FactSet Research Systems Inc. stock research
FY2026 Q3
FactSet Research Systems (FDS) Gross Margin & Quarterly History
Explore FactSet Research Systems Inc. (FDS) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended May 31, 2026 · FY2026 Q3
Revenue increased both sequentially and year over year, but gross profit was lower sequentially and barely higher year over year, causing gross margin to weaken. Cost of revenue rose more than revenue in both comparisons, compressing margin.
- The decline in gross margin was driven by cost of revenue increasing faster than revenue, with the cost base growing more rapidly in both the sequential and year-over-year periods.
- Compared to the prior quarter, gross margin weakened as revenue growth was outpaced by cost growth. Versus the same quarter last year, gross margin also weakened despite higher revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
49.9%
Gross profit
$310.7M
Revenue
$622.9M
Cost of revenue
$312.2M
Quarter-over-quarter change
-1.6 pts
Year-over-year change
-2.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Aug 31, 2025 | $596.9M | $308.2M | $288.7M | 51.6% |
| Nov 30, 2025 | $607.6M | $319.7M | $287.9M | 52.6% |
| Feb 28, 2026 | $611.0M | $314.3M | $296.7M | 51.4% |
| May 31, 2026 | $622.9M | $310.7M | $312.2M | 49.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 28, 2026
-1.6 pts
Year-over-year change
May 31, 2025
-2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin was driven by cost of revenue increasing faster than revenue, with the cost base growing more rapidly in both the sequential and year-over-year periods.
Compared to the prior quarter, gross margin weakened as revenue growth was outpaced by cost growth. Versus the same quarter last year, gross margin also weakened despite higher revenue.
Monitor whether cost growth continues to outpace revenue growth in future quarters, as this trend further pressures gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| FactSet Research Systems Inc. (FDS) | 49.9% |