FactSet 10-K: FY26 Revenue Up 6.7%, EPS Down 6.3%, Material Weakness Remediated
FDS sits 68% above its 52-week low of $185 on light trading volume (0.2× avg).
Summary
FactSet's FY2026 10-K shows 6.7% revenue growth to $2,476.3 million but a 6.3% drop in diluted EPS to $14.57 on restructuring and CEO costs, alongside formal remediation of its previously disclosed material weakness and a newly amended, larger credit facility.
Key Events · Earnings and Guidance · FDS
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FY26 Revenue Grows 6.7%, EPS Falls 6.3%
Revenues reached $2,476.3 million for fiscal 2026, up 6.7%, while net income fell 10.6% to $533.5 million and diluted EPS declined 6.3% to $14.57 from $15.55.
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Margins Compress on Restructuring and CEO Costs
Operating margin dropped to 28.3% from 32.2%, driven by $46.2 million of restructuring/severance and $19.5 million of CEO onboarding costs, partially offset by revenue growth.
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Material Weakness Remediated
The IT general controls material weakness first reported in the FY2024 10-K was remediated as of August 31, 2026, and Ernst & Young issued an unqualified ICFR opinion.
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Credit Facility Amended and Expanded
Amendment No. 1 extended term-loan maturity to August 28, 2029 and revolver maturity to August 28, 2031, raised revolver commitments by $500.0 million to $1.5 billion, and removed quarterly principal payments and the 0.1% credit spread adjustment.
Analysis · FDS · Technology
The headline for FactSet's fiscal 2026 annual report is governance: the material weakness in IT general controls over revenue, receivables and deferred revenue first flagged in the FY2024 10-K is now formally remediated as of August 31, 2026, and Ernst & Young issued an unqualified opinion on internal control. That removes an overhang that has sat on the name for two years. The top line kept growing, with revenue of $2,476.3 million, up 6.7%, and organic ASV of $2,568.2 million also up 7.0%. Profitability compressed, however: operating margin fell to 28.3% from 32.2% and diluted EPS dropped 6.3% to $14.57 as restructuring charges, higher variable compensation and one-time CEO onboarding costs hit the expense line. Management also locked in cheaper, longer debt on August 28, 2026, extending maturities to 2029 and 2031, lifting the revolver to $1.5 billion and stripping out the 0.1% credit spread adjustment and quarterly term-loan amortization. Against that, the company still returned $808.1 million to shareholders while free cash flow was $707.5 million, and the CGS antitrust class action remains unresolved after the court vacated the August 28 class certification order on September 10, 2026.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 30.7% of the 1698 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, FDS was trading at $310.16 on NYSE in the Technology sector, with a market capitalization of approximately $10.9B. The 52-week trading range was $185.00 to $339.83. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.