Financial Analysis

"ACQUISITIONS Our acquisitions with the most significant cash flows during fiscal 2025 through the third quarter of fiscal 2026 included Liquid Holdings, LLC (""LiquidityBook"") and Platform Group Limited (""Irwin""). Liquid Holdings, LLC (""LiquidityBook"") On February 7, 2025, we completed the acquisition of LiquidityBook for a purchase price of $243.2 million, net of cash acquired, and inclusive of working capital adjustments. The purchase price included contingent consideration of $11.9 million, which reflects the acquisition date fair value of potential future payments that are contingent upon the achievement of certain specified milestones. Refer to Note 4, Fair Value Measures, for information regarding the contingent consideration. LiquidityBook provides cloud-native trading solutions to hedge fund, asset and wealth management, outsourced trading, and sell-side middle office clients. LiquidityBook operates a proprietary FIX network that enables streamlined connectivity to over 200 brokers and order routing to more than 1,600 destinations across 80 markets globally. This acquisition adds technology-forward order management and investment book of record capabilities and enhances FactSets ability to serve the integrated workflow needs of clients across the portfolio life cycle. The results of LiquidityBook's operations have been included within the Americas, EMEA and Asia Pacific segments in our Consolidated Financial Statements. Pro forma information has not been present …

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"COMMITMENTS AND CONTINGENCIES Commitments represent obligations, such as those for future purchases of goods or services that are not yet recorded on the balance sheet as liabilities. We record liabilities for commitments when incurred (i.e., when the goods or services are received). Except for income tax contingencies, we accrue for contingencies when we believe that a loss is probable and the amount can be reasonably estimated. Judgment is required to determine both the probability and the estimated amount of loss. If the reasonable estimate of a probable loss is a range, we record an accrual for the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. We review these accruals on a quarterly basis and adjust, as necessary, to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other current information. Contingent gains are recognized only when realized. Income tax contingencies related to uncertain tax positions are accounted for in accordance with applicable accounting guidance. Refer to Note 2, Summary of Significant Accounting Policies - Income Taxes in the Notes to the Consolidated Financial Statements included in Part II, Item 8. of our Annual Report on Form 10-K for the fiscal year ended August 31, 2025 for further details. Purchase Commitments with Suppliers and Vendors Purchase obligations represent our legally-binding agreements to purchase fixed or m …

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The following table presents revenues disaggregated by segment: Three Months Ended Nine Months Ended May 31, May 31, (in thousands) 2026 2025 2026 2025 Americas $ 407,240 $ 380,501 $ 1,203,099 $ 1,117,404 EMEA 151,940 145,741 450,577 432,853 Asia Pacific 63,738 59,278 187,882 174,590 Total Revenues $ 622,918 $ 585,520 $ 1,841,558 $ 1,724,847

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"STOCK-BASED COMPENSATION Our shareholders approved the FactSet Research Systems Inc. 2025 Omnibus Incentive Plan (the ""Omnibus Plan"") on December 18, 2025. The Omnibus Plan replaced both the FactSet Research Systems Inc. Stock Option and Award Plan, as Amended and Restated and the FactSet Research Systems Inc. Non-Employee Directors Stock Option and Award Plan, as Amended and Restated. On September 1, 2025, the FactSet Research Systems Inc. 2025 Employee Stock Purchase Plan replaced the FactSet Research Systems Inc. 2008 Employee Stock Purchase Plan, as Amended and Restated. Our stock-based compensation expense consists of: (i) stock options, (ii) restricted stock units (""RSUs""), (iii) performance share units (""PSUs""), (iv) stock options with performance conditions (""PSOs"") issued to our Chief Executive Officer (""CEO""), and (v) common stock purchased by eligible employees under our employee stock purchase plan (""ESPP""). Stock-based Compensation Expense The following table presents the stock-based compensation expense for the periods presented: Three Months Ended Nine Months Ended May 31, May 31, (in thousands) 2026 2025 2026 2025 Stock-based compensation expense $ 22,217 $ 17,015 $ 61,541 $ 47,154 There were no stock-based compensation costs capitalized in any periods presented. As of May 31, 2026, $170.8 million of total unrecognized stock-based compensation expense related to non-vested stock-based awards is expected to be recognized over the remaining weighted …

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"FAIR VALUE MEASURES Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability (i.e., the ""exit price"") in an orderly transaction between market participants at the measurement date. In determining fair value, the use of various valuation methodologies, including market, income and cost approaches are permissible. When pricing an asset or liability, the inputs to these valuation methodologies consider market comparable information, taking into account the principal or most advantageous market in which we would transact. Fair Value Hierarchy The accounting guidance for fair value measurements establishes a three-level fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy ranks the reliability of the inputs, based upon the lowest level of input that is significant to the fair value measurement, used to determine fair value. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect its placement within the fair value hierarchy. We have categorized our assets and liabilities within the fair value hierarchy as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are obs …

