11:05 AM EDT, 09/19/2025 (MT Newswires) -- FactSet Research Systems' ( FDS ) fiscal Q4 average subscription value, or ASV, growth was better-than-expected at 5.7% year-on-year compared to consensus of 4.9%, but fiscal 2026 guidance was muted as challenging conditions continue to persist, Morgan Stanley said in a Thursday note.

On Thursday, FactSet posted its fiscal Q4 results and said it expected 2026 adjusted diluted earnings per share of $16.90 to $17.60 on revenue of $2.42 billion to $2.45 billion compared to estimates of $18.25 on revenue of $2.45 billion, respectively.

Noting the company results, Morgan Stanley said is FactSet is investing in data expansion, particularly real time and pricing reference data and extending proprietary data coverage in fiscal 2026, which is expected to drive the company's margins lower.

Morgan Stanley said it expected FactSet to grow about 5% organically top line in 2026 compared to growth of about 6.5% for its subscription-based peers with contracting margins.

The firm maintained its underweight rating on the stock but slashed its price target to $293 from $393 on account of lower terminal growth rate.

Price: 293.68, Change: -7.56, Percent Change: -2.51