UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________________________

Form 10-Q

_________________________________________________


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~February~~May 2831, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______to ______

Commission File Number: 1-11869

_________________________________________________

FACTSET RESEARCH SYSTEMS INC.

(Exact name of registrant as specified in its charter)

_________________________________________________


Delaware			13-3362547
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)


45 Glover Avenue, Norwalk, Connecticut			06850
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (203) 810-1000

Former name, former address and former fiscal year, if changed since last report: None

_________________________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbols(s)	Name of each exchange on which registered
Common Stock, $0.01 Par Value	FDS	New York Stock Exchange LLC
		The Nasdaq Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No x

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:

The number of shares outstanding of the registrant’s common stock, $.01 par value, as of ~~March~~June 2625, 2026 was 3635,~~431~~565,~~127~~543.

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FactSet Research Systems Inc.

Form 10-Q

For the Quarter Ended ~~February~~May 2831, 2026

Index

		Page
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Income for the three and six months ended February 28, 2026 and February 28, 2025	4
	Consolidated Statements of Income for the three and nine months ended May 31, 2026 and May 31, 2025	4
	Consolidated Statements of Comprehensive Income for the three and six months ended February 28, 2026 and February 28, 2025	5
	Consolidated Statements of Comprehensive Income for the three and nine months ended May 31, 2026 and May 31, 2025	5
	Consolidated Balance Sheets at February 28, 2026 and August 31, 2025	6
	Consolidated Balance Sheets at May 31, 2026 and August 31, 2025	6
	Consolidated Statements of Cash Flows for the six months ended February 28, 2026 and February 28, 2025	7
	Consolidated Statements of Cash Flows for the nine months ended May 31, 2026 and May 31, 2025	7
	Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended February 28, 2026 and February 28, 2025	8
	Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended May 31, 2026 and May 31, 2025	8
	Notes to the Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	50
Item 4.	Controls and Procedures	5251
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	5453
Item 1A.	Risk Factors	5453
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	5453
Item 3.	Defaults Upon Senior Securities	5453
Item 4.	Mine Safety Disclosures	5453
Item 5.	Other Information	5453
Item 6.	Exhibits	5554
	Signatures	5655

For additional information about FactSet Research Systems Inc. and access to its Annual Reports to Stockholders and Securities and Exchange Commission filings, free of charge, please visit FactSet’s website (https://investor.factset.com). Any information on or linked from the website is not incorporated by reference into this Quarterly Report on Form 10-Q.

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Special Note Regarding Forward-Looking Statements

This report contains forward-looking statements that express management's current views concerning expectations, estimates, trends, forecasts and projections about future events, trends, contingencies, and circumstances, industries in which FactSet operates and the beliefs and assumptions of management. These statements may include projections of our future financial performance and anticipated trends in our business. In some cases, you can identify these statements by words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "intends," "projects," "indicates," "predicts," "potential," or "continue," and the negatives of those terms and similar expressions. Statements concerning our financial position, business strategy and plans or objectives for future operations are forward-looking statements.

Forward-looking statements are not guarantees of future performance and involve a number of known and unknown risks, uncertainties and assumptions. Factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied in forward-looking statements include, among others, the factors discussed under Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended August 31, 2025, ~~and Part II, Item 1A. Risk Factors in this Quarterly Report on Form 10-Q,~~ that should be specifically considered. FactSet cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the dates on which they are made. FactSet undertakes no obligations to update or revise any forward-looking statement to reflect results, revised expectations, events or circumstances arising after the date on which it is made, except as required by applicable law.

We intend that all forward-looking statements we make will be subject to safe harbor protection of the federal securities laws as found in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

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PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

FactSet Research Systems Inc.

Consolidated Statements of Income – Unaudited

Three Months Ended

~~Six~~Nine Months Ended

February 28,

May 31,

(in thousands, except per share data)

2026

2025

2026

2025

Revenues

~~611~~622,~~019~~918

~~570~~585,~~660~~520

1,~~218~~841,~~640~~558

1,~~139~~724,~~327~~847

Operating expenses

Cost of services

~~296~~312,~~742~~190

~~269~~280,~~604~~729

~~584~~896,~~658~~848

~~528~~809,~~383~~112

Selling, general and administrative

~~129~~144,~~316~~427

~~115~~110,~~564~~636

~~256~~401,~~950~~377

~~234~~344,~~117~~753

Total operating expenses

~~426~~456,~~058~~617

~~385~~391,~~168~~365

~~841~~1,~~608~~298,225

~~762~~1,~~500~~153,865

Operating income

~~184~~166,~~961~~301

~~185~~194,~~492~~155

~~377~~543,~~032~~333

~~376~~570,~~827~~982

Other income (expense), net

Interest income

~~891~~642

~~273~~1,509

12,~~980~~622

24,~~974~~483

Interest expense

(13,~~062~~839)

(1315,~~916~~122)

(2640,~~447~~286)

(2843,~~316~~438)

Other income (expense), net

~~(11~~1,~~679)~~017

~~471~~(594)

(~~1,341~~324)

~~574~~(20)

Total other income (expense), net

(2312,~~850~~180)

(1314,~~172~~207)

(2537,~~808~~988)

(2438,~~768~~975)

Income before income taxes

~~161~~154,~~111~~121

~~172~~179,~~320~~948

~~351~~505,~~224~~345

~~352~~532,~~059~~007

Provision for income taxes

2827,~~055~~403

2731,~~460~~406

6592,~~588~~991

5788,~~177~~583

Net income

~~133~~126,~~056~~718

~~144~~148,~~860~~542

~~285~~412,~~636~~354

~~294~~443,~~882~~424

Basic earnings per common share

3.6051

3.8192

711.6820

711.7668

Diluted earnings per common share

3.5950

3.7687

711.6516

711.6653

Basic weighted average common shares

36,~~927~~122

3837,~~015~~907

3736,~~168~~819

3837,~~010~~976

Diluted weighted average common shares

3736,~~063~~191

38,~~510~~344

3736,~~339~~957

38,~~513~~457

The accompanying notes are an integral part of these Consolidated Financial Statements.

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FactSet Research Systems Inc.

Consolidated Statements of Comprehensive Income – Unaudited

Three Months Ended

~~Six~~Nine Months Ended

February 28,

May 31,

(in thousands)

2026

2025

2026

2025

Net income

~~133~~126,~~056~~718

~~144~~148,~~860~~542

~~285~~412,~~636~~354

~~294~~443,~~882~~424

Other comprehensive income (loss), net of tax

Net unrealized gain (loss) on cash flow hedges(1)

~~361~~(2,165)

~~(406)~~5,740

(24,~~528~~693)

(32,~~595)~~145

Post-employment benefit obligations(2)

(6,231)

—

(6,231)

—

Changes in post-employment benefit obligations(2)

—

(6,138)

—

Foreign currency translation adjustment gains (losses)

10(7,~~202~~540)

~~(11~~38,~~926)~~456

2(4,~~812~~728)

~~(29~~8,~~545)~~911

Other comprehensive income (loss)

4(9,~~332~~612)

~~(12~~44,~~332)~~196

(515,~~947~~559)

~~(33~~11,~~140)~~056

Comprehensive income

~~137~~117,~~388~~106

~~132~~192,~~528~~738

~~279~~396,~~689~~795

~~261~~454,~~742~~480

(1) Presented net of a tax ~~expense~~benefit of $~~133~~801 thousand and a tax ~~benefit~~expense of $~~154~~2,015 thousand for the three months ended ~~February~~May 2831, 2026 and ~~February~~May 2831, 2025, respectively. Presented net of a tax benefit of $~~893~~1,694 thousand and a tax expense of $~~1,259~~756 thousand for the ~~six~~nine months ended ~~February~~May 2831, 2026 and ~~February~~May 2831, 2025, respectively.

(2) Presented net of a tax expense of $31 thousand and a tax benefit of $21,~~096~~978 thousand for the three and ~~six~~nine months ended ~~February~~May 2831, 2026, respectively, related to the labor codes reform implemented by the Government of India effective November 21, 2025.

The accompanying notes are an integral part of these Consolidated Financial Statements.

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FactSet Research Systems Inc.

Consolidated Balance Sheets – Unaudited

(in thousands, except share data)	~~February~~May 2831, 2026		August 31, 2025
ASSETS
Cash and cash equivalents	$	~~268~~288,~~338~~114	$	337,651
Investments	16,~~929~~122		17,445
Accounts receivable, net of reserves of $12,323 at February 28, 2026 and $13,789 at August 31, 2025	320,233		270,684
Accounts receivable, net of reserves of $14,305 at May 31, 2026 and $13,789 at August 31, 2025	289,990		270,684
Prepaid taxes	2858,~~681~~325		33,600
Prepaid expenses and other current assets	8974,~~997~~968		70,379
Total current assets	~~724~~727,~~178~~519		729,759
Property, equipment and leasehold improvements, net	8482,~~427~~319		85,203
Goodwill	1,~~287~~283,~~221~~377		1,284,708
Intangible assets, net	1,~~884~~868,~~910~~418		1,916,102
Deferred tax assets	6141,~~495~~945		61,226
Lease right-of-use assets, net	~~120~~119,~~460~~364		121,776
Other assets	5769,~~139~~055		105,498
TOTAL ASSETS	$	4,~~219~~191,~~830~~997	$	4,304,272
LIABILITIES
Accounts payable and accrued expenses	$	~~149~~163,~~243~~982	$	135,262
Current lease liabilities	33,575		33,145
Current debt	499,159		—
Accrued compensation	88,479		130,596
Current lease liabilities	33,963		33,145
Deferred revenues	188,722		167,852
Accrued compensation	137,431		130,596
Current taxes payable	5,607		13,041
Deferred revenues	183,494		167,852
Dividends payable	40,305		41,410
Current taxes payable	5,182		13,041
Total current liabilities	505,931		521,306
Dividends payable	41,500		41,410
Long-term debt	1,369,216		1,368,260
Total current liabilities	1,064,711		521,306
Deferred tax liabilities	14,728		14,902
Long-term debt	890,542		1,368,260
Taxes payable	41,387		45,095
Deferred tax liabilities	13,040		14,902
Long-term lease liabilities	150,866		157,104
Taxes payable	41,315		45,095
Other liabilities	8,590		11,192
Long-term lease liabilities	146,978		157,104
TOTAL LIABILITIES	$	2,090,718	$	2,117,859
Other liabilities	3,121		11,192
TOTAL LIABILITIES	$	2,159,707	$	2,117,859
Commitments and contingencies (see Note 11)
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued	$	—	$	—
Common stock, $0.01 par value; 150,000,000 shares authorized; 43,160,328 and 43,013,266 shares issued; 36,640,727 and 37,645,870 shares outstanding at February 28, 2026 and August 31, 2025, respectively	432		430
Common stock, $0.01 par value; 150,000,000 shares authorized; 43,225,439 and 43,013,266 shares issued; 35,777,453 and 37,645,870 shares outstanding at May 31, 2026 and August 31, 2025, respectively	432		430
Additional paid-in capital	1,~~677~~710,~~738~~826		1,621,753
Treasury stock, at cost: 6,519,601 and 5,367,396 shares at February 28, 2026 and August 31, 2025, respectively	(2,007,132)		(1,695,429)
Treasury stock, at cost: 7,447,986 and 5,367,396 shares at May 31, 2026 and August 31, 2025, respectively	(2,212,648)		(1,695,429)
Retained earnings	2,~~527~~612,~~769~~987		2,323,407
Accumulated other comprehensive loss	(6979,~~695~~307)		(63,748)
TOTAL STOCKHOLDERS’ EQUITY	$	2,~~129~~032,~~112~~290	$	2,186,413
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	4,~~219~~191,~~830~~997	$	4,304,272

The accompanying notes are an integral part of these Consolidated Financial Statements.

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FactSet Research Systems Inc.

Consolidated Statements of Cash Flows – Unaudited

	Six Months Ended
	Nine Months Ended
	February 28,
	May 31,
(in thousands)	2026		2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	~~285~~412,~~636~~354	$	~~294~~443,~~882~~424
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	87133,~~838~~708		74114,~~127~~972
Amortization of lease right-of-use assets	1624,~~185~~269		1523,~~177~~152
Stock-based compensation expense	3961,~~324~~541		3047,~~139~~154
Deferred income taxes	220,~~381~~808		83,~~763~~154
Other, net	814,~~389~~436		37,~~268~~428
Changes in assets and liabilities, net of effects of acquisitions
Accounts receivable	(5124,~~015~~376)		(4641,~~225~~492)
Prepaid expenses and other assets	(183,~~997~~759)		(36,~~889)~~699
Accounts payable and accrued expenses	1122,~~948~~793		(6149,~~915~~717)
Accrued compensation	~~(42~~7,~~241)~~541		~~(21~~3,~~470)~~789
Deferred revenues	2015,~~222~~030		114,~~934~~955
Taxes payable, net of prepaid taxes	(636,~~101~~320)		(2419,~~810~~108)
Lease liabilities, net	(2030,~~597~~533)		(1930,~~654~~250)
Net cash provided by operating activities	~~332~~617,~~972~~492		~~260~~514,~~327~~160
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, equipment, leasehold improvements and capitalized internal-use software	(5687,~~844~~319)		(4974,~~610~~840)
Acquisition of businesses, net of cash and cash equivalents acquired	—		(~~342~~348,~~461~~255)
Purchases of investments	(118,~~104~~086)		(4,~~208~~433)
Proceeds from maturity or sale of investments	36,050		58,155
Net cash provided by (used in) investing activities	(2169,~~898~~355)		(~~338~~369,~~124~~373)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt	—95,000		~~305~~803,~~000~~410
Repayments of debt	—(75,000)		(~~200~~742,~~000~~500)
Dividend payments	(82122,~~379~~684)		(78118,~~817~~329)
Proceeds from employee stock plans	1627,~~663~~534		6072,~~344~~616
Repurchases of common stock	(~~302~~506,~~930~~000)		(~~113~~193,~~142~~838)
Deferred acquisition consideration	(1216,~~052~~176)		(4,699)
Other financing activities	(56,~~958~~418)		(1415,~~228~~987)
Net cash provided by (used in) financing activities	(~~386~~603,~~656~~744)		(45199,~~542~~327)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1,~~299~~678)		(81,~~048)~~966
Net increase (decrease) in cash, cash equivalents and restricted cash	(7457,~~283~~285)		(~~131~~52,~~387~~574)
Cash, cash equivalents and restricted cash at beginning of period	351,695		422,979
Cash, cash equivalents and restricted cash at end of period	$	~~277~~294,~~412~~410	$	~~291~~370,~~592~~405
Reconciliation of total cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	~~268~~288,~~338~~114	$	~~278~~356,~~548~~361
Restricted cash included in Prepaid expenses and other current assets	35,~~202~~296		6,522
Restricted cash included in Other assets	51,~~872~~000		67,522
Total cash, cash equivalents and restricted cash	$	~~277~~294,~~412~~410	$	~~291~~370,~~592~~405

The accompanying notes are an integral part of these Consolidated Financial Statements.

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FactSet Research Systems Inc.

Consolidated Statements of Changes in Stockholders’ Equity- Unaudited

For the Three Months Ended May 31, 2026

(in thousands, except share data)	Common Stock			AdditionalPaid-inCapital		Treasury Stock			RetainedEarnings		AccumulatedOtherComprehensive Loss		TotalStockholders’Equity
	Shares	Par Value				Shares	Amount
Balance as of November 30, 2025	43,110,694	$	431	$	1,648,754	5,866,870	$	(1,842,292)	$	2,435,018	$	(74,027)	$	2,167,884
Net income	—	—		—		—	—		133,056		—		133,056
Other comprehensive income (loss)	—	—		—		—	—		—		4,332		4,332
Common stock issued for employee stock plans	44,170	1		8,117		—	—		—		—		8,118
Vesting of restricted stock	5,464	—		—		981	(263)		—		—		(263)
Excise tax on share repurchases	—	—		—		—	(1,546)		—		—		(1,546)
Repurchases of common stock	—	—		—		651,750	(163,031)		—		—		(163,031)
Stock-based compensation expense	—	—		20,867		—	—		—		—		20,867
Dividends declared	—	—		—		—	—		(40,305)		—		(40,305)
Balance as of February 28, 2026	43,160,328	$	432	$	1,677,738	6,519,601	$	(2,007,132)	$	2,527,769	$	(69,695)	$	2,129,112
For the Six Months Ended February 28, 2026
Net income	—	—		—		—	—		126,718		—		126,718
Other comprehensive income (loss)	—	—		—		—	—		—		(9,612)		(9,612)
Common stock issued for employee stock plans	59,648	—		10,871		—	—		—		—		10,871
Vesting of restricted stock	5,463	—		—		2,015	(459)		—		—		(459)
Excise tax on share repurchases	—	—		—		—	(1,987)		—		—		(1,987)
Repurchases of common stock	—	—		—		926,370	(203,070)		—		—		(203,070)
Stock-based compensation expense	—	—		22,217		—	—		—		—		22,217
Dividends declared	—	—		—		—	—		(41,500)		—		(41,500)
Balance as of May 31, 2026	43,225,439	$	432	$	1,710,826	7,447,986	$	(2,212,648)	$	2,612,987	$	(79,307)	$	2,032,290
For the Nine Months Ended May 31, 2026
(in thousands, except share data)	Common Stock			AdditionalPaid-inCapital		Treasury Stock			RetainedEarnings		AccumulatedOtherComprehensiveLoss		TotalStockholders’Equity
	Shares	Par Value				Shares	Amount
Balance as of August 31, 2025	43,013,266	$	430	$	1,621,753	5,367,396	$	(1,695,429)	$	2,323,407	$	(63,748)	$	2,186,413
Net income	—	—		—		—	—		~~285~~412,~~636~~354		—		~~285~~412,~~636~~354
Other comprehensive income (loss)	—	—		—		—	—		—		(515,~~947~~559)		(515,~~947~~559)
Common stock issued for employee stock plans	85144,~~161~~809	1		1627,~~662~~533		—	—		—		—		1627,~~663~~534
Vesting of restricted stock	6167,~~901~~364	1		(1)		2224,~~355~~370	(56,~~958~~417)		—		—		(56,~~958~~417)
Excise tax on share repurchases	—	—		—		—	(24,~~815~~802)		—		—		(24,~~815~~802)
Repurchases of common stock	—	—		—		12,~~129~~056,~~850~~220	(~~302~~506,~~930~~000)		—		—		(~~302~~506,~~930~~000)
Stock-based compensation expense	—	—		3961,~~324~~541		—	—		—		—		3961,~~324~~541
Dividends declared	—	—		—		—	—		(81122,~~274~~774)		—		(81122,~~274~~774)
Balance as of February 28, 2026	43,160,328	$	432	$	1,677,738	6,519,601	$	(2,007,132)	$	2,527,769	$	(69,695)	$	2,129,112
Balance as of May 31, 2026	43,225,439	$	432	$	1,710,826	7,447,986	$	(2,212,648)	$	2,612,987	$	(79,307)	$	2,032,290

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FactSet Research Systems Inc.

