Street View: FactSet's conservative outlook, margins stoke analyst concerns

FactSet Research Systems

19/09/2025 13:18

** FactSet FDS.N on Thursday reported initial FY26 sales guidance of 4%-6% growth, below Wall Street expectations

** Shares fell over 10%

** At least four brokerages cut PT

** Median PT of 21 analysts covering the stock is $371; average analyst rating is 'hold'- data compiled by LSEG

MARGINS AND COSTS INVITE CAUTION

** Jefferies ("Hold," PT: $315) says while the fiscal 2026 guidance for annual subscription value growth was in-line with expectations, brokerage is lowering adjusted EPS estimate by $1 to $17.47 on lower margins

** RBC Capital ("Sector Perform," PT: $395) says the short-term dip in FDS following results and cautious guidance has created an attractive buying opportunity as long-term growth remains intact

** William Blair ("Market Perform," PT: $301.23) says while FDS grew revenue and subscriptions, rising costs and cautious guidance have spooked investors

**Raymond James ("Market Perform," PT: NM) says risk/reward is balanced and thinks FDS’s valuation, with the stock trading at less than 20 times FY26 EPS, reflects existing concerns

 (Reporting by Anuj T in Bengaluru)