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Management’s Report on Internal Control Over Financial Reporting
−Removed: As previously reported in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2024, we had identified a material weakness in the design and operation of information technology (“IT”) general controls that support our revenues, accounts receivable, and deferred revenues processes which, in the aggregate, gave rise to a material weakness in internal control over financial reporting, which we are in the process of remediating.
−Removed: For fiscal 2025, our management (with the participation of the Chief Executive Officer and Chief Financial Officer) conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
−Removed: Based on this evaluation, our management concluded that our internal control over financial reporting was not effective as of August 31, 2025, as a result of the material weakness in internal control over financial reporting described further below, which represents a continuation of a sub-set of the control deficiencies which gave rise to the initial material weakness previously identified.
−Removed: However, giving full consideration to the material weakness, the control deficiencies did not result in any identified misstatements, and the Company's management has concluded that our Consolidated Financial Statements present fairly, in all material respects, our financial position, results of operations and cash flows for the periods disclosed in conformity with GAAP.
−Removed: In accordance with the guidance issued by the Securities and Exchange Commission, companies are permitted to exclude acquisitions from their first assessment of internal control over financial reporting following the date of acquisition.
−Removed: Based on those guidelines, our management's assessment of the effectiveness of our internal control over financial reporting excluded Platform Group Limited ("Irwin") and Liquid Holdings, LLC ("LiquidityBook"), which we acquired in the first quarter and second quarter of fiscal 2025, respectively.
−Removed: Excluding goodwill and intangible assets, these acquisitions represented a combined 2% of our Total assets as of August 31, 2025 and 1% of our consolidated Revenues for fiscal year 2025.
−Removed: Refer to Note 5, Acquisitions , for additional information on these acquisitions.
−Removed: Inherent Limitations of Internal Controls over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting for FactSet.
−Removed: Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP.
+Added: Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;
3 unchanged sentences
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
−Removed: Management’s Report on Internal Control Over Financial Reporting
−Removed: While we have made significant progress remediating the control deficiencies identified during our year ended August 31, 2024, we continue to have certain deficiencies related to the IT general controls that support our revenues, accounts receivable, and deferred revenues processes which, in the aggregate, rise to a material weakness in internal control over financial reporting.
−Removed: The deficiencies related to program change management and user access in connection with segregation of duties and restriction to appropriate users.
−Removed: As a result, the automated controls and IT dependent manual business process controls that rely upon information from the affected financial applications were also deemed not effective.
−Removed: 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.
−Removed: While we have concluded that these control deficiencies did not result in any material misstatements in our Consolidated Financial Statements or disclosures in any of the fiscal years ended August 31, 2025, 2024 or 2023, they were not remediated as of August 31, 2025, and thus created a reasonable possibility that they could result in a material misstatement to the Consolidated Financial Statements that would not be prevented or detected on a timely basis.
−Removed: Accordingly, we determined that these control deficiencies constituted a material weakness.
−Removed: As a result of the identification of the material weakness, we performed further analysis and completed additional procedures intended to ensure our consolidated financial statements for the years ended August 31, 2025, 2024, and 2023 fairly present in all material respects the financial condition, results of operations and cash flows of the Company and have been prepared in accordance with GAAP.
−Removed: Based on these procedures and analysis, and notwithstanding the material weakness in our internal control over financial reporting, our management has concluded that our Consolidated Financial Statements present fairly, in all material respects, our financial position, results of operations and cash flows for the periods disclosed in conformity with GAAP.
−Removed: Ernst & Young LLP (PCAOB ID:
−Removed: 42), an independent registered public accounting firm, has audited the effectiveness of our internal control over financial reporting and has issued an adverse opinion on the effectiveness of our internal control over financial reporting as stated in their report on the subsequent page.
+Added: Our management (including our Principal Executive Officer and Principal Financial Officer) conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
+Added: Based on this evaluation, our management concluded that our internal control over financial reporting was effective as of August 31, 2026.
+Added: Ernst & Young LLP (PCAOBID:
+Added: 42), an independent registered public accounting firm, has audited the effectiveness of our internal control over financial reporting and has issued a report on our internal control over financial reporting, which is included in their report on the subsequent page.
Report of Independent Registered Public Accounting Firm
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generally accepted accounting principles.
−Removed: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of August 31, 2025 based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated October 22, 2025 expressed an adverse opinion thereon.
+Added: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of August 31, 2026 based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated October 20, 2026 expressed an unqualified opinion thereon.
Basis for Opinion
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We believe that our audits provide a reasonable basis for our opinion.
−Removed: Critical Audit Matters
−Removed: The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:
−Removed: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.
−Removed: The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
+Added: Critical Audit Matter
+Added: The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:
+Added: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.
+Added: The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Measurement of income tax provision
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operations and $63.5 million related to its Non-U.S.
−Removed: Auditing management’s calculation of the provision for income taxes required complex audit judgement as the Company’s calculation of the provision for income taxes involved subjective estimation and evaluation of the application of tax laws, including the methods used to allocate taxable income and judgments used in determining uncertain tax positions.
+Added: Auditing management’s calculation of the provision for income taxes required complex audit judgement as the Company’s calculation of the provision for income taxes involved subjective estimation and evaluation of the application of tax laws, including the methods used to allocate taxable income.
How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of internal controls over management’s calculation of its provision for income taxes.
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We have evaluated the Company’s income tax disclosures included in Note 8, Income Taxes , of the Consolidated Financial Statements in relation to these matters.
−Removed: Valuation of Acquired Software Technology
−Removed: Description of the Matter As disclosed in Note 5, Acquisitions , of the Consolidated Financial Statements, the Company completed its acquisition of Liquid Holdings, LLC for total consideration of $243.2 million and Platform Group Limited for total consideration of $120.2 million in 2025.
−Removed: The transactions were accounted for as business combinations.
−Removed: The considerations paid in the acquisitions were allocated to the acquired assets and liabilities assumed generally based on their fair values, with the excess of the purchase prices over those fair values allocated to goodwill.
−Removed: The acquired software technologies totaled $101.7 million combined.
−Removed: Auditing the valuation of the Company’s business combinations was especially challenging and complex due to the significant assumptions and measurement uncertainty involved in determining the fair value of the acquired assets and liabilities assumed, specifically related to the Company’s determination of the fair values of acquired software technologies.
−Removed: In particular, the fair value estimates were sensitive to changes in significant underlying assumptions such as the projected revenue growth rate.
−Removed: This significant assumption included forward-looking considerations and was based on expectations of future economic and market conditions.
−Removed: How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of internal controls over the Company’s accounting for acquisitions and the related fair value estimation process.
−Removed: Specifically, we tested controls over management’s review of the valuation of the acquired software technologies, including management’s review of the valuation models applied and the significant assumptions described above.
−Removed: We also tested management’s internal controls to develop the projected financial information used in the valuation models and validated that the data used in the valuation models was complete and accurate.
−Removed: To test the estimated fair value of the acquired software technologies, we performed audit procedures that included, among others, evaluating the Company’s valuation methodology and significant assumptions used by management, testing the completeness and accuracy of the underlying data supporting the significant assumptions described above, and performing sensitivity analyses of significant assumptions to evaluate the changes in the fair values of the acquired software technologies.
−Removed: We involved our valuation specialists to assist with our evaluation of the Company’s valuation methodology and significant assumptions used in the fair value estimates.
/s/ Ernst & Young LLP
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We have audited FactSet Research Systems Inc.’s internal control over financial reporting as of August 31, 2026, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).
−Removed: In our opinion, because of the effect of the material weakness described below on the achievement of the objectives of the control criteria, FactSet Research Systems Inc.
−Removed: (the Company) has not maintained effective internal control over financial reporting as of August 31, 2025, based on the COSO criteria.
−Removed: As indicated in the accompanying Management’s Report on Internal Control over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of Liquid Holdings, LLC and Platform Group Limited, which are included in the 2025 consolidated financial statements of the Company and which in aggregate, when excluding goodwill and intangible assets, constituted 2% of total assets as of August 31, 2025 and 1% of total revenues for the year then ended.
−Removed: Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of Liquid Holdings, LLC and Platform Group Limited.
−Removed: A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis.
−Removed: The following material weakness has been identified and included in management’s assessment.
−Removed: Management has identified a material weakness related to the design and operation of information technology (“IT”) general controls for certain financial applications that support the revenue, accounts receivable, and deferred revenue processes.
−Removed: Consequently, automated controls and IT dependent manual business process controls that rely upon information from the affected financial applications were also deemed ineffective.
−Removed: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of August 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, changes in stockholders’ equity and cash flows for each of the three years in the period ended August 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a).
−Removed: This material weakness was considered in determining the nature, timing and extent of audit tests applied in our audit of the 2025 consolidated financial statements, and this report does not affect our report dated October 22, 2025, which expressed an unqualified opinion thereon.
+Added: In our opinion, FactSet Research Systems Inc.
+Added: (the Company) maintained, in all material respects, effective internal control over financial reporting as of August 31, 2026, based on the COSO criteria.
+Added: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of August 31, 2026 and 2025, the related consolidated statements of income, comprehensive income, changes in stockholders’ equity and cash flows for each of the three years in the period ended August 31, 2026, and the related notes and financial statement schedule listed in the Index at Item 15(a) and our report dated October 20, 2026, expressed an unqualified opinion thereon.