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"INCOME TAXES We are subject to taxation in the United States (""U.S."") and various state, local and foreign jurisdictions in which we conduct our business. Income tax expense is based on taxable income determined in accordance with current enacted laws and tax rates. Deferred income taxes are recorded for the temporary differences between the financial statement carrying amounts and the tax basis of our assets and liabilities using currently enacted tax rates. Provision for Income Taxes and Effective Tax Rate The provision for income taxes and the effective tax rate are as follows: Three Months Ended Nine Months Ended May 31, May 31, (in thousands) 2026 2025 2026 2025 Income before income taxes $ 154,121 $ 179,948 $ 505,345 $ 532,007 Provision for income taxes $ 27,403 $ 31,406 $ 92,991 $ 88,583 Effective tax rate 17.8 % 17.5 % 18.4 % 16.7 % Our provision for income taxes for interim periods is calculated by applying an estimate of our annual effective tax rate to our quarter and year-to-date results, adjusted for discrete items recorded in the period. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pretax income (or loss) for the year, projections of the proportion of pretax income (or loss) attributable to, and subject to tax in, foreign jurisdictions, permanent and temporary differences and the likelihood of recovering deferred tax assets, then adjuste …

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"LEASES Our operating lease arrangements relate to our office space and data centers. We review new arrangements at inception to evaluate whether we obtain substantially all the economic benefits of and have the right to control the use of an asset. Our lease ROU assets and lease liabilities are recognized based on the present value of future minimum lease payments at lease commencement or modification date (which includes fixed lease payments and certain qualifying index-based variable payments) over the reasonably certain lease term, leveraging an estimated incremental borrowing rate (""IBR"") . Certain adjustments to calculate our lease ROU assets may be required due to prepayments, lease incentives received and initial direct costs incurred. We account for lease and non-lease components as a single lease component, which we recognize over the expected lease term on a straight-line expense basis in occupancy costs (a component of Selling, general and administrative (""SG&A"") expense) in our Consolidated Statements of Income. As of May 31, 2026, we recognized $119.4 million of Lease ROU assets, net and $180.9 million of combined Current lease liabilities and Long-term lease liabilities in the Consolidated Balance Sheets. Our leases have remaining lease terms ranging from less than one year to just under 10 years. Our lease agreements may include options to extend or terminate the lease, which would be included in the measurement of our lease term if it is reasonably ce …

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"DEBT We have not elected the fair value option and report our debt at amortized cost. Our debt obligations as of May 31, 2026 and August 31, 2025 consisted of the following: (in thousands) Issuance Date Contractual Maturity Date May 31, 2026 August 31, 2025 Current debt 2027 Notes 3/1/2022 3/1/2027 $ 500,000 $ Unamortized discounts and debt issuance costs (841) Total Current debt $ 499,159 $ Long-term debt 2025 Revolving Facility 4/8/2025 4/8/2030 $ 20,000 $ 2025 Term Facility 4/8/2025 4/8/2028 375,000 375,000 2027 Notes 3/1/2022 3/1/2027 500,000 2032 Notes 3/1/2022 3/1/2032 500,000 500,000 Unamortized discounts and debt issuance costs (1) (4,458) (6,740) Total Long-term debt $ 890,542 $ 1,368,260 Total debt $ 1,389,701 $ 1,368,260 (1) Amounts exclude the unamortized debt issuance costs related to the 2025 Revolving Facility which are presented within Other assets on the Consolidated Balance Sheets. As of May 31, 2026, annual ma turities on our debt obligations, based on contractual maturity dates, were as follows: (in thousands) Maturities Fiscal Years ended August 31, 2026 (remaining three months) $ 2027 500,000 2028 375,000 2029 2030 20,000 Thereafter 500,000 Total $ 1,395,000 2025 Credit Agreement On April 8, 2025, we entered into a credit agreement (the ""2025 Credit Agreement"") and borrowed $500.0 million under a senior unsecured term loan credit facility (the ""2025 Term Facility""). We used the proceeds from the 2025 Term Facility borrowing to repay the outstanding …

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"Recently Adopted Accounting Pronouncements We did not adopt any new standards or updates issued by the Financial Accounting Standards Board (""FASB"") during the nine months ended May 31, 2026 that had a material impact on our Consolidated Financial Statements. Accounting Pronouncements Not Yet Adopted Goodwill and Other - Internal-Use Software In September 2025, the FASB issued Accounting Standards Update (""ASU"") 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Targeted Improvements to the Accounting for Internal-Use Software . This ASU removes all references to prescriptive and sequential software development stages, and requires entities to start capitalizing eligible software costs when management has authorized and committed to funding the software project and it is probable that the project will be completed and the software will be used to perform the function intended. The amendments in this ASU can be applied using a prospective, modified, or retrospective transition approach, and are effective for our interim and annual periods starting in fiscal 2029. Early adoption is permitted at the beginning of an annual period. We are currently assessing the impact of the new requirements on our Consolidated Financial Statements and disclosures. Income Statement - Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosure …

