Factset (FDS) Announces Earnings Results For Second Quarter 2025

FactSet Research Systems Inc. (FDS) today announced its financial results for the latest quarter. The company reported earnings per share of $4.28, surpassing the estimated $4.18, marking a positive earnings surprise. However, FactSet’s revenue came in at $273,000, significantly below the expected $570.2 million, resulting in a substantial revenue miss.

Key Highlights:

• FactSet reported Q2 GAAP revenues of $570.7 million, a 4.5% increase from the previous year.
• Organic Annual Subscription Value (ASV) grew by 4.1% year over year to $2,276.2 million.
• The GAAP operating margin decreased to 32.5%, while the adjusted operating margin was 37.3%.
• GAAP diluted EPS increased by 3.0% to $3.76, and adjusted diluted EPS rose by 1.4% to $4.28.
• FactSet updated its fiscal 2025 guidance, expecting organic ASV growth between $100 million and $130 million, and GAAP revenues between $2,305 million and $2,325 million.
• The company acquired LiquidityBook and launched AI-powered Pitch Creator to enhance its service offerings.
• FactSet’s CEO, Phil Snow, reaffirmed the company’s growth outlook, citing a strong pipeline and client engagement.

Summary:

FactSet Research Systems Inc. reported a solid financial performance for the second quarter of fiscal 2025, with GAAP revenues reaching $570.7 million, marking a 4.5% increase from the previous year. The company’s organic ASV also saw a 4.1% year-over-year growth, reaching $2,276.2 million. Despite a slight decrease in the GAAP operating margin to 32.5%, the adjusted operating margin remained robust at 37.3%. The company’s GAAP diluted EPS rose by 3.0% to $3.76, while the adjusted diluted EPS increased by 1.4% to $4.28. FactSet’s fiscal 2025 guidance has been updated, with expectations for organic ASV growth between $100 million and $130 million and GAAP revenues ranging from $2,305 million to $2,325 million.

FactSet continues to focus on strategic growth initiatives, including the acquisition of LiquidityBook, which adds advanced trading solutions to its platform, and the launch of Pitch Creator, an AI-powered tool designed to streamline pitchbook creation for investment banks. CEO Phil Snow expressed confidence in the company’s growth trajectory, stating, “With increased visibility into the remainder of the fiscal year, we are reaffirming the 5% midpoint of our organic ASV growth guidance and narrowing the range of anticipated top-line outcomes.” The company’s strong pipeline and client engagement are expected to drive growth acceleration in the second half of the year.

FactSet Research Systems Inc. (FDS) has experienced a turbulent period in terms of stock price performance, with a notable decline of 5.74% over the past month and a more significant drop of 10.28% over the last three months. Despite these recent setbacks, the company’s fundamentals paint a more optimistic picture. With a price-to-earnings ratio of 31.59, FactSet is positioned as a growth stock, supported by a robust earnings per share (EPS) two-year compound annual growth rate (CAGR) of 8.64%. The company’s revenue has also shown resilience, growing at a two-year CAGR of 7.65%, although free cash flow growth has been more modest at 2.42%. FactSet’s return on invested capital stands at a healthy 19.69%, indicating efficient use of capital to generate profits. Furthermore, a net profit margin of 24.18% underscores the company’s strong profitability. While the stock’s recent price trajectory may concern some investors, FactSet’s solid financial metrics suggest a foundation for potential recovery and long-term growth.

FactSet Research Systems Inc., a financial data and analytics company, provides integrated financial information and analytical applications to the investment community in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company delivers insight and information through the workflow solutions of research, analytics and trading, content and technology solutions, and wealth. It serves portfolio managers, investment banks, asset managers, wealth advisors, corporate clients, and other financial services entities. FactSet Research Systems Inc. was founded in 1978 and is headquartered in Norwalk, Connecticut.