Consolidated Statements of Changes in Stockholders’ Equity- Unaudited

For the Three Months Ended May 31, 2025

(in thousands, except share data)	Common Stock			AdditionalPaid-inCapital		Treasury Stock			RetainedEarnings		AccumulatedOtherComprehensiveLoss		TotalStockholders’Equity
	Shares	Par Value				Shares	Amount
Balance as of November 30, 2024	42,830,024	$	428	$	1,531,278	4,780,213	$	(1,438,678)	$	1,998,954	$	(100,421)	$	1,991,561
Net income	—	—		—		—	—		144,860		—		144,860
Other comprehensive income (loss)	—	—		—		—	—		—		(12,332)		(12,332)
Common stock issued for employee stock plans	73,939	1		21,494		—	—		—		—		21,495
Vesting of restricted stock	6,125	—		—		1,777	(843)		—		—		(843)
Excise tax on share repurchases	—	—		—		—	(508)		—		—		(508)
Repurchases of common stock	—	—		—		136,714	(64,352)		—		—		(64,352)
Stock-based compensation expense	—	—		16,547		—	—		—		—		16,547
Dividends declared	—	—		—		—	—		(39,511)		—		(39,511)
Balance as of February 28, 2025	42,910,088	$	429	$	1,569,319	4,918,704	$	(1,504,381)	$	2,104,303	$	(112,753)	$	2,056,917
For the Six Months Ended February 28, 2025
Net income	—	—		—		—	—		148,542		—		148,542
Other comprehensive income (loss)	—	—		—		—	—		—		44,196		44,196
Common stock issued for employee stock plans	48,606	1		12,271		—	—		—		—		12,272
Vesting of restricted stock	4,300	—		—		1,634	(710)		—		—		(710)
Excise tax on share repurchases	—	—		—		—	(710)		—		—		(710)
Repurchases of common stock	—	—		—		184,050	(80,696)		—		—		(80,696)
Stock-based compensation expense	—	—		17,015		—	—		—		—		17,015
Dividends declared	—	—		—		—	—		(41,644)		—		(41,644)
Balance as of May 31, 2025	42,962,994	$	430	$	1,598,605	5,104,388	$	(1,586,497)	$	2,211,201	$	(68,557)	$	2,155,182
For the Nine Months Ended May 31, 2025
(in thousands, except share data)	Common Stock			AdditionalPaid-inCapital		Treasury Stock			RetainedEarnings		AccumulatedOtherComprehensiveLoss		TotalStockholders’Equity
	Shares	Par Value				Shares	Amount
Balance as of August 31, 2024	42,598,915	$	426	$	1,478,839	4,646,645	$	(1,375,696)	$	1,888,504	$	(79,613)	$	1,912,460
Net income	—	—		—		—	—		~~294~~443,~~882~~424		—		~~294~~443,~~882~~424
Other comprehensive income (loss)	—	—		—		—	—		—		~~(33~~11,~~140)~~056		~~(33~~11,~~140)~~056
Common stock issued for employee stock plans	~~235~~283,~~036~~642	23		6072,~~342~~613		370	(170)		—		—		6072,~~174~~446
Vesting of restricted stock	7680,~~137~~437	1		(1)		3032,~~500~~134	(14,~~058~~768)		—		—		(14,~~058~~768)
Excise tax on share repurchases	—	—		—		—	(12,~~315~~025)		—		—		(12,~~315~~025)
Repurchases of common stock	—	—		—		~~241~~425,~~189~~239	(~~113~~193,~~142~~838)		—		—		(~~113~~193,~~142~~838)
Stock-based compensation expense	—	—		3047,~~139~~154		—	—		—		—		3047,~~139~~154
Dividends declared	—	—		—		—	—		(79120,~~083~~727)		—		(79120,~~083~~727)
Balance as of February 28, 2025	42,910,088	$	429	$	1,569,319	4,918,704	$	(1,504,381)	$	2,104,303	$	(112,753)	$	2,056,917
Balance as of May 31, 2025	42,962,994	$	430	$	1,598,605	5,104,388	$	(1,586,497)	$	2,211,201	$	(68,557)	$	2,155,182

The accompanying notes are an integral part of these Consolidated Financial Statements.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FactSet Research Systems Inc.

~~February~~May 2831, 2026

(Unaudited)

		Page
Note 1	Description of Business	11
Note 2	Summary of Significant Accounting Policies	11
Note 3	Revenue Recognition	13
Note 4	Fair Value Measures	14
Note 5	Acquisitions	16
Note 6	Goodwill	18
Note 7	Intangible Assets	19
Note 8	Income Taxes	19
Note 9	Leases	21
Note 10	Debt	22
Note 11	Commitments and Contingencies	2425
Note 12	Stockholders' Equity	26
Note 13	Earnings Per Share	27
Note 14	Stock-Based Compensation	2728
Note 15	Segment Information	3031

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1. DESCRIPTION OF BUSINESS

FactSet Research Systems Inc. and its wholly-owned subsidiaries ("we," "our," "us," the "Company" or "FactSet") is a global financial digital platform and enterprise solutions provider with open and flexible technologies that deliver financial intelligence to investment professionals worldwide.

Our platform delivers expansive data, sophisticated analytics, and flexible, artificial intelligence ("AI")-powered technologies used by global financial professionals to power their critical investment workflows. As of ~~February~~May 2831, 2026, we had more than 9,~~000~~100 clients comprised of over ~~241~~247,000 investment professionals, including institutional asset managers, bankers, wealth managers, asset owners, hedge funds, corporate users, and private equity and venture capital professionals. Our revenues are primarily derived from subscriptions to our multi-asset class data and solutions powered by our connected data and technology platform. Our products and services include workstations, portfolio analytics and enterprise data solutions. We also offer managed services that operate as an extension of our clients' internal teams to support data, performance, risk and reporting workflows.

We drive our business based on a detailed understanding of our clients' workflows, which helps us to solve their most complex challenges. We provide financial data and market intelligence on securities, companies, industries and people to enable our clients to research investment ideas and analyze, monitor and manage their portfolios. Our solutions span the investment lifecycle of investment research, portfolio construction and analysis, trade execution, performance measurement, risk management and reporting. We provide open and flexible technology offerings, including a configurable desktop and mobile platform, comprehensive data solutions, cloud-based digital solutions, and application programming interfaces ("APIs"). AI is embedded across these offerings to enhance data discovery, automate routine workflows and improve the speed and accuracy of client insights. The CUSIP Global Services ("CGS") business supports security master files relied on by the investment industry for critical front, middle and back-office functions. All of our platforms and solutions are supported by our client service team.

We operate our business through three reportable segments ("segments"): the Americas, EMEA and Asia Pacific. Refer to Note 15, Segment Information for further discussion on our segments. Within each segment, we offer data, products and analytical applications by firm type: Institutional Buyside, Dealmakers, Wealth, and Market Infrastructure. In fiscal 2026, we renamed "Partnerships and CGS" to "Market Infrastructure".

2. 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 year presentation. We conformed the comparative prior year figures to the current year presentation.

Deferred acquisition consideration, previously included within Other financing activities, was presented as a separate component of Cash Flows from Financing Activities in the Consolidated Statements of Cash Flows in the current period presentation. We conformed the comparative figures for the ~~six~~nine months ended ~~February~~May 2831, 2025 to the current period presentation.

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Use of Estimates

The preparation of our Consolidated Financial Statements and related disclosures in conformity with GAAP required management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimation may be involved in the accounting for income taxes, stock-based compensation, goodwill, business combinations, property, equipment and leasehold improvements ("PPE"), intangible assets and contingencies. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of our assets and liabilities. Actual results could differ materially from those estimates.

Concentrations of Credit Risk

Credit risk arises from the potential nonperformance by counterparties to fulfill their financial obligations. Our financial instruments that potentially subject us to concentrations of credit risk consist primarily of our cash, cash equivalents, restricted cash, investments in mutual funds, accounts receivable and derivative instruments. The maximum credit exposure of our cash, cash equivalents, restricted cash, investments in mutual funds and accounts receivable is their carrying values as of the balance sheet date. The maximum credit exposure related to our derivative instruments is based upon their respective gross fair values as of the balance sheet date.

Cash, Cash Equivalents, Restricted Cash and Investments

We are exposed to credit risk on our cash, cash equivalents, restricted cash and investments in mutual funds in the event of default by the financial and governmental institutions with which we transact. We invest in a manner that aligns with our restrictive cash investment practices, preserves capital and provides liquidity, while minimizing our exposure to credit risk. We limit our exposure to credit loss by investing with multiple financial and governmental institutions that we believe are high-quality and credit-worthy. We have not experienced any credit losses relating to our cash, cash equivalents, restricted cash and investments in mutual funds.

Accounts Receivable

Our accounts receivable credit risk is dependent upon the financial stability of our individual clients. As of ~~February~~May 2831, 2026, our accounts receivable reserve was $1214.3 million. We do not require collateral from our clients; however, no single client represented more than 3.5% of our total revenues for the ~~six~~nine months ended ~~February~~May 2831, 2026. Due to our large and geographically dispersed client base, our concentration of credit risk related to our accounts receivable is generally limited.

Derivative Instruments

Our use of derivative instruments exposes us to credit risk to the extent counterparties may be unable to meet the terms of their agreements. To mitigate credit risk, we limit counterparties to financial institutions we believe are credit-worthy and use several institutions to reduce concentration risk. We do not expect any losses as a result of default by our counterparties.

Concentrations of Data Providers

We integrate data from various third-party sources into our hosted proprietary data and analytics platform. As certain data sources have a limited number of suppliers, we make every effort to assure that, where reasonable, alternative sources are available. We are not dependent on any individual third-party data supplier to meet the needs of our clients,. ~~with~~Two ~~one~~ data ~~supplier~~suppliers ~~representing~~each represented more than 10% of our total data costs for the ~~six~~nine months ended ~~February~~May 2831, 2026.

Concentrations of Cloud Providers

Our clients rely on us for the delivery of time-sensitive, up-to-date data and applications. Our business is dependent on our ability to process substantial volumes of data and transactions rapidly and efficiently. We currently use multiple providers of cloud services; however, one supplier provided the majority of our cloud computing support for the ~~six~~nine months ended ~~February~~May 2831, 2026. We maintain back-up facilities and other redundancies at our data centers, take security measures and have emergency planning procedures to minimize the risk that an event will disrupt our operations.

Recently Adopted Accounting Pronouncements

We did not adopt any new standards or updates issued by the Financial Accounting Standards Board ("FASB") during the ~~six~~nine months ended ~~February~~May 2831, 2026 that had a material impact on our Consolidated Financial Statements.

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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 Disclosures (Subtopic 220-40) - Disaggregation of Income Statement Expenses. This ASU requires disaggregation of certain income statement expense captions into specified categories to be disclosed within the footnotes to the financial statements. This ASU does not change the expense captions on the income statement. The amendments in this ASU are to be applied prospectively, although retrospective application is permitted, and are effective for our annual financial statements starting in fiscal 2028 and interim periods starting in fiscal 2029. Early adoption is permitted. This ASU is not expected to have a material impact on our Consolidated Financial Statements. We are currently assessing the impact of the new requirements on our disclosures.

U.S. Securities and Exchange Commission ("SEC") Disclosures - The Enhancement and Standardization of Climate-Related Disclosures for Investors

In March 2024, the SEC adopted a final rule under SEC Release Nos. 33-11275 and 34-99678, The Enhancement and Standardization of Climate-Related Disclosures for Investors, which would require disclosure of certain climate-related information in various filings with the SEC. In April 2024, the SEC stayed implementation of the final rule pending completion of judicial review. In March 2025, the SEC stated that it has ended its defense of the rule. WeOn ~~are~~May ~~currently~~29, ~~monitoring~~2026, the ~~legal~~SEC ~~challenges~~proposed ~~and~~to ~~assessing~~rescind the ~~potential impact of the~~ rule ~~on our disclosures~~.

Income Taxes - Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures. This ASU enhances annual income tax disclosures primarily related to our effective tax rate reconciliation and income taxes paid. The amendments in this ASU are to be applied prospectively, although retrospective application is permitted, and are effective for our annual financial statements starting in fiscal 2026. Early adoption is permitted. This ASU will result in additional disclosures with no impact to our Consolidated Financial Statements.

Disclosure Improvements - Codification Amendment in Response to the SEC's Disclosure Update and Simplification Initiative

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements - Codification Amendment in Response to the SEC’s Disclosure Update and Simplification Initiative. The ASU incorporates several disclosure and presentation requirements currently residing in the SEC Regulations S-X and S-K. The amendments will be applied prospectively and are effective when the SEC removes the related requirements from Regulations S-X or S-K. Any amendments the SEC does not remove by June 30, 2027 will not be effective. As we are currently subject to these SEC requirements, this ASU is not expected to have a material impact on our Consolidated Financial Statements or related disclosures.

No other new accounting pronouncements issued or effective during the ~~six~~nine months ended ~~February~~May 2831, 2026 have had, or are expected to have, a material impact on our Consolidated Financial Statements.

3. 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-

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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 receiving and consuming the benefits of the respective platform. We recognize revenue for the majority of these platforms in accordance with the 'as invoiced' practical expedient, because the consideration that we have the right to invoice corresponds directly with the value of our performance to date. We record revenues net of sales taxes which are subsequently remitted to taxing authorities and are excluded from the transaction price. There are no significant judgments that would impact the timing of revenue recognition.

The majority of client contracts have a duration of one year, or the amount we are entitled to receive corresponds directly with the value of our performance obligations completed to date. Therefore, we do not disclose the value of the remaining unsatisfied performance obligations.

Disaggregated Revenues

We disaggregate revenues from our client contracts by segment based on the geographic region where the sale originated. Our business segmentation by geography is aligned with the operational and economic characteristics of our business. Refer to Note 15, Segment Information, for further information.

The following table presents revenues disaggregated by segment:

Three Months Ended

~~Six~~Nine Months Ended

February 28,

May 31,

(in thousands)

2026

2025

2026

2025

Americas

~~399~~407,~~683~~240

~~369~~380,~~661~~501

~~795~~1,~~859~~203,099

~~736~~1,~~903~~117,404

EMEA

~~149~~151,~~120~~940

~~143~~145,~~387~~741

~~298~~450,~~637~~577

~~287~~432,~~112~~853

Asia Pacific

6263,~~216~~738

5759,~~612~~278

~~124~~187,~~144~~882

~~115~~174,~~312~~590

Total Revenues

~~611~~622,~~019~~918

~~570~~585,~~660~~520

1,~~218~~841,~~640~~558

1,~~139~~724,~~327~~847

4. 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 observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

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Level 3 – applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The assumptions used in determining fair value represent our best estimates, but these estimates involve inherent uncertainties and the application of our judgment. As a result, if factors change, our fair value estimates could be materially different in the future and may adversely affect our business and financial results.

(a) Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables show, by level within the fair value hierarchy, our assets and liabilities that are measured at fair value on a recurring basis as of ~~February~~May 2831, 2026 and August 31, 2025. We did not have any transfers between levels of fair value measurements during the ~~six~~nine months ended ~~February~~May 2831, 2026 and the fiscal year ended August 31, 2025.

	Fair Value Measurements as of February 28, 2026
	Fair Value Measurements as of May 31, 2026
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Money market funds(1)	$	3313,~~389~~582	$	—	$	—	$	3313,~~389~~582
Mutual funds(2)	—		16,~~929~~122		—		16,~~929~~122
Derivative instruments(3)	—		~~476~~71		—		~~476~~71
Total assets measured at fair value	$	3313,~~389~~582	$	1716,~~405~~193	$	—	$	5029,~~794~~775
Liabilities
Derivative instruments(3)	$	—	$	13,~~115~~676	$	—	$	13,~~115~~676
Contingent liabilities(4)	—		—		13,080		13,080
Contingent liabilities(5)	—		—		9,953		9,953
Total liabilities measured at fair value	$	—	$	13,~~115~~676	$	139,~~080~~953	$	1413,~~195~~629

	Fair Value Measurements as of August 31, 2025
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Money market funds(1)	$	8,649	$	—	$	—	$	8,649
Mutual funds(2)	—		17,445		—		17,445
Derivative instruments(3)	—		3,590		—		3,590
Total assets measured at fair value	$	8,649	$	21,035	$	—	$	29,684
Liabilities
Derivative instruments(3)	$	—	$	808	$	—	$	808
Derivative instruments(3) (4)	$	—	$	808	$	—	$	808
Contingent liabilities(4)	—		—		24,126		24,126
Contingent liabilities(5)	—		—		24,126		24,126
Total liabilities measured at fair value	$	—	$	808	$	24,126	$	24,934

(1) Our money market funds are readily convertible into cash and are reported based on their net asset value, which represents its fair value, on the last day of the reporting period. The net asset values are readily determinable and represent the prices of active trading in the market. Our money market funds are included in Cash and cash equivalents within the Consolidated Balance Sheets.

(2) Our mutual funds' fair value is based on the fair value of the underlying investments held by the mutual funds, allocated to each share of the mutual fund using a net asset value approach. The fair value of each underlying investment is based on observable inputs, when available, or pricing from valuation agencies. Our mutual funds are included in Investments within the Consolidated Balance Sheets.

(3) Our ~~derivative instruments consist of~~ foreign exchange forward contracts ~~and,~~fair ~~when~~value ~~applicable,~~is andetermined ~~interest~~utilizing ~~rate swap agreement, refer to Note 10, Debt for more information. We utilized~~ the income approach ~~to measure fair value for our foreign exchange forward contracts~~. The income approach uses pricing models that rely on market observable inputs such as spot, forward and interest rates, as well as credit default swap spreads. ToOur ~~estimate~~foreign ~~fair~~exchange ~~value~~forward ~~for~~contracts our interest rate swap agreements, we utilized a present value of future cash flows, leveraging a model-derived valuation that uses observable inputs such as interest rate yield curves. Our derivative instruments in an asset position are included in Prepaid expenses and other current assets and those in a liability position are included in Accounts payable and accrued expenses within the Consolidated Balance Sheets.

(4) Our ~~contingent~~interest ~~liabilities~~rate ~~resulted~~swap ~~from~~agreements ~~the~~fair ~~acquisitions~~value ofis ~~various~~estimated ~~businesses.~~utilizing ~~These~~a ~~liabilities reflect the~~ present value of ~~potential~~ future ~~payments~~cash flows, leveraging a model-derived valuation that uses observable inputs such as interest rate yield curves. Our interest rate swap agreements in an asset position are ~~contingent~~included ~~upon~~in ~~the~~Prepaid ~~achievement~~expenses ofand ~~certain~~other ~~specified~~current ~~milestones~~assets and those in a liability position are ~~valued~~included ~~using~~in aAccounts ~~scenario-based~~payable ~~method.~~and ~~This~~accrued expenses within the Consolidated Balance Sheets.

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(5) Our contingent liabilities resulted from the acquisitions of various businesses. These liabilities reflect the present value of potential future payments that are contingent upon the achievement of certain specified milestones and are valued using a scenario-based method. This method incorporates unobservable inputs and assumptions made by management, including the probability of achieving specified milestones, expected time until payment and the discount rate. Refer to Note 5, Acquisitions, for more information on the contingent liabilities associated with the Liquid Holdings LLC ("LiquidityBook") and Platform Group Limited ("Irwin") acquisitions.

(b) Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

Assets that are measured at fair value on a non-recurring basis primarily include our PPE, lease right-of-use ("ROU") assets, goodwill and intangible assets. These assets are assessed for impairment whenever events or circumstances indicate their carrying value may not be fully recoverable, and at least annually for goodwill. The fair values of these non-financial assets are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparable information and discounted cash flow projections.

We elected not to carry our debt at fair value on the Consolidated Balance Sheets. Our Senior Notes are publicly traded; therefore, the fair value of our Senior Notes is estimated based on quoted prices in active markets as of the last business day of the reporting period, which are considered Level 1 inputs. The fair value of our 2025 Credit Facilities was estimated based on quoted market prices for similar instruments, adjusted for unobservable inputs for comparability to our investment rating, maturity terms and principal outstanding, which are considered Level 3 inputs. Refer to Note 10, Debt for definitions of, and more information on, our Senior Notes and 2025 Credit Facilities.

The following table summarizes information on our outstanding debt as of ~~February~~May 2831, 2026 and August 31, 2025:

		February 28, 2026				August 31, 2025
		May 31, 2026				August 31, 2025
(in thousands)	Fair Value Hierarchy	Principal Amount		Estimated Fair Value		Principal Amount		Estimated Fair Value
2027 Notes	Level 1	$	500,000	$	~~493~~494,~~620~~320	$	500,000	$	490,565
2032 Notes	Level 1	500,000		~~458~~453,~~165~~390		500,000		460,440
2025 Term Facility	Level 3	375,000		~~373~~374,~~983~~760		375,000		374,866
Total principal amount		$	1,375,000	$	1,325,768	$	1,375,000	$	1,325,871
2025 Revolving Facility	Level 3	20,000		19,991		—		—
Total unamortized discounts and debt issuance costs(1)		(5,784)				(6,740)
Total principal amount		$	1,395,000	$	1,342,461	$	1,375,000	$	1,325,871
Total net carrying value of debt(1)		$	1,369,216			$	1,368,260
Total unamortized discounts and debt issuance costs(1)		(5,299)				(6,740)
Total net carrying value of debt(1)		$	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.

5. ACQUISITIONS

Our acquisitions with the most significant cash flows during fiscal 2025 through the ~~second~~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 FactSet’s 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 presented because the effect of the LiquidityBook acquisition was not material to our Consolidated Financial Statements.

