FactSet forecasts that fiscal 2027 revenue and profit will be lower than expected

Reuters, September 30 - Financial data company FactSet (FDS.N) on Wednesday forecast that revenue and profit for fiscal year 2027 will be slightly below analysts' expectations, causing its share price to fall about 3% in pre-market trading.

Further details are as follows:

• According to data compiled by London Stock Exchange Group (LSEG), FactSet expects full-year revenue to be between $2.6 billion and $2.625 billion, with the midpoint slightly below the analysts’ average estimate of $2.616 billion.

• Adjusted earnings per share are expected to be between $19.25 and $19.65, below the analysts’ forecast of $19.68.

• Due to concerns that advances in artificial intelligence (AI) technology may disrupt the traditional financial data and analytics industry, FactSet’s share price has dropped more than 10.4% so far this year, putting pressure on investor sentiment.

• However, analysts said FactSet still enjoys strong protection thanks to its proprietary data sets, and noted that the company has been heavily investing in AI products and capabilities to strengthen its competitive position.

• On a positive note, the Connecticut-based company headquartered in Norwalk reported adjusted earnings per share of $4.52 in the fourth quarter ended August 31, higher than the analysts’ average estimate of $4.33.

• The organic annual subscription value (ASV)—an indicator reflecting potential subscription income over the next 12 months—grew by 7% to reach $2.57 billion.

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