FactSet's Organic ASV Growth Eases to 7.0%
Organic annual subscription value reached $2,568.2 million at August 31, 2026, as GAAP revenue growth slowed to 6.3% and the company guided fiscal 2027 organic ASV growth of 5.0% to 6.5%.
FactSet Research Systems (FDS), a global intelligence and AI solutions provider to the financial markets, reported organic annual subscription value of $2,568.2 million as of August 31, 2026, up 7.0% from a year earlier. That year-over-year rate was a sequential deceleration from 7.1% as of May 31, 2026. The company said the increase was a record for both the fourth quarter and the full fiscal year.
GAAP revenues for the three months ended August 31, 2026, grew 6.3% to $634.7 million. That pace slowed from 6.4% in the third quarter and 7.1% in the second quarter. Organic revenues rose 7.1% to $635.5 million, up from 7.0% in the third quarter and 6.8% in the second. Annual ASV stood at $2,565.2 million. The company said average renewal contract length increased by about 30% in the quarter and annual ASV retention remained above 95%.
GAAP operating margin compressed to 24.7% from 29.7% a year earlier. The decline was primarily due to higher employee compensation costs, mainly one-time restructuring charges and ASV-linked incentive plans, partially offset by higher revenues. Restructuring and severance in the quarter were $26.9 million, versus $0.6 million a year earlier. Adjusted operating margin was 33.0%, reflecting higher compensation from ASV-linked incentive plans and technology-related expenses.
GAAP diluted earnings were $3.41 a share, down 15.4% from $4.03 a year earlier. The decline was driven mainly by higher operating expenses, including non-recurring items, and a gain on a business divestiture in the prior-year period, partially offset by revenue growth and a lower share count. Adjusted diluted EPS rose 11.6% to $4.52 from $4.05, driven by revenue growth and a lower share count. Net income was $121.1 million.
Americas organic ASV grew 7.1% to $1,678.2 million. EMEA organic ASV grew 5.2% to $623.6 million. APAC organic ASV grew 10.6% to $266.4 million, the fastest-growing region. Fourth-quarter revenues were $414.3 million in the Americas, $154.8 million in EMEA, and $65.6 million in APAC. AI solutions ASV added in fiscal 2026 more than doubled year over year.
For the twelve months ended August 31, 2026, GAAP revenues were $2.48 billion, up 6.7%, extending 47 consecutive years of increased revenues. Adjusted diluted EPS for the year was $18.01, marking the 30th consecutive year of increases in that measure. Free cash flow was $707.5 million for the year. In the fourth quarter, free cash flow was $177.3 million.
FactSet returned more than $179 million to shareholders in the fourth quarter, including $138.0 million of share repurchases of 552,064 shares at an average of $249.90. As of August 31, 2026, $356.0 million remained available under the repurchase program. Cash and cash equivalents were $233.3 million.
For fiscal 2027, the company guided organic ASV growth of 5.0% to 6.5% and revenues of $2,600 million to $2,625 million. GAAP operating margin is expected at 31.0% to 32.0% and adjusted operating margin at 34.75% to 35.25%. Diluted EPS is guided at $17.00 to $17.50 and adjusted diluted EPS at $19.25 to $19.65. Adjusted operating margin and adjusted diluted EPS guidance do not include certain effects of any non-recurring benefits or charges that may arise in fiscal 2027.