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We finalized the purchase accounting for the LiquidityBook acquisition during the second quarter of fiscal 2026 and did not record any material changes to the preliminary purchase price allocation. The acquisition date fair values of major classes of assets acquired and liabilities assumed are as follows:


	Acquisition Date Fair Value		Acquisition Date Useful Life	Amortization Method
	(in thousands)		(in years)
Current assets	$	3,893
Amortizable intangible assets
Software technology	65,600		12 years	Straight-line
Client relationships	8,800		17 years	Straight-line
Trade names	3,400		10 years	Straight-line
Goodwill	164,787
Other assets	487
Current liabilities
Deferred revenues	(799)
Other current liabilities	(2,386)
Other liabilities	(600)
Total purchase price	$	243,182

Goodwill totaling $164.8 million represents the excess of the LiquidityBook purchase price over the fair value of net assets acquired and considers future economic benefits that we expect to achieve as a result of the acquisition. The goodwill is included in the Americas, EMEA and Asia Pacific segments and is deductible for income tax purposes.

Platform Group Limited ("Irwin")

On November 5, 2024, we completed the acquisition of Irwin for a purchase price of $120.2 million, net of cash acquired, and inclusive of working capital adjustments. The purchase price included contingent consideration of $9.6 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.

Irwin is a leading investor relations and capital markets platform for public companies and their advisors. This acquisition builds on a successful partnership between FactSet and Irwin, and expands our ability to address the holistic workflow needs of investor relations professionals with an integrated, modern solution.

The results of Irwin's operations have been included within the Americas, EMEA and Asia Pacific segments in our Consolidated Financial Statements. Pro forma information has not been presented because the effect of the Irwin acquisition was not material to our Consolidated Financial Statements.

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We finalized the purchase accounting for the Irwin acquisition during the third quarter of fiscal 2025 and did not record any material changes to the preliminary purchase price allocation. The acquisition date fair values of major classes of assets acquired and liabilities assumed are as follows:


	Acquisition Date Fair Value		Acquisition Date Useful Life	Amortization Method
	(in thousands)		(in years)
Current assets	$	2,393
Amortizable intangible assets
Software technology	36,100		12 years	Straight-line
Client relationships	1,700		11 years	Straight-line
Trade names	1,400		10 years	Straight-line
Goodwill	91,376
Current liabilities
Deferred revenues	(4,218)
Other current liabilities	(524)
Other liabilities	(8,041)
Total purchase price	$	120,186

Goodwill totaling $91.4 million represents the excess of the Irwin purchase price over the fair value of net assets acquired and considers future economic benefits that we expect to achieve as a result of the acquisition. The goodwill is included in the Americas and EMEA segments and is not deductible for income tax purposes.

6. GOODWILL

Changes in the carrying value of goodwill by segment for the ~~six~~nine months ended ~~February~~May 2831, 2026 are as follows:

(in thousands)	Americas		EMEA		Asia Pacific		Total
Balance at August 31, 2025	$	925,752	$	344,436	$	14,520	$	1,284,708
Foreign currency translations	~~543~~(406)		~~2,096~~(758)		(~~126~~167)		2(1,~~513~~331)
Balance at February 28, 2026	$	926,295	$	346,532	$	14,394	$	1,287,221
Balance at May 31, 2026	$	925,346	$	343,678	$	14,353	$	1,283,377

Goodwill is not amortized as it is estimated to have an indefinite life. Goodwill impairment is tested at the reporting unit level, which is consistent with our segments. We test goodwill annually during the fourth quarter of each fiscal year or more frequently if events and circumstances occur indicating that it is more likely than not that the fair value of any one of our reporting units is less than its respective carrying value. If the carrying value of the reporting unit exceeds the fair value, then the goodwill is considered impaired and written down to the reporting unit’s fair value.

We tested our goodwill for impairment during the fourth quarter of fiscal 2025 utilizing a qualitative analysis. We concluded there was no impairment as it was more likely than not that the fair value of each of our reporting units was not less than its respective carrying value. No events or circumstances were identified during the ~~six~~nine months ended ~~February~~May 2831, 2026 that would indicate it is more likely than not that goodwill has been impaired.

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7. INTANGIBLE ASSETS

We amortize intangible assets on a straight-line basis over their estimated useful lives. The following table presents the estimated useful life, gross carrying amount and accumulated amortization related to our identifiable intangible assets as of ~~February~~May 2831, 2026 and August 31, 2025:

	February 28, 2026							August 31, 2025
	May 31, 2026							August 31, 2025
(in thousands, except useful life)	Estimated Useful Life (years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
ABA business process	36	$	1,583,000	$	~~175~~186,~~889~~882	$	1,~~407~~396,~~111~~118	$	1,583,000	$	153,903	$	1,429,097
Client relationships	11 to 26	~~280~~279,~~556~~916		~~100~~103,~~708~~550		~~179~~176,~~848~~366		280,065		94,365		185,700
Developed technology	3 to 5	~~302~~326,~~944~~477		~~163~~183,~~922~~666		~~139~~142,~~022~~811		260,154		127,669		132,485
Software technology	3 to 12	~~254~~253,~~557~~901		~~140~~144,~~047~~053		~~114~~109,~~510~~848		253,899		131,731		122,168
Data content	7 to 20	8687,~~983~~004		4748,~~012~~020		3938,~~971~~984		86,416		44,490		41,926
Trade names	5 to 10	4,~~930~~914		~~579~~702		4,~~351~~212		4,919		326		4,593
Non-compete agreements	4	290		~~193~~211		9779		290		157		133
Total		$	2,~~513~~535,~~260~~502	$	~~628~~667,~~350~~084	$	1,~~884~~868,~~910~~418	$	2,468,743	$	552,641	$	1,916,102

The weighted average useful life of our intangible assets as of ~~February~~May 2831, 2026 was 30.4 years. We review our intangible assets to determine if any indicators of impairment are present on a quarterly basis or whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. If indicators of impairment are present, our intangible assets are tested for impairment by comparing the carrying value to undiscounted cash flows and, if impaired, written down to fair value based on discounted cash flows. We did not identify a material impairment nor a material change to the estimated remaining useful lives of our intangible assets during the ~~six~~nine months ended ~~February~~May 2831, 2026 and ~~February~~May 2831, 2025. Our intangible assets have no assigned residual values.

The following table presents the amortization expense for our intangible assets which is included in Cost of services in our Consolidated Statements of Income:

	Three Months Ended				~~Six~~Nine Months Ended
	February 28,				February 28,
	May 31,				May 31,
(in thousands)	2026		2025		2026		2025
Amortization expense	$	3739,~~249~~510	$	3234,~~589~~846	$	75114,~~001~~511	$	6297,~~461~~307

As of ~~February~~May 2831, 2026, estimated intangible asset amortization expense for each of the next five years and thereafter is as follows:

(in thousands)	Estimated Amortization Expense
Fiscal Years Ended August 31,
2026 (remaining six months)	$	74,054
2026 (remaining three months)	$	39,637
2027	~~129~~134,~~386~~907
2028	~~104~~111,~~791~~011
2029	8186,~~000~~086
2030	7475,~~425~~161
Thereafter	1,421,~~254~~616
Total	$	1,~~884~~868,~~910~~418

8. 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.

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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						~~Six~~Nine Months Ended
	February 28,						February 28,
	May 31,						May 31,
(in thousands)	2026			2025			2026			2025
Income before income taxes	$	~~161~~154,~~111~~121		$	~~172~~179,~~320~~948		$	~~351~~505,~~224~~345		$	~~352~~532,~~059~~007
Provision for income taxes	$	2827,~~055~~403		$	2731,~~460~~406		$	6592,~~588~~991		$	5788,~~177~~583
Effective tax rate	17.48		%	1517.95		%	18.74		%	16.27		%

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 adjusted for any discrete items. On a quarterly basis, we update the estimate of our annual effective tax rate as new events occur, assumptions change, or additional information is obtained.

Our effective tax rate for the three months ended ~~February~~May 2831, 2026 and ~~February~~May 2831, 2025 was 17.48% and 1517.95%, respectively. The increase was primarily due to the limitation on the deductibility of executive compensation ~~and lower excess tax benefits from stock-based compensation, partially offset by a favorable resolution of uncertain tax positions in the U~~.S.

Our effective tax rate for the ~~six~~nine months ended ~~February~~May 2831, 2026 and ~~February~~May 2831, 2025 was 18.74% and 16.27%, respectively. The increase was primarily due to a stock-based compensation tax shortfall for the ~~six~~nine months ended ~~February~~May 2831, 2026, compared to an excess tax benefit for the prior year period.

For the periods presented, our effective tax rates were lower than the applicable U.S. corporate income tax rate ("U.S. tax rate") primarily due to the U.S. tax impact of foreign earnings, research and development ("R&D") tax credits, and a foreign derived intangible income ("FDII") tax deduction, partially offset by the impact of state income taxes. In addition, our effective tax rate was lower than the U.S. tax rate for the three ~~months ended February 28, 2026 due to a favorable resolution of uncertain tax positions in the U.S.,~~ and ~~for~~nine ~~the three and six~~ months ended ~~February~~May 2831, 2025 due to excess tax benefits from stock-based compensation.

Base Erosion and Profit Shifting Pillar Two

The Organization for Economic Co-operation and Development released Base Erosion and Profit Shifting Pillar Two rules (“Pillar Two”) to introduce a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds. Certain aspects of Pillar Two are effective for tax years beginning on or after January 1, 2024. Although the U.S. has not yet enacted legislation to adopt Pillar Two, certain countries in which we operate have already adopted, or are in the process of adopting, legislation to implement Pillar Two. We have determined that Pillar Two would not have a material impact to our Consolidated Financial Statements, related disclosures, or effective tax rate. However, as the Pillar Two rules continue to evolve, we are closely monitoring legislative developments globally to evaluate potential impacts on our financial statements, as more countries adopt and implement these regulations.

One Big Beautiful Bill Act

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was signed into law. The legislation includes a broad range of tax reform provisions affecting businesses including, but not limited to, the expansion of bonus depreciation, immediate expensing of domestic R&D costs, and revisions to the U.S. taxation of profits derived from international operations. The legislation has multiple effective dates, with certain provisions taking effect in fiscal 2025 and others phased in through fiscal 2027. The Act did not have a material impact on our Consolidated Financial Statements as of and for the three and ~~six~~nine months ended ~~February~~May 2831, 2026.

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9. 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 ~~February~~May 2831, 2026, we recognized $~~120~~119.54 million of Lease ROU assets, net and $~~184~~180.49 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 ~~over~~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 certain that we will exercise the option.

The following table presents our future minimum lease payments and a reconciliation to the combined Current lease liabilities and Long-term lease liabilities in the Consolidated Balance Sheets as of ~~February~~May 2831, 2026:

(in thousands)	Minimum LeasePayments
Fiscal Years ended August 31,
2026 (remaining six months)	$	20,551
2026 (remaining three months)	$	10,395
2027	41,~~505~~696
2028	37,~~186~~633
2029	3132,~~656~~223
2030	2627,~~529~~196
Thereafter	5660,~~097~~014
Total minimum lease payments	$	~~213~~209,~~524~~157
Less: Imputed interest	2928,~~083~~216
Total lease liabilities	$	~~184~~180,~~441~~941

The following table includes components of our occupancy costs:

	Three Months Ended				~~Six~~Nine Months Ended
	February 28,				February 28,
	May 31,				May 31,
(in thousands)	2026		2025		2026		2025
Operating lease costs(1)	$	8,~~188~~084	$	7,~~606~~974	$	1624,~~185~~269	$	1523,~~178~~152
Variable lease costs(2)	$	4,~~369~~624	$	4,~~777~~031	$	913,~~190~~814	$	913,~~665~~696

(1) Operating lease costs include costs associated with fixed lease payments and index-based variable payments that qualified for lease accounting under ASC 842, Leases and complied with the practical expedients and exceptions we elected.

(2) Variable lease costs include costs that are not fixed and are not dependent on an index or rate. These costs were not included in the measurement of lease liabilities and primarily include variable non-lease costs, such as utilities, real estate taxes, insurance and maintenance, as well as lease costs for those leases that qualified for the short-term lease exception.

The following table summarizes our weighted average remaining lease term and weighted average discount rate related to our operating leases recorded on the Consolidated Balance Sheets:

	As of February 28, 2026		As of August 31, 2025
	As of May 31, 2026		As of August 31, 2025
Weighted average remaining lease term (in years)	6.32		6.1
Weighted average discount rate (IBR)	4.98	%	4.7	%

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The following table summarizes supplemental cash flow information related to our operating leases:

	Six Months Ended
	Nine Months Ended
	February 28,
	May 31,
(in thousands)	2026		2025
Cash paid for amounts included in the measurement of lease liabilities	$	1929,~~893~~807	$	1930,~~645~~218
Lease ROU assets obtained in exchange for lease liabilities(1)	$	1723,~~069~~875	$	45,~~213~~175
Reductions to ROU assets resulting from reductions to lease liabilities(2)	$	—	$	(5,~~529~~528)

(1)Primarily includes new lease arrangements entered into during the respective period and contract modifications that extend our lease terms and/or provide additional rights.

(2)Primarily relates to lease term reassessments based on contractual options to early terminate, resulting in a reduction to the lease liability and the corresponding lease ROU asset.

10. DEBT

We have not elected the fair value option and report our debt at amortized cost. Our debt obligations as of ~~February~~May 2831, 2026 and August 31, 2025 consisted of the following:

(in thousands)	Issuance Date	ContractualMaturity Date	~~February~~May 2831, 2026		August 31, 2025
2025 Term Facility	4/8/2025	4/8/2028	$	375,000	$	375,000
Current debt
2027 Notes	3/1/2022	3/1/2027	~~500,000~~$	500,000	~~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)			(54,~~784~~458)		(6,740)
Long-term debt(1)			$	1,369,216	$	1,368,260
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 February 28, 2026, annual maturities on our debt obligations, based on contractual maturity dates, were as follows:~~22

(in thousands)	Maturities
Fiscal Years ended August 31,
2026 (remaining six months)	$	—
2027	500,000
2028	375,000
2029	—
2030	—
Thereafter	500,000
Total	$	1,375,000

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As of May 31, 2026, annual maturities 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 balance under the 2022 Revolving Facility (as defined below). The 2025 Credit Agreement also provides for a $1.0 billion senior unsecured revolving credit facility (the "2025 Revolving Facility"). The 2025 Revolving Facility, together with the 2025 Term Facility, are referred to as the "2025 Credit Facilities".

The 2025 Revolving Facility provides for up to $100.0 million in the form of letters of credit, and up to $100.0 million in the form of swingline loans. We may seek additional commitments of up to $1.0 billion under the 2025 Revolving Facility from lenders or other financial institutions. The 2025 Term Facility matures on April 8, 2028, and the 2025 Revolving Facility matures on April 8, 2030.

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The 2025 Term Facility is subject to scheduled quarterly principal payments, commencing on August 31, 2025, with each quarterly principal payment equal to 1.25% of the original principal amount of the 2025 Term Facility. The 2025 Credit Facilities are not otherwise subject to any other mandatory repayments. We may voluntarily prepay loans under the 2025 Credit Facilities at any time without premium or penalty. Prepayments of the 2025 Term Facility shall be applied to reduce the subsequent scheduled quarterly principal payments in direct order of maturity. We have satisfied all scheduled quarterly principal payments through maturity.

As of ~~February~~May 2831, 2026, our outstanding debt under the 2025 Term Facility was $375.0 million and ~~there~~under ~~were~~the no2025 ~~borrowings~~Revolving Facility was $20.0 million. Subsequent to May 31, 2026, an additional $80.0 million was borrowed under the 2025 Revolving Facility.

From the borrowing date through ~~February~~May 2831, 2026, the outstanding borrowings under the 2025 Credit Facilities bore interest at a rate equal to the applicable one-month Term Secured Overnight Financing Rate ("SOFR") plus a 0.975% spread (comprised of a 0.875% interest rate margin, based on a pricing grid determined by reference to our senior unsecured non-credit enhanced long-term debt rating and our total leverage ratio, plus a 0.1% credit spread adjustment).

We pay a commitment fee on the daily unused amount of the 2025 Revolving Facility using a pricing grid based on our senior unsecured non-credit enhanced long-term debt rating and our total leverage ratio. The commitment fee remained consistent at 0.1% from the borrowing date through ~~February~~May 2831, 2026.

Debt issuance costs related to the 2025 Credit Facilities were $3.4 million. These debt issuance costs are presented in the Consolidated Balance Sheets as a direct deduction from the carrying amount of the debt liability for the 2025 Term Facility and within Other assets for the 2025 Revolving Facility. Debt issuance costs are amortized to Interest expense in the Consolidated Statements of Income on a straight-line basis over the contractual term of the debt (which approximates the effective interest method for the 2025 Term Facility).

The 2025 Credit Agreement contains usual and customary event of default provisions for facilities of this type, which are subject to usual and customary grace periods and materiality thresholds. If an event of default occurs under the 2025 Credit Agreement, the lenders may, among other things, terminate their commitments and declare all outstanding borrowings immediately due and payable.

The 2025 Credit Agreement contains usual and customary affirmative and negative covenants for facilities of this type, including a financial covenant requiring maintenance of a total leverage ratio of no greater than 3.75 to 1.00 as of the last day of each fiscal quarter (subject to an increase to 4.25 to 1.00 for five consecutive fiscal quarters in connection with certain material acquisitions). We were in compliance with all covenants and requirements of the 2025 Credit Agreement as of February 28, 2026.

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each fiscal quarter (subject to an increase to 4.25 to 1.00 for five consecutive fiscal quarters in connection with certain material acquisitions). We were in compliance with all covenants and requirements of the 2025 Credit Agreement as of May 31, 2026.

2022 Credit Agreement

On March 1, 2022, we entered into a credit agreement (the "2022 Credit Agreement") and borrowed $1.0 billion under a senior unsecured term loan credit facility (the "2022 Term Facility") and $250.0 million of the available $500.0 million under a senior unsecured revolving credit facility (the "2022 Revolving Facility"). The 2022 Revolving Facility, together with the 2022 Term Facility, are referred to as the "2022 Credit Facilities". On January 31, 2025, we entered into a joinder agreement to our 2022 Credit Agreement pursuant to which commitments under the 2022 Revolving Facility were increased by $100.0 million, to a total of $600.0 million. All other terms of the 2022 Credit Agreement remained unchanged.

Borrowings previously outstanding under the 2022 Credit Facilities bore interest at a rate equal to the applicable one-month Term SOFR plus a spread using a debt leverage pricing grid and a credit spread adjustment (with total spread ranging from 0.975% to 1.1% over the term of the debt). The 2022 Credit Agreement was terminated on April 8, 2025, concurrent with entering into the 2025 Credit Agreement.

Senior Notes

On March 1, 2022, we completed a public offering issuing $500.0 million of 2.900% Senior Notes due March 1, 2027 (the "2027 Notes") and $500.0 million of 3.450% Senior Notes due March 1, 2032 (the "2032 Notes" and, together with the 2027 Notes, the "Senior Notes"). The Senior Notes were issued pursuant to an indenture, dated as of March 1, 2022, by and between us and U.S. Bank Trust Company, National Association, as trustee (the "Trustee"), as supplemented by the supplemental indenture, dated as of March 1, 2022, between us and the Trustee (the "Supplemental Indenture").

The Senior Notes were issued at an aggregate discount of $2.8 million and we incurred approximately $9.1 million in debt issuance costs during fiscal 2022. Debt discounts and debt issuance costs are presented in the Consolidated Balance Sheets as a net direct deduction from the carrying amount of the debt liability. The debt discounts and debt issuance costs are amortized to Interest expense in the Consolidated Statements of Income over the contractual term of the debt, leveraging the effective interest method.

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Interest expense in the Consolidated Statements of Income over the contractual term of the debt, leveraging the effective interest method.

Interest on the Senior Notes is payable semiannually in arrears on March 1 and September 1 of each year.

We may redeem the Senior Notes, in whole or in part, at any time at specified redemption prices, plus any accrued and unpaid interest. Upon the occurrence of a change of control triggering event (as defined in the Supplemental Indenture), we must offer to repurchase the Senior Notes at 101% of their principal amount, plus any accrued and unpaid interest.

Interest Rate Swap Agreements

We may leverage interest rate swap agreements to manage our floating interest rate exposure with a fixed interest rate. Our interest rate swap agreements are designated as cash flow hedges at inception.

2025 Swap Agreement

On April 24, 2025, we entered into an interest rate swap agreement ("2025 Swap Agreement") with a notional amount of $200.0 million to hedge a portion of our outstanding floating SOFR debt with a fixed interest rate of 4.086%. The notional amount of the 2025 Swap Agreement declined by $50.0 million on a quarterly basis beginning May 31, 2025. The 2025 Swap Agreement matured on February 28, 2026.

