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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FDS's Indicator enters downward trend
The Aroon Indicator for FDS entered a downward trend on July 01, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 169 similar instances where the Aroon Indicator formed such a pattern. In of the 169 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The 10-day moving average for FDS crossed bearishly below the 50-day moving average on June 25, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 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 .
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 of 62 cases within the following month. The odds of a continued downward trend are .
FDS broke above its upper Bollinger Band on June 01, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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, of 32 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on July 01, 2026. You may want to consider a long position or call options on FDS as a result. In of 74 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for FDS just turned positive on July 01, 2026. Looking at past instances where FDS's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
FDS moved above its 50-day moving average on July 01, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where FDS advanced for three days, in of 370 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (3.741) is normal, around the industry mean (4.983). P/E Ratio (14.068) is within average values for comparable stocks, (23.876). Projected Growth (PEG Ratio) (1.038) is also within normal values, averaging (1.907). Dividend Yield (0.020) settles around the average of (0.021) among similar stocks. P/S Ratio (3.441) is also within normal values, averaging (7.633).
The Tickeron SMR rating for this company is (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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 Profit vs. Risk Rating rating for this company is (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 81, 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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