S&P made three additions to the Dividend Aristocrats in January 2025: Erie Indemnity ( ERIE ), Eversource Energy ( ES ) and FactSet Research Systems ( FDS ) were tapped for inclusion thanks to their long records of annual dividend increases.Wrap Up The S&P500 Aristocrat Dividend DogsClick here to subscribe to The Dividend Dogcatcher. Get more information and the follow-up portfolios related to this article.Catch A Dog On Facebook the morning of every NYSE trade day on Facebook/Dividend Dog Catcher, A Fredri ...

Financial Performance - Revenues for the third quarter of fiscal 2025 were $585.5 million, a 5.9% increase from the prior year, driven by a 4.4% increase in organic revenues [185]. - Revenues for the three months ended May 31, 2025 were $585.5 million, an increase of 5.9% compared to $552.7 million in the same period of 2024 [207]. - For the nine months ended May 31, 2025, revenues were $1,724.8 million, an increase of 5.1% compared to $1,640.9 million in the same period of 2024 [208]. - Organic revenues increased by 4.4% to $577.2 million for the three months ended May 31, 2025, with acquisition-related revenues contributing an additional 1.4% [207]. - Net income for the three months ended May 31, 2025 was $148.5 million, a decrease of 6.1% from $158.1 million in the same period of 2024 [206]. - Diluted earnings per share (EPS) for the third quarter were $3.87, a decrease of 5.4% from the prior year, primarily due to lower operating income [188]. Client Metrics - The client count increased by 9.7% to 8,811 as of May 31, 2025, with a net addition of 782 clients, mainly due to the acquisition of Platform Group Limited [201]. - Annual ASV retention was greater than 95% as of May 31, 2025, with client retention at 91%, up from 90% the previous year [202]. - The Americas accounted for 65% of total ASV, amounting to $1,513.1 million, with a 5.0% increase in Organic ASV from the prior year [195]. Operating Performance - Operating margin decreased to 33.2% from 36.6% in the prior year, attributed to higher employee compensation costs and amortization of intangible assets [188]. - Operating income decreased by 4.1% to $194.2 million for the three months ended May 31, 2025, compared to $202.5 million in the prior year [229]. - Total operating income decreased 4.1% to $194.2 million for the three months ended May 31, 2025, compared to $202.5 million in the same period a year ago [235]. Expenses and Costs - Cost of services rose by 13.7% to $280.7 million for the three months ended May 31, 2025, primarily due to increased employee compensation costs [221]. - SG&A expenses increased by 7.1% to $110.6 million for the three months ended May 31, 2025, driven by higher employee compensation costs [226]. - Cost of services as a percentage of revenues was 47.9% for the three months ended May 31, 2025, an increase of 330 basis points year-over-year [222]. Acquisitions - The acquisition of LiquidityBook was completed for a purchase price of $243.2 million, including contingent consideration of $11.9 million [280]. - The acquisition of Irwin was completed for a purchase price of $120.2 million, including contingent consideration of $9.6 million [282]. - The acquisition date fair value of goodwill from LiquidityBook is $161.995 million, representing the excess of the purchase price over the fair value of net assets acquired [88]. - The acquisition date fair value of goodwill from Irwin is $91.376 million, reflecting future economic benefits expected from the acquisition [93]. Cash Flow and Capital Management - Net cash provided by operating activities for the nine months ended May 31, 2025, was $514.2 million, a decrease of $23.0 million from $537.2 million in the same period last year [288]. - Free cash flow for the nine months ended May 31, 2025, was $439.3 million, a decrease of $38.1 million compared to $477.5 million in the prior year [295]. - The company returned $312.2 million to stockholders in the form of share repurchases and dividends during the nine months ended May 31, 2025 [273]. - During the three months ended May 31, 2025, the company repurchased 184,050 shares for $80.7 million [275]. Debt and Financing - The total debt as of May 31, 2025, was $1,430,197 thousand, an increase from $1,365,973 thousand as of August 31, 2024 [112]. - The company entered into a new credit agreement on April 8, 2025, borrowing $500,000 thousand under a senior unsecured term loan credit facility [115]. - Interest expense on outstanding debt for the three months ended May 31, 2025, was $15.1 million, down from $16.6 million in the same period of 2024 [131]. Tax and Compliance - The provision for income taxes for the three months ended May 31, 2025, was $31,406 thousand, with an effective tax rate of 17.5%, up from 17.0% in the same period of 2024 [101]. - The company was in compliance with all covenants and requirements of the 2025 Credit Agreement as of May 31, 2025 [123].

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FactSet Research Systems FDS posted mixed results for the third quarter on Monday.The company reported quarterly sales of $585.52 million, surpassing analyst expectations of $580.50 million and representing a 5.9% year-over-year gain. The company reported quarterly adjusted earnings per share of $4.27, missing the street view of $4.29.“We are pleased with our third quarter performance, which reflects the execution of our enterprise solution strategy. With a healthy pipeline and increased momentum, we are we ...