2024 Swap Agreement

On March 1, 2024, we entered into an interest rate swap agreement ("2024 Swap Agreement") with a notional amount of $200.0 million to hedge a portion of our outstanding floating SOFR debt with a fixed interest rate of 5.145%. The notional amount of the 2024 Swap Agreement declined by $50.0 million on a quarterly basis beginning May 31, 2024. The 2024 Swap Agreement matured on February 28, 2025.

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Interest Expense

The following table presents the interest expense on our outstanding debt which is a component of Interest expense in our Consolidated Statements of Income:

	Three Months Ended				~~Six~~Nine Months Ended
	February 28,				February 28,
	May 31,				May 31,
(in thousands)	2026		2025		2026		2025
Interest expense on outstanding debt(1)	$	13,~~035~~816	$	1315,~~899~~092	$	2640,~~404~~220	$	2843,~~266~~358

(1)Interest expense on our outstanding debt includes the related amortization of debt issuance costs and debt discounts., ~~Interest expense is~~ net of the effects ofrelated ~~our~~to any outstanding interest rate ~~swap agreements~~swaps.

11. 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.

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Purchase Commitments with Suppliers and Vendors

Purchase obligations represent our legally-binding agreements to purchase fixed or minimum quantities at determinable prices. As of August 31, 2025, we had total purchase obligations with suppliers and vendors of approximately $352 million. Our total purchase obligations as of August 31, 2025 primarily related to hosting services, acquisition of data and, to a lesser extent, third-party software providers. During the second quarter of fiscal 2026, we entered into a multi-year contract renewal with a supplier, resulting in ~~total~~a purchase ~~commitments~~commitment of approximately $62.5 million. Subsequent to May 31, 2026, we entered into a multi-year contract with a supplier, resulting in a purchase commitment of $50.0 million.

We also have contractual obligations related to our lease liabilities and outstanding debt, refer to Note 9, Leases and Note 10, Debt, respectively, for more information.

Letters of Credit

From time to time, we are required to obtain letters of credit in the ordinary course of business. Our 2025 Revolving Facility allows for the availability of up to $100.0 million in the form of letters of credit. We have not obtained any letters of credit under the 2025 Revolving Facility since its inception. We had $0.7 million of standby letters of credit outstanding as of ~~February~~May 2831, 2026 and August 31, 2025. ~~No liabilities related to these arrangements are reflected in the Consolidated Balance Sheets.~~

No liabilities related to these arrangements are reflected in the Consolidated Balance Sheets.

Refer to Note 10, Debt, for information regarding the 2025 Revolving Facility.

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Contingencies

Legal Matters

In the normal course of our business, we are, or may be, engaged in various legal proceedings, claims, litigation and regulatory proceedings. In view of the uncertainty inherent in litigation and regulatory matters, we cannot predict the eventual outcome of such matters or the timing of their resolution, or in most cases reasonably estimate what the eventual judgments, damages, fines, penalties or impact of activity (if any) restrictions may be. While we cannot predict the outcome of these matters, based on information available as of ~~February~~May 2831, 2026, our management believes that the ultimate outcome of these unresolved matters against us, individually or in the aggregate, will not have a material adverse effect on our consolidated financial position, our results of operations or our cash flows.

Income Taxes

As a multinational company operating in many states and countries, we are routinely audited by various taxing authorities and have reserved for potential adjustments to our provision for income taxes that may result from examinations by, or any negotiated settlements with, these tax authorities. We believe that the final outcome of these examinations or settlements will not have a material effect on our consolidated financial position, results of operations or our cash flows. If events occur which indicate payment of these amounts is unnecessary, the reversal of the liabilities would result in the recognition of tax benefits in the period we determine the liabilities are no longer necessary. If our estimates of the federal, state and foreign income tax liabilities are less than the ultimate assessment, additional expense would result.

Sales Tax Matters

During August 2019 through February 2024, we received various assessment and audit notices from the Commonwealth of Massachusetts Department of Revenue (the "Commonwealth") with respect to sales taxes, interest and underpayment penalties relating to the tax periods from January 1, 2006 through December 31, 2023 ("Sales Tax Dispute"). We entered into an agreement with the Commonwealth on November 26, 2024 which fully resolved all matters relating to the Sales Tax Dispute.

During the first quarter of fiscal 2025 and the fourth quarter of fiscal 2024, we took charges of approximately $2.4 million and $54.0 million, respectively, related to this dispute and made corresponding payments of $56.4 million to the Commonwealth during the first quarter of fiscal 2025. In addition to reserves taken in prior fiscal years, this brought our total charge and cash payments with respect to this matter to approximately $66.2 million.

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12. 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

~~Six~~Nine Months Ended

February 28,

May 31,

(in thousands, except share data)

2026

2025

2026

2025

Amount

Repurchases of common stock under the share repurchase program(1)

~~651~~926,~~750~~370

~~163~~203,~~031~~070

~~136~~184,~~714~~050

6480,~~352~~696

12,~~129~~056,~~850~~220

~~302~~506,~~930~~000

~~241~~425,~~189~~239

~~113~~193,~~142~~838

Repurchases of common stock to satisfy tax withholding requirements due upon vesting of stock-based awards

~~981~~2,015

~~263~~459

1,~~777~~634

~~843~~710

2224,~~355~~370

56,~~958~~417

3032,~~870~~504

14,~~228~~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 $12.50 million and $0.57 million for three months ended ~~February~~May 2831, 2026 and 2025, respectively, and $24.8 million and $12.30 million for the ~~six~~nine months ended ~~February~~May 2831, 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, 2025, our Board of Directors approved an additional $600 million in share repurchase authority, which was available immediately with no expiration date. The additional authorization also removed the expiration date from the June 17, 2025 authorization. As of February 28, 2026, $697.1 million remained available under our share repurchase program.26

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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, 2025, our Board of Directors approved an additional $600 million in share repurchase authority, which was available immediately with no expiration date. The additional authorization also removed the expiration date from the June 17, 2025 authorization. As of May 31, 2026, $494.0 million remained available under our share repurchase program.

In addition to our share repurchase program, we also acquire shares of our common stock from holders of our stock-based awards to satisfy withholding tax requirements due at vesting. Shares acquired from these holders do not reduce the amount authorized for repurchase under the share repurchase program.

Refer to Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds, of this Quarterly Report on Form 10-Q for further discussion on our share repurchase activity.

Equity-based Awards

Refer to Note 14, Stock-Based Compensation for more information on equity awards issued during the ~~six~~nine months ended ~~February~~May 2831, 2026 and ~~February~~May 2831, 2025.

Dividends

Our Board of Directors approved the following dividends:

Year Ended	Dividends perShare ofCommon Stock		Record Date	Total Amount(in thousands)		Payment Date
Fiscal 2026
First Quarter	$	1.10	November 28, 2025	$	40,969	December 18, 2025
Second Quarter	$	1.10	February 27, 2026	$	40,305	March 19, 2026
Third Quarter	$	1.16	May 29, 2026	$	41,500	June 18, 2026
Fiscal 2025
First Quarter	$	1.04	November 29, 2024	$	39,572	December 19, 2024
Second Quarter	$	1.04	February 28, 2025	$	39,511	March 20, 2025
Third Quarter	$	1.10	May 30, 2025	$	41,644	June 18, 2025

26In the third quarter of fiscal 2026, our Board of Directors approved a 5% increase in the regular quarterly dividend from $1.10 to $1.16 per share. Future cash dividend payments are subject to final determination by our Board of Directors and will depend on our earnings, capital requirements, financial condition and other relevant factors.

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Future cash dividend payments are subject to final determination by our Board of Directors and will depend on our earnings, capital requirements, financial condition and other relevant factors.

Accumulated Other Comprehensive Loss

The components of Accumulated other comprehensive loss ("AOCL") as of ~~February~~May 2831, 2026 and August 31, 2025 were as follows:

(in thousands)	~~February~~May 2831, 2026		August 31, 2025
Accumulated unrealized gains (losses) on cash flow hedges, net of tax	$	(~~385~~2,550)	$	2,143
Accumulated post-employment benefit obligations, net of tax	(6,~~231~~138)		—
Accumulated foreign currency translation adjustments	(6370,~~079~~619)		(65,891)
Total AOCL	$	(6979,~~695~~307)	$	(63,748)

13. EARNINGS PER SHARE

Basic earnings per common share ("Basic EPS") is computed by dividing net income by the number of weighted average common shares outstanding during the period. Diluted earnings per common share ("Diluted EPS") is calculated by using the treasury stock method which assumes the issuance of common stock for all potentially dilutive stock-based awards.

	Three Months Ended				Six Months Ended
	February 28,				February 28,
(in thousands, except per share data)	2026		2025		2026		2025
Numerator
Net income used for calculating Basic EPS and Diluted EPS	$	133,056	$	144,860	$	285,636	$	294,882
Denominator
Weighted average common shares used in the calculation of Basic EPS	36,927		38,015		37,168		38,010
Common stock equivalents associated with stock-based compensation plans	136		495		171		503
Shares used in the calculation of Diluted EPS	37,063		38,510		37,339		38,513
Basic EPS	$	3.60	$	3.81	$	7.68	$	7.76
Diluted EPS	$	3.59	$	3.76	$	7.65	$	7.66

The following table presents the potential common shares that were excluded from Diluted EPS as they relate to stock-based awards that were antidilutive or subject to performance conditions which have not been satisfied by the end of the reporting period:

	Three Months Ended		Six Months Ended
	February 28,		February 28,
(in thousands)	2026	2025	2026	2025
Stock options and stock options with performance conditions	1,603	670	1,504	695
Restricted stock units and performance share units	262	93	263	96

14. 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.

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The following is a reconciliation of our Basic and Diluted EPS computations:


	Three Months Ended				Nine Months Ended
	May 31,				May 31,
(in thousands, except per share data)	2026		2025		2026		2025
Numerator
Net income used for calculating Basic EPS and Diluted EPS	$	126,718	$	148,542	$	412,354	$	443,424
Denominator
Weighted average common shares used in the calculation of Basic EPS	36,122		37,907		36,819		37,976
Common stock equivalents associated with stock-based compensation plans	69		437		138		481
Shares used in the calculation of Diluted EPS	36,191		38,344		36,957		38,457
Basic EPS	$	3.51	$	3.92	$	11.20	$	11.68
Diluted EPS	$	3.50	$	3.87	$	11.16	$	11.53


	Three Months Ended		Nine Months Ended
	May 31,		May 31,
(in thousands)	2026	2025	2026	2025
Stock options and stock options with performance conditions	1,839	888	1,616	759
Restricted stock units and performance share units	313	93	280	95

14. 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				~~Six~~Nine Months Ended
	February 28,				February 28,
	May 31,				May 31,
(in thousands)	2026		2025		2026		2025
Stock-based compensation expense	$	2022,~~867~~217	$	1617,~~547~~015	$	3961,~~324~~541	$	3047,~~139~~154

There were no stock-based compensation costs capitalized in any periods presented. As of ~~February~~May 2831, 2026, $~~188~~170.28 million of total unrecognized stock-based compensation expense related to non-vested stock-based awards is expected to be recognized over the remaining weighted average vesting period of 2.97 years.

We measure and recognize stock-based compensation expense for all stock-based awards and purchases of common stock under the ESPP based on their estimated grant date fair value.

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We use a lattice-based option-pricing model ("lattice model") to estimate the grant date fair value for our employee stock options. For our CEO PSOs, grant date fair value was estimated using a Monte Carlo simulation ("Monte Carlo model"). The grant date fair value for non-employee director stock options and common stock purchased by eligible employees under our ESPP is estimated using a Black-Scholes model.

The lattice model, Black-Scholes model, and Monte Carlo model each require certain estimates and assumptions, including the risk-free interest rate, expected volatility, and dividend yield. The Black-Scholes and Monte Carlo models incorporate an assumed expected life of the award, while the lattice model derives the expected life as an output incorporating assumptions such as vesting restrictions and expected exercise patterns based on the intrinsic value of the options.

The primary assumptions and their definitions are as follows:

•Risk-free interest rate - based on the U.S. Treasury yield curve in effect at the time of grant with maturities equal to the expected terms of the stock-based awards granted.

•Expected volatility - based on a blend of historical volatility of the stock-based award's useful life and the weighted average implied volatility for call option contracts traded in the 90 days preceding the stock-based award's valuation date.

•Dividend yield - the expectation of dividend payouts based on our history.

•Expected life - the weighted average period the stock-based awards are expected to remain outstanding.

For RSUs and PSUs (collectively, "Restricted Stock Awards"), the grant date fair value is measured by reducing the grant date price of our common stock by the present value of expected future dividend payments on the underlying stock during the requisite service period, discounted at the appropriate risk-free interest rate. The number of PSUs granted assumes target-level achievement of the specified performance levels within the payout range. The ultimate number of common shares that may be earned pursuant to our PSU awards depends on the level of our achievement of stated financial performance objectives.

Stock-based compensation expense for stock option and RSU awards is recognized over their respective services period using the straight-line method. For these awards, the amount of stock-based compensation expense recognized on any date is at least equal to the vested portion of the award on that date.

Our PSUs require us to make assumptions regarding the probability of achieving specified performance levels established at the time of grant. We recognize stock-based compensation expense for PSUs using the straight-line method over the requisite service period. The probability of achieving the specified performance levels is reviewed on a quarterly basis to ensure the amount of stock-based compensation expense appropriately reflects the expected achievement.

For our ESPP, stock-based compensation expense is recognized on a straight-line basis over the offering period.

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Our stock-based awards are generally subject to the continued employment for employees, or continued service for non-employee directors, through the applicable vesting date. Compensation expense for stock-based awards is recorded net of estimated forfeitures, which are based on historical forfeiture rates and are revised if actual forfeitures differ from those estimates.

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Employee Stock Option Awards

The following table presents the employee stock options granted for the ~~six~~nine months ended ~~February~~May 2831, 2026 and ~~February~~May 2831, 2025:

	Six Months Ended
	Nine Months Ended
	February 28,
	May 31,
	2026					2025
	Shares	Weighted average exercise price		Weighted average grant date fair value		Shares	Weighted average exercise price		Weighted average grant date fair value
Stock options granted(1)	~~213~~232,~~811~~567	$	~~264~~261.5759	$	75.3440	203,114	$	459.17	$	133.21
CEO performance stock option grant(2)	297,902	$	295.63	$	73.85	—	$	—	$	—
Total stock option awards granted	~~511~~530,~~713~~469					203,114

(1) Our annual grant of employee stock options during the first quarter of each fiscal year makes up the majority of our employee stock options granted in each fiscal year. The annual grant on November 3, 2025 of 213,811 stock options vest 25% annually on the anniversary date of the grant and fully vest after four years. The annual grant on November 1, 2024 of 200,693 stock options vest 20% annually on the anniversary date of the grant and fully vest after five years.

(2) Reflects a grant to our CEO on September 22, 2025 of PSOs as part of his May 28, 2025 employment agreement. The PSOs vest if, during the performance period ending on the fifth anniversary of the grant date, our common stock achieves a 30-day trailing volume-weighted average price ("VWAP") equal to or greater than 150% of the 30-day trailing VWAP ending on the grant date. Options are not exercisable before the third anniversary of the grant date. These options expire ten years from the grant date.

We used the lattice model and Monte Carlo model to estimate the grant date fair value of the November 3, 2025 annual employee stock option grant and the September 22, 2025 CEO PSO grant, respectively. The following table presents the grant information and model assumptions:


	Annual Employee Stock Option Grant		CEO PSO Grant
Employee Grant Details	November 3, 2025		September 22, 2025
Stock options granted	213,811		297,902
Estimated fair value	$75.34		$73.85
Exercise price	$264.57		$295.63
Assumptions
Risk-free interest rate	3.61 % - 4.16 %		4.08	%


Expected volatility	27.57	%	24.72	%

Dividend yield	1.32	%	0.90	%
Expected life (years)	6.33		5.00

Employee Restricted Stock Awards

Our annual grant of employee Restricted Stock Awards during the first quarter of each fiscal year makes up the majority of our employee Restricted Stock Awards granted in each fiscal year. These awards entitle the holders to shares of common stock as the Restricted Stock Awards vest. For unvested Restricted Stock Awards, holders are not entitled to dividends declared on the underlying shares. In accordance with the Omnibus Plan, Restricted Stock Awards granted or canceled/forfeited is equivalent to 2.5 shares deducted from or added back to, respectively, the aggregate number of stock-based awards available for grant.

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The following table presents the employee Restricted Stock Awards granted or earned during the ~~six~~nine months ended ~~February~~May 2831, 2026 and ~~February~~May 2831, 2025:

	Six Months Ended
	Nine Months Ended
	February 28,
	May 31,
	2026			2025
	Shares	Weighted AverageGrant Date Fair ValuePer Award		Shares	Weighted AverageGrant Date Fair ValuePer Award
RSUs granted(1)	~~237~~258,~~559~~813	$	~~260~~256.7775	8091,~~416~~766	$	~~447~~444.5516
PSUs granted(2)	65,717	$	258.46	34,479	$	446.59
Performance adjustment - PSUs(3)	—	$	—	7,364	$	424.01
Total Restricted Stock Awards	~~303~~324,~~276~~530			~~122~~133,~~259~~609

(1) RSUs granted during the ~~six~~nine months ended ~~February~~May 2831, 2026 include the annual employee grant on November 3, 2025 of 169,049 RSUs, and a one-time grant to our CEO on September 22, 2025 of 58,332 RSUs pursuant to the terms of his employment agreement. Both grants vest 25% annually on the anniversary date of the grant and fully vest after four years. RSUs granted during the ~~six~~nine months ended ~~February~~May 2831, 2025 include the annual employee grant on November 1, 2024 of 76,448 RSUs which vest 20% annually on the anniversary date of the grant and fully vest after five years.

(2) PSUs granted during the ~~six~~nine months ended ~~February~~May 2831, 2026 include the annual employee grant on November 3, 2025 of 43,281 PSUs, and a one-time grant to our CEO on October 1, 2025 of 22,436 PSUs pursuant to the terms of his employment agreement. PSUs granted during the ~~six~~nine months ended ~~February~~May 2831, 2025 include the annual employee grant on November 1, 2024 of 33,756 PSUs. Each grant cliff vests on the third anniversary of the grant date, subject to the achievement of certain performance metrics, with an achievement range from 0% to 200%. The ultimate number of common shares that may be earned pursuant to the PSU awards depends on the level of achievement of the specified performance levels.

(3) Additional PSUs were earned during the first quarter of fiscal 2025 based on performance above the specified target level of achievement for PSUs granted on November 1, 2021.

Stock-based Awards Available for Grant

~~The~~On December 18, 2025, the Omnibus Plan authorized an additional 1.8 million shares available for grant. As of ~~February~~May 2831, 2026, we had 4.12 million shares available for future awards to employees and non-employee directors.

15. 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.

~~Each~~While each segment records expenses related to its individual operations, ~~with~~ the ~~exception~~majority of ~~expenditures associated with~~ our data centers, third-party data costs and corporate headquarters charges, ~~which~~ 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 as this reflects the benefits provided to each segment.

Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance.

