FactSet guides to 5% to 6.5% ASV growth, meaning smaller dollar gains than its record $168 million year
The financial data company's shares rose 3.8% after a record fiscal 2026. But even the top of its fiscal 2027 range adds less subscription value than last year, and GAAP earnings fell as restructuring costs hit.
FactSet reported a record increase in organic annual subscription value for fiscal 2026 and guided to slower growth for fiscal 2027, according to its results release filed with the SEC. Organic ASV, the company's measure of subscription revenue for the next 12 months, rose $168.2 million, or 7.0%, to $2.568 billion at August 31. For fiscal 2027 it expects organic ASV growth of 5.0% to 6.5%.
Investors focused on the beat. The shares closed at $269.94, up 3.8% from Tuesday's $259.97, and were $273.50 after hours, according to Nasdaq. That still leaves them about 16% below the 52-week high of $320.48.
The number behind the guidance
A percentage range hides what the slowdown means in dollars. Applied to the $2.568 billion base:
| Scenario | Organic ASV added |
|---|---|
| Fiscal 2026 actual (7.0%) | $168.2 million |
| Fiscal 2027 low end (5.0%) | about $128 million |
| Fiscal 2027 high end (6.5%) | about $167 million |
So even the top of the range would add slightly less new subscription value than the year just ended, and the bottom would be about a quarter less. FactSet's release calls fiscal 2026's gain a record, which makes the comparison a tough one to beat, but the guidance does not assume it will be.
Earnings: two very different lines
Fourth-quarter revenue rose 6.3% to $634.7 million, with organic revenue up 7.1%. Adjusted diluted earnings per share rose 11.6% to $4.52. GAAP diluted EPS fell to $3.41 from $4.03, and GAAP net income dropped 21.1% to $121.1 million. FactSet put the GAAP decline mainly on one-time restructuring charges and compensation plans tied to ASV, plus a gain on a business sale in the year-earlier quarter.
The GAAP operating margin fell to 24.7% from 29.7% in the quarter. The adjusted margin slipped to 33.0% from 33.8%. For the full year, the adjusted operating margin was 34.5%, down from 36.3%.
The fiscal 2027 outlook:
- Revenue of $2.600 billion to $2.625 billion, 5.0% to 6.0% above fiscal 2026's $2.476 billion.
- Adjusted EPS of $19.25 to $19.65, up 6.9% to 9.1% from $18.01.
- GAAP EPS of $17.00 to $17.50, against $14.57, a bigger jump because fiscal 2026 absorbed the one-time charges.
- Adjusted operating margin of 34.75% to 35.25%, a small improvement.
At Wednesday's close, the stock trades at about 13.9 times the midpoint of adjusted EPS guidance.
Who it matters to
FactSet sells data and workstation subscriptions to asset managers, banks and advisers, so its ASV is a read on how much those firms are willing to spend on research tools. Retention stayed above 95%, and the company said average renewal contract length rose about 30% in the fourth quarter, which suggests clients are committing for longer. AI products were a driver: FactSet said the ASV it added from AI solutions more than doubled in fiscal 2026.
FactSet also returned $808 million to shareholders in fiscal 2026, and bought back 552,064 shares in the fourth quarter at an average of $249.90, below Wednesday's close. It had $356.0 million left under its buyback authorization. Seeking Alpha and Investing.com also covered the outlook.
Sources: FactSet results release (SEC); Nasdaq; Seeking Alpha; Investing.com. Dollar ASV scenarios and the earnings multiple are our calculations. This is market information, not investment advice.
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