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FDSFactSet

Financials · Internet & Software Services · NYSE
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The 10-K against last year's

160 changes: 37 added, 27 removed, 95 reworded, 1 quiet changes

10-K Oct 20, 2026 vs Oct 22, 2025
Risk FactorsRedline ↓
28.9%
of the text changed · 9,766 words now
28.9%
of the text changed · 8,798 words now
Legal ProceedingsRedline ↓
13.1%
of the text changed · 835 words now
Accounting PoliciesRedline ↓
15.4%
of the text changed · 4,647 words now

10-K 0001628280-26-066391 (2026-10-20) vs 10-K 0001628280-25-045769 (2025-10-22)

The redline

The paragraph that changed most in each section

Marked against last year's 10-K: cut words struck through, new words highlighted and underlined.

MD&A 220 words changed in this paragraph; it is 46% similar to last year's version.
Years ended August 31, (in thousands, except per share data) 2026 2025 2024 % Change Operating income $ 699,957 $ 748,303 $ 701,299 6.7% (6.5)% Intangible asset amortization 76,205 73,036 67,383 Restructuring/severance 46,200 259 CEO onboarding costs(1) 19,521 1,675 Business divestiture, disposition, acquisitions and related costs 8,255 17,761 884 India Labor Codes Reform 2,883 — Asset impairment 887 — Client bankruptcy charges 750 — Litigation reserve 650 — Sales Tax Dispute(1) Dispute(2) — 2,398 54,048 Executive search costs 1,675 — Restructuring/severance 259 5,596 Asset impairment — 3,443 Adjusted operating income $ 855,308 $ 843,432 $ 832,653 1.3% 1.4% Operating margin 28.3 % 32.2 % 31.8 % Adjusted operating margin(2) margin(3) 34.5 % 36.3 % 37.8 % Net income $ 533,481 $ 597,040 $ 537,126 11.2% (10.6)% Intangible asset amortization 58,762 54,074 49,529 Restructuring/severance 35,625 192 CEO onboarding costs(1) 15,053 1,240 Impairment within Other assets(4) 12,338 — Business disposition, acquisitions and related costs 6,365 13,150 India Labor Codes Reform 2,223 — Asset impairment 684 — Client bankruptcy charges 578 — Litigation reserve 501 — Sales Tax Dispute(2) — 1,775 Gain on business divestiture — (17,205) Gain on sale of investments (5,015) — Business divestiture, acquisitions and related costs 13,150 650 Sales Tax Dispute(1) 1,775 39,727 Executive search costs 1,240 Non-operating income from business disposition (604) — Restructuring/severance 192 4,113 Asset impairment — 2,531 Income tax items (493) 1,351 1,397 Adjusted net income(3) income(5) $ 659,498 $ 651,617 $ 635,073 2.6% Net income $ 597,040 $ 537,126 11.2% Interest expense 56,324 65,778 Income taxes 123,918 114,377 Depreciation and amortization expense 157,691 125,187 EBITDA $ 934,973 $ 842,468 11.0% Non-recurring non-cash expenses — 5,070 Adjusted EBITDA $ 934,973 $ 847,538 10.3% Diluted EPS $ 15.55 $ 13.91 11.8% Intangible asset amortization 1.41 1.27 Gain on business divestiture (0.45) — Business divestiture, acquisitions and related costs 0.34 0.02 Sales Tax Dispute(1) 0.05 1.03 Executive search costs 0.03 — Restructuring/severance 0.01 0.11 Asset impairment — 0.07 Income tax items 0.04 0.04 Adjusted Diluted EPS(3) $ 16.98 $ 16.45 3.2% Weighted average common shares (diluted) 38,385 38,618 1.2%

Source: Item 7, 10-K 0001628280-26-066391 vs Item 7, 10-K 0001628280-25-045769

Risk Factors 191 words changed in this paragraph; it is 62% similar to last year's version.
We use, and are expanding our use of, machine learning and AI technologies in our products and processes. If we fail to keep pace with rapidly evolving AI technological developments, or fail to launch products that are competitive, our competitive position and business results may be negatively impacted. If our competitors or other third parties incorporate AI technologies, such as emerging generative and agentic AI, into their products and processes more quickly or more successfully than us, this could impair our ability to compete effectively. Our use of AI technologies, including generative and agentic AI, requires resources to develop, test and maintain such products, which is costly. Despite our investments in, and commitment of resources to, the development of AI products and technologies, we may not be successful in generating revenues from these efforts. In addition, third parties may be able to use AI to create technology that could reduce demand for our products and services. Even where our AI-enabled products and services are adopted, we may be unable to monetize them profitably. The cost of developing, delivering and operating AI capabilities — including model licensing, inference and compute costs and the consumption of AI tokens — can be significant and variable, and has increased as we expand our use of AI. Our historical pricing has been based substantially on subscription and user-based models, and our efforts to introduce consumption-, usage- or outcome-based pricing that better aligns the price of our AI-enabled offerings with their underlying cost and value may not succeed or may not be accepted by clients. If client adoption or usage of our AI features exceeds our expectations, or if we are unable to accurately forecast usage, price our offerings appropriately, or pass through the associated costs, our AI-related costs may exceed the revenues these offerings generate, and increased usage could adversely affect our margins. Conversely, if adoption develops more slowly than anticipated, we may be unable to recover our AI investments within the timeframe we expect, or at all. Any of the foregoing could adversely affect our profitability, margins and results of operations.