Basis for Opinion
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( 3,001 ) 300 ( 1,037 )
+Added: Changes in post-employment benefit obligations (2)
+Added: ( 5,748 ) — —
Foreign currency translation adjustment gains (losses) ( 5,958 ) 15,565 8,565
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Comprehensive income $ 518,774 $ 612,905 $ 544,654
−Removed: (1) Presented net of a tax expense of $ 119 thousand, tax benefit of $ 369 thousand, and a tax benefit of $ 61 thousand for the years ended August 31, 2025, 2024 and 2023, respectively.
+Added: (1) Presented net of a tax benefit of $ 1,069 thousand, tax expense of $ 119 thousand, and a tax benefit of $ 369 thousand for the years ended August 31, 2026, 2025 and 2024, respectively.
+Added: (2) Presented net of a tax benefit of $ 1,844 thousand for the year ended August 31, 2026 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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Deferred tax liabilities 11,279 14,902
−Removed: Deferred revenues, non-current 624 1,344
Taxes payable 25,502 45,095
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Repurchases of common stock ( 643,961 ) ( 300,457 ) ( 235,235 )
+Added: Deferred acquisition consideration ( 15,327 ) ( 10,199 ) —
Other financing activities ( 7,697 ) ( 17,290 ) ( 16,659 )
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Net increase (decrease) in cash, cash equivalents and restricted cash ( 112,060 ) ( 71,284 ) ( 2,465 )
−Removed: Cash and cash equivalents at beginning of period 422,979 425,444 503,273
+Added: Cash, cash equivalents and restricted cash at beginning of period 351,695 422,979 425,444
Cash, cash equivalents and restricted cash at end of period $ 239,635 $ 351,695 $ 422,979
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Dividends declared — — — — — ( 153,718 ) — ( 153,718 )
−Removed: Other — — ( 759 ) — — — — ( 759 )
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
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Fair Value Measures
−Removed: Property, Equipment and Leasehold Improvements
Intangible Assets
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FactSet Research Systems Inc.
−Removed: 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.
−Removed: Our platform delivers expansive data, sophisticated analytics, and flexible, artificial intelligence ("AI")-powered technology used by global financial professionals to power their critical investment workflows.
−Removed: As of August 31, 2025, we had approximately 9,000 clients comprised of over 237,000 investment professionals, including institutional asset managers, bankers, wealth managers, asset owners, partners, hedge funds, corporate users, and private equity and venture capital professionals.
−Removed: Our revenues are primarily derived from subscriptions to our multi-asset class data and solutions powered by our connected data and technology platform.
−Removed: Our products and services include workstations, portfolio analytics and enterprise data solutions.
−Removed: We also offer managed services that operate as an extension of our clients' internal teams to support data, performance, risk and reporting workflows.
−Removed: We drive our business based on a detailed understanding of our clients’ workflows, which helps us to solve their most complex challenges.
−Removed: 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.
−Removed: Our solutions span the investment lifecycle of investment research, portfolio construction and analysis, trade execution, performance measurement, risk management and reporting.
−Removed: We provide open and flexible technology offerings, including a configurable desktop and mobile platform, comprehensive data feeds, cloud-based digital solutions, and application programming interfaces ("APIs").
−Removed: AI is embedded across these offerings to enhance data discovery, automate routine workflows and improve the speed and accuracy of client insights.
−Removed: The CUSIP Global Services ("CGS") business supports security master files relied on by the investment industry for critical front, middle and back-office functions.
−Removed: All of our platforms and solutions are supported by our dedicated client service team.
+Added: and its wholly-owned subsidiaries ("we," "our," "us," the "Company" or "FactSet") is a global data and artificial intelligence ("AI") solutions provider to the financial markets with open and flexible technologies that deliver financial intelligence to finance professionals worldwide.
+Added: Our platform delivers expansive data, sophisticated analytics, and flexible, AI-powered technologies used by global financial professionals to power their critical investment, dealmaking and advisory workflows.
+Added: As of August 31, 2026, we had more than 9,200 clients and over 260,000 professionals using our solutions, including institutional asset managers, bankers, wealth managers, asset owners, partners, hedge fund professionals, corporate users, private equity and venture capital professionals, and market infrastructure participants.
+Added: Our revenues are primarily derived from subscriptions to our multi-asset class data and solutions that include workstations, portfolio analytics, enterprise data solutions, and AI solutions.
+Added: We also offer managed services that operate as an extension of our clients' internal teams to support data, performance, risk and reporting, and AI-enabled workflows.
+Added: We drive our business based on a detailed understanding of our clients’ workflows.
+Added: We provide financial data and market intelligence on securities, companies, industries and people to enable our clients to research advisory, dealmaking and investment ideas and analyze, monitor and manage their portfolios.
+Added: Our solutions for institutional buyside clients span the investment lifecycle of investment research, portfolio construction and analysis, trade execution, performance measurement, risk management and reporting.
+Added: Our banking solutions facilitate company and market research, enabling clients to perform fundamental analysis, generate ideas, and build and distribute presentations through proprietary and third-party databases with global coverage of public and private markets, granular industry metrics, and deep historical data.
+Added: Our wealth solutions support home office, advisory, and client engagement workflows, providing financial advisors with tools to monitor markets and their book of business, prospect for new clients, and generate proposals, while enhancing existing client relationships and improving firm-wide efficiency across the investment portfolio lifecycle.
+Added: We provide open and flexible data and technology offerings, including a configurable desktop and mobile platform, comprehensive data solutions, cloud-based digital solutions, application programming interfaces ("APIs"), and model context protocol ("MCP") servers.
+Added: AI is embedded throughout these offerings to enhance data discovery, automate routine workflows and improve the speed and accuracy of client insights.
+Added: Our platform and solutions are supported by our client success and service teams.
We operate our business through three reportable segments ("segments"):
the Americas, EMEA and Asia Pacific.
−Removed: Within each segment, we offer data, products and analytical applications by firm type:
−Removed: Institutional Buyside, Dealmakers, Wealth, and Partnerships and CGS.
+Added: Within each segment, we offer a range of products, data, managed services, and analytical applications which can be tailored to a wide range of workflows.
Refer to Note 16, Segment Information for further discussion on our segments.
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We conduct business globally and manage our business on a geographic basis.
−Removed: The accompanying Consolidated Financial Statements and Notes to the Consolidated Financial Statements included in this Annual Report on Form 10-K are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for annual financial information and the instructions to Form 10-K and Article 10 of Regulation S-X.
+Added: The accompanying Consolidated Financial Statements and Notes to the Consolidated Financial Statements included in this Annual Report on Form 10-K are prepared in accordance with generally accepted accounting principles in the United States ("GAAP").
The accompanying Consolidated Financial Statements include our accounts and those of our wholly-owned subsidiaries;
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Reclassifications
−Removed: For the year ended August 31, 2025, asset impairments were included within Selling, general and administrative ("SG&A") in the Consolidated Statements of Income and within Other, net in the Consolidated Statements of Cash Flows.
+Added: 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.
−Removed: For the year ended August 31, 2025, Prepaid expenses and other assets, previously included within Other, net, were presented as a separate component of Cash Flows from Operating Activities in the Consolidated Statements of Cash Flows.
+Added: 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 prior year figures to the current year presentation.
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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.
−Removed: 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.
+Added: Significant estimation may be involved in the accounting for income taxes, stock-based compensation, goodwill, business combinations, 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.
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Revenue Recognition
−Removed: The majority of our revenues are derived from client access to our multi-asset solutions powered by our platform of connected data and technology that is available over the contractual term (referred to as the "Hosted Platform").
−Removed: 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.
−Removed: In addition, through the CGS platform, we provide subscription access to a database of universally recognized security identifiers reflecting differentiating characteristics for issuers and their financial instruments (referred to as the "Identifier Platform").
+Added: The majority of our revenues are derived from client access to our multi-asset solutions powered by our platform of connected data and technology (referred to as the "Hosted Platform") that is available over the contractual term.
+Added: Our services are primarily subscription-based, providing client access to various combinations of products and services including workstations, portfolio analytics, enterprise data solutions, and AI solutions.
+Added: In addition, through the CUSIP Global Services ("CGS") platform, we provide subscription 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").
Revenues from our products and services are recognized as we transfer control to our clients, in an amount that reflects the consideration we expect to receive in exchange for satisfying our performance obligations.
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Our stock-based compensation expense consists of:
−Removed: • Stock options, restricted stock units ("RSUs") and performance share units ("PSUs") issued to eligible employees under the FactSet Research Systems Inc.
−Removed: Stock Option and Award Plan, as Amended and Restated (the "LTIP").
−Removed: • Stock options and RSUs issued to non-employee members of the Board of Directors ("non-employee directors") under the FactSet Research Systems Inc.
−Removed: Non-Employee Directors’ Stock Option and Award Plan as Amended and Restated (the "Director Plan").
−Removed: • Common stock purchased by eligible employees under the FactSet Research Systems Inc.
−Removed: Employee Stock Purchase Plan as Amended and Restated (the "ESPP").
+Added: (i) stock options, (ii) stock options with performance conditions ("PSOs") issued to our Chief Executive Officer ("CEO"), (iii) restricted share units ("RSUs"), (iv) performance share units ("PSUs"), and (v) common stock purchased by eligible employees under our employee stock purchase plan ("ESPP").
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.
−Removed: We utilize a lattice-binomial option-pricing model ("binomial model") to estimate the grant date fair value for our employee stock options and the Black-Scholes model to estimate the grant date fair value for non-employee director stock options and common stock purchased by eligible employees under our ESPP.