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"REVENUE RECOGNITION We derive most of our revenues by delivering client access to our multi-asset class solutions powered by our platform of connected data and technology that is available over the contractual term (referred to as the ""Hosted Platform""). The Hosted Platform is a subscription-based service that provides client access to various combinations of products and services including workstations, portfolio analytics and enterprise solutions. We also derive revenues through the CGS platform, a subscription- based service that provides access to a database of universally recognized security identifiers and related descriptive data for issuers and their financial instruments (referred to as the ""Identifier Platform""). The majority of each of our contracts with clients, whether for the Hosted Platform or Identifier Platform services, represents a single performance obligation covering a series of distinct products and services that are substantially the same and that have the same pattern of transfer to the client. The primary nature of the promise to the client is to provide daily access to each of these data and analytics platforms over the associated contractual term. These platforms provide integrated financial information, analytical applications and industry-leading service for the investment community. Based on the nature of the products and services offered by these platforms, we apply an output time-based measure of progress as the client is simultaneously r …

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"SEGMENT INFORMATION Operating segments are defined as components of an enterprise that have the following characteristics: (i) they engage in business activities from which they may earn revenue and incur expense, (ii) their operating results are regularly reviewed by the chief operating decision maker (""CODM"") for resource allocation decisions and performance assessment, and (iii) their discrete financial information is available. Our CEO functions as our CODM. We have three operating segments: Americas, EMEA and Asia Pacific. This is how our CODM manages our business and the geographic markets in which we operate. These operating segments are consistent with our reportable segments. The Americas segment primarily sells to clients throughout North, Central, and South America. The EMEA segment primarily sells to clients in Europe, the Middle East, and Africa. The Asia Pacific segment primarily sells to clients in Asia and Australasia. Segment revenues reflect sales to our clients based on the geographic region where the sale originated. While each segment records expenses related to its individual operations, the majority of our data centers, third-party data costs and corporate headquarters charges are recorded by the Americas segment and are not allocated to the other segments. The expenses incurred at our global centers of excellence (""COEs""), primarily located in India and the Philippines, are allocated to each segment based on their respective percentage of revenues …

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"SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation We conduct business globally and manage our business on a geographic basis. The accompanying unaudited Consolidated Financial Statements and Notes to the Consolidated Financial Statements included in this Quarterly Report on Form 10-Q are prepared in accordance with generally accepted accounting principles in the United States (""GAAP"") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by GAAP for annual financial statements. As such, the information in this Quarterly Report on Form 10-Q should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended August 31, 2025. The accompanying unaudited Consolidated Financial Statements include our accounts and those of our wholly-owned subsidiaries; all intercompany activity and balances have been eliminated. In the opinion of management, the accompanying unaudited Consolidated Financial Statements include all normal recurring adjustments, transactions or events discretely impacting the interim periods considered necessary to present fairly our results of operations, financial position, cash flows and equity. Reclassifications Deferred revenues, non-current were included within Other liabilities in the Consolidated Balance Sheets in the current …

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"STOCKHOLDERS' EQUITY The following table presents the shares of common stock repurchased under our share repurchase program and acquired from holders of our stock-based awards upon vesting to satisfy tax withholding requirements: Share Repurchases Three Months Ended Nine Months Ended May 31, May 31, (in thousands, except share data) 2026 2025 2026 2025 Shares Amount Shares Amount Shares Amount Shares Amount Repurchases of common stock under the share repurchase program (1) 926,370 $ 203,070 184,050 $ 80,696 2,056,220 $ 506,000 425,239 $ 193,838 Repurchases of common stock to satisfy tax withholding requirements due upon vesting of stock-based awards 2,015 $ 459 1,634 $ 710 24,370 $ 6,417 32,504 $ 14,938 (1) In addition, we are subject to a 1% excise tax on corporate stock repurchases required under the Inflation Reduction Act of 2022 of $2.0 million and $0.7 million for three months ended May 31, 2026 and 2025, respectively, and $4.8 million and $2.0 million for the nine months ended May 31, 2026 and 2025, respectively. We may repurchase shares of our common stock under our share repurchase program from time-to-time in the open market or via privately negotiated transactions, subject to market conditions. There is no defined number of shares to be repurchased over a specified timeframe through the life of our share repurchase program. On June 17, 2025, our Board of Directors authorized up to $400 million for share repurchases on or after September 1, 2025. On December 16, 20 …

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