Core Insights - FactSet Research Systems (NYSE: FDS) reported Q3 FY2025 results, showing a nearly 4% increase in share price, indicating strong market confidence in the company's performance [1] Financial Performance - The company demonstrated resilience with predictable revenue streams and robust financial results, reinforcing its position in the market [1] Market Reaction - Following the earnings release, the positive market reaction reflects investor confidence in the company's ongoing performance and strategic direction [1]

Core Insights - FactSet (FDS) reported third-quarter fiscal 2025 results with earnings per share of $4.27, missing the Zacks Consensus Estimate, while revenues of $585.5 million exceeded expectations [1][9] - The company experienced a 2.3% year-over-year decline in earnings, but revenues increased by 5.9% compared to the previous year [1][9] Revenue Performance - Organic revenues rose 4.4% year-over-year to $577.2 million, with regional growth of 5% in the Americas, 2.3% in EMEA, and 6.4% in Asia Pacific [3] - Revenues from the Americas segment were $380.5 million, up 6.7% year-over-year, while EMEA revenues were $145.7 million, a 3.1% increase, and Asia Pacific revenues reached $59.3 million, marking 7.8% growth [4] Annual Subscription Value (ASV) and Client Metrics - FactSet's Annual Subscription Value plus professional services totaled $2.3 billion, reflecting a 4.5% year-over-year increase, with 82% generated by buy-side firms [5] - The company added 166 clients in the third quarter, bringing the total to 8,811, with a client retention rate of 91% [6] Operating Results - Adjusted operating income was $194.2 million, a decrease of 4.1% year-over-year, but exceeded estimates [7] - The adjusted operating margin was 36.8%, down 260 basis points from the previous year [7] Balance Sheet and Cash Flow - FactSet ended the quarter with cash and cash equivalents of $356.4 million, up from $278.5 million in the previous quarter, and long-term debt decreased to $1.4 billion [8] - The company generated $253.8 million in cash from operating activities, with capital expenditures of $25.2 million, resulting in a free cash flow utilization of $228.6 million [8] Fiscal Year 2025 Guidance - For fiscal 2025, FactSet anticipates revenues between $2.305 billion and $2.325 billion, with the midpoint slightly above the Zacks Consensus Estimate [10] - Earnings per share guidance is set at $16.8 to $17.4, with the midpoint aligning with consensus estimates, and an adjusted operating margin projected at 36-37% [10]

Core Insights - FactSet Research reported revenue of $585.52 million for the quarter ended May 2025, marking a year-over-year increase of 5.9% [1] - The earnings per share (EPS) for the same period was $4.27, slightly down from $4.37 a year ago, with an EPS surprise of -0.93% compared to the consensus estimate of $4.31 [1] Financial Performance Metrics - Total Annual Subscription Value (ASV) reached $2.34 billion, exceeding the average estimate of $2.32 billion [4] - The total number of clients increased to 8,811, surpassing the estimated 8,718 [4] - Total users were reported at 220,496, slightly below the average estimate of 225,123 [4] - ASV from buy-side clients remained stable at 82.3%, matching the average estimate [4] - Domestic ASV was reported at $1.51 billion, slightly above the estimated $1.50 billion [4] - International ASV was $822 million, marginally below the estimate of $824.51 million [4] - Organic ASV was $2.30 billion, just under the average estimate of $2.31 billion [4] Revenue Breakdown - Revenues from U.S. clients were $380.5 million, exceeding the average estimate of $376.58 million, reflecting a year-over-year increase of 6.7% [4] - Revenues from international clients totaled $205 million, slightly above the estimate of $204.15 million, with a year-over-year change of 4.5% [4] - Revenues from Asia Pacific clients were reported at $59.30 million, above the average estimate of $58.64 million, representing a year-over-year increase of 7.8% [4] - Revenues from EMEA clients reached $145.70 million, marginally exceeding the estimate of $145.59 million, with a year-over-year change of 3.2% [4] Stock Performance - FactSet shares have returned -8.7% over the past month, contrasting with the Zacks S&P 500 composite's +0.5% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - Organic ASV grew by $22.6 million in Q3 2025, representing a 4.5% year-over-year increase [28] - GAAP revenues increased by 5.9% year-over-year, reaching $586 million [28] - Adjusted diluted EPS decreased by $0.10 or 2.3% to $4.27 [33] - GAAP operating margin was 33.2%, a decrease of 350 basis points compared to the previous year [32] Business Line Data and Key Metrics Changes - Wealth organic ASV maintained double-digit growth, with new business sales nearly doubling compared to the previous year [15] - Dealmaker banking gains were driven by improved retention and multiyear deals [17] - Private equity and venture capital (PEVC) saw its fourth consecutive quarter of accelerating growth [19] Market Data and Key Metrics Changes - In The Americas, organic ASV increased by 5%, driven by higher banking and asset manager retention [14] - EMEA experienced organic ASV growth of 2%, impacted by lower contributions from annual price increases [14] - Asia Pacific saw a 7% increase in organic ASV, primarily due to higher retention in the banking sector [14] Company Strategy and Development Direction - The company is focused on driving top-line growth and expanding its footprint in enterprise solutions [22] - Investments are being made in technology, particularly in generative AI capabilities, to enhance product innovation [30] - The leadership transition to Sanoq Viswanathan is expected to guide the company through its next growth phase [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment has not significantly changed, but client transformations are ongoing [40] - There is optimism regarding the pipeline for Q4, with strong demand anticipated from the institutional buy side [23] - The company reaffirmed its FY 2025 guidance, indicating confidence in achieving targets [36] Other Important Information - The company repurchased approximately 184,000 shares for around $81 million during the quarter [34] - A new share repurchase authorization of up to $400 million was approved, effective September 1, 2025 [34] - The company has returned $415 million to shareholders over the past twelve months through dividends and share repurchases [35] Q&A Session Summary Question: Change in macro environment and ASP growth - Management indicated that there has not been a significant change in the macro environment, attributing ASP growth to better execution and product traction [39][40] Question: Q4 outlook and comparison to last year - Management noted that both The Americas and EMEA regions look strong, with enterprise solutions driving growth [48][49] Question: Thoughts on fiscal 2026 - Management stated that they are focused on Q4 and will discuss fiscal 2026 in the September call [56][57] Question: Headwinds from asset owners optimizing costs - Management acknowledged competitive pressures but expressed optimism for future improvements [60][62] Question: Adjusted operating margin expectations for Q4 - Management confirmed that they expect to remain within the margin guidance range, with increased investments in technology and acquisitions [66][67] Question: Internal efficiency initiatives related to GenAI - Management highlighted ongoing efforts to improve internal efficiencies through AI, with positive early results [72][78] Question: Demand for data solutions - Management noted increased momentum in data solutions due to a broader suite of offerings and a refocused sales team [101][104]