Source: Item 1A, 10-K 0001628280-26-066391 vs Item 1A, 10-K 0001628280-25-045769

Accounting Policies 142 words changed in this paragraph; it is 40% similar to last year's version.
In December 2023, September 2025, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Accounting Standards Update ("ASU") 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Targeted Improvements to Income Tax Disclosures. the Accounting for Internal-Use Software. This ASU enhances annual income tax disclosures primarily related removes all references to our effective tax rate reconciliation prescriptive and income taxes paid. sequential software development stages, and requires entities to start capitalizing eligible software costs when management has authorized and committed to funding the software project and it is probable that the project will be completed and the software will be used to perform the function intended. The amendments in this ASU are to can be applied prospectively, although using a prospective, modified, or retrospective application is permitted, transition approach, and are effective for our interim and annual financial statements periods starting in fiscal 2026. 2029. Early adoption is permitted. This ASU is not expected to have a material impact on our Consolidated Financial Statements. permitted at the beginning of an annual period. We are currently assessing the impact of the new requirements on our Consolidated Financial Statements and disclosures.

Source: Item 8, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001628280-26-066391 vs Item 8, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001628280-25-045769

Legal Proceedings 127 words changed in this paragraph; it is 61% similar to last year's version.
In the normal course of our business, we are, or may be, are engaged in various legal proceedings, claims, litigation and litigation, and are from time to time subjected to government and regulatory proceedings. proceedings, investigations, and inquiries. In view of the uncertainty inherent in litigation and regulatory 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) restrictions may be. While As a result, we cannot predict the outcome provide assurance that such outcomes will not have a material adverse effect on our consolidated financial position, results of these matters, based operations, cash flows, business or competitive position. Based on information available at August 31, 2025, our 2026, management believes that the ultimate outcome resolution of these unresolved matters against us, that are currently pending or asserted, 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. 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.

Source: Item 3, via Note 11 – COMMITMENTS AND CONTINGENCIES, 10-K 0001628280-26-066391 vs Item 3, via Note 12 – COMMITMENTS AND CONTINGENCIES, 10-K 0001628280-25-045769

Every change, by type

Sentences and paragraphs added, removed or reworded

Sentences and paragraphs of FDS's Risk Factors and MD&A, 10-K 2026-10-20 against 10-K 2025-10-22. Each links to the text at sec.gov.

AddedRisk Factors
Cyber-attacks continue to evolve in sophistication, frequency and volume, including as threat actors exploit generative and agentic AI to discover and exploit vulnerabilities at unprecedented speed and scale, and may be difficult to detect for long periods of time. Our protective measures, and those of the third parties to which we are connected, may not be effective, and a failure by our clients or third-party providers to notify us of an incident in a timely manner could delay our response and increase the resulting harm. As a result, we may not be able to anticipate, prevent or detect all attacks, and we are exposed to heightened risks of cyber-attacks or other security incidents. In addition, future advances in computing, including quantum computing, could weaken or render obsolete the encryption and other security measures on which we and our third parties rely, including through the potential future decryption of data captured today.

Read it in 10-K 2026-10-20 at sec.gov ↗

AddedRisk Factors
Our business, and in particular our growth and our increasing use of AI, depends on access to data center capacity, power and computing resources, including specialized hardware, whether provided through our own facilities or, increasingly, through third-party cloud and data center providers. Demand for these resources has grown rapidly across the industry, driven in significant part by AI, and has contributed to constrained availability and rising costs. As our needs increase, we may be unable to procure sufficient capacity, power or computing resources when needed, in the locations we require, or on commercially acceptable terms, and we may face increased costs, delays in deploying new products and capabilities, or constraints on our ability to scale. Any of the foregoing could adversely affect our operations, margins and our ability to execute our strategy, and could have a material adverse effect on our business, financial condition or results of operations.

Read it in 10-K 2026-10-20 at sec.gov ↗

AddedRisk Factors
design, deploy and operate common, globally consistent AI systems, products and controls, and may require us to develop jurisdiction-specific approaches, restrict or delay the availability of certain AI capabilities in certain jurisdictions, or incur significant compliance costs. Because AI technology is highly complex and rapidly developing, it is not possible to predict all of the legal, operational or technological risks that may arise relating to our use of AI. Any of these issues could materially adversely affect our business, financial condition or results of operations.