−Removed: Both the binomial model and Black-Scholes model involve certain estimates and assumptions such as:
+Added: We use a lattice-based option-pricing model ("lattice model") to estimate the grant date fair value for our employee stock options.
+Added: For our CEO PSOs, grant date fair value was estimated using a Monte Carlo simulation ("Monte Carlo model").
+Added: 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.
+Added: 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.
+Added: 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.
+Added: The primary assumptions and their definitions are as follows:
• Risk-free interest rate - based on the United States ("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.
−Removed: • Expected life - the weighted average period the stock-based awards are expected to remain outstanding.
• 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.
−Removed: The binomial model also incorporates market conditions, vesting restrictions and exercise patterns.
+Added: • 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.
1 unchanged sentence
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.
−Removed: Stock-based compensation expense for stock option and RSU awards is recognized over the requisite service period using the straight-line method.
+Added: Stock-based compensation expense for stock option awards, including PSOs, and RSU awards is recognized over their respective service periods 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.
8 unchanged sentences
These teams collaborate with our strategists, product and content managers, technologists, sales and other team members to develop new products and process innovations and enhance existing products.
−Removed: Our research and product development costs are expensed as
−Removed: incurred and are primarily recorded in employee compensation costs, which are included in our Cost of services and Selling, general and administrative ("SG&A") expenses in the Consolidated Statements of Income, dependent on the nature of the team.
+Added: Our research and product development costs are expensed as incurred and are primarily recorded in employee compensation costs, which are included in our Cost of services and Selling, general and administrative ("SG&A") expenses in the Consolidated Statements of Income, dependent on the nature of the team.
We incurred research and product development costs of $ 346.1 million, $ 300.7 million and $ 265.2 million during fiscal 2026, 2025 and 2024, respectively.
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Cash and Cash Equivalents
−Removed: Cash and cash equivalents consist of cash and highly liquid investments including demand deposits and money market funds available for withdrawal without restriction or with original maturities of 90 days or less.
+Added: Cash and cash equivalents consist of cash and highly liquid investments, primarily including demand deposits and money market funds available for withdrawal without restriction or with original maturities of 90 days or less.
The carrying value of our cash and cash equivalents approximates fair value.
Accounts Receivable
−Removed: Accounts receivable includes both invoiced and unbilled receivables, net of allowance for any potential uncollectible amounts.
+Added: Accounts receivable includes both invoiced and unbilled receivables, net of allowance for credit losses.
Unbilled receivables reflect revenues earned for which we have the unconditional right to payment, even though we have not yet issued an invoice.
4 unchanged sentences
We write-off accounts receivable balances when we have exhausted our collection efforts.
−Removed: Property, Equipment and Leasehold Improvements
−Removed: PPE are stated at cost, less accumulated depreciation and amortization.
−Removed: Property and equipment are depreciated based on the straight-line method over the estimated useful lives of the assets, ranging from three to five years for computers and related equipment and seven years for furniture and fixtures.
−Removed: Leasehold improvements are amortized on a straight-line basis over the
−Removed: shorter of their respective useful lives or the related lease term.
−Removed: Repairs and maintenance expenditures, which are not considered leasehold improvements and do not extend the useful life of the property and equipment, are expensed as incurred.
−Removed: We review our PPE 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.
−Removed: If indicators of impairment are present, the asset group is tested for impairment by comparing its carrying value to its undiscounted cash flows and if impaired, written down to fair value based on its discounted cash flows.
−Removed: In addition, we periodically evaluate the estimated remaining useful lives of our PPE to determine whether events or changes in circumstances warrant a revision to the remaining period of depreciation or amortization.
We recognize the excess of the purchase price over the fair value of identifiable net assets acquired at the acquisition date as goodwill.
Goodwill is not amortized as it is estimated to have an indefinite life and is teste d for impairment at the reporting unit level annually, or more frequently if impairment indicators occur.
−Removed: Goodwill is deemed to be impaired and written-down in the period in which the carrying value of the reporting unit exceeds its fair value.
+Added: Goodwill is deemed to be impaired and written-down in the
+Added: period in which the carrying value of the reporting unit exceeds its fair value.
We have three reporting units, Americas, EMEA and Asia Pacific, which are consistent with our operating segments.
−Removed: When assessing goodwill for impairment, we may first elect to perform a qualitative analysis for the reporting units to determine whether it is more likely than not (a likelihood of more than 50 percent) that the fair value of the reporting unit is less than its carrying value.
−Removed: If the qualitative analysis indicates that it is more likely than not the fair value of a reporting unit is less than its carrying value or if we elect not to perform a qualitative analysis, a quantitative analysis is performed to determine whether a goodwill impairment exists.
+Added: When assessing goodwill for impairment, we may first elect to perform a qualitative analysis for the reporting units to determine whether it is more likely than not (a likelihood of more than 50%) that the fair value of the reporting unit is less than its carrying value.
+Added: If the qualitative analysis indicates that it is more likely than not the fair value of a reporting unit is less than its carrying value, or when we elect to do so on a periodic basis, we proceed directly to a quantitative analysis to determine whether a goodwill impairment exists.
The quantitative goodwill impairment analysis is used to identify potential impairment by comparing the carrying value of a reporting unit with its fair value.
17 unchanged sentences
We determine if an arrangement qualifies as a lease at inception by evaluating if there is an identified asset and whether we obtain substantially all the economic benefits of and have the right to control the use of an asset.
−Removed: For operating leases with a term greater than one year, we recognize lease right-of-use ("ROU") assets and lease liabilities as the present value of future minimum lease payments over the reasonably
−Removed: certain lease term beginning at the commencement or modification date.
+Added: For operating leases with a term greater than one year, we recognize lease right-of-use ("ROU") assets and lease liabilities as the present value of future minimum lease payments over the reasonably certain lease term beginning at the commencement or modification date.
The future minimum lease payments include fixed lease payments and certain qualifying index-based variable payments.
−Removed: Our lease ROU assets may further be impacted by prepayments, lease incentives received and initial direct costs incurred.
+Added: The initial carrying value of our lease ROU assets may also be adjusted due to prepayments, lease incentives received and initial direct costs incurred.
Our operating leases are classified within Lease right-of-use assets, net, Current lease liabilities and Long-term lease liabilities on our Consolidated Balance Sheets.
Our leases generally do not have a readily determinable implicit rate;
−Removed: therefore, we use our incremental borrowing rate ("IBR") at the lease commencement, or on the date of lease modification, if applicable, in determining the present value of future payments.
+Added: therefore, we use our incremental borrowing rate ("IBR") at the lease commencement, or on the date of lease modification, if applicable, in determining the present value of future minimum payments.
Our IBR is derived by selecting U.S.
−Removed: corporate yield curves observed for public companies that are reflective of our credit rating, adjusted to approximate a secured rate of borrowing.
+Added: corporate yield curves for public companies that are reflective of our credit rating, adjusted to approximate a secured rate of borrowing.
We also consider revisions to the rate to reflect the geographic location where the leased asset is located.
Certain of our lease agreements include options to extend and/or terminate the lease, which we do not include in our minimum lease terms unless we are reasonably certain to exercise these options.
−Removed: We account for the lease and non-lease components as a single lease component, which we recognize over the expected term on a straight-line expense basis in occupancy costs (a component of SG&A expense in the Consolidated Statements of Income).
+Added: We account for the lease and non-lease components as a
+Added: single lease component, which we recognize over the expected term on a straight-line expense basis in occupancy costs (a component of SG&A expense in the Consolidated Statements of Income).
Variable lease payments that are not included in the calculation of lease ROU assets and lease liabilities are expensed as incurred within occupancy costs.
49 unchanged sentences
We do not expect any losses as a result of default by our counterparties.
−Removed: Concentrations of Data Providers
−Removed: We integrate data from various third-party sources into our hosted proprietary data and analytics platform.
−Removed: As certain data sources have a limited number of suppliers, we make every effort to assure that, where reasonable, alternative sources are available.
−Removed: We are not dependent on any individual third-party data supplier to meet the needs of our clients, with two data suppliers each representing more than 10 % of our total data costs for the year ended August 31, 2025.
+Added: Concentrations of Content Providers
+Added: We collect and aggregate third-party content from data suppliers, news sources, exchanges, brokers and contributors into our own dedicated managed databases, which our clients access through our flexible delivery platforms.
+Added: As certain content sources have a limited number of suppliers, we make every effort to assure that, where reasonable, alternative sources are available.
+Added: We are not dependent on any individual third-party content supplier to meet the needs of our clients.
+Added: Two suppliers each represented more than 10 % of our total third-party content costs for the year ended August 31, 2026.
Concentrations of Cloud Providers
5 unchanged sentences
Recently Adopted Accounting Pronouncements
−Removed: Segment Reporting - Improvements to Reportable Segment Disclosures
−Removed: In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures .
−Removed: This ASU enhances segment disclosures primarily related to significant segment expenses for both interim and annual periods.
−Removed: We adopted this ASU on a retrospective basis for our annual financial statements starting in fiscal 2025.
+Added: Income Taxes - Improvements to Income Tax Disclosures
+Added: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures .
+Added: This ASU enhances annual income tax disclosures primarily related to our effective tax rate reconciliation and income taxes paid.
+Added: We adopted this ASU on a prospective basis for our annual financial statements starting in fiscal 2026.
The adoption of this ASU resulted in additional disclosures with no impact to our Consolidated Financial Statements.
−Removed: Refer to Note 17, Segment Information , for further information.
