AI Takeaway
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%.
Revenue
$622.92M
++6.39% YoY
EPS (Basic)
$3.51
-10.46% YoY
Operating Income
$166.3M
-14.35% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
FDS grew Q3 FY2026 revenue 6.4% year-over-year to $622.9M (from $585.5M), reflecting continued demand for its financial data and analytics services, though the growth rate was partially offset by cost pressures.
Source: Source: 10-Q Income Statement
SG&A expenses jumped 30.5% YoY to $144.4M (from $110.6M), which was the primary driver behind the sharp decline in operating income of 14.3% to $166.3M, suggesting elevated investment in sales, marketing, or administrative functions.
Source: Source: 10-Q Income Statement
Cost of revenue increased 11.2% YoY to $312.2M, outpacing the 6.4% revenue growth rate, which compressed gross profit and contributed to margin deterioration across the income statement.
Source: Source: 10-Q Income Statement
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Upgrade to unlockFDS's current ratio stands at 0.68, meaning current liabilities of $1.065B significantly exceed current assets of $727.5M. Current liabilities more than doubled YoY (+105.2%), likely reflecting reclassification of debt or deferred revenue obligations, which could strain short-term liquidity if not refinanced.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $4.53 versus the $4.50 analyst consensus — a +0.7% beat for Q3 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $622.92M | $585.52M | +6.39% |
Cost of Revenue | $312.19M | $280.73M | +11.21% |
Operating Income | $166.3M | $194.16M | -14.35% |
Net Income | $126.72M | $148.54M | -14.69% |
EPS (Basic) | $3.51 | $3.92 | -10.46% |
EPS (Diluted) | $3.50 | $3.87 | -9.56% |
SG&A Expense | $144.43M | $110.64M | +30.54% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $4.19B | $4.34B | -3.38% |
Current Assets | $727.52M | $760.48M | -4.33% |
Total Liabilities | $2.16B | $2.18B | -1.09% |
Current Liabilities | $1.06B | $518.92M | +105.18% |
Stockholders' Equity | $2.03B | $2.16B | -5.70% |
Cash & Equivalents | $288.11M | $356.36M | -19.15% |
Long-Term Debt | $1.39B | $1.43B | -2.83% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $617.49M | $514.16M | +20.10% |
Investing Cash FlowYTD | $-69.36M | $-369.37M | +81.22% |
Financing Cash FlowYTD | $-603.74M | $-199.33M | -202.89% |
Dividends PaidYTD | $122.68M | $118.33M | +3.68% |
Share BuybacksYTD | $506M | $193.84M | +161.04% |
D&A | $45.87M | $40.84M | +12.30% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 26.7% | 33.2% | -6.46% |
Net Margin | 20.3% | — | — |
ROE | 6.2% | — | — |
ROA | 3.0% | — | — |
Current Ratio | $0.683 | — | — |
Debt to Equity | $1.063 | — | — |
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.
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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Based on the filing data alone, FDS reported Q3 FY2026 diluted EPS of $3.50, down 9.6% from $3.87 in the prior year period. Whether this beat or missed Wall Street consensus estimates cannot be determined from the 10-Q filing itself, as analyst estimates are not included in SEC filings.
FDS's revenue grew 6.4% YoY to $622.9M, but net income fell 14.7% to $126.7M because costs grew much faster than revenue. Specifically, SG&A expenses surged 30.5% to $144.4M and cost of revenue rose 11.2% to $312.2M, together compressing operating margin from 33.2% to 26.7%.
The key takeaways are: revenue grew a solid 6.4% to $622.9M, but profitability deteriorated sharply with operating income down 14.3% and net income down 14.7% due to a 30.5% spike in SG&A. On the positive side, YTD operating cash flow was strong at $617.5M (+20.1%), and the company aggressively returned capital via $506M in buybacks YTD.
FDS shows mixed financial health: operating cash flow is robust at $617.5M YTD, but the current ratio of 0.68 (below 1.0) signals near-term liquidity risk as current liabilities more than doubled to $1.065B. Long-term debt of $1.39B and a debt-to-equity ratio of 1.06 reflect moderate leverage, while the aggressive $506M YTD buyback program has reduced the cash balance by 19.2% to $288.1M.
On a cumulative fiscal year-to-date basis through Q3 FY2026, FDS spent $506.0M on share repurchases, a 161.0% increase compared to $193.8M in the same YTD period of the prior fiscal year. This aggressive buyback activity, combined with $122.7M in dividends paid YTD, contributed to total financing outflows of $603.7M and a decline in cash to $288.1M.