AI Takeaway
FDS delivered 7.1% revenue growth in Q2 FY2026 to $611.0M, but net income fell 8.1% to $133.1M as rising costs and higher SG&A compressed margins and weighed on EPS.
Revenue
$611.02M
++7.07% YoY
EPS (Basic)
$3.60
-5.51% YoY
Operating Income
$184.96M
-0.29% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 7.1% year-over-year to $611.0M in Q2 FY2026, up from $570.7M in Q2 FY2025, reflecting continued demand for FactSet's financial data and analytics solutions across its client base.
Source: Source: 10-Q Income Statement
Cost of revenue rose 10.1% YoY to $296.7M, outpacing revenue growth, while SG&A expenses surged 11.9% to $129.3M. This dual cost pressure caused operating margin to contract by approximately 2.2 percentage points to 30.3% from 32.5%.
Source: Source: 10-Q Income Statement & Key Ratios
Net income fell 8.1% YoY to $133.1M, with diluted EPS declining 4.5% to $3.59 from $3.76, suggesting that non-operating items or a higher effective tax rate further weighed on bottom-line results beyond operating cost pressures.
Source: Source: 10-Q Income Statement
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Upgrade to unlockCost of revenue and SG&A are both growing faster than revenue (10.1% and 11.9% vs. 7.1% revenue growth), compressing operating margin by ~220 basis points to 30.3%. If this cost trajectory continues, profitability could deteriorate further even as top-line growth persists.
Source: Source: 10-Q Income Statement & Key Ratios
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Upgrade to unlockReported EPS of $4.46 versus the $4.42 analyst consensus — a +0.9% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $611.02M | $570.66M | +7.07% |
Cost of Revenue | $296.74M | $269.6M | +10.07% |
Operating Income | $184.96M | $185.49M | -0.29% |
Net Income | $133.06M | $144.86M | -8.15% |
EPS (Basic) | $3.60 | $3.81 | -5.51% |
EPS (Diluted) | $3.59 | $3.76 | -4.52% |
SG&A Expense | $129.32M | $115.56M | +11.90% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $4.22B | $4.24B | -0.51% |
Current Assets | $724.18M | $707.64M | +2.34% |
Total Liabilities | $2.09B | $2.18B | -4.29% |
Current Liabilities | $505.93M | $481.83M | +5.00% |
Stockholders' Equity | $2.13B | $2.06B | +3.51% |
Cash & Equivalents | $268.34M | $278.55M | -3.67% |
Long-Term Debt | $1.37B | $1.47B | -6.99% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $332.97M | $260.33M | +27.91% |
Investing Cash FlowYTD | $-21.9M | $-338.12M | +93.52% |
Financing Cash FlowYTD | $-386.66M | $-45.54M | -749.01% |
Dividends PaidYTD | $82.38M | $78.82M | +4.52% |
Share BuybacksYTD | $302.93M | $113.14M | +167.74% |
D&A | $43.69M | $38.41M | +13.75% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 30.3% | 32.5% | -2.23% |
Net Margin | 21.8% | — | — |
ROE | 6.2% | — | — |
ROA | 3.2% | — | — |
Current Ratio | $1.431 | — | — |
Debt to Equity | $0.982 | — | — |
FDS reported Q3 FY2026 revenue growth of 6.4% to $622.9M, but net income fell 14.7% to $126.7M as a 30.5% surge in SG&A expenses and higher cost of revenue compressed operating margin by ~640 basis points to 26.7%.
FDS delivered solid Q1 FY2026 revenue growth of 6.9% to $607.6M, but operating margin contracted 200 bps to 31.6% as cost of revenue rose 11.3%, while operating cash flow surged 40.4% and the company returned $181.3M to shareholders via buybacks and dividends.
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FDS reported Q2 FY2026 revenue of $611.0M, up 7.1% YoY, but net income fell 8.1% to $133.1M as cost of revenue and SG&A both grew faster than revenue. Operating margin contracted to 30.3% from 32.5%, and diluted EPS declined to $3.59 from $3.76.
FDS grew revenue 7.1% year-over-year to $611.0M in Q2 FY2026, compared to $570.7M in Q2 FY2025, reflecting sustained demand for its financial data and analytics services. However, cost growth outpaced this revenue increase, compressing profitability.
FDS net income fell 8.1% YoY to $133.1M in Q2 FY2026, primarily because cost of revenue rose 10.1% and SG&A expenses surged 11.9%, both outpacing the 7.1% revenue growth. Additional below-the-line headwinds further widened the gap between operating and net income performance.
FDS maintains a current ratio of 1.43 and stockholders' equity of $2.13B, but carries $1.37B in long-term debt, resulting in a debt-to-equity ratio of approximately 0.98. Year-to-date operating cash flow is strong at $333.0M, though aggressive share buybacks of $302.9M YTD have reduced cash to $268.3M.
On a fiscal year-to-date basis through Q2 FY2026, FDS returned approximately $385.3M to shareholders, comprising $302.9M in share repurchases (up 167.7% YoY) and $82.4M in dividends paid (up 4.5% YoY). This aggressive capital return pace significantly exceeded the prior-year YTD total of approximately $191.9M.