FactSet Reports Strong Q3 Adjusted EPS & Revenue Growth, Boosts Dividend, and Continues Share Buybacks
FDS sits 34% above its 52-week low of $185 on elevated volume (2.0× avg).
Summary
FactSet reported strong Q3 adjusted EPS and revenue growth, alongside a substantial $203.1 million share repurchase and a 5% dividend increase, despite a decline in GAAP net income due to higher operating expenses and an ongoing material weakness in internal controls.
Key Events · Earnings and Guidance · FDS
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Strong Adjusted Q3 Performance
FactSet reported Q3 fiscal 2026 revenues of $622.9 million, a 6.4% increase year-over-year, and adjusted diluted EPS of $4.53, up 6.1% from the prior year, exceeding analyst estimates.
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GAAP Profitability Decline
GAAP net income for Q3 decreased by 14.7% to $126.7 million, and diluted EPS fell 9.6% to $3.50, primarily driven by higher operating expenses, including restructuring charges and CEO compensation costs.
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Significant Share Repurchases
The company repurchased 926,370 shares for $203.1 million during Q3, bringing year-to-date repurchases to $506.0 million. Approximately $494.0 million remains available under the current share repurchase program.
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Dividend Increase
The Board of Directors approved a 5% increase in the regular quarterly dividend, raising it from $1.10 to $1.16 per share, marking the 27th consecutive fiscal year of dividend increases.
Analysis · FDS · Technology
FactSet's Q3 fiscal 2026 results show a mixed picture with strong adjusted performance and significant capital return, but a decline in GAAP profitability. Adjusted diluted EPS increased by 6.1% to $4.53, beating analyst estimates, and revenues grew 6.4% to $622.9 million. However, GAAP net income decreased by 14.7% and diluted EPS by 9.6%, primarily due to higher operating expenses from restructuring charges and CEO compensation. The company demonstrated strong commitment to shareholder returns with $203.1 million in share repurchases during the quarter and a 5% increase in its quarterly dividend to $1.16 per share. The filing also notes a continued material weakness in internal controls over financial reporting, which remains an area of focus for remediation.
At the time of this filing, FDS was trading at $248.45 on NYSE in the Technology sector, with a market capitalization of approximately $8.9B. The 52-week trading range was $185.00 to $453.41. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.