FactSet Research Systems (NYSE:FDS) shares dropped over 3% in premarket trading Thursday following the company’s fourth-quarter earnings report for fiscal 2025, which fell short of analysts’ expectations. The firm also issued full-year guidance below consensus estimates.
For the fourth quarter, FactSet posted earnings per share (EPS) of $4.05, missing the forecast of $4.13. Revenue totaled $596.9 million, slightly above the expected $592.8 million. Organic revenue increased 4.5% year-on-year to $587.3 million, with growth driven primarily by institutional buy-side and wealth management clients.
Annual Subscription Value (ASV) reached $2.41 billion as of August 31, up from $2.26 billion a year earlier. Organic ASV grew 5.7% to $2.37 billion, an increase of $127.3 million, including $81.8 million added in the final quarter alone.
Adjusted operating margin fell to 33.8% from 35.8% in the prior-year period, reflecting higher technology expenditures and 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.”
The company also announced that longtime director James J. McGonigle will step down from the board effective December 1, 2025. McGonigle, who joined in 2002, is leaving for reasons unrelated to the company, its board, or management.
Looking ahead to fiscal 2026, FactSet expects adjusted EPS between $16.90 and $17.60, below the consensus estimate of $18.27. Organic ASV growth is projected between $100 million and $150 million, with GAAP revenue forecasted at $2.42 billion to $2.45 billion. Adjusted operating margins are expected to range from 34.0% to 35.5%, with an annual effective tax rate of 18% to 19%.
FactSet Research Systems stock price
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