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The following tables reflect the results of operations of our segments:

(in thousands)
For the three months ended February 28, 2026	Americas		EMEA		Asia Pacific		Total
Revenues	$	399,683	$	149,120	$	62,216	$	611,019
Operating expenses(1)	325,482		82,878		17,698		426,058
Operating income	$	74,201	$	66,242	$	44,518	$	184,961
Total other income (expense), net							(23,850)
Income before income taxes							$	161,111
Other segment disclosures
Depreciation and amortization	$	39,320	$	2,315	$	2,055	$	43,690
Stock-based compensation	$	16,732	$	2,776	$	1,359	$	20,867
Capital expenditures(2)	$	22,697	$	2,251	$	1,049	$	25,997
For the three months ended February 28, 2025	Americas		EMEA		Asia Pacific		Total
Revenues	$	369,661	$	143,387	$	57,612	$	570,660
Operating expenses(1)	296,534		72,819		15,815		385,168
Operating income	$	73,127	$	70,568	$	41,797	$	185,492
Total other income (expense), net							(13,172)
Income before income taxes							$	172,320
Other segment disclosures
Depreciation and amortization	$	34,775	$	1,746	$	1,889	$	38,410
Stock-based compensation	$	12,917	$	2,438	$	1,192	$	16,547
Capital expenditures(2)	$	22,074	$	117	$	1,545	$	23,736
For the six months ended February 28, 2026	Americas		EMEA		Asia Pacific		Total
Revenues	$	795,859	$	298,637	$	124,144	$	1,218,640
Operating expenses(1)	643,125		164,241		34,242		841,608
Operating income	$	152,734	$	134,396	$	89,902	$	377,032
Total other income (expense), net							(25,808)
Income before income taxes							$	351,224
Other segment disclosures
Depreciation and amortization	$	79,087	$	4,600	$	4,151	$	87,838
Stock-based compensation	$	31,497	$	5,235	$	2,592	$	39,324
Capital expenditures(2)	$	46,438	$	7,452	$	2,954	$	56,844
For the six months ended February 28, 2025	Americas		EMEA		Asia Pacific		Total
Revenues	$	736,903	$	287,112	$	115,312	$	1,139,327
Operating expenses(1)	581,978		147,506		33,016		762,500
Operating income	$	154,925	$	139,606	$	82,296	$	376,827
Total other income (expense), net							(24,768)
Income before income taxes							$	352,059
Other segment disclosures

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Depreciation and amortization	$	66,706	$	3,677	$	3,744	$	74,127
Stock-based compensation	$	23,334	$	4,527	$	2,278	$	30,139
Capital expenditures(2)	$	47,028	$	492	$	2,090	$	49,610

The following tables reflect the results of operations of our segments:



	Three Months Ended
	May 31,
	2026								2025
(in thousands)	Americas		EMEA		Asia Pacific			Total	Americas		EMEA		Asia Pacific		Total
Revenues	$	407,240	$	151,940	$	63,738	$	622,918	$	380,501	$	145,741	$	59,278	$	585,520
Operating expenses(1)	343,653		93,758		19,206			456,617	298,936		76,714		15,715		391,365
Operating income	$	63,587	$	58,182	$	44,532	$	166,301	$	81,565	$	69,027	$	43,563	$	194,155
Total other income (expense), net								(12,180)							(14,207)
Income before income taxes							$	154,121							$	179,948

Other segment disclosures
Depreciation and amortization	$	41,859	$	2,010	$	2,001	$	45,870	$	36,876	$	1,998	$	1,971	$	40,845
Stock-based compensation	$	17,920	$	2,897	$	1,400	$	22,217	$	13,497	$	2,360	$	1,158	$	17,015
Capital expenditures(2)	$	27,044	$	3,157	$	274	$	30,475	$	21,781	$	920	$	2,529	$	25,230

	Nine Months Ended
	May 31,
	2026								2025
(in thousands)	Americas		EMEA		Asia Pacific			Total	Americas		EMEA		Asia Pacific		Total
Revenues	$	1,203,099	$	450,577	$	187,882	$	1,841,558	$	1,117,404	$	432,853	$	174,590	$	1,724,847
Operating expenses(1)	986,778		257,999		53,448			1,298,225	880,914		224,220		48,731		1,153,865
Operating income	$	216,321	$	192,578	$	134,434	$	543,333	$	236,490	$	208,633	$	125,859	$	570,982
Total other income (expense), net								(37,988)							(38,975)
Income before income taxes							$	505,345							$	532,007

Other segment disclosures
Depreciation and amortization	$	120,946	$	6,610	$	6,152	$	133,708	$	103,582	$	5,675	$	5,715	$	114,972
Stock-based compensation	$	49,417	$	8,132	$	3,992	$	61,541	$	36,831	$	6,887	$	3,436	$	47,154
Capital expenditures(2)	$	73,482	$	10,609	$	3,228	$	87,319	$	68,809	$	1,412	$	4,619	$	74,840

(1) Operating expenses consist of Cost of services and SG&A costs.

(2) Capital expenditures include purchases of PPE and capitalized internal-use software.

Segment Total Assets

The following table reflects the total assets for our segments as of ~~February~~May 2831, 2026 and August 31, 2025:

(in thousands)	~~February~~May 2831, 2026		August 31, 2025
Americas	$	3,~~501~~467,~~897~~482	$	3,523,467
EMEA	~~548~~555,~~254~~373		610,364
Asia Pacific	169,~~679~~142		170,441
Total assets	$	4,~~219~~191,~~830~~997	$	4,304,272

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management’s Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") should be read in conjunction with the Consolidated Financial Statements and related Notes included in this Quarterly Report on Form 10-Q, our Annual Report on Form 10-K for the fiscal year ended August 31, 2025, our Current Reports on Form 8-K and our other filings with the Securities and Exchange Commission. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed below. Factors that could cause such differences include, but are not limited to, those ~~identified below and those~~ discussed in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended August 31, 2025.

Our MD&A is designed to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity and certain other factors that may affect our future results. Our MD&A is presented in the following sections:

•Executive Overview

•Annual Subscription Value ("ASV")

•Client and User Additions

•Employee Headcount

•Results of Operations

•Non-GAAP Financial Measures

•Liquidity and Capital Resources

•Off-Balance Sheet Arrangements

•Foreign Currency Exposure

•Critical Accounting Estimates

•New Accounting Pronouncements

Executive Overview

We operate our business through three reportable segments ("segments"): the Americas, EMEA and Asia Pacific. Refer to Note 15, Segment Information, in the Notes to the Consolidated Financial Statements included in Part I, Item 1. of this Quarterly Report on Form 10-Q for more information on our segments.

Within each segment, we offer data, products and analytical applications by firm type: Institutional Buyside, Dealmakers, Wealth, and Market Infrastructure. In fiscal 2026, we renamed "Partnerships and CGS" to "Market Infrastructure".

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•"Institutional Buyside" focuses on global asset managers, asset owners, and hedge fund professionals,

•"Dealmakers" focuses on investment bankers, sell-side research analysts, corporate users, investor relations officers and private equity and venture capital professionals,

•"Wealth" focuses on wealth management clients, and

•"Market Infrastructure" focuses on partnerships that deliver solutions to firms in the financial services ecosystem including data, analytics and technology platform providers, and includes CGS, the exclusive issuer of Committee on Uniform Security Identification Procedures ("CUSIP") and CUSIP International Number System ("CINS") identifiers globally.

Business Strategy

We strive to be a trusted enterprise partner and service provider to our clients across the financial services spectrum, delivering relevant intelligence, insights and execution solutions tailored to our clients' business models.

We are focused on growing our global business through three strategically aligned geographic segments: the Americas, EMEA and Asia Pacific. This approach allows us to better manage resources, target solutions and interact with clients effectively.

To execute our strategy, we are focused on three core pillars and primary areas of investment:

•Expanding our data offerings and delivery capabilities: We continue to scale up our data ecosystem to provide a comprehensive inventory of industry, proprietary and third-party data. This includes granular data for key industry verticals, real-time market data, fund data and sustainable finance. In addition to using our growing data catalog to drive our AI-powered workstation products, we aim to continue to expand our data delivery capabilities in the cloud and through other methods to advance our position as an enterprise data provider for our clients.

•Embedding deeper in client workflows: Through continued innovation, we aim to deepen our integration into our clients' workflows. We are focused on expanding further into the buy-side front office by leveraging our expertise in portfolio performance, analytics, and risk management. In addition, we are building on our strong presence on advisor desktops by expanding into prospecting and digital reporting workflows. We are also working to introduce next-generation automation in research, financial modeling, and pitch creation.

•Innovating with AI: We believe sustainable success in enterprise AI depends on trusted, high-quality data, secure integration with models and workflows, and deep domain expertise. We continue to advance a pragmatic, open, and flexible strategy for integrating AI and natural language processing into our clients’ workflows, aiming to boost productivity by surfacing actionable insights throughout the portfolio lifecycle and automating routine research and content processing tasks. FactSet is delivering AI embedded workflow solutions for various personas including research analysts, bankers, portfolio managers, wealth advisors and engineering teams across our clients.

Fiscal 2026 ~~Second~~Third Quarter in Review

Revenues in the ~~second~~third quarter of fiscal 2026 were $~~611~~622.09 million, an increase of 76.14% from the comparable prior year period. The growth in revenues was driven by a 67.80% increase in organic revenues, ~~and~~partially aoffset ~~net~~by ~~increase~~a of 0.36% ~~from~~decrease ~~foreign~~in ~~currency~~revenues ~~exchange~~due ~~rate~~to ~~fluctuations~~the disposition of a business at the end of the prior fiscal year. Revenues increased in all our segments, primarily in the Americas. The increase in revenues was primarily from workstations, ~~data solutions,~~ and ~~portfolio~~data ~~management and trading~~ solutions. Refer to Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, Non-GAAP Financial Measures, of this Quarterly Report on Form 10-Q for the definition of organic revenues and a reconciliation between revenues and organic revenues.

As of ~~February~~May 2831, 2026, organic annual subscription value ("Organic ASV") totaled $2,~~449~~485.16 million, an increase of 6.7.1% over the prior year. Organic ASV increased in all our segments, with the majority of the increase in the Americas. The Organic ASV increase was mainly driven by data solutions and workstations. Refer to Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, Annual Subscription Value, of this Quarterly Report on Form 10-Q for the definition of Organic ASV.

Operating margin was 3026.37% for the ~~second~~third quarter of fiscal 2026, compared to 3233.52% in the prior year period. When expenses are expressed as a percentage of revenues, this decrease was primarily driven by higher operating expenses, mainly due to an increase in employee compensation costs, ~~partially~~including ~~offset~~one-time byrestructuring ~~growth~~charges inand ~~revenues~~Chief ~~and~~Executive aOfficer ~~decrease~~("CEO") incompensation ~~professional~~costs ~~fees~~pursuant to the terms of his employment agreement, partially offset by growth in revenues.

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Net income for the ~~second~~third quarter of fiscal 2026 was $~~133~~126.17 million, a decrease of 814.17% from the prior year period. Diluted earnings per common share ("Diluted EPS") was $3.5950 for the ~~second~~third quarter of fiscal 2026, a decrease of 49.56% compared with the prior year period. These decreases were driven by higher operating expenses ~~and an impairment charge within Other assets~~, partially offset by growth in revenues. The decrease in Diluted EPS was also partially offset by ~~lower~~a reduction in the diluted weighted average common shares outstanding of approximately 2.2 million shares.

We returned $~~204~~243.04 million to our stockholders in the form of share repurchases and dividends during the three months ended ~~February~~May 2831, 2026.

As of ~~February~~May 2831, 2026, our client and user count was 9,~~101~~130 and ~~241~~247,~~352~~766, respectively. Our employee headcount was 12,~~840~~694 as of ~~February~~May 2831, 2026, up 10.9% compared to the prior year. This increase was driven by net headcount growth of 21.31% in Asia Pacific, 10.16% in ~~the~~EMEA ~~Americas~~ and 1.0.4% in ~~EMEA~~the Americas.

Annual Subscription Value ("ASV")

We believe ASV reflects our ability to grow recurring revenues and generate positive cash flows, and thus serves as a key indicator of the successful execution of our business strategy.

–ASV at any point in time represents our forward-looking revenues for the next 12 months from all subscription services currently being supplied to clients.

–Organic ASV at any point in time equals our ASV excluding ASV from acquisitions and the comparable impact of dispositions ~~completed~~and discontinued lines of business effected within the last 12 months and the ~~effects~~impact of foreign currency movements.

Organic ASV

The following table presents the calculation of Organic ASV as of ~~February~~May 2831, 2026. With proper notice provided as contractually required, our clients can add to, delete portions of, or terminate service, subject to certain limitations.

(dollar amounts in millions)	As of ~~February~~May 2831, 2026
ASV	$	2,~~450~~484.23
Impact from foreign currency movements	(1.1)3
Organic ASV	$	2,~~449~~485.16
Organic ASV annual growth rate(1)	6.7.1		%

(1)For comparability purposes, in calculating the organic ASV annual growth rate, the prior year excludes ASV from dispositions completed in the last 12 months.

Organic ASV increased in all our segments, with the majority of the increase in the Americas. The increase in Organic ASV was primarily driven by data solutions and workstations. This increase is derived from higher net sales to existing clients and, to a lesser extent, sales to new clients.

Segment ASV

As of ~~February~~May 2831, 2026, ASV from the Americas represented 6665% of total ASV and was $1,~~605~~621.90 million, an increase from $1,~~501~~513.1 million as of ~~February~~May 2831, 2025. Americas Organic ASV was $1,~~605~~621.80 million as of ~~February~~May 2831, 2026, a 7.02% increase from the prior year. The Organic ASV increase in the Americas was primarily driven by workstations and data solutions.

As of ~~February~~May 2831, 2026, ASV from EMEA represented 24% of total ASV and was $~~595~~608.21 million, an increase from $~~571~~581.39 million as of ~~February~~May 2831, 2025. EMEA Organic ASV was $~~594~~608.27 million as of ~~February~~May 2831, 2026, a 45.36% increase from the prior year. The EMEA Organic ASV increase was mainly from data solutions and workstations.

As of ~~February~~May 2831, 2026, ASV from Asia Pacific represented 1011% of total ASV and was $~~249~~255.12 million, an increase from $~~233~~240.71 million as of ~~February~~May 2831, 2025. Asia Pacific Organic ASV was $~~249~~255.19 million as of ~~February~~May 2831, 2026, a 10.0% increase from the prior year. The Asia Pacific Organic ASV increase was primarily driven by ~~data~~middle office solutions, ~~workstations~~data solutions and ~~middle office solutions~~workstations.

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Client and User Additions

The table below presents our total clients and users:

	As of February 28,
	As of May 31,
	2026	2025	Change
Clients(1)	9,~~101~~130	8,~~645~~811	5.3.6	%
Users	~~241~~247,~~352~~766	~~219~~220,~~141~~496	1012.14	%

(1)The client count includes clients with ASV of $10,000 and above.

Client count increased mainly due to corporate ~~and wealth management~~ clients and user count increased primarily due to wealth management users.

Annual ASV retention was greater than 95% of ASV as of ~~February~~May 2831, 2026 and ~~February~~May 2831, 2025. When expressed as a percentage of clients, annual retention was 90% and 91% as of ~~February~~May 2831, 2026 and ~~February~~May 2831, 2025, respectively.

Employee Headcount

As of ~~February~~May 2831, 2026, our net employee headcount increased by 10.9% to 12,~~840~~694, compared with 12,~~598~~579 employees as of ~~February~~May 2831, 2025. This net headcount growth was primarily driven by our continued investment in our centers of excellence ("COEs"), mainly through an increase in employees based in India.

As of ~~February~~May 2831, 2026, compared to ~~February~~May 2831, 2025, our net headcount growth was 21.31% in Asia Pacific, 10.16% in ~~the~~EMEA ~~Americas,~~and 1.0.4% in ~~EMEA~~the Americas. As of ~~February~~May 2831, 2026, we had 8,~~883~~765 employees located in Asia Pacific, 2,~~501~~476 in the Americas and 1,~~456~~453 in EMEA. Approximately 68% of our employees are located in our COEs.

Results of Operations

For an understanding of the significant factors that influenced our performance for the three and ~~six~~nine months ended ~~February~~May 2831, 2026 and ~~February~~May 2831, 2025, the following discussion should be read in conjunction with the Consolidated Financial Statements and related Notes presented in Part I, Item 1. in this Quarterly Report on Form 10-Q.

The following table summarizes the results of operations for the periods presented:

	Three Months Ended							~~Six~~Nine Months Ended
	February 28,					% Change		February 28,				% Change
	May 31,					% Change		May 31,				% Change
(in thousands, except per share data)	2026		2025		2026			2025
Revenues	$	~~611~~622,~~019~~918	$	~~570~~585,~~660~~520		76.14	%	$	1,~~218~~841,~~640~~558	$	1,~~139~~724,~~327~~847	76.08	%
Cost of services	~~296~~312,~~742~~190		~~269~~280,~~604~~729			1011.12	%	~~584~~896,~~658~~848		~~528~~809,~~383~~112		10.78	%
Selling, general and administrative	~~129~~144,~~316~~427		~~115~~110,~~564~~636			1130.95	%	~~256~~401,~~950~~377		~~234~~344,~~117~~753		916.84	%
Operating income	$	~~184~~166,~~961~~301	$	~~185~~194,~~492~~155		(014.3)	%	$	~~377~~543,~~032~~333	$	~~376~~570,~~827~~982	0(4.18)	%
Net income	$	~~133~~126,~~056~~718	$	~~144~~148,~~860~~542		(814.17)	%	$	~~285~~412,~~636~~354	$	~~294~~443,~~882~~424	(37.10)	%
Diluted weighted average common shares	3736,~~063~~191		38,~~510~~344					3736,~~339~~957		38,~~513~~457
Diluted EPS	$	3.5950	$	3.7687		(49.56)	%	$	711.6516	$	711.6653	(03.12)	%

Revenues

Three months ended May 31, 2026 compared with three months ended May 31, 2025

The growth in revenues of 6.4% was driven by a 7.0% increase in organic revenues, which totaled $622.9 million for the three months ended May 31, 2026, partially offset by a 0.6% decrease in revenues due to the disposition of a business at the end of the prior fiscal year. Revenues increased in all our geographic segments, primarily in the Americas. The increase in revenues was primarily driven by workstations and data solutions.

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~~Revenues~~Nine months ended May 31, 2026 compared with nine months ended May 31, 2025

~~Three~~The growth in revenues of 6.8% was driven by a 6.6% increase in organic revenues, which totaled $1,829.1 million for the nine months ended ~~February~~May 2831, 2026 ~~compared~~and ~~with~~a ~~three~~0.2% ~~months~~net ~~ended~~increase ~~February 28~~from foreign currency exchange rate fluctuations. Revenues increased in all our segments, ~~2025~~primarily in the Americas. The increase in revenues was mainly from workstations, data solutions and portfolio management and trading solutions.

The growth in revenues of 7.1% was driven by a 6.8% increase in organic revenues, which totaled $606.2 million for the three months ended February 28, 2026, and a net increase of 0.3% from foreign currency exchange rate fluctuations. Revenues increased in all our geographic segments, primarily in the Americas. The increase in revenues was primarily driven by workstations, data solutions, and portfolio management and trading solutions.

Six months ended February 28, 2026 compared with six months ended February 28, 2025

The growth in revenues of 7.0% was driven by a 6.4% increase in organic revenues, which totaled $1,206.2 million for the six months ended February 28, 2026, a 0.3% increase from acquisition revenues, net of a decrease in revenues from the disposition of a business at the end of the prior fiscal year, and a 0.3% net increase from foreign currency exchange rate fluctuations. Revenues increased in all our segments, primarily in the Americas. The increase in revenues was mainly from workstations, data solutions, and portfolio management and trading solutions.

Revenues by Segment

The following table summarizes our revenues by segment:

	Three Months Ended								~~Six~~Nine Months Ended
	February 28,						% Change		February 28,						% Change
	May 31,						% Change		May 31,						% Change
(dollar amounts in thousands)	2026			2025					2026			2025
Americas	$	~~399~~407,~~683~~240		$	~~369~~380,~~661~~501		87.10	%	$	~~795~~1,~~859~~203,099		$	~~736~~1,~~903~~117,404		87.07	%
% of revenues	65.4		%	6465.80		%			65.3		%	64.78		%
EMEA	$	~~149~~151,~~120~~940		$	~~143~~145,~~387~~741		4.03	%	$	~~298~~450,~~637~~577		$	~~287~~432,~~112~~853		4.01	%
% of revenues	24.4		%	2524.19		%			24.5		%	25.21		%
Asia Pacific	$	6263,~~216~~738		$	5759,~~612~~278		87.05	%	$	~~124~~187,~~144~~882		$	~~115~~174,~~312~~590		7.76	%
% of revenues	10.2		%	10.1		%			10.2		%	10.1		%
Consolidated	$	~~611~~622,~~019~~918		$	~~570~~585,~~660~~520		76.14	%	$	1,~~218~~841,~~640~~558		$	1,~~139~~724,~~327~~847		76.08	%

Three months ended ~~February~~May 2831, 2026 compared with three months ended ~~February~~May 2831, 2025

Americas

The growth in revenues of 87.10% was driven by a 7.40% increase in organic revenues and a 0.71% net increase from ~~acquisition~~foreign ~~revenues~~currency exchange rate fluctuations, ~~net~~partially ofoffset by a 0.1% decrease in revenues ~~from~~due to the disposition of a business at the end of the prior fiscal year. The increase in revenues was primarily driven by workstations, ~~data solutions,~~ and ~~portfolio~~data ~~management and trading~~ solutions.

