FactSet Q4 revenue slightly beats on high annual subscription retention rates
Overview
Financial data provider's Q4 organic revenue grew 7.1%, slightly beating analyst expectations
Adjusted EPS for Q4 rose 11.6% and beat analyst expectations
Company cited commercial execution and AI momentum as drivers of organic growth
Outlook
FactSet expects fiscal 2027 revenue of $2.6 bln to $2.625 bln
Company sees fiscal 2027 organic ASV growth of 5.0% to 6.5%
FactSet forecasts fiscal 2027 diluted EPS of $17.00 to $17.50 and adjusted EPS of $19.25 to $19.65
Result Drivers
COMMERCIAL EXECUTION - Co cited deepening enterprise relationships and high annual subscription retention rates as drivers of organic growth
AI SOLUTIONS - ASV from AI solutions more than doubled year over year, contributing to organic ASV growth
REVENUE GROWTH OFFSET COSTS - Higher employee compensation costs, including one-time restructuring charges and ASV-linked incentive plans, impacted margins but were partially offset by increased revenues
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Organic Revenue | Slight Beat* | $635.5 mln | $629.83 mln (13 Analysts) |
Q4 Adjusted EPS | Beat | $4.52 | $4.33 (16 Analysts) |
Q4 EPS | $3.41 | ||
Q4 EBIT Margin | 24.70% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 10 "hold" and 6 "sell" or "strong sell"
The average consensus recommendation for the professional information services peer group is "buy."
Wall Street's median 12-month price target for FactSet Research Systems Inc. is $281.77, about 8.4% above its September 29 closing price of $259.97
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)