Two companies met our criteria from the two 10-K annual reports filed with the SEC on 20 October 2026. To qualify, a company must have filed an annual 10-K report on the target date and have a prior-year 10-K available for a direct year-over-year comparison.
SEC What Changed Methodology
Each company is scored on how similar its current annual filing text is to the prior year. Scores run from 0 to 1 — a score of 1 means the language is essentially unchanged; a lower score means more has changed. We flag three sections that carry the most disclosure signal: Business, Risk Factors, and MD&A. Recent research suggests that lower scores indicate that a company has made significant changes to their filings, these changes are often buried in the filings. If a company was to report positive news, they would likely do so in the form of a press release or statement on their website. The large changers have often underperformed in the market, while the stable-language filers have earned positive abnormal returns.
Key Takeaways
- Penguin Solutions, Inc. (Medium) — Penguin Solutions has finished its SMART Brazil exit and is now positioning the company more squarely around AI and HPC demand.
- FACTSET RESEARCH SYSTEMS INC (Medium) — FactSet is still growing recurring revenue, but the filing shows a sharper push into AI alongside a meaningful near-term margin hit from restructuring and compensation costs.
Ranking Table
| Rank | Company | CIK | Full Filing Similarity | Business Similarity | Risk Factors Similarity | MD&A Similarity | Most Changed Section | Assessment |
|---|---|---|---|---|---|---|---|---|
| 1 | Penguin Solutions, Inc. | 1616533 | 0.997 | 0.99 | 0.977 | 0.888 | MD&A | medium |
| 2 | FACTSET RESEARCH SYSTEMS INC | 1013237 | 0.997 | 0.984 | 0.984 | 0.997 | Risk Factors | medium |
Penguin Solutions, Inc.
| Rank | 1 |
|---|---|
| Lowest similarity section | MD&A |
| Assessment | medium |
| SEC filings | 2026 10-K HTML/iXBRL (SEC page, raw text) | 2025 10-K HTML/iXBRL (SEC page, raw text) |
Penguin Solutions says it has now fully exited SMART Brazil after selling the remaining 19% stake, so the business is no longer part of the company’s operating footprint. At the same time, management is leaning harder into AI-driven demand, especially in Advanced Computing and higher-performance memory products. The update signals a cleaner portfolio and a more focused growth story tied to AI infrastructure spending.
Main Changes
- The company added that on March 30, 2026 it "sold our remaining 19% interest in SMART Brazil," which had been renamed Zilia Technologies, and said this completed the divestiture of the business.
- MD&A now says Advanced Computing is driven by demand for "AI and HPC products" and adds expectations for broader AI adoption, including "neocloud and sovereign AI adoption" across more end markets.
- The Integrated Memory discussion now emphasizes demand for higher-density, higher-bandwidth solutions for AI deployments and specifically cites its "CXL family of products" as a growth driver.
- The filing also updates the risk discussion to reflect that future results are tied to continuing operations only, after the SMART Brazil exit is fully completed.
Watch Items
- Full exit from SMART Brazil removes a legacy distraction and should make reported results easier to read, but it also means the company is now more concentrated in its remaining businesses.
- The stronger AI and HPC framing suggests management sees demand tailwinds in Advanced Computing and memory, which could support growth if enterprise adoption keeps broadening.
- The explicit mention of neocloud and sovereign AI points to a more targeted go-to-market strategy, but execution will depend on timing of customer deployments.
Important Filing Changes
No passage was both new or reworded and material enough to quote, so no excerpt is shown for this filing.
FACTSET RESEARCH SYSTEMS INC
| Rank | 2 |
|---|---|
| Lowest similarity section | Risk Factors |
| Assessment | medium |
| SEC filings | 2026 10-K HTML/iXBRL (SEC page, raw text) | 2025 10-K HTML/iXBRL (SEC page, raw text) |
FactSet broadened its positioning from a financial data platform to an AI solutions provider and added more explicit coverage of banking, wealth, and advisory workflows. At the same time, the company disclosed weaker margins in fiscal 2026 because of restructuring charges, higher variable pay, and one-time CEO compensation costs. Revenue and recurring subscription metrics still grew, but profitability took a step back.
Main Changes
- The company now describes itself as a "global data and AI solutions provider" and says its platform includes "AI solutions" and "MCP servers," replacing the prior wording that emphasized a "financial digital platform" and "AI-powered technologies."
- FactSet expanded its customer and workflow description to include "dealmaking and advisory workflows," banking solutions, wealth solutions, and market infrastructure participants, signaling a broader product and end-market framing than the prior year.
- The fiscal 2026 review adds that operating margin fell to 28.3% from 32.2% because of higher employee compensation costs, including "restructuring charges," higher variable compensation, and "one-time CEO compensation costs."
- The company says headcount declined 2.8% year over year, "primarily due to restructuring and reduced hiring," whereas the prior year described headcount growth.
Watch Items
- The new emphasis on AI solutions and MCP servers suggests management is leaning harder into AI-enabled products as a growth driver, which could support pricing and retention if adoption accelerates.
- The margin compression tied to restructuring and CEO compensation points to near-term cost pressure, even as revenue and Organic ASV continue to grow.
- The headcount reduction and reduced hiring indicate a more disciplined expense posture, but investors should watch whether restructuring benefits offset the added compensation burden.
Important Filing Changes
Added: The company extended debt maturities, increased revolving commitments by $500.0 million, removed term facility principal payments, and removed a 0.1% credit spread adjustment.
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. [No corresponding passage in the 2025 filing.] The 2025 Credit Facilities are not otherwise subject to any other mandatory repayments.
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. Subsequent to the Amended Agreement, the 2025 Credit Facilities are not subject to any mandatory repayments.
Why SEC Filing Changes Matter
Research by Cohen et al. (Lazy Prices, 2020) — using the complete history of SEC filings from 1995 to 2014 — shows that when firms make active changes to their annual disclosures, those changes convey an important signal about future operations and returns. A portfolio that shorted "changers" and bought "non-changers" earned over 22% per year in annual alpha historically. Changes to the Risk Factors section, Business description, and language referring to the executive team were especially informative. Critically, these returns accrued gradually as information was later revealed through news and earnings — not at the time of filing — suggesting many investors remain inattentive to these simple, public signals. This snapshot is a starting point for deeper investigation, not a buy or sell recommendation.
For more like this, see the full SEC What Changed archive, browse more equity research reports, or subscribe to Quantitative Research Notes for new filing-change alerts as soon as they publish.
Leave a Comment