EMEA

The growth in revenues of 4.03% was driven by a 45.03% increase in organic revenues and a 1.0.5% net increase from foreign currency exchange rate fluctuations, partially offset by a 1.05% decrease in revenues ~~from~~due to the disposition of a business at the end of the prior fiscal year~~, net of acquisition revenues~~. The increase in revenues was mainly from data solutions and workstations, partially offset by a decrease in revenues due to the disposition.

Asia Pacific

The growth in revenues of 87.05% was driven by a 910.75% increase in organic revenues, partially offset by a 12.60% decrease in revenues ~~from~~due to the disposition of a business at the end of the prior fiscal year, and a 1.0% net ofdecrease ~~acquisition~~from foreign currency exchange rate fluctuations. The increase in revenues was primarily driven by middle office solutions, workstations and data solutions, partially offset by a ~~0.1%~~decrease ~~net~~in revenues due to the disposition.

37Nine months ended May 31, 2026 compared with nine months ended May 31, 2025

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decrease from foreign currency exchange rate fluctuations. The increase in revenues was driven by data solutions, workstations and middle office solutions, partially offset by a decrease in revenues due to the disposition.

Six months ended February 28, 2026 compared with six months ended February 28, 2025

Americas

The growth in revenues of 87.07% was driven by a 67.90% increase in organic revenues and a 10.17% increase from acquisition revenues, net of a decrease in revenues from the disposition of a business at the end of the prior fiscal year. The increase in revenues was mainly driven by workstations, data solutions, and portfolio management and trading solutions.

EMEA

The growth in revenues of 4.01% was driven by a 4.04% increase in organic revenues and a 0.87% net increase from foreign currency exchange rate fluctuations, partially offset by a 01.80% decrease in revenues from the disposition of a business at the end of the prior fiscal year, net of acquisition revenues. The increase in revenues was mainly from data solutions and workstations, partially offset by a decrease in revenues due to the disposition.

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Asia Pacific

The growth in revenues of 7.76% was driven by a 9.05% increase in organic revenues ~~and a 0.1% net increase from foreign currency exchange rate fluctuations~~, partially offset by a 1.46% decrease in revenues from the disposition of a business at the end of the prior fiscal year, net of acquisition revenues, and a 0.3% net decrease from foreign currency exchange rate fluctuations. The increase in revenues was primarily driven by data solutions, workstations and ~~workstations~~middle office solutions, partially offset by a decrease in revenues due to the disposition.

Principal Operating Expenses

Cost of services is mainly comprised of employee compensation costs and also includes expenses related to data costs, technology-related expenses, amortization of intangible assets, royalty fees, telecommunication costs and computer depreciation.

Selling, general and administrative ("SG&A") consists primarily of employee compensation costs and also includes expenses related to occupancy costs, professional fees, depreciation of furniture and fixtures, amortization of leasehold improvements, travel and entertainment expenses, marketing costs, other employee-related expenses, internal communication costs, bad debt expense, the impact from our foreign currency forward contracts and asset impairments.

Employee compensation costs are a major component of both our Cost of services and SG&A. These expenses primarily include costs related to salaries, incentive compensation and sales commissions, stock-based compensation, benefits, employment taxes, and restructuring costs.

We assign employee compensation costs between Cost of services and SG&A based on the roles and activities associated with each employee. We categorize employees within the content collection, consulting, product development, software and systems engineering groups as Cost of services personnel. Employees included in our sales department and those that serve in various other support departments, including marketing, finance, legal, human resources and administrative services, are classified as SG&A.

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The following table summarizes the components of our total operating expenses and operating margin:

	Three Months Ended								~~Six~~Nine Months Ended
	February 28,								February 28,						% Change
	May 31,								May 31,						% Change
(dollar amounts in thousands)	2026			2025			% Change		2026			2025
Cost of services	$	~~296~~312,~~742~~190		$	~~269~~280,~~604~~729		1011.12	%	$	~~584~~896,~~658~~848		$	~~528~~809,~~383~~112		10.78	%
SG&A	~~129~~144,~~316~~427			~~115~~110,~~564~~636			1130.95	%	~~256~~401,~~950~~377			~~234~~344,~~117~~753			916.84	%
Total operating expenses	$	~~426~~456,~~058~~617		$	~~385~~391,~~168~~365		1016.67	%	$	~~841~~1,~~608~~298,225		$	~~762~~1,~~500~~153,865		1012.45	%
Operating income	$	~~184~~166,~~961~~301		$	~~185~~194,~~492~~155		(014.3)	%	$	~~377~~543,~~032~~333		$	~~376~~570,~~827~~982		0(4.18)	%
Operating margin	3026.37		%	3233.52		%			3029.95		%	33.1		%

Cost of Services

Three months ended ~~February~~May 2831, 2026 compared with three months ended ~~February~~May 2831, 2025

The increase in Cost of services was primarily due to higher employee compensation costs and, to a lesser extent, an increase in technology-related expenses and amortization of intangible assets.

Cost of services, when expressed as a percentage of revenues, was 4850.61% for the three months ended ~~February~~May 2831, 2026, an increase of ~~130~~220 basis points compared with the same period a year ago. This increase was primarily due to higher employee compensation costs and, to a lesser extent, technology-related expenses and amortization of intangible assets.

When expressed as a percentage of revenues:

•Employee compensation costs increased by 5090 basis points, primarily ~~due to higher annual base salaries~~ driven by ~~annual~~restructuring ~~merit~~charges ~~increases and higher benefit costs related~~ to ~~the~~drive ~~labor~~organizational ~~codes reform implemented by the Government of India effective November 21, 2025 ("India Labor Codes Reform")~~efficiencies.

•Technology-related expenses increased by 40 basis points, primarily driven by higher spend in cloud-based hosting services, licensed software arrangements and AI token consumption.

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•Amortization of intangible assets increased by 40 basis points, mainly due to higher amortization from our capitalized internal-use software development costs.

~~Six~~Nine months ended ~~February~~May 2831, 2026 compared with ~~six~~nine months ended ~~February~~May 2831, 2025

The increase in Cost of services was primarily due to higher employee compensation costs and, to a lesser extent, an increase in amortization of intangible assets and technology-related expenses.

Cost of services, when expressed as a percentage of revenues, was 48.07% for the ~~six~~nine months ended ~~February~~May 2831, 2026, an increase of ~~160~~180 basis points compared with the same period a year ago. This increase was primarily driven by higher amortization of intangible assets, ~~and~~ technology-related expenses and employee compensation costs.

When expressed as a percentage of revenues:

•Amortization of intangible assets increased by 7060 basis points, mainly due to higher amortization from our capitalized internal-use software development costs.

•Technology-related expenses increased by 6050 basis points, primarily driven by higher spend in cloud-based hosting services and licensed software arrangements.

•Employee compensation costs increased by 30 basis points, mainly due to higher annual base salaries, primarily driven by annual merit increases, and restructuring charges to drive organizational efficiencies.

Selling, General and Administrative

Three months ended ~~February~~May 2831, 2026 compared with three months ended ~~February~~May 2831, 2025

The increase in SG&A was primarily ~~attributable~~driven toby higher employee compensation costs. SG&A, when expressed as a percentage of revenues, was 2123.2% for the three months ended ~~February~~May 2831, 2026, an increase of 90430 basis points compared with the same period a year ago. The increase was primarily driven by higher employee compensation costs, ~~partially offset by a decrease in professional fees~~ and a ~~benefit~~loss from the net settlement of our foreign currency forward contracts.

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When expressed as a percentage of revenues:

•Employee compensation costs increased by ~~160~~290 basis points, primarily due to higher variable compensation costs, ~~annual~~restructuring ~~base~~charges ~~salaries~~ and an increase in stock-based compensation expense. Variable compensation costs increased mainly due to afinancial ~~higher~~achievement ~~bonus~~against ~~accrual~~targets. In addition, variable compensation costs and stock-based compensation expense increased due to the recognition, over their respective service periods, of the one-time cash awards and equity awards, respectively, granted to our ~~Chief Executive Officer ("~~CEO") pursuant to the terms of his employment agreement. The ~~increase~~restructuring incharges ~~annual~~were ~~base~~related ~~salaries~~to ~~was~~driving ~~primarily~~organizational ~~driven by annual merit increases~~efficiencies.

•~~Professional~~SG&A ~~fees~~increased ~~decreased~~ by 6050 basis points, ~~mainly~~ due to ~~acquisition-related~~a ~~costs~~loss ~~recorded~~from in the ~~prior~~net ~~year~~settlement ~~period~~of foreign currency forward contracts.

~~•SG&A~~Nine ~~decreased~~months byended 40May 31, ~~basis~~2026 ~~points~~compared ~~due~~with tonine amonths ~~benefit~~ended ~~from~~May 31, ~~the~~2025 ~~net settlement of foreign currency forward contracts.~~

~~Six~~The increase in SG&A was primarily driven by higher employee compensation costs. SG&A, when expressed as a percentage of revenues, was 21.8% for the nine months ended ~~February~~May 2831, 2026, an increase of 180 basis points compared with ~~six~~the ~~months~~same ~~ended~~period ~~February 28,~~a ~~2025~~year ago. This increase was primarily driven by higher employee compensation costs.

~~The~~When ~~increase in SG&A was primarily driven by higher employee compensation costs. SG&A, when~~ expressed as a percentage of revenues, ~~was~~employee ~~21.1%~~compensation ~~for~~costs ~~the~~increased ~~six~~by ~~months~~190 ~~ended~~basis ~~February 28~~points, ~~2026,~~mainly andue ~~increase~~to ofhigher 50variable ~~basis~~compensation ~~points~~costs, ~~compared~~stock-based ~~with~~compensation ~~the~~expense ~~same~~and ~~period~~annual abase ~~year ago~~salaries. ~~This~~Variable ~~increase~~compensation ~~was~~costs ~~primarily~~and ~~driven~~stock-based ~~by higher employee~~ compensation ~~costs,~~expense ~~partially~~increased ~~offset~~mainly bydue ato ~~decrease~~the ~~in professional fees~~recognition, aover ~~benefit~~their ~~from~~respective ~~the~~service ~~net~~periods, ~~settlement~~ of ~~our~~the ~~foreign~~one-time ~~currency~~cash ~~forward~~awards ~~contracts~~ and ~~charges~~equity ~~related~~awards, torespectively, ~~the~~granted ~~Sales~~to ~~Tax~~our ~~Dispute~~CEO ~~recorded~~pursuant into the ~~prior~~terms ~~year~~of ~~period.~~his ~~Refer~~employment ~~to Part I, Item 1~~agreement. ~~Note~~In 11addition, ~~Commitments~~variable ~~and~~compensation ~~Contingencies~~costs inincreased ~~the~~mainly ~~Notes~~due to ~~the~~financial ~~Consolidated~~achievement ~~Financial~~against ~~Statements~~targets. ofThe ~~this~~increase ~~Quarterly~~in ~~Report~~annual onbase ~~Form~~salaries ~~10-Q~~was ~~for~~primarily ~~more~~driven ~~information~~by onannual ~~the~~merit ~~Sales Tax Dispute~~increases.

When expressed as a percentage of revenues:

•Employee compensation costs increased by 140 basis points, mainly due to higher variable compensation costs, stock-based compensation expense and annual base salaries. Variable compensation costs and stock-based compensation expense increased mainly due to the recognition, over their respective service periods, of the one-time cash awards and equity awards, respectively, granted to our CEO pursuant to the terms of his employment agreement. In addition, variable compensation costs increased due to a higher bonus accrual. The increase in annual base salaries was primarily driven by annual merit increases.

•Professional fees decreased by 50 basis points, mainly due to acquisition-related costs recorded in the prior year period.

•SG&A decreased by 50 basis points due to a benefit from the net settlement of foreign currency forward contracts and charges related to the Sales Tax Dispute recorded in the prior year period.

Operating Income and Operating Margin

Three months ended ~~February~~May 2831, 2026 compared with three months ended ~~February~~May 2831, 2025

Operating income decreased 014.3% to $~~185~~166.03 million for the three months ended ~~February~~May 2831, 2026, compared with $~~185~~194.52 million in the prior year period. ~~This~~Operating ~~decrease~~margin ~~was~~decreased ~~primarily~~to ~~driven~~26.7% byfor ~~higher~~the ~~employee~~three ~~compensation~~months ~~costs~~ended ~~and~~May 31, an2026, ~~increase~~compared with 33.2% in ~~other~~the ~~expenses~~prior ~~included~~year inperiod. ~~Cost~~These ofdecreases ~~services,~~were ~~partially~~primarily ~~offset~~driven by ~~growth~~higher operating expenses, mainly due to an increase in ~~revenues.~~

Operating margin decreased to 30.3% for the three months ended February 28, 2026, compared with 32.5% in the prior year period. When expenses are expressed as a percentage of revenues, this decrease was primarily driven by higher employee compensation costs, partially offset by growth in revenues and a decrease in professional fees.39

Six months ended February 28, 2026 compared with six months ended February 28, 2025

Operating income increased 0.1% to $377.0 million for the six months ended February 28, 2026, compared with $376.8 million in the prior year period. This increase was primarily driven by growth in revenues, partially offset by higher employee compensation costs, amortization of intangible assets and technology-related expenses.

Operating margin decreased to 30.9% for the six months ended February 28, 2026, compared with 33.1% in the prior year period. When expenses are expressed as a percentage of revenues, this decrease was primarily due to higher employee compensation costs, amortization of intangible assets and technology-related expenses, partially offset by growth in revenues.

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employee compensation costs, partially offset by growth in revenues. In addition, foreign currency exchange rate fluctuations, net of hedge activity, decreased operating income by $3.4 million for the three months ended May 31, 2026 compared with the prior year period.

Nine months ended May 31, 2026 compared with nine months ended May 31, 2025

Operating income decreased 4.8% to $543.3 million for the nine months ended May 31, 2026, compared with $571.0 million in the prior year period. Operating margin decreased to 29.5% for the nine months ended May 31, 2026, compared with 33.1% in the prior year period. These decreases were primarily driven by higher employee compensation costs, amortization of intangible assets and technology-related expenses, partially offset by growth in revenues.

Operating Income by Segment

We operate our business through three segments: the Americas; EMEA; and Asia Pacific. Refer to Note 15, Segment Information in the Notes to the Consolidated Financial Statements included in Part I, Item 1. of this Quarterly Report on Form 10-Q for further discussion regarding our segments. The following table summarizes our operating income by segment:

	Three Months Ended						~~Six~~Nine Months Ended
	February 28,				% Change		February 28,				% Change
	May 31,				% Change		May 31,				% Change
(dollar amounts in thousands)	2026		2025				2026		2025
Americas	$	7463,~~201~~587	$	7381,~~127~~565	1(22.50)	%	$	~~152~~216,~~734~~321	$	~~154~~236,~~925~~490	(18.45)	%
EMEA	6658,~~242~~182		7069,~~568~~027		(615.17)	%	~~134~~192,~~396~~578		~~139~~208,~~606~~633		(37.7)	%
Asia Pacific	44,~~518~~532		4143,~~797~~563		62.52	%	89134,~~902~~434		82125,~~296~~859		96.28	%
Total Operating Income	$	~~184~~166,~~961~~301	$	~~185~~194,~~492~~155	(014.3)	%	$	~~377~~543,~~032~~333	$	~~376~~570,~~827~~982	0(4.18)	%

Three months ended ~~February~~May 2831, 2026 compared with three months ended ~~February~~May 2831, 2025

Americas

Americas operating income ~~increased~~decreased primarily due to ~~growth in revenues of 8.1%, partially offset by~~ higher employee compensation costs and, to a lesser extent, ~~an increase in~~ technology-related expenses and amortization of intangible assets, partially offset by growth in revenues of 7.0%.

•Employee compensation costs increased primarily due to ~~higher~~restructuring ~~variable compensation costs~~charges, higher stock-based compensation expense, and an increase in ~~annual~~variable ~~base~~compensation ~~salaries~~costs. ~~Variable~~The ~~compensation~~restructuring ~~costs~~charges ~~increased~~were ~~mainly~~related ~~due~~ to adriving ~~higher~~organizational ~~bonus accrual~~efficiencies. InThe ~~addition,~~increase ~~variable~~in stock-based compensation ~~costs~~expense and ~~stock-based~~variable compensation ~~expense~~costs ~~increased~~were ~~due~~driven toby the recognition, over their respective service periods, of the one-time ~~cash~~equity awards and ~~equity~~cash awards, respectively, granted to our CEO pursuant to the terms of his employment agreement. ~~The~~In ~~increase~~addition, invariable ~~annual~~compensation ~~base~~costs ~~salaries~~increased ~~was~~due ~~primarily~~to ~~driven~~financial byachievement ~~annual~~against ~~merit increases~~targets.

•Technology-related expenses increased mainly due to higher spend in cloud-based hosting services, licensed software arrangements and AI token consumption.

•Amortization of intangible assets increased primarily due to higher amortization from our capitalized internal-use software development costs.

EMEA

EMEA operating income decreased primarily due to higher employee compensation costs, partially offset by growth in revenues of 4.03%. Employee compensation costs increased mainly ~~due~~from restructuring charges, to ~~higher~~drive organizational efficiencies, and an increase in annual base salaries, primarily driven by annual merit increases.

Asia Pacific

Asia Pacific operating income increased mainly due to growth in revenues of 87.05%, partially offset by higher employee compensation costs. Employee compensation costs ~~were~~increased ~~higher~~ primarily ~~due~~from tohigher anvariable ~~increase~~compensation ~~in benefit~~ costs, ~~related~~due to ~~the~~financial ~~India~~achievement ~~Labor~~against ~~Codes~~targets, ~~Reform~~ and ~~higher~~an increase in annual base salaries, mainly driven by annual merit increases.

~~Six months ended February 28, 2026 compared with six months ended February 28, 2025~~ 40

Americas

Americas operating income decreased primarily due to higher employee compensation costs and, to a lesser extent, an increase in amortization of intangible assets and technology-related expenses, partially offset by growth in revenues of 8.0%.

•Employee compensation costs increased primarily due to higher variable compensation costs, stock-based compensation expense and an increase in annual base salaries. Variable compensation costs and stock-based compensation expense increased mainly due to the recognition, over their respective service periods, of the one-time cash awards and equity awards, respectively, granted to our CEO pursuant to the terms of his employment agreement. In addition, variable compensation costs increased due to a higher bonus accrual. The increase in annual base salaries was primarily driven by annual merit increases.

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Nine months ended May 31, 2026 compared with nine months ended May 31, 2025

Americas

•Employee compensation costs increased primarily due to higher variable compensation costs, stock-based compensation expense and restructuring charges. Variable compensation costs and stock-based compensation expense increased mainly due to the recognition, over their respective service periods, of the one-time cash awards and equity awards, respectively, granted to our CEO pursuant to the terms of his employment agreement. In addition, variable compensation costs increased due to financial achievement against targets. The restructuring charges were related to driving organizational efficiencies.

•Amortization of intangible assets increased mainly due to higher amortization from our capitalized internal-use software development costs.

•Technology-related expenses increased mainly due to higher spend in cloud-based hosting services.

EMEA

EMEA operating income decreased primarily due to higher employee compensation costs, partially offset by growth in revenues of 4.01%. Employee compensation costs increased primarily due to anhigher ~~increase in~~ annual base salaries, driven by annual merit increases, and restructuring charges related to driving organizational efficiencies.

Asia Pacific

Asia Pacific operating income increased mainly due to growth in revenues of 7.76%, partially offset by higher employee compensation costs. Employee compensation costs increased primarily due to higher annual base salaries, mainly driven by annual merit increases~~, and higher benefit costs related to the India Labor Codes Reform~~.

Income Taxes

The provision for income taxes and the effective tax rate are as follows:

	Three Months Ended								~~Six~~Nine Months Ended
	February 28,								February 28,
	May 31,								May 31,
(dollar amounts in thousands)	2026			2025			% Change		2026			2025			% Change
Income before income taxes	$	~~161~~154,~~111~~121		$	~~172~~179,~~320~~948		(614.54)	%	$	~~351~~505,~~224~~345		$	~~352~~532,~~059~~007		(05.20)	%
Provision for income taxes	$	2827,~~055~~403		$	2731,~~460~~406		2(12.27)	%	$	6592,~~588~~991		$	5788,~~177~~583		145.70	%
Effective tax rate	17.48		%	1517.95		%			18.74		%	16.27		%

We are subject to taxation in the United States ("U.S.") and various state, local and foreign jurisdictions in which we conduct our business. Our effective tax rate will vary based on, among other factors, changes in levels of foreign income, as well as other non-recurring events.