−Removed: Codification Improvements - Amendments to Remove References to the Concepts Statements
−Removed: In March 2024, the FASB issued ASU 2024-02, Codification Improvements - Amendments to Remove References to the Concepts Statements .
−Removed: This ASU amends the FASB Accounting Standards Codification ("the Codification") to remove references to various FASB Concepts Statements and impacts a variety of topics in the Codification.
−Removed: The amendments apply to all reporting entities within the scope of the affected accounting guidance, but in most instances the references removed are extraneous and not required to understand or apply the guidance.
−Removed: We early adopted this ASU on a prospective basis as of March 1, 2025.
−Removed: The adoption of this ASU did not have a material impact on our Consolidated Financial Statements or related disclosures.
+Added: Refer to Note 8, Income Taxes , for further information.
Accounting Pronouncements Not Yet Adopted
+Added: Goodwill and Other - Internal-Use Software
+Added: 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 .
+Added: 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.
+Added: 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.
+Added: Early adoption is permitted at the beginning of an annual period.
+Added: We are currently assessing the impact of the new requirements on our Consolidated Financial Statements and disclosures.
Income Statement - Disaggregation of Income Statement Expenses
11 unchanged sentences
In March 2025, the SEC stated that it has ended its defense of the rule.
−Removed: We are currently monitoring the legal challenges and assessing the potential impact of the rule on our disclosures.
−Removed: Income Taxes - Improvements to Income Tax Disclosures
−Removed: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures .
−Removed: This ASU enhances annual income tax disclosures primarily related to our effective tax rate reconciliation and income taxes paid.
−Removed: 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.
−Removed: Early adoption is permitted.
−Removed: This ASU is not expected to have a material impact on our Consolidated Financial Statements.
−Removed: We are currently assessing the impact of the new requirements on our disclosures.
+Added: On May 29, 2026, the SEC proposed to rescind the rule.
Disclosure Improvements - Codification Amendment in Response to the SEC's Disclosure Update and Simplification Initiative
6 unchanged sentences
REVENUE RECOGNITION
−Removed: 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").
−Removed: 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.
−Removed: We also derive revenues through the CGS platform, a subscription-based service that provides access to a database of universally recognized security identifiers and related descriptive data for issuers and their financial instruments (referred to as the "Identifier Platform").
−Removed: The majority of each of our contracts with clients, whether for 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.
+Added: We derive most of our revenues through subscription-based client access to our Hosted Platform, that include various combinations of products and services including workstations, portfolio analytics, enterprise data solutions and AI solutions.
+Added: We also derive revenues through the CGS Identifier Platform, a subscription-based service that provides access to a database of universally recognized security identifiers and related descriptive data for issuers and their financial instruments.
+Added: 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.
1 unchanged sentence
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.
−Removed: 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.
+Added: 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
+Added: corresponds directly with the value of our performance to date.
+Added: 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.
2 unchanged sentences
Disaggregated Revenues
−Removed: We disaggregate revenues from our client contracts by segment based on the geographic region where the sale originated.
+Added: We disaggregate revenues from our client contracts by segment based on the geographic region where our clients contract with us.
Our business segmentation by geography is aligned with the operational and economic characteristics of our business.
34 unchanged sentences
Derivative instruments (3)
−Removed: — 3,590 — 3,590
Total assets measured at fair value $ 25,008 $ 32,620 $ — $ 57,628
18 unchanged sentences
Total liabilities measured at fair value $ — $ 808 $ 24,126 $ 24,934
−Removed: (1) Our money market funds are readily convertible into cash.
−Removed: The net asset value of each fund on the last day of the reporting period is used to determine its fair value.
+Added: (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.
+Added: 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.
−Removed: The fair value of each underlying investment is based on observable inputs.
+Added: 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.
−Removed: (3) Our derivative instruments included foreign exchange forward contracts and interest rate swap agreements.
−Removed: We utilized the income approach to measure fair value for our foreign exchange forward contracts.
+Added: (3) Our foreign exchange forward contracts fair value is determined utilizing the income approach.
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.
−Removed: To estimate fair value for 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.
−Removed: 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.
+Added: Our foreign exchange forward contracts 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.
+Added: (4) Our interest rate swap agreements fair value is estimated utilizing a present value of future cash flows, leveraging a model-derived valuation that uses observable inputs such as interest rate yield curves.
+Added: Our interest rate swap agreements 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.
(5) Our contingent liabilities resulted from the acquisitions of various businesses.
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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 fiscal year, which are considered Level 1 inputs.
−Removed: The fair value of our 2022 and 2025 Credit Facilities, for their respective outstanding periods, was estimated based on quoted market prices for similar instruments, adjusted for unobservable inputs to ensure comparability to our investment rating, maturity terms and principal outstanding, which are considered Level 3 inputs.
−Removed: Refer to Note 11, Debt for definitions of, and more information on, our Senior Notes, 2025 Credit Facilities and 2022 Credit Facilities.
+Added: 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.
+Added: 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 August 31, 2026 and August 31, 2025:
5 unchanged sentences
Level 3 375,000 373,375 375,000 374,866
−Removed: 2022 Revolving Facility Level 3 — — 250,000 246,578
−Removed: 2022 Term Facility Level 3 — — 125,000 125,242
Total principal amount $ 1,375,000 $ 1,319,370 $ 1,375,000 $ 1,325,871
2 unchanged sentences
Total net carrying value of debt $ 1,370,022 $ 1,368,260
−Removed: (1) Amount excludes the debt issuance costs related to the 2025 Revolving Facility which are presented within Other assets on the Consolidated Balance Sheets.
−Removed: Our acquisitions with the most significant cash flows during fiscal 2023 through fiscal 2025 included:
+Added: (1) On August 28, 2026, we amended the 2025 Credit Agreement.
+Added: Refer to Note 10, Debt, for further information.
+Added: (2) 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, 2027 Notes and 2032 Notes.
+Added: For the 2025 Revolving Facility, debt issuance costs are presented within Other assets, as such, they are excluded from the table above.
+Added: Refer to Note 10, Debt for more information.
+Added: Our acquisitions with the most significant cash flows during fiscal 2024 through fiscal 2026 included Liquid Holdings, LLC ("LiquidityBook") and Platform Group Limited ("Irwin").
Liquid Holdings, LLC ("LiquidityBook")
−Removed: 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 preliminary working capital adjustments.
−Removed: The purchase price includes 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.
+Added: 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.
+Added: 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.
−Removed: 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.
+Added: LiquidityBook operates a proprietary FIX network that, as of the acquisition date, enabled 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.
1 unchanged sentence
Pro forma information has not been presented because the effect of the LiquidityBook acquisition was not material to our Consolidated Financial Statements.
−Removed: The preliminary purchase price allocation is subject to change pending a final valuation of the assets and liabilities acquired and the finalization of working capital adjustments.
−Removed: We expect to finalize the allocation of the purchase price for LiquidityBook as soon as possible, but in any event, no later than one year from the acquisition date.
+Added: 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:
17 unchanged sentences
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.
−Removed: The purchase price includes 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.
+Added: 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.
−Removed: This acquisition builds on a recent 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.
+Added: 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.
17 unchanged sentences
The goodwill is included in the Americas and EMEA segments and is not deductible for income tax purposes.
−Removed: PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS
−Removed: Property, equipment and leasehold improvements consist of the following:
−Removed: (in thousands) August 31,
−Removed: Leasehold improvements $ 101,425 $ 95,840
−Removed: Computers and related equipment 97,947 84,447
−Removed: Furniture and fixtures 30,764 28,747
−Removed: Subtotal $ 230,136 $ 209,034
−Removed: Less accumulated depreciation and amortization ( 144,933 ) ( 126,521 )
−Removed: Property, equipment and leasehold improvements, net $ 85,203 $ 82,513
−Removed: PPE depreciation and amortization expense was $ 24.1 million, $ 20.2 million and $ 18.1 million for fiscal 2025, 2024 and 2023, respectively.
Changes in the carrying value of goodwill by segment for the years ended August 31, 2026 and 2025 are as follows:
2 unchanged sentences
Acquisitions 219,107 32,680 9,034 260,821
+Added: Divestiture ( 269 ) ( 1,291 ) ( 43 ) ( 1,603 )
Foreign currency translations 2,460 8,605 3,296 14,361
Balance at August 31, 2025 $ 925,752 $ 344,436 $ 14,520 $ 1,284,708
−Removed: Acquisitions 219,107 32,680 9,034 260,821
−Removed: Divestiture ( 269 ) ( 1,291 ) ( 43 ) ( 1,603 )
Foreign currency translations ( 769 ) ( 741 ) ( 173 ) ( 1,683 )
4 unchanged sentences
We amortize intangible assets on a straight-line basis over their estimated useful lives.
−Removed: The following table presents the estimated useful life, gross carrying amounts and accumulated amortization related to our identifiable intangible assets as of August 31, 2025 and August 31, 2024:
+Added: The following table presents the estimated useful life, gross carrying amount and accumulated amortization related to our identifiable intangible assets as of August 31, 2026 and August 31, 2025:
August 31, 2026 August 31, 2025
−Removed: (in thousands, except useful lives) Estimated Useful Life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount
+Added: (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
14 unchanged sentences
We did not identify a material change to the estimated remaining useful lives of our intangible assets during fiscal 2026 and 2025.
−Removed: The intangible assets have no assigned residual values.
