders in the quarter. This included $203.1 million in share repurchases and $40.3 million in dividends. FactSet also raised its quarterly dividend by 6 cents to $1.16 per share, marking its 27th consecutive year of dividend increases.FactSet Reaffirms FY26 OutlookFDS has reaffirmed its fiscal 2026 guidance. The company continues to expect organic ASV growth of $130-$160 million and GAAP revenues of $2.45-$2.47 billion. The mid-point ($2.46 billion) of the guided range meets the Zacks Consensus Estimate.The adjusted operating margin is expected to be 34-35.5%. Adjusted diluted earnings are projected between $17.25 and $17.75 per share. The mid-point ($17.5) of the guided range is lower than the current consensus estimate of $17.66.FDS carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings SnapshotPaychex, Inc. PAYX reported solid fourth-quarter fiscal 2026 results. Adjusted earnings of $1.32 per share surpassed the consensus estimate of $1.31 by a slight margin and increased 11% from the year-ago quarter.PAYX’s total revenues of $1.61 billion rose 12% year over year and beat the consensus estimate by a slight margin.Accenture plc ACN posted third-quarter fiscal 2026 earnings of $3.80 per share, beating the Zacks Consensus Estimate by 2.7%. The metric increased 9% from the year-ago quarter.ACN’s revenues of $18.718 billion missed the consensus mark by 0.4% but rose 6% year over year in U.S. dollars and 3% in local currency.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. 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