FactSet Research Systems' (FDS) accelerating AI monetization and growing enterprise contract adoption in fiscal Q4 reinforces confidence in 2027 annual subscription value growth, RBC Capital Markets said in a Thursday research report.

FactSet reported higher-than-expected fiscal Q4 results on Wednesday. It reported adjusted earnings of $4.52 per diluted share, compared with $4.05 a year earlier. Analysts surveyed by FactSet expected $4.35.

Revenue for the quarter ended Aug. 31 was $634.7 million, up from $596.9 million a year earlier, and higher than analysts' expectations of $629.8 million.

Fiscal 2027 margin expansion guidance of 25 basis points to 75 basis points is supported by AI-powered productivity scaling, according to the note.

Although competition from MCP connector providers alongside lowered switching costs are investor concerns, the company's differentiation lies in its integrated approach, analysts wrote.

FactSet's acquisition of BCC Group reflects its strategy of expanding the real-time solution suite to bolster market data management capabilities against a backdrop of AI-driven workflow transformation and mounting regulatory pressures, according to RBC.

The brokerage maintained its sector perform rating on the stock and price target of $304 per share.

Price: 279.15, Change: +9.19, Percent Change: +3.41