FactSet Research Systems Inc. stock research
FY2026 Q2
FactSet Research Systems (FDS) Gross Margin — Quarter Ended Feb 28, 2026
Revenue rose slightly from the prior quarter and more notably from the same quarter last year. However, gross profit declined sequentially and increased year-over-year, while cost of revenue grew at a faster pace, causing gross margin to weaken compared to both periods.
Gross margin takeaway
Quarter ended Feb 28, 2026 · FY2026 Q2
Revenue rose slightly from the prior quarter and more notably from the same quarter last year. However, gross profit declined sequentially and increased year-over-year, while cost of revenue grew at a faster pace, causing gross margin to weaken compared to both periods.
- The most apparent driver is the faster growth in cost of revenue relative to revenue, which compressed gross margin. A concrete item to monitor is the relationship between cost of revenue and revenue trends.
- Sequentially, revenue was higher but cost of revenue rose more, leading to lower gross profit and a weakened gross margin. Year-over-year, both revenue and gross profit were higher, but cost of revenue increased at a faster rate, resulting in a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.4%
Gross profit
$314.3M
Revenue
$611.0M
Cost of revenue
$296.7M
Quarter-over-quarter change
-1.2 pts
Year-over-year change
-1.3 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 |
|---|---|---|---|---|
| May 31, 2025 | $585.5M | $304.8M | $280.7M | 52.1% |
| 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% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 30, 2025
-1.2 pts
Year-over-year change
Feb 28, 2025
-1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most apparent driver is the faster growth in cost of revenue relative to revenue, which compressed gross margin. A concrete item to monitor is the relationship between cost of revenue and revenue trends.
Sequentially, revenue was higher but cost of revenue rose more, leading to lower gross profit and a weakened gross margin. Year-over-year, both revenue and gross profit were higher, but cost of revenue increased at a faster rate, resulting in a lower gross margin.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.