FactSet Research Systems Inc (NYSE:FDS) Stock Falls on Q4 Earnings Miss

FactSet Research Systems Inc (NYSE:FDS) reported its fiscal fourth quarter and full-year 2025 earnings, delivering a mixed financial performance that has triggered a notable negative reaction in pre-market trading. The company, a leading provider of financial data and analytics platforms, met some key operational milestones but fell short of analyst expectations on several critical financial metrics.

Earnings and Revenue Performance

The company posted quarterly revenues of $596.9 million, reflecting a 6.2% increase compared to the same period last year. While this demonstrates continued top-line growth, it narrowly missed the consensus analyst estimate of $599.4 million. For the full fiscal year, FactSet reported revenues of $2.32 billion, a 5.4% year-over-year increase.

On the profitability front, non-GAAP earnings per share came in at $4.05 for the quarter. This figure fell short of the $4.17 per share that analysts had projected. The earnings miss appears to be a primary driver behind the market's initial reaction.

Key figures from the report:

• Q4 Reported Revenue: $596.9M
• Q4 Estimated Revenue: $599.4M
• Q4 Reported EPS (non-GAAP): $4.05
• Q4 Estimated EPS (non-GAAP): $4.17

Market Reaction and Price Action

The market response has been decisively negative, with shares declining approximately 4.2% in pre-market trading. This reaction suggests investors are focusing on the earnings miss rather than the company's continued revenue growth. The negative sentiment extends recent weakness in the stock, which has declined roughly 10% over the past month.

Recent performance trends:

• Pre-market reaction: -4.2%
• Last week performance: -7.1%
• Last month performance: -10.2%

Forward Outlook and Analyst Expectations

Looking ahead, analyst projections for fiscal 2026 indicate expectations of continued growth, with full-year revenue estimates standing at $2.48 billion. For the upcoming first quarter of fiscal 2026, analysts are forecasting revenue of $608.5 million and earnings performance that will be closely watched to see if this quarter's miss was an anomaly or part of a broader trend.

Future estimates:

• FY2026 Estimated Revenue: $2.48B
• Q1 2026 Estimated Revenue: $608.5M

Press Release Highlights

The earnings release highlighted several operational achievements, including growth in annual subscription value (ASV) and continued expansion of the company's client base. Management emphasized their investment in technology platforms and data solutions, positioning the company to capitalize on the growing demand for financial intelligence and analytics tools across global markets.

For more detailed earnings information and future estimates, readers can review additional data here.

Disclaimer: This article provides financial analysis for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.