+Added: 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:
15 unchanged sentences
Provision for Income Taxes and Effective Tax Rate
−Removed: The provision for income taxes and the effective tax rate are as follows:
+Added: The components of Income before income taxes were as follows:
(in thousands) Years ended August 31,
3 unchanged sentences
Income before income taxes $ 649,716 $ 720,958 $ 651,503
−Removed: operations $ 45,591 $ 55,219 $ 54,337
−Removed: operations 78,327 59,158 61,444
−Removed: Provision for income taxes
−Removed: $ 123,918 $ 114,377 $ 115,781
−Removed: Effective tax rate 17.2 % 17.6 % 19.8 %
The components of the provision for income taxes consist of the following:
9 unchanged sentences
Total deferred taxes $ ( 14,284 ) $ ( 3,545 ) $ ( 32,020 )
+Added: Total provision for income taxes
+Added: federal $ 22,530 $ 15,123 $ 19,941
+Added: state and local 30,186 30,469 35,278
+Added: 63,519 78,326 59,158
Provision for income taxes
1 unchanged sentence
Our effective tax rate will vary based on, among other factors, changes in levels of foreign income, as well as other non-recurring events.
−Removed: The following table presents a reconciliation between the U.S.
+Added: We elected to adopt ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, on a prospective basis.
+Added: Refer to Note 2, Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements , for further information.
+Added: For the year ended August 31, 2026, after the adoption of ASU 2023-09, the following table presents a reconciliation between the U.S.
corporate income tax rate and our effective tax rate:
+Added: (expressed as a percentage of income before income taxes) Year ended August 31, 2026
+Added: federal statutory tax rate $ 136,440 21.0 %
+Added: Increase (decrease) in taxes resulting from:
+Added: State and local taxes, net of U.S.
+Added: federal income tax benefit (1)
+Added: Foreign tax effects
+Added: United Kingdom ("UK")
+Added: Statutory tax differences between the UK and the U.S.
+Added: Other 453 0.1 %
+Added: Other foreign jurisdictions 3,169 0.5 %
+Added: Effect of cross-border tax laws
+Added: Foreign derived intangible income ( 17,167 ) ( 2.6 ) %
+Added: Other 2,711 0.4 %
+Added: Research & development ("R&D") tax credit ( 18,500 ) ( 2.8 ) %
+Added: Foreign tax credit ( 26,553 ) ( 4.1 ) %
+Added: Other ( 1,120 ) ( 0.2 ) %
+Added: Changes in valuation allowances 51 — %
+Added: Nontaxable or nondeductible items 9,233 1.4 %
+Added: Changes in unrecognized tax benefits ( 8,933 ) ( 1.4 ) %
+Added: Other 3,653 0.6 %
+Added: Provision for income taxes and effective tax rate $ 116,235 17.9 %
+Added: (1) New York and New York City make up the majority (greater than 50%) of the tax effect in this category.
+Added: Prior to the adoption of ASU 2023-09, the following table presents a reconciliation between the U.S.
+Added: corporate income tax rate and our effective tax rate:
Years ended August 31,
7 unchanged sentences
Foreign derived intangible income ("FDII") tax deduction ( 2.0 ) ( 2.3 )
−Removed: Income tax benefits from research and development ("R&D") tax credits ( 3.1 ) ( 2.8 ) ( 3.8 )
+Added: Income tax benefits from R&D tax credits ( 3.1 ) ( 2.8 )
Stock-based payments ( 1.4 ) ( 2.1 )
1 unchanged sentence
Uncertain tax positions 1.4 2.3
−Removed: One-time adjustment (1)
Other, net ( 0.4 ) 0.3
Effective tax rate 17.2 % 17.6 %
−Removed: (1) During fiscal 2023, we recorded an out-of-period adjustment related to a review and analysis of certain tax positions, resulting in a one-time net charge.
−Removed: The adjustment related to the accounting of tax balance sheet accounts.
−Removed: All local, federal and foreign taxes payable have been paid in a timely manner, subject to normal audits of open years.
Deferred Tax Assets and Liabilities
6 unchanged sentences
Capitalization of R&D costs 188,556 143,829
−Removed: Sales Tax Dispute — 14,058
−Removed: Other 39,793 28,154
+Added: NOL carryforward (1)
+Added: Foreign tax credit carryforward (1)
+Added: 26,189 23,612
Total deferred tax assets $ 343,415 $ 255,649
3 unchanged sentences
Lease ROU assets ( 19,686 ) ( 18,184 )
+Added: Investment in subsidiary ( 16,734 ) —
+Added: Section 481(a) adjustment ( 19,321 ) —
Other ( 8,038 ) ( 5,393 )
2 unchanged sentences
Valuation allowance
+Added: ( 6,445 ) ( 2,750 )
Total deferred tax assets (liabilities), net $ 63,271 $ 46,324
+Added: (1) Net operating loss carryforward and Foreign tax credit carryforward were presented separately from Other as part of the deferred tax assets in fiscal 2026.
+Added: Comparative figures for fiscal 2025 have been conformed.
Total deferred tax assets and liabilities recorded within the Consolidated Balance Sheets were as follows:
5 unchanged sentences
These carryforwards may be used to offset future taxable income.
−Removed: Our foreign NOLs expire on August 31, 2045, while our federal NOLs have various expiration dates, beginning August 31, 2036, with some federal NOLs having an unlimited carryforward.
+Added: Our foreign NOLs begin to expire on August 31, 2034.
+Added: Our federal NOLs have various expiration dates, beginning August 31, 2037, with some federal NOLs having an unlimited carryforward.
Our state NOLs have various expiration dates, beginning August 31, 2029.
1 unchanged sentence
Any annual limitation may result in the expiration of NOLs before utilization.
+Added: As of August 31, 2026, our foreign tax credit carryforwards were $ 22.5 million, with various expiration dates beginning August 31, 2030.
+Added: We record valuation allowances against deferred income tax assets when we determine that it is more likely than not that such deferred income tax assets will not be realized based upon all the available evidence.
+Added: The Company had valuation allowances of $ 6.4 million and $ 2.8 million at August 31, 2026 and 2025, respectively, related to foreign net operating losses and foreign tax credit carryforwards.
Unrecognized Tax Benefits
6 unchanged sentences
Additions based on tax positions related to the current year 6,068
+Added: Additions for tax positions related to prior years 11,726
Release for tax positions of prior years ( 3,557 )
8 unchanged sentences
Unrecognized tax benefits as of August 31, 2026
−Removed: (1) Additions for tax positions related to prior years was presented separately in fiscal 2025.
−Removed: Comparative figures for fiscal 2024 have been conformed.
−Removed: There were no such amounts in fiscal 2023.
−Removed: We do not currently anticipate that the total amount of unrecognized tax benefits will significantly change within the next 12 months.
We recognize accrued interest related to unrecognized tax benefits in our Provision for income taxes in the Consolidated Statements of Income.
1 unchanged sentence
As of fiscal 2026, 2025 and 2024, there were $ 23.2 million, $ 38.5 million and $ 29.1 million of unrecognized tax benefits that, if recognized, would affect the annual effective tax rate.
+Added: After the adoption of ASU 2023-09, the following table summarizes our cash paid for income taxes, net of refunds, for the year ended August 31, 2026:
+Added: (in thousands) As of August 31, 2026
+Added: federal $ 20,816
+Added: state and local:
+Added: New York City $ 10,397
+Added: All other U.S.
+Added: state and local 21,283
+Added: state and local $ 31,680
+Added: United Kingdom $ 56,399
+Added: All other Non-U.S.
+Added: Total Non-U.S.
+Added: Total cash paid for income taxes, net of refunds
+Added: Cash paid for income taxes, net of refunds, during the years ended August 31, 2025 and 2024 was $ 103.2 million and $ 157.0 million, respectively.
In the normal course of business, our tax filings are subject to audit by federal, state and foreign tax authorities.
5 unchanged sentences
Undistributed Foreign Earnings
−Removed: As of August 31, 2025 , we had $ 486.9 million of undistributed foreign earnings of which $ 69.1 million are permanently reinvested.
−Removed: It is our intent to permanently reinvest all foreign undistributed earnings, except in jurisdictions where earnings can be repatriated substantially free of tax.
−Removed: It is not practicable to determine the deferred tax liability that would be payable if these permanently reinvested earnings were repatriated to the U.S.
−Removed: With respect to outside basis differences other than unremitted earnings, we continue to be permanently reinvested and have no plans to liquidate or sell any foreign subsidiaries.
+Added: We consider a portion of the unremitted earnings of our foreign subsidiaries and outside basis differences not related to those earnings to be permanently reinvested, where applicable.
+Added: These unremitted earnings and outside basis differences could give rise to tax liabilities if ever remitted or if a foreign subsidiary was sold.
+Added: As of August 31, 2026, it is not practicable to determine the deferred tax liability associated with such earnings or basis differences.
In addition, we have not provided for deferred taxes on any outside basis differences of our domestic subsidiaries as we have the ability and intent to recover these basis differences in a tax-free manner.
−Removed: It is not practicable to determine the amount of unrecognized deferred tax related to these basis differences.
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.
−Removed: 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.
−Removed: We have determined that Pillar Two would not have a material impact to our Consolidated Financial Statements, related disclosures, or effective tax rate.
−Removed: However, the Pillar Two rules continue to evolve and their application may alter our tax obligations in certain countries in which we operate for fiscal 2026, and beyond, as we continue to assess the impact of tax legislation in these jurisdictions.
+Added: We have determined that Pillar Two would not have a material impact on our Consolidated Financial Statements, related disclosures, or effective tax rate.
