What is a Fiscal Year?
A fiscal year (FY) is any 12-month period a company or government uses for accounting purposes. The US federal government's fiscal year runs from October 1 to September 30 - so FY2026 began on October 1, 2025. Japan's government fiscal year runs April 1 to March 31. About 65% of US public companies use the calendar year as their fiscal year, while the rest choose dates that align with their business cycles.
Why Fiscal Years Vary
Retailers often end their fiscal year on January 31 to capture the full holiday shopping season in one reporting period - Walmart's FY2026 ended January 31, 2026. Apple's fiscal year ends in late September, shortly after its major product launches. This timing allows each company to present a complete picture of its busiest season within a single annual report rather than splitting it across two years.
Key Considerations
When comparing financial metrics like earnings per share or revenue growth, ensure you are comparing the same fiscal periods. A company reporting FY results ending in June is showing data six months older than one reporting calendar-year results in December. Quarterly reports (Q1-Q4) also follow the fiscal year, so Q1 for a company with an April fiscal year start means April through June, not January through March.