FactSet Research Systems (NYSE:FDS) Announces Quarterly Earnings Results, Beats Estimates By $0.17 EPS

FactSet Research Systems (NYSE:FDS) issued its earnings results on Wednesday. The business services provider reported $4.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.35 by $0.17, Zacks reports. FactSet Research Systems had a return on equity of 31.66% and a net margin of 21.54%.The firm had revenue of $634.70 million for the quarter, compared to analyst estimates of $629.83 million. During the same period in the previous year, the company posted $4.05 earnings per share. The business’s revenue was up 6.3% on a year-over-year basis. FactSet Research Systems updated its FY 2027 guidance to 19.250-19.650 EPS.

Here are the key takeaways from FactSet Research Systems’ conference call:

• Fiscal 2026 exceeded guidance: Organic ASV grew 7% to $2.56 billion, revenue increased 6.7% to $2.48 billion, adjusted EPS rose 6% to $18.01, and free cash flow climbed more than 14% to $707 million.
• FactSet reported accelerating adoption of its AI offerings, with AI-related products contributing more than 10% of Q4 new ASV. More than 650 clients were engaged with MCP contracts or trials, while Q4 MCP API usage increased sevenfold sequentially.
• Management highlighted broad-based competitive wins and longer-duration contracts, including major banking, buy-side, and wealth-management displacements. The company also acquired BCC Group to expand its real-time data distribution capabilities.
• FactSet guided to 5%–6.5% organic ASV growth and 5%–6% reported revenue growth for fiscal 2027, while expecting adjusted operating-margin expansion of 25–75 basis points. Management cautioned that growth may be uneven because of renewal timing and the increasing use of consumption-based pricing.
• Fiscal 2026 operating margin declined 180 basis points to 34.5% as the company funded infrastructure, cybersecurity, product, and growth investments; fiscal 2027 EPS growth will also face roughly a 2% headwind from higher taxes and refinancing $500 million of notes at rates above the existing 2.9% cost.

FactSet Research Systems Stock Performance

Shares of FDS opened at $277.15 on Friday. FactSet Research Systems has a 12-month low of $185.00 and a 12-month high of $320.48. The company has a current ratio of 0.60, a quick ratio of 0.68 and a debt-to-equity ratio of 0.43. The company has a market cap of $9.86 billion, a PE ratio of 19.04, a price-to-earnings-growth ratio of 1.55 and a beta of 0.77. The stock has a 50-day moving average price of $283.37 and a 200-day moving average price of $249.09.

FactSet Research Systems Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 17th. Shareholders of record on Monday, August 31st were issued a $1.16 dividend. The ex-dividend date of this dividend was Monday, August 31st. This represents a $4.64 annualized dividend and a dividend yield of 1.7%. FactSet Research Systems’s dividend payout ratio (DPR) is presently 30.57%.

Wall Street Analyst Weigh In

FDS has been the subject of several recent research reports. Weiss Ratings upgraded shares of FactSet Research Systems from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, July 13th. Jefferies Financial Group raised their price target on FactSet Research Systems from $225.00 to $253.00 and gave the stock a “hold” rating in a report on Thursday, July 2nd. Rothschild & Co Redburn cut FactSet Research Systems from a “neutral” rating to a “sell” rating and set a $215.00 price objective on the stock. in a report on Thursday, June 18th. Royal Bank Of Canada raised their target price on FactSet Research Systems from $240.00 to $304.00 and gave the stock a “sector perform” rating in a research note on Thursday, August 27th. Finally, The Goldman Sachs Group lowered FactSet Research Systems from a “sell” rating to an “underweight” rating in a report on Thursday, June 18th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, ten have issued a Hold rating and six have assigned a Sell rating to the stock. According to data from MarketBeat, FactSet Research Systems currently has an average rating of “Reduce” and a consensus target price of $270.79.

More FactSet Research Systems News

Here are the key news stories impacting FactSet Research Systems this week:

• Positive Sentiment: FactSet reported fourth-quarter adjusted earnings of $4.52 per share, beating the $4.35 consensus estimate, while revenue of $634.7 million exceeded expectations of $629.8 million. Revenue increased 6.3% year over year, and EPS rose from $4.05 in the prior-year quarter. FactSet Research Systems Posts Earnings Results
• Positive Sentiment: Organic annual subscription value growth reached 7% in the quarter. UBS and RBC said FactSet’s artificial-intelligence momentum and monetization efforts are supporting confidence in fiscal 2027 subscription growth, while management expects continued margin improvement. UBS on FactSet AI Momentum
• Neutral Sentiment: Analysts raised several price targets after the results: Stifel increased its target to $292 and Deutsche Bank lifted its target to $301. However, both maintained “hold” ratings. Wells Fargo raised its target to $250 but retained an “underweight” rating, indicating continued valuation and execution concerns. Stifel Raises FactSet Price Target
• Negative Sentiment: FactSet projected fiscal 2027 EPS of $19.25-$19.65, below the $19.75 analyst consensus, although its roughly $2.6 billion revenue forecast matched expectations. The company expects organic annual subscription value growth of 5% to 6.5%, leading investors to view the outlook as slower or less profitable than previously anticipated. FactSet Fiscal 2027 Guidance

FactSet Research Systems Company Profile

FactSet Research Systems Inc provides financial data, analytics, and investment management technology to professionals across the global financial services industry. Its platform integrates market, company, portfolio, economic, and alternative data with analytical tools designed to support investment research, decision-making, reporting, and risk management.

The company serves asset managers, investment banks, wealth managers, hedge funds, private equity firms, corporations, and other financial institutions.