11:24 AM EDT, 09/19/2025 (MT Newswires) -- FactSet Research Systems' ( FDS ) comments on demand environment were "misinterpreted" by investors, potentially triggering a sell-off in the information services sector, RBC Capital Markets said in a Thursday note.

The company reported fiscal Q4 adjusted earnings Thursday of $4.05 per diluted share, up from $3.74 a year earlier, as revenue increased to $596.9 million from $562.2 million.

According to RBC, FactSet also flagged "longer sales cycles, tight client budgets, evolving market dynamics, and a challenging environment," but said these headwinds are stable sequentially. This is evidenced by FactSet's 5.7% annual subscription value growth in in fiscal Q4, exceeding expectations and up from 4.5% in fiscal Q3.

RBC also said investors "may have misconstrued" the company's expected margin decline in fiscal 2026 as a sign of a potential AI spending cycle that could pressure the sector. The decline, however, is due to one-time investments for growth initiatives, RBC added.

RBC reiterated its sector perform rating on FactSet Research Systems ( FDS ), with a $395 price target.

Price: 291.45, Change: -9.78, Percent Change: -3.25