FactSet Research Systems Inc. (FDS) reported fiscal third-quarter results that topped Wall Street estimates on both revenue and earnings. But if you look at how the stock moved — down about 1.7% in premarket trading Wednesday — you can see that investors weren't exactly throwing a party.

The financial data and analytics company posted revenue of $622.9 million, up 6.4% from a year ago and ahead of the $618.3 million analysts were looking for. Adjusted earnings came in at $4.53 per share, beating the consensus estimate of $4.46. On the surface, that's a solid quarter.

But the market tends to look forward, and what it saw in FactSet's numbers wasn't all rosy. The company's adjusted operating margin slipped to 34% from 36.8% a year earlier, as compensation and technology costs climbed. That's a meaningful drop, and it signals that FactSet is spending more to grow — which is fine, but investors want to see that spending translate into higher guidance. It didn't.

FactSet reaffirmed its full-year fiscal 2026 outlook: adjusted EPS of $17.25 to $17.75 (the Street was at $17.71), revenue of $2.45 billion to $2.47 billion (versus $2.463 billion expected), and organic ASV growth of $130 million to $160 million. The adjusted operating margin forecast of 34% to 35.5% was also left unchanged. In other words, the beat in Q3 didn't lead to a raise in the full-year targets. That's the kind of thing that makes a stock dip.

Let's dig into the details a bit more. Organic revenue grew 7% year over year, and Annual Subscription Value (ASV) hit $2.48 billion as of May 31, up from $2.34 billion a year ago. Organic ASV added $35.4 million during the quarter. Those are healthy numbers, but the margin compression is the story that's sticking with investors.

FactSet also continued its shareholder return program, returning $243.4 million to shareholders in the quarter — $203.1 million in buybacks and $40.3 million in dividends. The company raised its quarterly dividend by 6 cents to $1.16 per share, marking 27 consecutive years of dividend growth on a split-adjusted basis. That's a nice streak, and it shows management's confidence in cash flow. At quarter-end, FactSet had $288.1 million in cash and $890.5 million in long-term debt.

CEO Sanoke Viswanathan attributed the results to strong execution and sustained demand for FactSet's content, analytics, and workflow solutions. He noted that clients are expanding their use of FactSet's products, including its AI offerings, which is helping drive enterprise contract growth and bolstering confidence in long-term growth.

Speaking of AI, FactSet is making a big push there through its partnership with Alphabet Inc.'s (GOOGL) Google Cloud. The companies are integrating Google's Gemini models into FactSet Workstation and developing AI agents for portfolio operations, deal advisory, and corporate finance. It's a strategic move to stay competitive in a world where everyone wants smarter, faster data tools.

But for now, the market is focused on the near-term margin squeeze and the lack of guidance upside. FactSet's stock was trading at $226.20 in premarket, down 1.69%. It's a reminder that even when you beat expectations, if the future doesn't look any brighter, the market might not reward you.