Q4 revenue of $634.7 million beat the $629.8 million estimate by 0.8%, and adjusted diluted EPS of $4.52 beat the $4.35 estimate by 3.9%.
The full year cleared FactSet's own FY2026 guide on both lines: revenue of $2,476.3 million against $2,450-$2,470 million, and adjusted diluted EPS of $18.01 against $17.25-$17.75.
FY2027 guidance is revenue of $2,600-$2,625 million, organic ASV growth of 5.0%-6.5%, adjusted operating margin of 34.75%-35.25% and adjusted diluted EPS of $19.25-$19.65.
Reported profitability went the other way: Q4 GAAP operating margin of 24.7% from 29.7% and GAAP diluted EPS of $3.41 from $4.03, on $26.9 million of restructuring and severance against $0.6 million a year ago.
The one thing that matters: the record ASV quarter is paired with a guide for slower growth, and the release does not explain the step down.
Key metrics
Metric
Reported
Prior year
Change
Organic ASV
$2,568.2 million
—
up 7.0% or $168.2 million year over year
Organic revenue growth
7.1%
—
—
GAAP operating margin
24.7%
29.7%
—
Adjusted operating margin
33.0%
33.8%
—
Free cash flow
$177.3 million
—
a decrease of 0.5%
Share repurchases
$138 million
—
—
Guidance changes
Item
New guidance
Prior guidance
Fiscal 2027 revenues
$2,600 - $2,625 million
—
Fiscal 2027 organic ASV growth
5.0% - 6.5%
—
Fiscal 2027 GAAP operating margin
31.0% - 32.0%
—
Fiscal 2027 adjusted operating margin
34.75% - 35.25%
—
Fiscal 2027 GAAP diluted EPS
$17.00 - $17.50
—
Fiscal 2027 adjusted diluted EPS
$19.25 - $19.65
—
Quality of earnings
Adjusted EPS growth is mostly a smaller share count, not more profit. Q4 adjusted net income rose 4.1% to $160.9 million while adjusted diluted EPS rose 11.6% to $4.52, on 35,572 thousand diluted shares against 38,158 thousand. The full year has the same shape: adjusted net income up 1.2% to $659.5 million, adjusted diluted EPS up 6.1% to $18.01.
The gap between adjusted and reported earnings opened from nothing to $1.11 a share. Q4 GAAP diluted EPS of $3.41 against adjusted $4.52, versus $4.03 and $4.05 a year ago, carrying $26.9 million of restructuring and severance ($0.57 a share) and $4.6 million of CEO onboarding costs; the adjustments were taxed at 25.1% against 14.8% last year.
Below the revenue line the year went backwards. Revenue grew 6.7% while adjusted EBITDA fell 2.5% to $911.4 million and GAAP net income fell 10.6% to $533.5 million. Free cash flow of $707.5 million, up 14.6%, is the line that improved, helped by accrued compensation rising $62.6 million.
Gotchas & watch items
The FY2027 revenue guide of $2,600-$2,625 million implies 5.0%-6.0% growth against the 6.7% just delivered, and the organic ASV guide of 5.0%-6.5% sits below the 7.0% reported for FY2026.
The FY2027 adjusted operating margin guide of 34.75%-35.25% requires expansion from FY2026's 34.5%, which itself fell from 36.3% a year earlier.
Q4 share repurchases of $138.0 million at an average $249.90 came while cash fell to $233.3 million from $337.7 million and $499.4 million of debt moved into current liabilities; FY2026 repurchases of $644.0 million more than doubled the prior year's $300.5 million.
The 7.0% organic ASV headline is uneven underneath: APAC 10.6% and Americas 7.1% against EMEA 5.2%.