Compact stator structure of flux switching machines (FSMs) encompassing both permanent magnets (PMs) and armature winding slots (AWS) attract research interest whenever high power and density are the basic requirements. However, it also results in temperature rises owing to heat generation by electromagnetic power losses degrading the electromagnetic performance and affecting machine performance. In this study, a segmented permanent magnet (SPM) consequent pole FSM (SPM-CPFSM) is developed, which provides a stator cooling channel (duct) for improved heat dissipation to avoid demagnetization of PM as well as overheating. Furthermore, this study investigates detailed electromagnetic performance analysis and prediction of temperature variation in various machine parts owing to the heat generated by iron, copper, and magnet eddy current losses utilizing coupled electromagnetic-thermal analysis accounting for magnetic flux density variation. In comparison with the 2D analysis, the developed 3D coupled-field analysis more accurately predicts electromagnetic performance and temperature distribution. Analysis reveals that a cooling duct at the stator significantly assists in stator heat dissipation in the axial direction ensuring a safe operating condition of the PMs as well as machine parts to avoid overheating.