+Added: As the Pillar Two rules continue to evolve, their application may alter our tax obligations in certain countries in which we operate.
+Added: We will continue to monitor developments and assess the potential impact of this tax legislation as further guidance becomes available.
One Big Beautiful Bill Act
On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was signed into law.
−Removed: 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.
+Added: The legislation includes a broad range of tax reform provisions affecting businesses including, but not limited to, 100% bonus depreciation, expensing of U.S.-based R&D costs, and changes to the U.S.
taxation of profits derived from international operations.
The legislation has multiple effective dates, with certain provisions effective in fiscal year 2025 and others implemented through fiscal year 2027.
−Removed: The Act did not have a material impact on the Company financial position and results of operations as of and for the fiscal year ended August 31, 2025 .
+Added: The Act did not have a material impact on the Company results of operations and financial position as of and for the fiscal year ended August 31, 2026 .
Our operating lease arrangements relate to our office space and data centers.
1 unchanged sentence
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 IBR.
−Removed: Certain adjustments to calculate our lease ROU assets may be required due to prepayments, lease incentives received and initial direct costs incurred.
+Added: The initial carrying value of our lease ROU assets may also be adjusted 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 SG&A expense) in our Consolidated Statements of Income.
As of August 31, 2026 , we recognized $ 113.3 million of Lease ROU assets, net and $ 172.4 million of combined Current lease liabilities and Long-term lease liabilities in the Consolidated Balance Sheets.
−Removed: Our leases have a remaining lease term ranging from less than one year to just over 10 years.
+Added: Our leases have remaining lease terms ranging from less than one year to just under 10 years.
Our lease agreements may include options to extend or terminate the lease, which would be included in the measurement of our lease term if it is reasonably certain that we will exercise the option.
36 unchanged sentences
(in thousands) Issuance Date Contractual Maturity Date August 31, 2026 August 31, 2025
−Removed: 2022 Term Facility (1)
−Removed: 3/1/2022 3/1/2025 $ — $ 125,000
−Removed: Unamortized debt issuance costs — ( 158 )
+Added: 2027 Notes 3/1/2022 3/1/2027 $ 500,000 $ —
+Added: Total unamortized discounts and debt issuance costs on Current debt (2)
Total Current debt $ 499,436 $ —
Long-term debt
−Removed: 2022 Revolving Facility (2)
−Removed: 3/1/2022 3/1/2027 $ — $ 250,000
2025 Term Facility (1)
+Added: 4/8/2025 8/28/2029 $ 375,000 $ 375,000
2027 Notes 3/1/2022 3/1/2027 — 500,000
4 unchanged sentences
$ 1,370,022 $ 1,368,260
−Removed: (1) The 2022 Term Facility was repaid in full on February 28, 2025.
−Removed: (2) The 2022 Revolving Facility was repaid in full and terminated on April 8, 2025.
−Removed: (3) Amount excludes the debt issuance costs related to the 2025 Revolving Facility which are presented within Other assets on the Consolidated Balance Sheets.
+Added: (1) On August 28, 2026, we amended the 2025 Credit Agreement.
+Added: Refer to 2025 Credit Agreement within this section below, for more information.
+Added: (2) 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, 2027 Notes and 2032 Notes.
+Added: For the 2025 Revolving Facility, debt issuance costs are presented within Other assets, as such, they are excluded from the table above.
As of August 31, 2026, annual maturities on our debt obligations, based on contractual maturity dates, were as follows:
1 unchanged sentence
Fiscal Years Ended August 31,
+Added: 2027 $ 500,000
Thereafter 500,000
1 unchanged sentence
2025 Credit Agreement
−Removed: 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").
−Removed: We used the proceeds from the 2025 Term Facility borrowing to repay the outstanding balance under the 2022 Revolving Facility (as defined below).
−Removed: The 2025 Credit Agreement also provides for a $ 1.0 billion senior unsecured revolving credit facility (the "2025 Revolving Facility").
+Added: On April 8, 2025, we entered into a credit agreement (the "2025 Credit Agreement") under which we borrowed $ 500.0 million under a senior unsecured term loan credit facility (the "2025 Term Facility") and obtained 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".
−Removed: The 2025 Term Facility matures on April 8, 2028, and the 2025 Revolving Facility matures on April 8, 2030.
−Removed: 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.
−Removed: We may seek additional commitments of up to $ 1.0 billion under the 2025 Revolving Facility from lenders or other financial institutions.
−Removed: 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.
−Removed: The 2025 Credit Facilities are not otherwise subject to any other mandatory repayments.
+Added: The 2025 Credit Facilities contain incremental provisions that permit us to seek additional commitments of up to $ 1.0 billion under the 2025 Credit Facilities from lenders or other financial institutions.
+Added: The 2025 Revolving Facility also 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.
+Added: We used the proceeds from the 2025 Term Facility borrowing to repay the outstanding balance under the 2022 Revolving Facility (as defined below).
+Added: On August 28, 2026, we entered into Amendment No.
+Added: 1 (the “Amendment Agreement”) to the 2025 Credit Agreement, which primarily (a) extended the maturity date of the 2025 Term Facility from April 8, 2028 to August 28, 2029, (b) extended the maturity date of the 2025 Revolving Facility from April 8, 2030 to August 28, 2031 and increased the revolving commitments by $ 500.0 million to a total of $ 1.5 billion without reducing the capacity under the incremental facilities provisions described
+Added: above, (c) removed the scheduled quarterly principal payment obligations with respect to the 2025 Term Facility and (d) removed the credit spread adjustment of 0.1 % for borrowings under the 2025 Credit Facilities.
+Added: Prior to the Amendment Agreement, the 2025 Term Facility was subject to scheduled quarterly principal payment obligations, commencing on August 31, 2025, with each quarterly principal payment equal to 1.25 % of the original principal amount of the 2025 Term Facility.
+Added: We satisfied all scheduled quarterly principal payments through the date of the Amendment Agreement.
+Added: The 2025 Credit Facilities are not otherwise subject to any mandatory repayments.
We may voluntarily prepay loans under the 2025 Credit Facilities at any time without premium or penalty.
−Removed: Prepayments of the 2025 Term Facility shall be applied to reduce the subsequent scheduled quarterly principal payments in direct order of maturity.
−Removed: During fiscal 2025, we repaid $ 125.0 million under the 2025 Term Facility.
−Removed: This included $ 68.8 million to satisfy all scheduled quarterly principal payments from loan inception through maturity, eliminating any future mandatory quarterly principal payment requirements.
−Removed: The remaining $ 56.2 million was made as a voluntary prepayment.
−Removed: From the effective date of the 2025 Revolving Facility through August 31, 2025, we have had no borrowings under the 2025 Revolving Facility.
−Removed: From the borrowing date through August 31, 2025, 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).
−Removed: 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.
−Removed: The commitment fee remained consistent at 0.1 % through August 31, 2025.
−Removed: Debt issuance costs related to the 2025 Credit Facilities were $ 3.4 million.
−Removed: 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.
−Removed: 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).
+Added: As of August 31, 2026, our outstanding debt under the 2025 Term Facility was $ 375.0 million and we had no outstanding borrowings under the 2025 Revolving Facility.
+Added: Subsequent to August 31, 2026, we borrowed $ 90.0 million under the 2025 Revolving Facility.
+Added: From the initial borrowing date of April 8, 2025 through the Amendment Agreement, 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).
+Added: Following the Amendment Agreement and from August 28, 2026 through August 31, 2026, outstanding borrowings under the Credit Facilities bore interest at a rate equal to the applicable one-month Term SOFR plus 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.
+Added: Interest on the 2025 Credit Facilities is currently payable on the last business day of each month, in arrears.
+Added: We continue to 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.
+Added: The commitment fee remained consistent at 0.1 % from April 8, 2025 through August 31, 2026.
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.
7 unchanged sentences
All other terms of the 2022 Credit Agreement remained unchanged.
−Removed: The 2022 Term Facility, originally due to mature on March 1, 2025, was repaid in full following $ 125.0 million of repayments made during the six months ended February 28, 2025.
−Removed: During fiscal 2025, we borrowed $ 305.0 million and repaid $ 555.0 million under the 2022 Revolving Facility.
−Removed: The 2022 Credit Agreement was terminated on April 8, 2025, concurrent with entering into the 2025 Credit Agreement.
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).
+Added: The 2022 Credit Agreement was terminated on April 8, 2025, concurrent with entering into the 2025 Credit Agreement.
+Added: 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").
+Added: The Senior Notes were issued pursuant to an indenture, dated as of March 1, 2022, by and between
+Added: 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").
+Added: Interest on the Senior Notes is payable semiannually in arrears on March 1 and September 1 of each year.
+Added: We may redeem the Senior Notes, in whole or in part, at any time at specified redemption prices, plus any accrued and unpaid interest.
+Added: 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
−Removed: We leverage interest rate swap agreements to manage our floating interest rate exposure with a fixed interest rate.
+Added: 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.
1 unchanged sentence
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 %.
−Removed: The notional amount of the 2025 Swap Agreement declines by $ 50.0 million on a quarterly basis beginning May 31, 2025 and matures on February 28, 2026.
−Removed: As of August 31, 2025, the notional amount of the 2025 Swap Agreement was $ 100.0 million.
+Added: The notional amount of the 2025 Swap Agreement declined by $ 50.0 million on a quarterly basis beginning May 31, 2025.
+Added: The 2025 Swap Agreement matured on February 28, 2026.