Read it in 10-K 2026-10-20 at sec.gov ↗

AddedRisk Factors
AI technologies used in our products and processes may use or incorporate data from third-party sources, including information they input into the AI tools, which may expose us to risks associated with data rights and protection, such as risks associated with infringing, misappropriating or otherwise violating others’ intellectual property rights, and we may also be unable to protect our data from unintended use or access by third-party AI systems. Our ability to develop, commercialize and scale AI-enabled products and services depends in significant part on our ability to obtain and maintain sufficient rights to use data, including our own proprietary data, data licensed from third-party suppliers, and data contributed by or relating to our clients, for the training, fine-tuning, grounding, retrieval and output-generation functions of AI models and applications. If we are unable to secure data rights on commercially reasonable terms and at the scale required, we may be unable to fully realize the anticipated benefits of, or generate the expected revenues from, our investments in AI, our AI-enabled offerings may be delayed, constrained or rendered less competitive, and we may be exposed to claims of infringement, misappropriation or breach of contract, any of which could have a material adverse effect on our business, financial condition or results of operations.

Read it in 10-K 2026-10-20 at sec.gov ↗

AddedRisk Factors
We are rapidly expanding the use of AI technologies, including generative and agentic AI, across our products, internal systems and business processes. The pace of adoption may outpace the maturity of our governance, controls and oversight. If AI tools are adopted inconsistently or in a decentralized manner across our business, or are used outside of our established governance frameworks and approved environments, we may be exposed to increased operational, security, legal, regulatory and reputational risk.

Read it in 10-K 2026-10-20 at sec.gov ↗

AddedRisk Factors
The introduction of agentic AI, which can take autonomous actions across systems, may create new attack surfaces and novel security vulnerabilities that our existing controls were not designed to address. Our policies, controls and monitoring may not keep pace with the rapid evolution of these technologies or with emerging legal and regulatory requirements. Any failure to establish and enforce effective AI governance could result in security incidents, regulatory scrutiny or enforcement, litigation, harm to our reputation and client relationships, and could otherwise have a material adverse effect on our business, financial condition or results of operations.

Read it in 10-K 2026-10-20 at sec.gov ↗

Show the other 16
AddedRisk Factors
We are undergoing significant organizational change and transformation, and our failure to execute these initiatives effectively could disrupt our business and adversely affect our results

Read it in 10-K 2026-10-20 at sec.gov ↗

AddedRisk Factors
We are undertaking a number of significant organizational, operational and strategic transformation initiatives, including changes to our organizational structure, reporting lines, leadership, product development organization, go-to-market approach, pricing models, and technology and data operations, as well as ongoing investment in AI. These initiatives are complex, are being pursued concurrently, and place substantial demands on management attention and on our workforce. In fiscal 2026, we appointed a new Chief Executive Officer, Chief Financial Officer, Chief People and Workforce Transformation Officer and Chief Technology Officer, among other leadership changes. Significant management transitions of this kind, particularly when they occur concurrently and alongside broader organizational change, involve inherent risk. Such transitions can be disruptive, may result in the loss of institutional or technical knowledge, may affect strategic continuity, execution and decision-making, and may take time to yield their intended benefits. Undertaking too many changes simultaneously, or failing to sequence, resource, prioritize or communicate them effectively, could overwhelm our capacity to execute, disrupt our ongoing business operations, degrade product quality, delivery or client service, and divert resources from revenue-generating activities.

Read it in 10-K 2026-10-20 at sec.gov ↗

AddedRisk Factors
Transformation of this scale may also adversely affect employee morale, engagement and retention, including the potential loss of personnel with critical institutional or technical knowledge, and may strain our culture. The costs and disruption associated with these initiatives may be greater than anticipated, and the anticipated benefits, efficiencies or growth may not be realized on the expected timeframe or at all. Any of the foregoing could have a material adverse effect on our business, financial condition or results of operations.

Read it in 10-K 2026-10-20 at sec.gov ↗

AddedMD&A
revenues. The increase in revenues was primarily from data solutions and workstations, partially offset by a decrease in revenues due to the disposition.

Read it in 10-K 2026-10-20 at sec.gov ↗

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

Read it in 10-K 2026-10-20 at sec.gov ↗

AddedMD&A
•Employee compensation costs increased 220 basis points, primarily due to higher variable compensation costs and stock-based compensation expense mainly due to the recognition, over their respective service periods, of the one-time cash bonus and equity awards granted to our CEO pursuant to the terms of his employment agreement. In addition, variable compensation costs increased mainly due to financial achievement against targets.

Read it in 10-K 2026-10-20 at sec.gov ↗

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

Read it in 10-K 2026-10-20 at sec.gov ↗

AddedMD&A
(1)For fiscal 2026, these costs are related to the recognition, over their respective service periods, of one-time make-whole cash and equity awards issued to our CEO pursuant to the terms of his employment agreement.

Read it in 10-K 2026-10-20 at sec.gov ↗

AddedMD&A
(6)Primarily related to the impairment of certain equity investments and the recognition, over their respective service periods, of one-time equity awards issued to our CEO.

Read it in 10-K 2026-10-20 at sec.gov ↗

AddedMD&A
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. These unremitted earnings and outside basis differences could give rise to tax liabilities if ever remitted or if a foreign subsidiary was sold. 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.

Read it in 10-K 2026-10-20 at sec.gov ↗

AddedMD&A
On August 28, 2026, we entered into Amendment No. 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 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.

Read it in 10-K 2026-10-20 at sec.gov ↗

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