For the periods presented, our effective tax rates were lower than the applicable U.S. corporate income tax rate ("U.S. tax rate") primarily due to the U.S. tax impact of foreign earnings, research and development ("R&D") tax credits, and a foreign derived intangible income ("FDII") tax deduction, partially offset by the impact of state income taxes. In addition, our effective tax rate was lower than the U.S. tax rate for the three months ended February 28, 2026 due to a favorable resolution of uncertain tax positions in the U.S., and for the three and six months ended February 28, 2025 due to excess tax benefits from stock-based compensation.41

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For the periods presented, our effective tax rates were lower than the applicable U.S. corporate income tax rate ("U.S. tax rate") primarily due to the U.S. tax impact of foreign earnings, research and development ("R&D") tax credits, and a foreign derived intangible income ("FDII") tax deduction, partially offset by the impact of state income taxes. In addition, our effective tax rate was lower than the U.S. tax rate for the three and nine months ended May 31, 2025 due to excess tax benefits from stock-based compensation.

Net Income and Diluted EPS

	Three Months Ended						~~Six~~Nine Months Ended
	February 28,						February 28,
	May 31,						May 31,
(in thousands, except per share data)	2026		2025		% Change		2026		2025		% Change
Net income	$	~~133~~126,~~056~~718	$	~~144~~148,~~860~~542	(814.17)	%	$	~~285~~412,~~636~~354	$	~~294~~443,~~882~~424	(37.10)	%
Diluted weighted average common shares	3736,~~063~~191		38,~~510~~344		(35.86)	%	3736,~~339~~957		38,~~513~~457		(3.09)	%
Diluted EPS	$	3.5950	$	3.7687	(49.56)	%	$	711.6516	$	711.6653	(03.12)	%

The decrease in Net income and Diluted EPS for the three and nine months ended ~~February~~May 2831, 2026, compared to the prior year period, was mainly driven by higher operating expenses ~~and an impairment charge within Other assets~~, partially offset by growth in revenues. The decrease in Diluted EPS was also partially offset by lower diluted weighted average common shares outstanding.

The decrease in Net income and Diluted EPS for the six months ended February 28, 2026, compared to the respective prior year period, was primarily driven by higher operating expenses and an increase in the provision for income taxes, partially offset by growth in revenues. The decrease in Diluted EPS was also partially offset by lower diluted weighted average common shares outstanding.

Non-GAAP Financial Measures

To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), we use non-GAAP financial measures including organic revenues, adjusted operating income, adjusted operating margin, adjusted net income, EBITDA, adjusted EBITDA, adjusted Diluted EPS and free cash flow. Reconciliations from our financial measures calculated and presented in accordance with GAAP to these non-GAAP financial measures are shown in the tables below, and the reconciliation of free cash flow is included in the Liquidity and Capital Resources section. These non-GAAP financial measures should not be considered in isolation from, as a substitute for, or superior to, financial measures reported in accordance with GAAP. Moreover, these non-GAAP financial measures have limitations in that they do not reflect all the items associated with the operations of our business as determined in accordance with GAAP. Other companies may calculate similarly titled non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes.

Despite the limitations of these non-GAAP financial measures, we believe these adjusted financial measures and the information they provide are useful in viewing our performance using the same tools that management uses to gauge progress in achieving our goals. Adjusted measures may also facilitate comparisons to our historical performance.

Organic revenues ~~excludes~~exclude the current year impact of revenues from acquisitions and the comparable impact of dispositions ~~completed~~and discontinued lines of business, effected within the past 12 months ("Acquisition revenues", and disposition and discontinued lines of business together, "Disposition revenues", respectively) and the current year impact ~~from~~of ~~changes in~~ foreign currency movements. In addition, for year to date comparisons, organic revenues excludes current year revenues that were earned prior to the first anniversary date of the acquisition. The table below provides an unaudited reconciliation of revenues to organic revenues:

	Three Months Ended						~~Six~~Nine Months Ended
	February 28,				% Change		February 28,				% Change
	May 31,				% Change		May 31,				% Change
(dollar amounts in thousands)	2026		2025				2026		2025
Revenues	$	~~611~~622,~~019~~918	$	~~570~~585,~~660~~520	76.14	%	$	1,~~218~~841,~~640~~558	$	1,~~139~~724,~~327~~847	76.08	%
Acquisition revenues	~~(3,392)~~—		—				(10,066)		—
Disposition revenues	—		(3,~~117~~296)				—		(59,~~767~~063)
Currency impact	(~~1,451~~52)		—				(2,~~369~~421)		—
Organic revenues	$	~~606~~622,~~176~~866	$	~~567~~582,~~543~~224	67.80	%	$	1,~~206~~829,~~205~~071	$	1,~~133~~715,~~560~~784	6.46	%

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related intangible asset amortization and non-recurring items. EBITDA represents earnings before interest expense, provision for income taxes and depreciation and amortization, while adjusted EBITDA further excludes non-recurring non-cash expenses.


	Three Months Ended						Nine Months Ended
	May 31,						May 31,
(in thousands, except per share data)	2026		2025		% Change		2026		2025		% Change
Operating income	$	166,301	$	194,155	(14.3)	%	$	543,333	$	570,982	(4.8)%
Intangible asset amortization	18,981		19,182				57,330		53,900
Restructuring/severance	19,629		—				19,301		(317)
CEO compensation costs(1)	4,322		—				14,956		—
Business disposition, acquisitions and related costs	1,769		1,976				6,475		14,769
Client bankruptcy charges	750		—				750		—
India Labor Codes Reform	—		—				2,883		—
Asset impairment	—		—				887		—
Sales Tax Dispute(2)	—		—				—		2,398
Adjusted operating income	$	211,752	$	215,313	(1.7)	%	$	645,915	$	641,732	0.7%
Operating margin	26.7%		33.2%				29.5%		33.1%
Adjusted operating margin(3)	34.0%		36.8%				35.1%		37.2%
Net income	$	126,718	$	148,542	(14.7)	%	$	412,354	$	443,424	(7.0)%
Intangible asset amortization	14,534		13,943				44,799		39,809
Restructuring/severance	15,030		—				15,080		(234)
CEO compensation costs(1)	3,309		—				11,687		—
Business disposition, acquisitions and related costs	1,355		1,436				5,060		10,908
Impairment within Other assets(4)	2,297		—				12,503		—
Client bankruptcy charges	574		—				586		—
India Labor Codes Reform	—		—				2,253		—
Asset impairment	—		—				693		—
Sales Tax Dispute(2)	—		—				—		1,771
Gain on sale of investments	—		—				(5,082)		—
Non-operating income from business disposition	(48)		—				(470)		—
Income tax items	—		—				(852)		1,351
Adjusted net income(5)	$	163,769	$	163,921	(0.1)	%	$	498,611	$	497,029	0.3%
Net income	$	126,718	$	148,542	(14.7)	%	$	412,354	$	443,424	(7.0)%
Interest expense	13,839		15,122				40,286		43,438
Income taxes	27,403		31,406				92,991		88,583
Depreciation and amortization expense	45,869		40,845				133,707		114,972
EBITDA	$	213,829	$	235,915	(9.4)	%	$	679,338	$	690,417	(1.6)%
Non-recurring non-cash expenses(6)	6,336		—				22,857		—

Adjusted EBITDA	$	220,165	$	235,915	(6.7)	%	$	702,195	$	690,417	1.7%
Diluted EPS	$	3.50	$	3.87	(9.6)	%	$	11.16	$	11.53	(3.2)%
Intangible asset amortization	0.40		0.36				1.20		1.03
Restructuring/severance	0.42		—				0.40		(0.01)
CEO compensation costs(1)	0.09		—				0.32		—
Business disposition, acquisitions and related costs	0.04		0.04				0.14		0.28
Impairment within Other assets(4)	0.06		—				0.34		—

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The table below provides an unaudited reconciliation of Operating income, operating margin, Net income and Diluted EPS to adjusted operating income, adjusted operating margin, adjusted net income, EBITDA, adjusted EBITDA and adjusted Diluted EPS. Adjusted operating income and margin, adjusted net income, and adjusted Diluted EPS exclude the impact of acquisition-related intangible asset amortization and non-recurring items. EBITDA represents earnings before interest expense, provision for income taxes and depreciation and amortization, while adjusted EBITDA further excludes non-recurring non-cash expenses.


Client bankruptcy charges	0.02		—				0.02		—
India Labor Codes Reform	—		—				0.06		—
Asset impairment	—		—				0.02		—
Sales Tax Dispute(2)	—		—				—		0.05
Gain on sale of investments	—		—				(0.14)		—
Non-operating income from business disposition	0.00		—				(0.01)		—
Income tax items	—		—				(0.02)		0.04
Adjusted Diluted EPS(5)	$	4.53	$	4.27	6.1	%	$	13.49	$	12.92	4.4%
Weighted average common shares (diluted)	36,191		38,344				36,957		38,457

	Three Months Ended						Six Months Ended
	February 28,						February 28,
(in thousands, except per share data)	2026		2025		% Change		2026		2025		% Change
Operating income	$	184,961	$	185,492	(0.3)%		$	377,032	$	376,827	0.1%
Intangible asset amortization	19,179		18,137				38,349		34,718
CEO compensation costs(1)	3,944		—				10,634		—
India Labor Codes Reform	2,883		—				2,883		—
Business disposition, acquisitions and related costs	2,043		9,040				4,706		12,793
Asset impairment	887		—				887		—
Sales tax dispute(2)	—		—				—		2,398
Restructuring/severance	171		—				(328)		(317)
Adjusted operating income	$	214,068	$	212,669	0.7%		$	434,163	$	426,419	1.8%
Operating margin	30.3%		32.5%				30.9%		33.1%
Adjusted operating margin(3)	35.0%		37.3%				35.6%		37.4%
Net income	$	133,056	$	144,860	(8.1)	%	$	285,636	$	294,882	(3.1)	%
Intangible asset amortization	15,121		13,425				30,428		25,815
Impairment within Other assets(4)	10,249		—				10,315		—
CEO compensation costs(1)	3,109		—				8,438		—
India Labor Codes Reform	2,273		—				2,288		—
Business disposition, acquisitions and related costs	1,611		6,691				3,734		9,512
Asset impairment	699		—				704		—
Sales Tax Dispute(2)	—		—				—		1,783
Gain on sale of investments	—		—				(5,160)		—
Restructuring/severance	135		—				(261)		(236)
Non-operating income from business disposition	(130)		—				(428)		—
Income tax items	(852)		—				(852)		1,351
Adjusted net income(5)	$	165,271	$	164,976	0.2	%	$	334,842	$	333,107	0.5	%
Net income	$	133,056	$	144,860	(8.1)	%	$	285,636	$	294,882	(3.1)	%
Interest expense	13,062		13,916				26,447		28,316
Income taxes	28,055		27,460				65,588		57,177
Depreciation and amortization expense	43,690		38,410				87,838		74,127
EBITDA	$	217,863	$	224,646	(3.0)	%	$	465,509	$	454,502	2.4	%
Non-recurring non-cash expenses(6)	15,331		—				16,521		—
Adjusted EBITDA	$	233,194	$	224,646	3.8	%	$	482,030	$	454,502	6.1	%
Diluted EPS	$	3.59	$	3.76	(4.5)	%	$	7.65	$	7.66	(0.1)	%
Intangible asset amortization	0.41		0.35				0.81		0.66
Impairment within Other assets(4)	0.28		—				0.28		—
CEO compensation costs(1)	0.08		—				0.23		—
India Labor Codes Reform	0.06		—				0.06		—
Business disposition, acquisitions and related costs	0.04		0.17				0.10		0.25
Asset impairment	0.02		—				0.02		—

(1)Related to the recognition, over their respective service periods, of one-time make-whole cash and equity awards issued to our CEO.

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Gain on sale of investments	—		—				(0.14)		—
Restructuring/severance	0.00		—				(0.01)		(0.01)
Sales Tax Dispute(2)	—		—				—		0.05
Non-operating income from business disposition	0.00		—				(0.01)		—
Income tax items	(0.02)		—				(0.02)		0.04
Adjusted Diluted EPS(5)	$	4.46	$	4.28	4.2	%	$	8.97	$	8.65	3.7	%
Weighted average common shares (diluted)	37,063		38,510				37,339		38,513

(1)Related to the recognition of one-time make-whole cash and equity awards issued to our CEO, with the majority of the awards recognized over their respective service periods.

(2)Related to a resolved matter with the Massachusetts Department of Revenue. Refer to Note 11, Commitments and Contingencies in the Notes to the Consolidated Financial Statements included in Part I, Item 1. of this Quarterly Report on Form 10-Q, for further discussion on this matter.

(3)Adjusted operating margin is calculated as Adjusted operating income divided by Revenues.

(4)Related to the impairment of an equity investment.

(5)For purposes of calculating Adjusted net income and Adjusted diluted EPS, all adjustments for the three months ended ~~February~~May 2831, 2026 and ~~February~~May 2831, 2025 were taxed at an adjusted tax rate of 2123.24% and 2627.03%, respectively. The ~~six~~nine months ended ~~February~~May 2831, 2026 and ~~February~~May 2831, 2025, were taxed at an adjusted tax rate of 2021.79% and 2526.61%, respectively.

(6)Primarily related to the impairment of ancertain equity ~~investment~~investments and the recognition, over their respective service periods, of one-time equity awards issued to our CEO.

Liquidity and Capital Resources

As of ~~February~~May 2831, 2026, Cash and cash equivalents were $~~268~~288.31 million and restricted cash was $96.13 million, compared with Cash and cash equivalents of $337.7 million and restricted cash of $14.0 million as of August 31, 2025. Refer to Summary of Cash Flows, within this section below, for more information on cash flows during the ~~six~~nine months ended ~~February~~May 2831, 2026 and ~~February~~May 2831, 2025.

Our cash and cash equivalents as of ~~February~~May 2831, 2026 are held in numerous locations throughout the world, with $~~115~~128.70 million in EMEA (with the largest balance held in the UK), $9088.02 million in the Americas (with the largest balance held in the U.S.) and the remaining $6271.69 million in Asia Pacific (with the largest balances held in ~~the~~India ~~Philippines~~ and ~~India~~the Philippines).

Our cash flows provided by operating activities, existing cash and cash equivalents, supplemented with our debt borrowings, have been sufficient to fund our operations while allowing us to invest in activities that support the long-term growth of our operations. Generally, some or all of our remaining available cash flows have been used to, among other things, service our existing and future debt obligations, satisfy our working capital requirements and fund various activities, including our capital expenditures, acquisitions, investments, dividend payments and repurchases of our common stock. Based on past performance and current expectations, we believe our sources of liquidity, including the available capacity under our existing revolving credit facility and other financing alternatives, will provide us the necessary capital to fund these transactions and achieve our planned growth for the next 12 months and the foreseeable future.

Sources of Liquidity

Debt and Interest Rate Swap Agreements

In addition to the discussion below, refer to Note 10, Debt in the Notes to the Consolidated Financial Statements included in Part I, Item 1. of this Quarterly Report on Form 10-Q for more information on our outstanding borrowings and interest rate swap agreements.

2025 Credit Agreement

4544

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2022 Credit Agreement

Senior Notes

Interest on the Senior Notes is payable semiannually in arrears on March 1 and September 1 of each year.

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Interest Rate Swap Agreements

2025 Swap Agreement

2024 Swap Agreement

Uses of Liquidity

Returning Value to Stockholders

We returned $~~385~~628.37 million and $~~192~~312.02 million to our stockholders in the form of share repurchases and dividends during the ~~six~~nine months ended ~~February~~May 2831, 2026 and ~~February~~May 2831, 2025, respectively. Over the last 12 months, we returned $~~653~~776.89 million to our stockholders in the form of share repurchases and dividends.

Share Repurchase Program

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. During the ~~six~~nine months ended ~~February~~May 2831, 2026 and ~~February~~May 2831, 2025, we repurchased 12,~~129~~056,~~850~~220 shares for $~~302~~506.90 million and ~~241~~425,~~189~~239 shares for $~~113~~193.18 million, respectively.

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, 2025, our Board of Directors approved an additional $600 million in share repurchase authority, which is available immediately with no expiration date. The additional authorization also removed the expiration date from the June 17, 2025 authorization. As of ~~February~~May 2831, 2026, $~~697~~494.10 million remained available under our share repurchase program.

Refer to Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds, of this Quarterly Report on Form 10-Q for further discussion on our share repurchase program.

Dividends

In the third quarter of fiscal 2026, our Board of Directors approved a 5% increase in the regular quarterly dividend from $1.10 to $1.16 per share. Fiscal 2026 marks the 27th consecutive fiscal year we have increased dividends on a stock split-adjusted basis, highlighting our continued commitment to returning value to our stockholders. During the ~~six~~nine months ended ~~February~~May 2831, 2026 and ~~February~~May 2831, 2025, we paid dividends of $82122.47 million and $78118.83 million, respectively. Future cash dividend payments are subject to final determination by our Board of Directors and will depend on our earnings, capital requirements, financial condition and other relevant factors.

Capital Expenditures

For the ~~six~~nine months ended ~~February~~May 2831, 2026, capital expenditures increased by 1416.67% to $5687.83 million, compared with $4974.68 million for the same period a year ago. This increase was primarily due to higher capitalized costs related to the development of our internal-use software and an increase in leasehold improvements related to the build-out of our London office~~, partially offset by a decrease in purchases of network-related equipment~~.

~~Acquisitions~~46

Our acquisitions with the most significant cash flows during fiscal 2025 through the second quarter of fiscal 2026 included Liquid Holdings, LLC ("LiquidityBook") and Platform Group Limited ("Irwin"). Refer to Note 5, Acquisitions in the Notes to the Consolidated Financial Statements included in Part I, Item 1. of this Quarterly Report on Form 10-Q for further discussion on these acquisitions.

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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"). Refer to Note 5, Acquisitions in the Notes to the Consolidated Financial Statements included in Part I, Item 1. of this Quarterly Report on Form 10-Q for further discussion on these acquisitions.

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. We finalized the purchase accounting for the LiquidityBook acquisition during the second quarter of fiscal 2026.

Irwin

On November 5, 2024, we completed the acquisition of Irwin for a purchase price of $120.2 million, net of cash acquired, and inclusive of working capital adjustments. The purchase price included contingent consideration of $9.6 million, which reflects the acquisition date fair value of potential future payments that are contingent upon the achievement of certain specified milestones. We finalized the purchase accounting for the Irwin acquisition during the third quarter of fiscal 2025.

Contractual Obligations

Purchase obligations represent our legally-binding agreements to purchase fixed or minimum quantities at determinable prices. As of August 31, 2025, we had total purchase obligations with suppliers and vendors of approximately $352 million. Our total purchase obligations as of August 31, 2025 primarily related to hosting services, acquisition of data and, to a lesser extent, third-party software providers. During the second quarter of fiscal 2026, we entered into a multi-year contract renewal with a supplier, resulting in total purchase commitments of approximately $62.5 million.

We also have contractual obligations related to our lease liabilities and outstanding debt. Refer to Note 9, Leases and Note 10, Debt in the Notes to the Consolidated Financial Statements included in Part I, Item 1. of this Quarterly Report on Form 10-Q for information regarding our lease commitments and outstanding debt obligations, respectively.

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Summary of Cash Flows

The following table provides a summary of our net cash flow activity for the periods presented:

	Six Months Ended
	Nine Months Ended
	February 28,
	May 31,
(dollar amounts in thousands)	2026		2025		$ Change
Net cash provided by operating activities	$	~~332~~617,~~972~~492	$	~~260~~514,~~327~~160	$	72103,~~645~~332
Net cash provided by (used in) investing activities	(2169,~~898~~355)		(~~338~~369,~~124~~373)		~~316~~300,~~226~~018
Net cash provided by (used in) financing activities	(~~386~~603,~~656~~744)		(45199,~~542~~327)		(~~341~~404,~~114~~417)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1,~~299~~678)		(81,~~048)~~966		9(3,~~347~~644)
Net increase (decrease) in cash, cash equivalents and restricted cash	$	(7457,~~283~~285)	$	(~~131~~52,~~387~~574)	$	57(4,~~104~~711)

Operating

For the ~~six~~nine months ended ~~February~~May 2831, 2026, net cash provided by operating activities was $~~333~~617.05 million, which included net income of $~~285~~412.64 million, non-cash charges of $~~154~~254.27 million and a net cash outflow of $~~106~~49.86 million to support our working capital requirements. The non-cash charges were primarily driven by depreciation and amortization. The change in our working capital was primarily driven by timing of ~~client~~payments ~~collections~~related ~~and~~to ~~our~~taxes ~~annual~~and ~~variable compensation payment~~leases.