2024 Swap Agreement
8 unchanged sentences
Quantitative and Qualitative Disclosures About Market Risk , in this Annual Report on Form 10-K, for further discussion of our exposure to interest rate risk on our outstanding floating rate debt.
−Removed: 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").
−Removed: The Senior Notes were issued pursuant to an indenture, dated as of March 1, 2022, by and between us and U.S.
−Removed: 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").
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Interest on the Senior Notes is payable semiannually in arrears on March 1 and September 1 of each year.
−Removed: We may redeem the Senior Notes, in whole or in part, at any time at specified redemption prices, plus any accrued and unpaid interest.
−Removed: 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 Expense
4 unchanged sentences
Interest expense on outstanding debt $ 54,444 $ 57,749 $ 65,412
−Removed: $ 57,749 $ 65,412 $ 66,283
−Removed: (1) Interest expense on our outstanding debt includes the related amortization of debt issuance costs and debt discounts.
−Removed: Interest expense is net of the effects of our interest rate swap agreements.
+Added: Interest expense on our outstanding debt includes the related amortization of debt issuance costs and debt discounts, net of the effects related to any outstanding interest rate swaps.
+Added: The debt issuance costs for the 2025 Term Facility and 2025 Revolving Facility 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).
+Added: The debt discounts and debt issuance costs for the Senior Notes are amortized to Interest expense in the Consolidated Statements of Income over the contractual term of the debt, leveraging the effective interest method.
COMMITMENTS AND CONTINGENCIES
10 unchanged sentences
Purchase obligations represent our legally-binding agreements to purchase fixed or minimum quantities at determinable prices.
−Removed: As of August 31, 2025 and 2024, we had total purchase obligations with suppliers and vendors of approximately $ 352 million and $ 383 million, respectively.
−Removed: Our total purchase obligations as of August 31, 2025 and 2024 primarily related to hosting services, acquisition of data and, to a lesser extent, third-party software providers.
−Removed: We also have contractual obligations related to our lease liabilities and outstanding debt.
−Removed: Refer to Note 10, Leases and Note 11, Debt, for information regarding our lease commitments and outstanding debt obligations, respectively.
+Added: We had total purchase obligations with suppliers and vendors of approximately $ 360 million and $ 352 million, as of August 31, 2026 and 2025, respectively.
+Added: Our total purchase obligations as of August 31, 2026 primarily relate to the acquisition of data, hosting services, and, to a lesser extent, third-party software providers.
+Added: 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.
−Removed: Our 2025 Revolving Facility allows for the availability of up to $ 100.0 million in the form of letters of credit.
+Added: In addition, the 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.
−Removed: As of August 31, 2025 and 2024, we had $ 0.7 million and $ 0.4 million of standby letters of credit outstanding, respectively.
−Removed: No liabilities related to these arrangements are reflected in the Consolidated Balance Sheets.
+Added: No liabilities related to our outstanding letters of credit are reflected in the Consolidated Balance Sheets.
Refer to Note 10, Debt, for information regarding the 2025 Revolving Facility.
1 unchanged sentence
Legal Matters
−Removed: In the normal course of our business, we are, or may be, engaged in various legal proceedings, claims, litigation and regulatory proceedings.
−Removed: 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.
−Removed: While we cannot predict the outcome of these matters, based on information available at August 31, 2025, 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.
+Added: In the normal course of our business, we are engaged in various legal proceedings, claims, and litigation, and are from time to time subjected to government and regulatory proceedings, investigations, and inquiries.
+Added: In view of the uncertainty inherent in such 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 restrictions (if any) may be.
+Added: As a result, we cannot provide assurance that such outcomes will not have a material adverse effect on our consolidated financial position, results of operations, cash flows, business or competitive position.
+Added: Based on information available at August 31, 2026, management believes that the resolution of matters that are currently pending or asserted, individually or in the aggregate, will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.
+Added: As litigation or the process to resolve pending matters progresses, we will continue to review the latest information available and assess our ability to predict the outcome of such matters and the effects, if any, on our consolidated financial position, results of operations, cash flows, business or competitive position.
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.
12 unchanged sentences
2026 2025 2024
+Added: Shares Amount Shares Amount Shares Amount
Repurchases of common stock under the share repurchase program (1)
2,608,284 $ 643,961 684,960 $ 300,457 537,800 $ 235,235
−Removed: Total cost of common stock repurchased under the share repurchase program (1)
−Removed: $ 300,457 $ 235,235 $ 176,720
Repurchases of common stock to satisfy tax withholding requirements due upon vesting of stock-based awards 26,347 $ 6,936 35,791 $ 16,242 37,589 $ 16,659
−Removed: Total cost of repurchases of common stock to satisfy withholding requirements due upon vesting of stock-based awards $ 16,242 $ 16,659 $ 13,710
−Removed: (1) For fiscal 2025, 2024, and 2023, amount excludes a 1% excise tax of $ 3.0 million, $ 1.7 million and $ 0.9 million, respectively, on corporate stock repurchases required under the Inflation Reduction Act of 2022.
+Added: (1) In addition, we are subject to a 1% excise tax on corporate stock repurchases required under the Inflation Reduction Act of 2022 of $ 6.1 million, $ 3.0 million and $ 1.7 million for fiscal 2026, 2025 and 2024, 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.
−Removed: We suspended our share repurchase program beginning in the second quarter of fiscal 2022, with the exception of potential minor repurchases to offset dilution from grants of equity awards or repurchases to satisfy withholding tax obligations due upon the vesting of stock-based awards, to prioritize the repayment of debt under the 2022 Credit Facilities.
−Removed: We resumed our share repurchase program in the third quarter of fiscal 2023.
There is no defined number of shares to be repurchased over a specified timeframe through the life of our share repurchase program.
−Removed: On September 17, 2024, our Board of Directors authorized up to $ 300 million for share repurchases during fiscal 2025.
−Removed: This authorization expired upon the conclusion of fiscal 2025 and was not available for share repurchases after that date.
−Removed: On June 17, 2025, our Board of Directors authorized up to $ 400 million for share repurchases on or after September 1, 2025 through September 30, 2026.
+Added: On June 17, 2025, our Board of Directors authorized up to $ 400 million for share repurchases on or after September 1, 2025.
+Added: 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.
+Added: The additional authorization also removed the expiration date from the June 17, 2025 authorization.
+Added: As of August 31, 2026, $ 356.0 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.
29 unchanged sentences
Accumulated unrealized gains (losses) on cash flow hedges, net of tax $ ( 858 ) $ 2,143
+Added: Accumulated post-employment benefit obligations, net of tax ( 5,748 ) —
Accumulated foreign currency translation adjustments ( 71,849 ) ( 65,891 )
17 unchanged sentences
Stock options
+Added: 1,599 791 381
Restricted Stock Awards
STOCK-BASED COMPENSATION
−Removed: Our stock-based compensation expense consists of stock options, RSUs, PSUs and purchases of common stock under the ESPP.
+Added: Our stockholders approved the FactSet Research Systems Inc.
+Added: 2025 Omnibus Incentive Plan (the "Omnibus Plan") on December 18, 2025.
+Added: The Omnibus Plan replaced both the FactSet Research Systems Inc.
+Added: Stock Option and Award Plan, as Amended and Restated and the FactSet Research Systems Inc.
+Added: Non-Employee Directors’ Stock Option and Award Plan, as Amended and Restated.
+Added: On September 1, 2025, the FactSet Research Systems Inc.
+Added: 2025 Employee Stock Purchase Plan replaced the FactSet Research Systems Inc.
+Added: 2008 Employee Stock Purchase Plan, as Amended and Restated.
+Added: Our stock-based compensation expense consists of:
+Added: (i) stock options, (ii) PSOs issued to our CEO, (iii) RSUs, (iv) PSUs, and (v) common stock purchased by eligible employees under our ESPP.
Stock-based Compensation Expense
8 unchanged sentences
Stock Option Awards
−Removed: A summary of stock option activity is as follows:
+Added: A summary of stock option activity for employee and non-employee directors is as follows:
Number Outstanding (thousands)
Weighted Average
−Removed: Exercise Price Per Share Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (millions) (1)
+Added: Exercise Price Per Share Aggregate Intrinsic Value (millions) (1)
Weighted Average Remaining Contractual Life (years)
1 unchanged sentence
Granted – employees 233 $ 261.59
−Removed: Granted – non-employee directors 5 $ 428.70 $ 128.84
−Removed: Exercised (2)
−Removed: ( 318 ) $ 181.67
−Removed: Forfeited ( 56 ) $ 373.04
−Removed: Outstanding as of August 31, 2023 1,988 $ 285.95
−Removed: Granted – employees 243 $ 436.61 $ 132.59
−Removed: Granted – non-employee directors 6 $ 462.23 $ 132.78
−Removed: Exercised (2)
−Removed: ( 376 ) $ 213.62
−Removed: Forfeited ( 38 ) $ 404.47
−Removed: Outstanding as of August 31, 2024 1,823 $ 319.07
−Removed: Granted – employees 203 $ 459.17 $ 133.21
+Added: Granted – CEO PSOs (2)
Granted – non-employee directors (3)
8 unchanged sentences
(1) The aggregate intrinsic value represents the difference between our closing stock price as of August 31, 2026 of $ 313.55 and the exercise price, multiplied by the number of options exercisable as of that date.
+Added: (2) Reflects a one-time grant of PSOs to our CEO.
+Added: Refer to CEO Performance Stock Option Awards within this section below, for more information.
