FactSet Sees Sales Growth Ahead As CEO Highlights AI Shift

Core Insights - FactSet Research Systems reported fourth-quarter sales of $596.9 million, exceeding analyst expectations of $593.5 million, marking a 6.2% year-over-year increase [1] - Adjusted earnings per share were $4.05, falling short of the expected $4.13 [1] - Organic revenues grew by 4.5% to $587.3 million during the quarter [2] Financial Performance - The quarterly adjusted operating margin was 33.8%, a decrease of 200 basis points due to increased technology expenses [3] - The company paid a quarterly dividend of $41.4 million, or $1.10 per share, on September 18, 2025 [3] - Cash and equivalents at the end of the quarter totaled $355.1 million, while long-term debt rose to $1.37 billion from $1.24 billion year-over-year [3] Client and Subscription Metrics - As of August 31, 2025, the client count reached 8,996, with a net increase of 185 clients in the last three months, primarily from corporate and wealth management sectors [2] - Annual Subscription Value (ASV) was $2.406 billion, up from $2.255 billion a year ago, with organic ASV increasing by $81.8 million over the last three months [2] Strategic Outlook - The company anticipates revenues between $2.423 billion and $2.448 billion, surpassing the analyst consensus estimate of $2.320 billion [5] - Projected adjusted diluted EPS is between $16.90 and $17.60, compared to the consensus estimate of $17.06 [5] - The company expects an adjusted operating margin of 34.0% to 35.5% [5] Market Reaction - FactSet's stock was trading lower by 0.90% to $333.00 in premarket trading [6]