FactSet (FDS) Announces Earnings Results For Fourth Quarter And Fiscal 2025

FactSet Research Systems Inc. (FDS) today announced its financial results for the most recent quarter, revealing earnings per share of $4.05, slightly missing analysts’ expectations of $4.13. However, the company reported revenue of $596.9 million, surpassing the forecasted $592.8 million. This performance highlights FactSet’s ability to generate strong revenue growth despite the slight earnings miss.

Key Highlights:

• Q4 GAAP revenues of $596.9 million, up 6.2% from Q4 2024.
• Fiscal 2025 GAAP revenues were $2,321.7 million, up 5.4% year over year.
• Organic Annual Subscription Value (ASV) was $2,370.9 million, up 5.7% year over year.
• Q4 GAAP diluted EPS of $4.03, up 73.7% from the prior year.
• Fiscal 2026 guidance includes expected organic ASV growth of 4% - 6% and GAAP revenues in the range of $2,423 to $2,448 million.
• Client count increased by 9.5% during fiscal 2025, with a user growth of 9.7%.

In the fourth quarter of fiscal 2025, FactSet reported strong financial results, with GAAP revenues reaching $596.9 million, marking a 6.2% increase compared to the same quarter in the previous year. The company attributed this growth to its institutional buy-side and wealth clients, which significantly contributed to the overall revenue increase. CEO Sanoke Viswanathan emphasized the company’s strategic position, stating, “FactSet’s strong fourth quarter performance reflects the power of our differentiated data, open platform, and client-centric culture.” He highlighted the ongoing transformation in financial markets driven by AI and data-driven innovation, positioning FactSet to lead in this evolving landscape.

Looking ahead, FactSet provided guidance for fiscal 2026, projecting organic ASV growth between 4% and 6%, with GAAP revenues expected to fall between $2,423 million and $2,448 million. CFO Helen Shan noted the company’s focus on balancing investments with disciplined execution to ensure sustainable, long-term value for stockholders. The company also reported a significant increase in client and user counts, reinforcing its commitment to expanding its market presence and enhancing client relationships.

FactSet Research Systems Inc. (FDS) has recently experienced a notable decline in its stock price, with a staggering 24.31% drop over the past year. This downward trend is particularly pronounced over the last six months, where the stock has fallen by 23.16%. Despite these price challenges, the company’s fundamentals remain relatively strong, highlighted by a price-to-earnings ratio of 24.76, which suggests that investors are still willing to pay a premium for its earnings potential. The company has demonstrated a steady revenue growth rate of 5.65% over the past two years, alongside a respectable net profit margin of 23.26%. Additionally, FactSet’s return on invested capital stands at 17.93%, indicating efficient use of capital to generate profits. However, the modest growth in earnings per share (EPS) at 3.02% CAGR over the same period raises questions about future profitability. As the market reacts to these mixed signals, investors will be keen to see if FactSet can leverage its solid fundamentals to reverse the recent price declines.

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.