Adjusted EPS was $1.82 against the analysts’ average estimate of $1.79, so it beat that estimate by 1.7%. Revenue was $295.7 million for Q3 2026, which rose 18.6% year on year.
Source: SEC EDGAR XBRL company facts. Latest period shown: FY26 Q3.
View chart data
| Period | Revenue growth, TTM YoY | Operating margin (TTM) | FCF margin (TTM) |
|---|---|---|---|
| FY24 Q4 | 28.0% | 17.1% | 23.4% |
| FY25 Q1 | 22.7% | 16.4% | 22.2% |
| FY25 Q2 | 19.5% | 16.2% | 21.4% |
| FY25 Q3 | 18.9% | 14.6% | 23.4% |
| FY25 Q4 | 19.7% | 16.1% | 25.1% |
| FY26 Q1 | 20.7% | 17.1% | 23.6% |
| FY26 Q2 | 20.7% | 17.5% | 25.9% |
| FY26 Q3 | 20.0% | 18.8% | 25.9% |
Against expectations
The company beat the analysts’ average estimate in 4 of the last eight reported quarters.
How the quarter compares
Growth is coming with wider margins, so profit is rising faster than sales. Revenue growth in 6 of the previous eight quarters was faster than this quarter’s. Over the trailing twelve months, revenue grew 20.0%, a growth rate down 0.7 percentage points on the previous quarter’s trailing figure, and the trailing operating margin was 18.8%, up 4.2 percentage points from a year earlier. Free cash flow over the trailing twelve months was $282.1 million, up 33.3% on the year before. Free cash flow was 25.9% of revenue over the same period (the free-cash-flow margin).
Guidance
The company raised its fiscal year 2026 guidance for full year revenue to a range of $1.12 billion to $1.13 billion. The company gave its fiscal year 2026 guidance for full year non-gaap operating margin (adjusted) of 26.5% to 27.5%. The company gave its full year guidance for diluted weighted average shares outstanding of 36.
The market reaction
The shares fell 3.0% in the session after the release, while the S&P 500 fell 1.7%. The typical results-day move for the stock, measured over previous reports, is 10.0%. The results release does not say why the shares moved.
The valuation angle
Our model translates these figures into value. Fundamentalytics’ base-case value is $240.00 per share, against a share price of $214.32 used on the release date. This is our model, not the company’s. In our model, growth 5 percentage points lower would lower the value by 23.3%, and 5 percentage points higher would raise it by 29.8%. Alongside that, a discount rate 1 percentage point higher would lower the value by 15.7%.
What to watch
The next filing will show whether the trends above continue, slow or reverse.
