FactSet Research Systems Inc. (NYSE:FDS) shares fell 3.45% in pre-market trading on Wednesday after the financial data and analytics provider issued fiscal 2027 earnings and revenue guidance below analyst expectations, despite reporting fourth-quarter results ahead of consensus estimates.
FactSet reported adjusted earnings of $4.52 per share for the fourth quarter, exceeding the analyst estimate of $4.35.
Revenue reached $635.5 million, above the consensus estimate of $629.74 million and up 7.1% year on year from $593.5 million in the prior-year period.
Fiscal 2027 Earnings Guidance Below Analyst Consensus
For fiscal 2027, FactSet expects adjusted earnings per share of between $19.25 and $19.65.
The midpoint of the range, at $19.45, is below the analyst consensus estimate of $19.72.
The company forecasts fiscal 2027 revenue of between $2.6 billion and $2.63 billion. The midpoint of $2.615 billion is slightly below the consensus estimate of $2.62 billion.
FactSet also expects an adjusted operating margin of between 34.75% and 35.25% for the fiscal year.
Organic ASV Increases 7%
FactSet reported organic Annual Subscription Value, or ASV, of $2.5682 billion as of August 31, 2026, representing growth of 7.0% year on year.
The company said the amount of ASV added from artificial intelligence solutions during fiscal 2026 more than doubled compared with the previous year.
Annual ASV retention remained above 95%.
“FactSet delivered strong results, highlighted by a record increase in organic ASV for both the fourth quarter and fiscal year with continued momentum across our AI and data solutions,” Chief Executive Officer Sanoke Viswanathan said.
Fourth-Quarter Adjusted Operating Margin Declines
FactSet reported a fourth-quarter adjusted operating margin of 33.0%, compared with 33.8% in the same period a year earlier.
The company attributed the decline primarily to higher compensation expenses associated with ASV-linked incentive plans and increased technology-related expenses.
For fiscal 2027, FactSet’s forecast for an adjusted operating margin of 34.75% to 35.25% represents an expected increase from the fourth-quarter level.
FactSet Returns $179 Million to Shareholders
FactSet returned $179 million to shareholders during the fourth quarter through share repurchases and dividends.
The total included $138 million of share repurchases and $41 million of dividend payments.
The company also recorded its 27th consecutive year of dividend increases.
The shareholder distributions accompanied fourth-quarter revenue growth and higher organic ASV, while FactSet’s fiscal 2027 earnings and revenue guidance came in below current analyst consensus estimates.
FactSet Research Systems stock price