+Added: (3) The non-employee directors weighted average grant date fair value of stock options granted during fiscal 2026, 2025 and 2024 was $ 69.88 , $ 144.90 and $ 132.78 , respectively.
(4) The total pre-tax intrinsic value of stock options exercised during fiscal 2026, 2025 and 2024 was $ 9.2 million, $ 66.5 million and $ 89.5 million, respectively.
−Removed: (3) As of August 31, 2025, 1,685,011 shares underlying the stock option awards were unvested and outstanding, resulting in unamortized stock-based compensation expense of $ 48.4 million that is expected to be recognized over the remaining weighted average vesting period of 2.9 years.
+Added: (5) As of August 31, 2026, 908,564 of our total outstanding stock options were unvested, resulting in unamortized stock-based compensation expense of $ 52.5 million that is expected to be recognized over the remaining weighted average vesting period of 2.4 years.
During fiscal 2026, 2025 and 2024, the total fair value of stock options vested was $ 25.1 million, $ 23.2 million and $ 20.5 million, respectively.
Employee Stock Option Awards
−Removed: 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 under the LTIP in each fiscal year.
−Removed: The following table presents the weighted average inputs used in the binomial model to estimate the grant-date fair value of the employee stock options granted:
+Added: 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.
+Added: The following table presents the weighted average inputs used in the lattice model to estimate the grant-date fair value of the employee stock options granted:
2026 2025 2024
7 unchanged sentences
Dividend yield 1.38 % 0.95 % 0.90 %
+Added: Weighted Average Grant Date Fair Value $ 75.40
(1) Includes the annual employee grant on November 3, 2025, November 1, 2024 and November 1, 2023 of 213,811 , 200,693 and 242,371 stock options, respectively.
−Removed: The majority of the stock options granted, including the annual employee grants, vest 20 % annually on the anniversary date of the grant and are fully vested after five years , expiring ten years from the date of grant.
+Added: The majority of the stock options granted during fiscal 2026, including the annual employee grant, vest 25 % annually on the anniversary date of the grant and are fully vested after four years , expiring ten years from the date of grant.
+Added: The majority of the stock options granted during fiscal 2025 and 2024, including the annual employee grants, vest 20 % annually on the anniversary date of the grant and are fully vested after five years , expiring ten years from the date of grant.
+Added: CEO Performance Stock Option Awards
+Added: On September 22, 2025, we granted PSOs to our CEO, as part of his May 28, 2025 employment agreement.
+Added: 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.
+Added: Options are not exercisable before the third anniversary of the grant date.
+Added: These options expire 10 years from the grant date.
+Added: We used the Monte Carlo model to estimate the grant date fair value of the September 22, 2025 CEO PSO grant.
+Added: The following table presents the grant information and model assumptions:
+Added: CEO PSO Grant
+Added: Employee Grant Details September 22, 2025
+Added: Stock options granted 297,902
+Added: Grant Date Fair Value $ 73.85
+Added: Risk-free interest rate 4.08 %
+Added: Expected volatility 24.72 %
+Added: Dividend yield 0.90 %
+Added: Expected life (years) 5.00
Restricted Stock Awards
−Removed: A summary of Restricted Stock Award activity is as follows:
+Added: A summary of Restricted Stock Award activity for employee and non-employee directors is as follows:
(in thousands, except per award data) Number Outstanding Weighted Average Grant
2 unchanged sentences
Granted – employee Restricted Stock Awards (1)(2)
−Removed: Performance adjustment – employee PSUs (2)
Granted – non-employee directors RSUs (2)
( 72 ) $ 419.81
−Removed: Forfeited ( 14 ) $ 369.71
−Removed: Balance at August 31, 2023 244 $ 381.15
−Removed: Granted – employee Restricted Stock Awards (1)
−Removed: Performance adjustment – employee PSUs (2)
−Removed: Granted – non-employee directors RSUs 2 $ 458.23
( 43 ) $ 370.75
−Removed: Forfeited ( 14 ) $ 405.37
−Removed: Balance at August 31, 2024 262 $ 412.47
−Removed: Granted – employee Restricted Stock Awards (1)
−Removed: Performance adjustment – employee PSUs (2)
−Removed: Granted – non-employee directors RSUs
−Removed: ( 89 ) $ 403.43
−Removed: ( 17 ) $ 420.83
Outstanding as of August 31, 2026 (4)
−Removed: (1) During fiscal 2025, 2024 and 2023, we granted 92,840 RSUs and 34,479 PSUs;
−Removed: 74,456 RSUs and 37,008 PSUs;
−Removed: and 63,009 RSUs and 34,482 PSUs, respectively.
−Removed: (2) Additional PSUs were granted during fiscal 2025, 2024 and 2023 based on performance above the specified target level of achievement for PSUs granted on November 1, 2021, November 9, 2020 and November 1, 2019, respectively.
−Removed: (3) As of August 31, 2025, 292,716 shares underlying the Restricted Stock Awards were unvested and outstanding, which resulted in unamortized stock-based compensation expense of $ 70.9 million that is expected to be recognized over the remaining weighted average vesting period of 2.9 years.
+Added: (1) During fiscal 2026, we granted 260,534 RSUs and 65,717 PSUs.
+Added: (2) The employee Restricted Stock Awards weighted average grant date fair value granted during fiscal 2026, 2025 and 2024 was $ 257.12 , $ 444.30 and $ 423.57 , respectively.
+Added: The non-employee directors RSUs weighted average grant date fair value granted during fiscal 2026, 2025 and 2024 was $ 285.16 , $ 449.72 and $ 458.23 , respectively.
(3) During fiscal 2026, 2025 and 2024, the total fair value of RSUs vested was $ 24.8 million, $ 21.7 million and $ 17.7 million, respectively, and for PSUs vested was $ 5.8 million, $ 14.4 million and $ 13.6 million, respectively.
+Added: (4) As of August 31, 2026, 508,581 Restricted Stock Awards were unvested and outstanding, which resulted in unamortized stock-based compensation expense of $ 94.7 million that is expected to be recognized over the remaining weighted average vesting period of 2.6 years.
Employee Restricted Stock Awards
−Removed: 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 under the LTIP in each fiscal year.
+Added: 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 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.
−Removed: The majority of the RSUs granted vest 20 % annually on the anniversary date of the grant and are fully vested after five years .
+Added: 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.
+Added: The majority of the RSUs granted during fiscal 2026 vest 25 % annually on the anniversary date of the grant and are fully vested after four years , while the majority of the RSUs granted in fiscal 2025 and 2024 vest 20 % annually over five years .
The majority of the PSUs granted cliff vest on the third anniversary of the grant date.
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.
−Removed: The achievement range was 0 % to 200 % for the November 1, 2024 and November 1, 2023 annual grants and 0 % to 150 % for the November 1, 2022 annual grant.
+Added: The achievement range was 0 % to 200 % for the November 3, 2025, November 1, 2024 and November 1, 2023 annual grants.
Stock-based Awards Available for Grant
−Removed: As of August 31, 2025, we had 3.3 million employee stock-based awards available for grant under the LTIP and 0.2 million non-employee director stock-based awards available for grant under the Director Plan.
−Removed: In accordance with the LTIP and Director Plan, each Restricted Stock Award 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.
+Added: On December 18, 2025, the Omnibus Plan authorized an additional 1.8 million shares available for grant.
+Added: As of August 31, 2026, we had 4.2 million shares available for future awards to employees and non-employee directors.
EMPLOYEE BENEFIT PLANS
11 unchanged sentences
(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.
−Removed: Our Chief Executive Officer functions as our CODM.
+Added: Our CEO functions as our CODM.
We have three operating segments:
8 unchanged sentences
Segment revenues reflect sales to our clients based on the geographic region where the sale originated.
−Removed: Each segment records expenses related to its individual operations with the exception 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.
−Removed: 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 by each segment.
+Added: While each segment records expenses related to its individual operations, the majority of our data centers, third-party data costs and corporate headquarters charges are recorded by the Americas segment and are not allocated to the other segments.
+Added: 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.
54 unchanged sentences
Geographic Information
−Removed: The following tables reflect our revenues and long-lived assets, split geographically by our country of domicile (the United States) and other countries where major subsidiaries are domiciled.
+Added: The following tables reflect our revenues and long-lived assets, split geographically by our country of domicile (the U.S.) and other countries where major subsidiaries are domiciled.
Geographic Revenues
4 unchanged sentences
United Kingdom 242,584 231,009 221,850
−Removed: Other European Countries 349,275 341,278 316,034
All other countries (1)
+Added: 717,565 674,875 640,856
Total revenues
$ 2,476,256 $ 2,321,748 $ 2,203,056
+Added: (1) Geographic revenues for Other European Countries were combined with All other countries in fiscal 2026.
+Added: We conformed the comparative prior year figures to the current year presentation.
Geographic Long-Lived Assets
−Removed: The following table sets forth long-lived assets by geographic area.
−Removed: Long-lived assets consist of PPE, net and Lease ROU assets, net and excludes goodwill, intangible assets, deferred taxes and other assets.
+Added: The following table sets forth long-lived assets by geographic area, which consist of PPE, net and Lease ROU assets, net.
(in thousands) August 31,
2 unchanged sentences
Philippines 28,598 38,572
−Removed: India 19,482 22,159
United Kingdom 33,933 16,869
All other countries (1)
+Added: 42,151 47,993
Total long-lived assets $ 192,521 $ 206,979
+Added: (1) India long-lived assets were combined with All other countries in fiscal 2026.
+Added: We conformed the comparative prior year figures to the current year presentation.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.