FactSet Research Systems (FDS) saw its shares plummet 5.5% during Thursday's intraday trading session following the release of its fiscal first-quarter 2026 results, which revealed a miss on adjusted earnings per share and declining operating margins.
The financial data provider reported adjusted EPS of $4.51, narrowly missing the IBES consensus estimate of $4.53. While revenue climbed 6.9% year-over-year to $607.6 million, surpassing expectations, investors focused on the adjusted EBIT margin contraction to 36.2% from 37.6% in the prior-year period, reflecting higher technology and content costs.
Despite reaffirming its full-year guidance, including an adjusted EPS range of $16.90-$17.60, the margin erosion and earnings shortfall appear to have driven the selloff as traders weighed the company's profitability trajectory against growth expectations.
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