FactSet Q4 revenue slightly beats on high annual subscription retention rates

By Reuters News


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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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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