FactSet’s AI Sales More Than Double, Stock Reverses Early Losses
FactSet Research Systems Inc. (NYSE: FDS ) stock reversed early losses Wednesday after falling more than 2% in premarket trading. Investors weighed weaker-than-expected fiscal 2027 guidance against better-than-expected fiscal 2026 fourth-quarter results. FactSet reported adjusted earnings of $4.52 per share, beating the analyst consensus estimate of $4.33. Revenue rose 6.3% year over year to $634.7 million, beating the consensus estimate of $629.8 million. Organic revenue increased 7.1% to $635.5 million. FactSet Margins Narrow As Costs Rise Adjusted operating income increased 3.8% to $209.4 million from $201.7 million a year earlier. However, the adjusted operating margin fell to 33% from 33.8%. FactSet attributed the decline mainly to higher compensation tied to annual subscription value, or ASV, incentive plans and increased technology expenses. GAAP diluted earnings fell to $3.41 per share from $4.03 a year earlier. Higher operating expenses and other nonrecurring items weighed on results. Free cash flow decreased 0.5% year over year to $177.3 million. FactSet ended the quarter with $233.3 million in cash and cash equivalents and $870.6 million in long-term debt. The company re
FactSet Research Systems Inc. (NYSE: FDS ) stock reversed early losses Wednesday after falling more than 2% in premarket trading. Investors weighed weaker-than-expected fiscal 2027 guidance against better-than-expected fiscal 2026 fourth-quarter results. 33.
8 million. 5 million. 7 million a year earlier. 8%.
FactSet attributed the decline mainly to higher compensation tied to annual subscription value, or ASV, incentive plans and increased technology expenses. 03 a year earlier. Higher operating expenses and other nonrecurring items weighed on results. 3 million.
6 million in long-term debt. The company returned more than $179 million to shareholders during the quarter, including $138 million through share repurchases and more than $41 million in dividends. 6 billion as of Aug. 4 billion a year earlier.
Organic ASV grew 7% during fiscal 2026. FactSet said strong commercial execution and growing demand for its artificial intelligence and data products supported the increase. The Americas accounted for nearly 65% of ASV, followed by Europe, the Middle East and Africa at 24% and Asia-Pacific at 10%. Annual ASV retention remained above 95%.
Meanwhile, the average renewal contract length increased nearly 30% during the quarter. ASV added from AI solutions more than doubled from a year earlier. CEO Sanoke Viswanathan pointed to continued momentum in FactSet's AI and data products, along with faster innovation and productivity improvements. 625 billion.
616 billion analyst estimate. 5%. 25%. 85 analyst estimate.
68 consensus estimate. 54 at the time of publication on Wednesday, according to Pro data. Image via Shutterstock Read Also: Stock Market Today: S&P 500, Dow Jones Futures Gain as Investors Await Fed's Preferred Inflation Data — MU, AMD, FNGR in Focus