FactSet (FDS) Delivers +6.4% Revenue Growth and Beats Estimates in Q3 2026
Key Takeaways
- GAAP revenues reached $622.9 million, up 6.4% year over year and above consensus estimates of $617.91 million.
- Adjusted EPS of $4.53 surpassed analyst expectations of $4.44 by $0.09.
- Organic Annual Subscription Value (ASV) grew 7.1% year over year to $2,485.6 million.
- More than 90% of the company’s top 50 clients now use four or more AI products.
- FactSet returned over $243 million to shareholders in the quarter through dividends and buybacks.
- Shares rose more than 6% in after-hours trading following the results.
Placing These Results in Context
FactSet Research Systems stands as a leading provider of financial data, analytics, and AI-driven solutions for investment professionals around the world. Its third-quarter fiscal 2026 results, for the period ended May 31, 2026, come at a time when demand for data platforms and artificial intelligence tools remains strong across asset management and banking. Recent quarters have shown steady organic growth in Annual Subscription Value, a key metric for tracking recurring revenue. I’m watching this closely because these reports often reveal early signs of accelerating AI feature adoption and client retention trends in a competitive space. One thing that stands out is how consistently FactSet has maintained momentum here.
The Quarter’s Reported Numbers
FactSet posted GAAP revenues of $622.9 million for Q3 2026, a 6.4% increase from $585.5 million in the same quarter last year. Organic revenues grew 7.0%. Adjusted earnings per share came in at $4.53, ahead of the consensus estimate of $4.44. Organic ASV reached $2,485.6 million, up 7.1% year over year. Annual ASV retention stayed above 95%, and average renewal lengths increased 30%. The company also noted solid progress on AI adoption, with more than 90% of its top 50 clients now using multiple AI products, aided by new partnerships including Google Cloud. When I reviewed these metrics, I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Market Reaction to the Release
Following the July 1, 2026, earnings release, FactSet shares rose more than 6% in after-hours trading. The positive move reflected the beat on both revenue and earnings, together with continued ASV acceleration and clear AI momentum. Analysts viewed the results as confirmation of resilient demand and successful product expansion, which supports sentiment as the company heads into the final quarter of the fiscal year.
What to Watch Going Forward
FactSet reaffirmed its full-year outlook after the quarter. Investors will focus on ASV growth trends and the pace of AI product adoption across the broader client base. Renewals, retention rates that remain above 95%, and the effects of new partnerships such as Google Cloud continue to serve as important indicators of execution. Capital allocation decisions, including ongoing share repurchases and dividend increases, will also receive attention as the company balances growth investments with returns to shareholders.
Broader industry conditions in financial technology and data services could influence demand. Monitoring organic revenue growth and any updates on operating margins will offer further insight into profitability trends. The next key catalyst is the Q4 2026 earnings release, expected in September 2026.
Integrating AI Tools into My Research Process
In my own work, I find Tickeron’s AI Screener helpful for quickly filtering stocks and ETFs by technical patterns, fundamentals, trends, and AI-driven signals. It lets me scan thousands of names using customizable criteria such as industry, market cap, volatility, and performance metrics, which helps surface ideas more efficiently than manual reviews. I turn to it periodically when evaluating companies like FactSet to understand relative positioning within the sector.
Disclaimer
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Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
FDS's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for FDS turned positive on October 08, 2026. Looking at past instances where FDS's MACD turned positive, the stock continued to rise in 31 of 46 cases over the following month. The odds of a continued upward trend are 67%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where FDS's RSI Oscillator exited the oversold zone, 21 of 33 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 64%.
The Momentum Indicator moved above the 0 level on October 08, 2026. You may want to consider a long position or call options on FDS as a result. In 46 of 74 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 62%.
FDS moved above its 50-day moving average on October 08, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +0.75% 3-day Advance, the price is estimated to grow further. Considering data from situations where FDS advanced for three days, in 205 of 361 cases, the price rose further within the following month. The odds of a continued upward trend are 57%.
FDS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The 10-day moving average for FDS crossed bearishly below the 50-day moving average on September 21, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 13 of 19 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 68%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FDS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 56%.
The Aroon Indicator for FDS entered a downward trend on October 08, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 24 (best 1 - 100 worst), indicating outstanding price growth. FDS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 36 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 44 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 69 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.684) is normal, around the industry mean (-5.093). P/E Ratio (17.633) is within average values for comparable stocks, (25.252). Projected Growth (PEG Ratio) (1.172) is also within normal values, averaging (1.780). Dividend Yield (0.017) settles around the average of (0.018) among similar stocks. P/S Ratio (4.223) is also within normal values, averaging (7.166).
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FDS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock worse than average.
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General Information
a provider of on-line integrated database services to the global financial community
Industry FinancialPublishingServices
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