FDS

FactSet (FDS) is leveraging AI capabilities and model context protocol (MCP) solutions to drive revenue growth, with AI offerings contributing over 10% of new annual subscription value in Q4 fiscal 2026. The company achieved 14% free cash flow growth to $707M and doubled share repurchases. However, FDS faces headwinds from intensifying AI competition, slowing ASV growth moderation to 5-6.5% in fiscal 2027, and margin pressures from infrastructure investments, leading to a Hold rating.

Recent economic data shows PCE inflation came in softer than expected while Q2 GDP exceeded expectations. Market attention is focused on the upcoming Friday employment report. Several companies reported earnings results with mixed stock performance: FactSet Research Systems beat earnings estimates and gained 3.8%, Concentrix outpaced estimates with a modest 0.3% gain, Hewlett Packard Enterprise surged 3.9% following a $1.2 billion deal with Vultr, while Mattel declined 4.2% after announcing a new CEO.

FactSet Research Systems (FDS) delivered Q4 FY2026 results beating expectations with adjusted EPS of $4.52 (up 11.6% YoY) and revenues of $634.7M (up 6.3% YoY). Organic ASV grew 7% to $2.57B with retention above 95%.

The company guided FY2027 revenues of $2.6-$2.63B and adjusted EPS of $19.25-$19.65, though margins contracted due to higher compensation costs. AI solutions ASV more than doubled YoY, reflecting strong adoption.