The news
FactSet Research Systems (FDS) reported on September 30, 2026 that organic annual subscription value, or ASV, grew 7.0% in its fiscal fourth quarter, with the company crediting commercial execution and momentum in its AI products. ASV is the yearly value of all subscriptions in force, the main forward indicator for a data vendor.
Organic ASV rose by $168.2 million from a year earlier to $2,568.2 million for the quarter ended August 31, 2026, according to the company's release. Reported ASV was $2,565.2 million, up from $2,405.6 million a year earlier. GAAP revenue grew 6.3% to $634.7 million, and organic revenue grew 7.1% to $635.5 million.
Profit moved in two directions. GAAP diluted earnings per share fell 15.4% to $3.41, while adjusted diluted EPS rose 11.6% to $4.52. GAAP operating margin dropped to 24.7% from 29.7%, and adjusted operating margin eased to 33.0% from 33.8%.
For the full fiscal year, FactSet reported revenue of $2.476 billion, up 6.7%, with GAAP diluted EPS of $14.57, down 6.3%, and adjusted diluted EPS of $18.01, up 6.1%. Operating cash flow rose 13.2% to $822.2 million and free cash flow rose 14.6% to $707.5 million.
The company said AI solutions ASV added in fiscal 2026 more than doubled year over year, though it did not break out the dollar size of that business in the figures we reviewed. It also said annual ASV retention stayed above 95% and that average renewal contract length rose about 30% in the fourth quarter.
FactSet returned $808 million to shareholders in fiscal 2026 and raised its dividend for the 27th consecutive year. For fiscal 2027 it guided to revenue of $2,600 million to $2,625 million, organic ASV growth of 5.0% to 6.5%, and adjusted diluted EPS of $19.25 to $19.65. Sanoke Viswanathan is chief executive.
The numbers
- Organic ASV
- $2,568.2M (+7.0%)
- Q4 GAAP revenue
- $634.7M (+6.3%)
- Q4 adjusted EPS
- $4.52 (+11.6%)
- Q4 GAAP operating margin
- 24.7% (vs 29.7%)
- FY2027 organic ASV guide
- 5.0% to 6.5%
- FY2026 capital returned
- $808M
Why CEOs should care
For buyers of financial data, the numbers suggest vendors are bundling AI features into existing subscriptions and locking in longer terms. A roughly 30% jump in average renewal length means more clients are committing for longer. Procurement teams renewing terminals and data feeds should ask what AI features are included versus priced separately, how usage is metered, and whether longer contracts carry price protection.
For CFOs and investors watching the data sector, the tension is between growth and cost. Adjusted EPS grew while GAAP EPS and both operating margins fell, so building AI products is not free. The guidance range of 5.0% to 6.5% organic ASV growth also sits below the 7.0% just reported, which signals the company is not assuming the fourth-quarter pace continues.
Boards of firms that sell proprietary data should take note of the strategy: rather than letting general AI models summarize their content cheaply, FactSet is trying to make its own AI tools the reason clients stay. Retention above 95% says the core base is holding so far.
The bigger picture
Data and research vendors face a basic question as AI assistants spread: whether clients will pay for curated data and workflows or rely on cheaper models that can digest public information. FactSet's results are an early data point that a vendor with deep integration into investment workflows can keep growing while selling AI on top, but the company did not disclose how large its AI revenue is, which limits outside judgment.
What’s next
Watch whether quarterly organic ASV growth holds near the guided range through fiscal 2027, whether FactSet starts disclosing AI revenue in dollars, and whether margins recover as AI spending matures.
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