48For the nine months ended May 31, 2025, net cash provided by operating activities was $514.2 million, which included net income of $443.4 million, non-cash charges of $195.9 million and a net cash outflow of $125.1 million to support our working capital requirements. The non-cash charges were primarily driven by depreciation and amortization. The change in our working capital was primarily driven by cash outflows related to payments to resolve the Sales Tax Dispute and timing of client collections.

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For the six months ended February 28, 2025, net cash provided by operating activities was $260.3 million, which included net income of $294.9 million, non-cash charges of $131.4 million and a net cash outflow of $166.0 million to support our working capital requirements. The non-cash charges were primarily driven by depreciation and amortization. The change in our working capital was primarily driven by cash outflows related to payments to resolve the Sales Tax Dispute, timing of income tax and vendor payments, and timing of client collections.

Investing

For the ~~six~~nine months ended ~~February~~May 2831, 2026, net cash used in investing activities was $2169.94 million. The cash used in investing activities primarily consisted of $5687.83 million of capital expenditures mainly due to the capitalization of internal-use software development costs, partially offset by $36.1 million in proceeds from the sale of certain equity investments.

For the ~~six~~nine months ended ~~February~~May 2831, 2025, net cash used in investing activities was $~~338~~369.14 million. The cash used in investing activities primarily consisted of $~~342~~348.53 million of acquisition-related consideration related to the Irwin and LiquidityBook transactions and $4974.68 million of capital expenditures driven by the capitalization of internal-use software development costs, partially offset by $58.2 million in proceeds from our investments in mutual funds.

Financing

For the ~~six~~nine months ended ~~February~~May 2831, 2026, net cash used in financing activities was $~~386~~603.7 million, consisting mainly of $~~302~~506.90 million of share repurchases and $82122.47 million of dividend payments.

For the ~~six~~nine months ended ~~February~~May 2831, 2025, net cash used in financing activities was $45199.53 million, consisting mainly of $~~200~~742.05 million related to the repayment of the 2022 Credit Facilities, $~~113~~193.18 million of share repurchases and $78118.83 million of dividend payments, partially offset by $~~305~~803.04 million of proceeds ~~related~~from ~~to additional~~ borrowings under the 2025 Term Facility and the 2022 Revolving Facility, in periods prior to its termination, and $72.6 million of proceeds from employee stock plans.

Free Cash Flow

We define free cash flow, a non-GAAP financial measure, as cash provided by operating activities less purchases of property, equipment and leasehold improvements ("PPE") and capitalized internal-use software. We believe free cash flow is a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures, ~~can~~may be ~~used~~available ~~for~~to ~~strategic~~pay ~~opportunities~~debt obligations, ~~including~~make ~~returning~~strategic ~~value~~acquisitions toand ~~stockholders~~investments, ~~investing~~pay individends, ~~our~~repurchase ~~business~~stock, ~~making strategic acquisitions~~ and ~~strengthening~~strengthen the balance sheet. Free cash flow should be considered in addition to consolidated net income and net cash provided by operating activities, but should not be used as a substitute for these key measures of our performance and liquidity.

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The following table reconciles our net cash provided by operating activities to free cash flow:

	Six Months Ended
	Nine Months Ended
	February 28,
	May 31,
(dollar amounts in thousands)	2026		2025		$ Change
Net cash provided by operating activities	$	~~332~~617,~~972~~492	$	~~260~~514,~~327~~160	$	72103,~~645~~332
Less: purchases of property, equipment, leasehold improvements and capitalized internal-use software	(5687,~~844~~319)		(4974,~~610~~840)		(712,~~234~~479)
Free cash flow	$	~~276~~530,~~128~~173	$	~~210~~439,~~717~~320	$	6590,~~411~~853

Off-Balance Sheet Arrangements

As of ~~February~~May 2831, 2026 and August 31, 2025, we had no off-balance sheet financing other than letters of credit incurred in the ordinary course of business. Refer to Note 10, Debt and Note 11, Commitments and Contingencies in the Notes to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information on our available and outstanding letters of credit.

As of ~~February~~May 2831, 2026 and August 31, 2025, we also had no other arrangements with unconsolidated entities or financial partnerships (such as entities often referred to as structured finance or special purpose entities) established for purposes of facilitating off-balance sheet financing, other debt arrangements, or other contractually limited purposes.

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Foreign Currency Exposure

Refer to Part I, Item 3. Quantitative and Qualitative Disclosures About Market Risk of this Quarterly Report on Form 10-Q for more information on our foreign currency exposures.

Critical Accounting Estimates

We prepare the Consolidated Financial Statements in conformity with GAAP, which requires us to make certain estimates and apply judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. We base our estimates on historical experience and other assumptions that we believe to be reasonable at the time the Consolidated Financial Statements are prepared and, as such, they may ultimately differ materially from actual results.

We describe our significant accounting policies in Note 2, Summary of Significant Accounting Policies 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. These accounting policies were consistently applied in preparing our Consolidated Financial Statements for the ~~six~~nine months ended ~~February~~May 2831, 2026.

We disclosed our critical accounting estimates in Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, Critical Accounting Estimates, of our Annual Report on Form 10-K for the fiscal year ended August 31, 2025. There were no significant changes in our critical accounting estimates during the ~~six~~nine months ended ~~February~~May 2831, 2026.

New Accounting Pronouncements

For a discussion of accounting pronouncements recently adopted and those issued but not yet adopted, refer to Note 2, Summary of Significant Accounting Policies, in the Notes to the Consolidated Financial Statements included in Part I, Item 1. of this Quarterly Report on Form 10-Q, which we include herein by reference.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

In the normal course of business, we are exposed to foreign currency exchange risk and interest rate risk that could impact our financial position and results of operations. Current market events have not required us to materially modify our financial risk management strategies with respect to our exposures to foreign currency exchange risk or interest rate risk.

Foreign Currency

Transaction Risk

As we operate globally, we are exposed to the risk that our financial condition, results of operations and cash flows could be impacted by changes in foreign currency exchange rates. During the ~~six~~nine months ended ~~February~~May 2831, 2026, we maintained a series of foreign currency forward contracts to hedge a portion of our projected operating expenses in these primary currency exposures, namely the British Pound Sterling, Euro, Indian Rupee and Philippine Peso. As of ~~February~~May 2831, 2026, the hedge maturity periods of our outstanding foreign currency forward contracts range from the ~~third~~fourth quarter of fiscal 2026 through the ~~second~~third quarter of fiscal 2027. Based on the operating income for the ~~six~~nine months ended ~~February~~May 2831, 2026, comparing the average foreign currency exchange rates for the ~~six~~nine months ended ~~February~~May 2831, 2026 to the respective rates for the ~~six~~nine months ended May 31, 2025, net of hedge activity, resulted in a decrease in operating income of $4.1 million. We utilize cash flow hedges to manage risk and not for speculative or trading purposes.

50We performed a sensitivity analysis to determine the effects on both the fair value of our outstanding foreign currency forward contracts and our operating income, excluding these forward contracts, of a hypothetical devaluation of the U.S. dollar by 10% as of May 31, 2026, relative to the other foreign currencies in which we transact. The sensitivity analysis indicated that a devaluation of the U.S. dollar by 10% would have increased the fair value of our outstanding forward contracts by approximately $18 million as of May 31, 2026 and decreased our operating income, excluding these forward contracts, by an estimated $37 million for the nine months ended May 31, 2026. This sensitivity analysis has inherent limitations as it disregards the possibility that rates of multiple foreign currencies will not always move in the same direction relative to the value of the U.S. dollar over time and does not account for our forward contracts that we utilize to mitigate fluctuations in exchange rates.

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ended February 28, 2025, net of hedge activity, resulted in a decrease in operating income of $0.7 million. We utilize cash flow hedges to manage risk and not for speculative or trading purposes.

We performed a sensitivity analysis to determine the effects on both the fair value of our outstanding foreign currency forward contracts and our operating income, excluding these forward contracts, of a hypothetical devaluation of the U.S. dollar by 10% as of February 28, 2026, relative to the other foreign currencies in which we transact. The sensitivity analysis indicated that a devaluation of the U.S. dollar by 10% would have increased the fair value of our outstanding forward contracts by approximately $19 million as of February 28, 2026 and decreased our operating income, excluding these forward contracts, by an estimated $25 million for six months ended February 28, 2026. This sensitivity analysis has inherent limitations as it disregards the possibility that rates of multiple foreign currencies will not always move in the same direction relative to the value of the U.S. dollar over time and does not account for our forward contracts that we utilize to mitigate fluctuations in exchange rates.

Translation Risk

We are exposed to foreign currency risk due to the translation of our results from certain international operations into U.S. Dollars, as part of the consolidation process. Fluctuations in foreign currency exchange rates can create volatility in our results of operations and our financial condition.

The following table reflects the foreign currency translation adjustment gains and losses recorded in Other comprehensive income (loss):

	Three Months Ended				~~Six~~Nine Months Ended
	February 28,				February 28,
	May 31,				May 31,
(in thousands)	2026		2025		2026		2025
Foreign currency translation adjustment gains (losses)	$	10(7,~~202~~540)	$	~~(11~~38,~~926)~~456	$	2(4,~~812~~728)	$	~~(29~~8,~~545)~~911

Cash, ~~and~~ Cash Equivalents and Investments

Interest Rate Risk

As of ~~February~~May 2831, 2026, we had Cash and cash equivalents of $~~268~~288.31 million and Investments of $16.91 million. Our Cash and cash equivalents consist of cash and highly liquid investments, including demand deposits and money market funds, and our Investments consist of mutual funds. We are exposed to interest rate risk through fluctuations of interest rates on these investments. As we have a restrictive investment policy, our financial exposure to fluctuations in interest rates is expected to remain low. Refer to Note 2, Summary of Significant Accounting Policies in the Notes to the Consolidated Financial Statements included in Part II, Item 8. of our Annual Report on Form 10-K for more information on our Cash and cash equivalents.

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Credit Risk

We are exposed to credit risk for our cash, cash equivalents and restricted cash held in financial institutions in the event of a default, to the extent that such amounts are in excess of applicable insurance limits; however, we do not believe our concentration of cash, cash equivalents and restricted cash presents a significant credit risk as the counterparties to the instruments consist of multiple high-quality, credit-worthy financial institutions.

Debt

Interest Rate Risk

Our Senior Notes have a fixed interest rate and are not subject to interest rate fluctuations. As such, our interest rate exposure as of ~~February~~May 2831, 2026 is limited to the outstanding principal balance of our floating rate debt under our 2025 Credit Facilities of $~~375~~395.0 million, which bore interest at a rate equal to the applicable one-month Term SOFR plus a 0.975% spread (comprised of a 0.875% interest rate margin, based on a pricing grid determined by reference to our senior unsecured non-credit enhanced long-term debt rating and our total leverage ratio, plus a 0.1% credit spread adjustment). Assuming the principal balance of our outstanding floating rate debt remained at $~~375~~395.0 million, a hypothetical 25 basis point change (up or down) in the one-month SOFR would result in an approximate $1 million change to our annual interest expense.

Refer to Note 10, Debt in the Notes to the Consolidated Financial Statements included in Part I, Item 1. of this Quarterly Report on Form 10-Q for more information on our outstanding borrowings as of ~~February~~May 2831, 2026.

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ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, including our Principal Executive Officer and Principal Financial Officer, have evaluated the effectiveness of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as of the end of the period covered by this report.

Our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures were not effective as of ~~February~~May 2831, 2026 due to a material weakness in internal control over financial reporting. This conclusion is due to a material weakness identified in the operation of certain key IT general controls. The material weakness is described below and represents a continuation of a sub-set of the control deficiencies which gave rise to the initial material weakness identified in management’s evaluation of our control environment as of August 31, 2024.

Continuation of Previously Reported Material Weakness

As reported in Part II, Item 9A. “Controls and Procedures” of our Annual Report on Form 10-K for the fiscal year ended August 31, 2025, we had not yet fully remediated a material weakness, initially identified during the fiscal year ended August 31, 2024, in the design and operation of IT general controls that support our ~~revenues,~~control ~~accounts~~environment ~~receivable, and deferred revenues processes~~ which, in the aggregate, gave rise to a material weakness in internal control over financial reporting. We ~~While~~believe we have ~~made~~successfully ~~significant~~redesigned ~~progress~~the ~~toward~~controls ~~remediating~~which ~~those~~gave ~~control~~rise ~~deficiencies~~to the material weakness, ~~there~~and ~~remains~~we ~~certain~~are ~~deficiencies~~now ~~related~~in tothe ~~program~~process ~~change~~of ~~management~~demonstrating ~~and~~that ~~monitoring~~the controls are operating effectively. Until we demonstrate that both the design and ~~user~~operation ~~access~~of inthe ~~connection~~controls ~~with~~are ~~segregation~~effective for a sufficient period of ~~duties~~time, ~~and~~we ~~restrictions~~will not be able to ~~appropriate~~conclude ~~users~~that we have completely remediated the material weakness. As a result, the automated controls and IT dependent manual business process controls that rely upon information from the affected financial applications ~~were~~are ~~also~~still ~~deemed~~ not deemed effective. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of a company’s annual or interim financial statements will not be prevented or detected on a timely basis.

Remediation Efforts

Since identifying the material weakness, management has made significant progress in enhancing the Company’s IT general controls to remediate the IT general control material weakness, however this effort remains ongoing. With the oversight of the Audit Committee of our Board of Directors and through our SOX Steering Committee, we have implemented remediation efforts to address the material weakness and enhance our IT general controls that support our ~~revenues,~~control ~~accounts receivable, and deferred revenues processes~~environment. Management's remediation efforts included:

•Strengthening the control environment by implementing controls that increase the frequency and effectiveness of user management and change management, including improved logging and segregation of duties capabilities.

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•Engaging a leading third-party accounting advisory firm, with appropriate internal control expertise and experience, to help evaluate the design of our controls as well as to assist with the documentation, remediation, and related controls testing.

•Working with the accounting advisory firm to revise the Company’s IT Risk and Control Matrix and to re-design certain controls around manage change and manage access to address the design deficiencies identified in fiscal 2024.

•Hiring additional key IT compliance personnel and a global head of internal audit.

•Training relevant personnel on the design and operation of our IT general controls over financial reporting.

While these efforts have resulted in significant progress toward remediating the material weakness, certain deficiencies remain, which management is committed to remediating. Our remediation ~~plans~~efforts ~~include~~have included:

•Enhancing the precision and documentation of the change monitoring and segregation of duties review controls through additional training and formalized standard operating procedures.

•Performing additional testing of the change monitoring and segregation of duties review controls to demonstrate the sustainability and repeatability of control operating effectiveness.

•Implementing technology solutions to enhance the control framework for supporting change monitoring, segregation of duties and access management review controls.

•Continuing to utilize an expert third-party accounting advisory firm to evaluate the design of our controls as well as to assist with the documentation, remediation and associated testing.

Additional or modified measures may also be required to remediate the material weakness. We will not be able to conclude that we have completely remediated the material weakness until the ~~applicable~~ controls ~~are~~have ~~fully~~been ~~implemented~~designed and have operated for a sufficient period of time and management has concluded, through formal testing, that the remediated controls are operating effectively. We are targeting completion of these remediation measures during fiscal 2026. We will continue to monitor the design and effectiveness of these and other processes, procedures, and controls and make any further changes management deems appropriate. We regularly report to the Audit Committee on our progress and will continue to do so throughout the remainder of fiscal 2026.

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effectively. We expect to complete these remediation measures as early as practicable in fiscal 2026. We will continue to monitor the design and effectiveness of these and other processes, procedures, and controls and make any further changes management deems appropriate. We regularly report to the Audit Committee on our progress and will continue to do so in fiscal 2026.

Inherent Limitations of Internal Controls over Financial Reporting

No system of controls, no matter how well designed and operated, can provide absolute assurance that the objectives of the system of controls will be met, and no evaluation of controls can provide absolute assurance that all control deficiencies or material weaknesses have been or will be detected. There is no assurance that our remediation efforts will be fully effective. If these remediation efforts do not prove effective and control deficiencies and material weaknesses persist or occur in the future, the accuracy and timing of our financial reporting may be adversely affected.

Changes in Internal Control over Financial Reporting

Other than the ongoing remediation plans described above, there were no changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the three and ~~six~~nine months ended ~~February~~May 2831, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The information set forth under "Contingencies" in Note 11, Commitments and Contingencies, contained in the Notes to the Consolidated Financial Statements included in Part I, Item 1., to this Quarterly Report on Form 10-Q is incorporated by reference in answer to this Item.

ITEM 1A. RISK FACTORS

For a discussion of our risk factors, please see Part 1, Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended August 31, 2025.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Items 2(a) and (b) are not applicable as there have been no unregistered sales of equity securities.

(i)Issuer Purchases of Equity Securities

The following table provides a month-to-month summary of our share repurchase activity during the three months ended ~~February~~May 2831, 2026:

Period	Total number ofshares purchased(1)	Average pricepaid per share		Total number of shares purchased as part of publicly announced plans or programs(2)	Approximate dollar value of shares that may yet be purchased under the plans or programs(2)
December 2025	170,481	$	286.69	169,750	$	811,429
March 2026	341,510	$	209.86	341,510	$	625,401
January 2026	184,200	$	285.53	184,200	$	758,835
April 2026	295,110	$	227.04	295,110	$	558,398
February 2026	298,050	$	207.43	297,800	$	697,070
May 2026	291,765	$	222.29	289,750	$	494,000
Total	~~652~~928,~~731~~385			~~651~~926,~~750~~370

(1)Includes ~~651~~926,~~750~~370 shares purchased under the stock repurchase program, as well as ~~981~~2,015 shares repurchased to satisfy withholding tax obligations due upon the vesting of stock-based awards.

(2)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, 2025, our Board of Directors approved an additional $600 million in share repurchase authority, which was available immediately with no expiration date. The additional authorization also removed the expiration date from the June 17, 2025 authorization. As of ~~February~~May 2831, 2026, $~~697~~494.10 million remained available under our share repurchase program. Repurchases may be made 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. It is expected that share repurchases will be paid using existing and future cash generated by operations.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None of our directors or officers (as defined in Section 16 of the Exchange Act), adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (each as defined in Item 408(a) and (c) of Regulation S-K) during the quarter ended ~~February~~May 2831, 2026.

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ITEM 6. EXHIBITS

Incorporated by Reference

Exhibit Number

ExhibitDescription

Form

File No.

Exhibit No.

Filing Date

FiledHerewith

10.1

Employment Agreement dated April 2, 2026 between FactSet Research Systems Inc. ~~2025~~and ~~Omnibus~~Joshua ~~Incentive Plan~~Warren

~~S-8~~

~~333-292658~~

~~99.1~~

~~1/9/2026~~

10.2

~~Form~~Separation ~~Restricted~~Agreement ~~Share~~and ~~Unit~~General ~~Award~~Release ~~Agreement~~of Claims between FactSet Research Systems Inc. and Helen Shan

10.3

Form Stock Option Award Agreement

10.4

Form Performance Share Unit Award Agreement

10.5

Form of Equity Award Letter Agreement (Omnibus Plan)

31.1

Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended

31.2

Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended

32.1

Certification of the Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2

Certification of the Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS

XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document

101.SCH

XBRL Taxonomy Extension Schema

101.CAL

XBRL Taxonomy Extension Calculation Linkbase

101.DEF

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

XBRL Taxonomy Extension Label Linkbase

101.PRE

XBRL Taxonomy Extension Presentation Linkbase

104

Cover page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			FACTSET RESEARCH SYSTEMS INC.(Registrant)
Date: April 2, 2026			/s/ HELEN L. SHAN
Date: July 1, 2026			/s/ JOSHUA WARREN
			Helen L. Shan
			Joshua Warren
			Executive Vice President, Chief Financial Officer
			(Principal Financial Officer)
			/s/ GREGORY T. MOSKOFF
			Gregory T. Moskoff
			Managing Director, Controller and Chief Accounting Officer
			(Principal Accounting Officer)

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