SoFi shares rise as record revenue, member growth drive strong Q3 results
Investing.com - Wells Fargo lowered its price target on FactSet Research Systems (NYSE:FDS) to $296.00 from $355.00 on Friday, while maintaining an Underweight rating on the financial data provider. The stock, currently trading at $301.23, has declined significantly, with a 16.75% drop in the past week and a 30.92% decline over six months.
The price target reduction follows FactSet’s fourth-quarter report showing organic Annual Subscription Value (ASV) above consensus expectations, but with forward guidance falling below Street estimates.
Wells Fargo noted that FactSet’s positive ASV performance was overshadowed by management’s comments about rising competition due to artificial intelligence advancements and margin pressures resulting from increased investments.
The financial services company provided what Wells Fargo characterized as "conservative" fiscal year 2026 guidance, projecting ASV growth of approximately 5% at the midpoint, a deceleration from the 5.7% rate at which it exited the current fiscal year.
Despite the cautious outlook, FactSet management indicated the company has visibility into its first-half sales pipeline, which is slightly better year-over-year, and that it ended the year with strong momentum, including an acceleration in its pipeline over the final five weeks.
In other recent news, FactSet Research Systems reported its fiscal fourth-quarter earnings for 2025, revealing an adjusted earnings per share (EPS) of $4.05, which fell short of analysts’ expectations of $4.13. However, the company exceeded revenue projections, reporting $597 million compared to the anticipated $592.79 million. The earnings announcement comes amid a backdrop of analyst revisions. Jefferies lowered its price target for FactSet to $315, maintaining a Hold rating, citing the company’s fiscal 2026 guidance that aligned with market expectations. Meanwhile, Evercore ISI also reduced its price target to $328 due to margin concerns, maintaining an "In Line" rating. The firm noted a 250 basis point margin headwind from investments in FactSet’s platform, with a significant portion directed toward growth initiatives. These developments highlight the current financial landscape and strategic direction of FactSet Research Systems.
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