It has been about a month since the last earnings report for FactSet Research (FDS Quick QuoteFDS - Free Report) . Shares have added about 15.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is FactSet due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

FactSet’s Q4 Earnings Beat Estimates

FactSet Research Systems has reported fourth-quarter fiscal 2026 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

FDS’s adjusted earnings were $4.52 per share, beating the Zacks Consensus Estimate of $4.32 by 4.6%. The figure increased 11.6% from the year-ago quarter.

Revenues of $634.7 million topped the consensus mark of $628.2 million by 1% and rose 6.3% year over year. Revenue growth and a lower share count supported adjusted earnings, while organic revenue growth of 7.1% and a 7% increase in organic Annual Subscription Value (ASV) underscored commercial momentum.

FDS's Subscription Growth Gains Momentum

Organic revenues were $635.5 million in the quarter, up from $593.5 million a year earlier. ASV, which represents forward-looking revenues for the next 12 months from current subscription services, totaled $2.57 billion as of Aug. 31, 2026, compared with $2.41 billion a year earlier.

Organic ASV increased $168.2 million year over year to $2.57 billion. Annual ASV retention remained above 95%, while average renewal contract length increased about 30% during the quarter. FactSet also said that AI solutions ASV added in fiscal 2026 more than doubled year over year, reflecting continued adoption of its AI offerings.

FactSet's Regional Growth Remains Broad

Americas revenues were $414.3 million compared with $388.7 million in the prior-year quarter, with organic revenues rising 6.7%. Organic ASV in the region increased 7.1% to $1.68 billion.

EMEA revenues were $154.8 million, with organic revenue growth of 6.6%, while organic ASV rose 5.2% to $623.6 million. The Asia Pacific revenues reached $65.6 million, and the region posted organic revenue growth of 11.0% and organic ASV growth of 10.6%.

FDS' Margins Reflect Higher Compensation Costs

Adjusted operating income increased 3.8% year over year to $209.4 million. The adjusted operating margin contracted to 33% from 33.8% due to higher compensation expenses tied to ASV-linked incentive plans and increased technology-related expenses. Adjusted net income rose 4.1% to $160.9 million.

The GAAP operating margin fell to 24.7% from 29.7%. FactSet attributed the decline primarily to higher employee compensation costs, including one-time restructuring charges and ASV-linked incentive plans, partly offset by revenue growth. GAAP earnings decreased 15.4% to $3.41 per share.

FactSet's Cash Flow Supports Capital Returns

Net cash provided by operating activities was $204.7 million in the fiscal fourth quarter, down 3.5% year over year. The free cash flow declined 0.5% to $177.3 million. Cash and cash equivalents stood at $233.3 million at fiscal year-end, while current and long-term debt totaled $499.4 million and $870.6 million, respectively.

FactSet returned more than $179 million to shareholders during the quarter, including $138 million in share repurchases and more than $41 million in dividends. It repurchased 552,064 shares at an average price of $249.90, leaving $356 million available under its repurchase authorization.

FDS Closes FY26 With Higher Revenues

Full-year GAAP revenues increased 6.7% to $2.48 billion, marking the company's 47th consecutive year of revenue growth. Adjusted earnings rose 6.1% to $18.01 per share, extending FactSet's streak of annual adjusted diluted earnings growth to 30 years. Adjusted operating income increased 1.4% to $855.3 million.

For fiscal 2026, net cash from operating activities increased 13.2% to $822.2 million, while the free cash flow rose 14.6% to $707.5 million. The adjusted operating margin was 34.5%, compared with 36.3% a year earlier. FactSet returned $808 million to shareholders during the year and recorded its 27th consecutive annual dividend increase.

FactSet Sets FY27 Expectations

For fiscal 2027, FactSet expects organic ASV growth of 5%-6.5%. Revenues are projected between $2.6 billion and $2.63 billion. Adjusted operating income is expected to be $903-$925 million.

The company forecasts a GAAP operating margin of 31% to 32% and an adjusted operating margin of 34.75% to 35.25%. Adjusted EPS is projected to be $19.25-$19.65.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a flat trend in estimates review.

VGM Scores

At this time, FactSet has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

FactSet has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.