Financial Data and Key Metrics Changes - Organic ASV grew by $22.6 million in Q3 2025, representing a 4.5% year-over-year increase [25] - GAAP revenues increased by 5.9% year-over-year, reaching $586 million [25] - Adjusted diluted EPS decreased by $0.10 or 2.3% to $4.27 [30] - GAAP operating margin was 33.2%, a decrease of 350 basis points compared to the previous year [29] - Free cash flow grew to $229 million in Q3, up 5% over the same period last year [31] Business Line Data and Key Metrics Changes - Wealth organic ASV maintained double-digit growth, with new business sales nearly doubling compared to the previous year [12] - Dealmaker banking gains were driven by improved retention and several multiyear deals [14] - Private equity and venture capital (PEVC) saw its fourth consecutive quarter of accelerating growth [16] - Hedge funds experienced growth due to new fund launches and increased adoption of data products [19] Market Data and Key Metrics Changes - In the Americas, organic ASV increased by 5%, driven by higher banking and asset manager retention [11] - EMEA saw organic ASV growth of 2%, impacted by lower contributions from annual price increases [11] - Asia Pacific experienced a 7% increase in organic ASV, primarily due to higher retention in the banking sector [11] Company Strategy and Development Direction - The company is focused on driving top-line growth and expanding its footprint in wealth management and institutional buy-side solutions [20][22] - Investments in technology, particularly in generative AI, are prioritized to enhance product offerings and operational efficiency [27][33] - The leadership transition to Sanoq Viswanathan is expected to guide the company through its next growth phase [7] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are no significant macroeconomic changes, client demand for technology and data solutions remains strong [38] - The company is optimistic about Q4 performance, reaffirming its FY 2025 guidance based on a healthy pipeline and growing momentum [9][33] - Management highlighted the importance of executing on a diverse portfolio of opportunities to achieve projected results [95] Other Important Information - The company repurchased approximately 184,000 shares for around $81 million during the quarter [31] - A new share repurchase authorization of up to $400 million was approved, effective September 1, 2025 [31] - The company has returned $415 million to shareholders over the past twelve months through dividends and share repurchases [32] Q&A Session Summary Question: Changes in macro environment and ASP growth - Management indicated that there hasn't been a significant change in the macro environment, attributing ASP growth to better execution and product traction [37][38] Question: Q4 outlook and comparisons to last year - Management noted that both The Americas and EMEA regions look strong, with growth driven by enterprise solutions and improved retention [47][49] Question: Thoughts on fiscal 2026 - Management stated that they are focused on Q4 and will discuss fiscal 2026 in the September call [55] Question: Headwinds from asset owners optimizing costs - Management acknowledged competitive pressures but expressed optimism for improvement in the future [58][60] Question: Adjusted operating margin expectations for Q4 - Management confirmed that they expect to remain within the adjusted margin guidance range of 36% to 37% [65] Question: Internal efficiency initiatives related to GenAI - Management is focused on applying GenAI internally to improve productivity and reduce administrative tasks [72][76] Question: Demand for data solutions and momentum - Management highlighted a return to historical levels of demand for data solutions, driven by a broader suite of offerings [99][101]

FactSet Earnings Call Monday, June 23, 2025 FactSet reports its financial results in accordance with U.S. GAAP. This presentation and oral statements made in connection with this presentation reference non-GAAP financial measures, including organic revenues, adjusted operating income, adjusted operating margin, EBITDA, adjusted net income, adjusted diluted EPS, and free cash flow. The presentation of this non-GAAP financial information should not be considered in isolation from, or as a substitute for, the ...