FactSet shares dip on Q4 earnings miss, weak profit guidance

Investing.com -- Shares in FactSet Research Systems (NYSE:FDS) slid over 3% in premarket trading on Thursday after the financial data and software firm missed earnings estimates in the fourth quarter of fiscal 2025. The company’s full-year earnings guidance also fell short.

FactSet posted fourth-quarter earnings per share (EPS) of $4.05, short of analyst expectations of $4.13.

Revenue came in at $596.9 million, above the consensus forecast of $592.8 million. Organic revenue rose 4.5% from a year earlier to $587.3 million, with growth led by institutional buy-side and wealth clients, the company said.

Annual Subscription Value (ASV) reached $2.41 billion as of August 31, 2025, up from $2.26 billion a year ago. Organic ASV grew 5.7% year on year to $2.37 billion, an increase of $127.3 million, and rose $81.8 million in the last quarter alone.

The company’s adjusted operating margin declined to 33.8% from 35.8% in the same period last year, reflecting higher technology spending and the impact of last year’s lower bonus accrual.

“FactSet’s strong fourth quarter performance reflects the power of our differentiated data, open platform, and client-centric culture,” said Sanoke Viswanathan, CEO of FactSet.

“We are at a strategic inflection point, where AI and data-driven innovation are reshaping workflows across financial markets. FactSet has the talent, technology, and data capabilities to lead this transformation."

FactSet also announced that director James J. McGonigle will step down from the board effective December 1, 2025. McGonigle, who has served since 2002, is leaving for reasons unrelated to disagreements with the company, its board, or management, the company said.

Looking ahead to fiscal 2026, FactSet expects adjusted EPS in the range of $16.90 to $17.60, below the consensus estimate of $18.27.

Organic ASV growth is forecasted between $100 million and $150 million, while GAAP revenue is projected in a range of $2.42 billion to $2.45 billion.

The company forecasts an adjusted margin of 34.0% to 35.5%, and expects an annual effective tax rate of 18% to 19%.

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