Company Performance - FactSet Research (FDS) reported quarterly earnings of $4.37 per share, exceeding the Zacks Consensus Estimate of $3.91 per share, and up from $3.79 per share a year ago [2] - The company posted revenues of $552.71 million for the quarter ended May 2024, which was slightly below the Zacks Consensus Estimate by 0.26%, compared to $529.81 million in the same quarter last year [3] - Over the last four quarters, FactSet has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [3] Market Performance - FactSet shares have declined approximately 14.4% since the beginning of the year, while the S&P 500 has gained 14.8% [5] - The current estimate revisions trend for FactSet is unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [8] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $3.70 on revenues of $559.49 million, and for the current fiscal year, it is $15.95 on revenues of $2.2 billion [9] - The outlook for the Business - Information Services industry, where FactSet operates, is currently in the bottom 37% of over 250 Zacks industries, which may negatively impact stock performance [10]

Q3 GAAP revenues of $552.7 million, up 4.3% from Q3 2023. Organic Q3 ASV plus professional services of $2,220.4 million, up 5.0% year over year. Q3 GAAP operating margin of 36.6%, up approximately 420 bps year over year, and adjusted operating margin of 39.4%, up 340 bps from the prior year. Q3 GAAP diluted EPS of $4.09, up 18.2% from the prior year, and adjusted diluted EPS of $4.37, up 15.3% year over year. Fiscal 2024 guidance updated. Expected organic ASV plus professional services growth of $85-$120 mi ...

Core Insights - FactSet reported strong financial performance for the third quarter of fiscal 2024, with significant increases in net income, operating margins, and earnings per share, driven by growth in institutional asset managers and other clients [10][11][12]. Financial Performance - GAAP revenues reached $552.7 million, a 4.3% increase from the previous year [11]. - Organic revenues grew by 4.5% year over year, totaling $553.4 million [11]. - Net income was $158.1 million, reflecting a 17.4% increase compared to the prior year [11][12]. - Adjusted net income rose to $168.8 million, a 14.3% increase [11][12]. - Diluted EPS increased by 18.2% to $4.09, while adjusted diluted EPS rose by 15.3% to $4.37 [11][12]. Operating Metrics - The GAAP operating margin improved to 36.6%, up approximately 420 basis points year over year [11]. - Adjusted operating margin increased to 39.4%, up 340 basis points from the prior year [11]. - Adjusted EBITDA for the quarter was $239.9 million, a 16.9% increase from the previous year [11]. Subscription and Client Metrics - Annual Subscription Value (ASV) plus professional services was $2,219.2 million, up from $2,120.1 million year over year, representing a growth rate of 5.0% [11][16]. - The company reported a client count of 8,029, with a net increase of 9 clients in the past three months [20]. - ASV from buy-side clients accounted for 82% of organic ASV, with a growth rate of 5.3% [3][50]. Regional Performance - ASV from the Americas region was $1,417.1 million, reflecting a 5.7% organic increase [17]. - EMEA region ASV increased to $565.7 million, with a 4.4% organic growth rate [18]. - Asia Pacific region ASV reached $219.2 million, showing a 6.1% organic increase [19]. Future Outlook - The company updated its fiscal 2024 guidance, expecting organic ASV plus professional services growth in the range of $85 million to $120 million [23]. - GAAP revenues are projected to be between $2,180 million and $2,190 million [23]. - Adjusted diluted EPS is expected to be in the range of $16.00 to $16.40 [23]. Strategic Initiatives - FactSet announced the release of new AI-powered tools to enhance research and analysis capabilities for clients [21]. - The company made a $12.5 million investment in Aidentified, Inc., focusing on AI-driven prospecting solutions [21]. Shareholder Returns - FactSet repurchased 135,150 shares for $59.8 million during the quarter, with $128.1 million remaining available for future repurchases [22]. - A quarterly dividend of $39.6 million was paid, marking a 6% increase from the previous quarter [21].

[Executive Summary](index=1&type=section&id=1.%20Executive%20Summary) [Third Quarter Fiscal 2024 Highlights](index=1&type=section&id=1.1.%20Third%20Quarter%20Fiscal%202024%20Highlights) FactSet achieved strong Q3 FY2024 results with GAAP revenue up 4.3% and organic ASV plus professional services up 5.0%, driven by improved operating margins and diluted EPS, despite a slight reduction in FY2024 ASV growth guidance Key Financial Highlights for Q3 FY2024 | Metric | Q3 FY2024 Value | YoY Change | | :------------------------------------ | :-------------- | :--------- | | GAAP Revenues | $552.7 million | +4.3% | | Organic ASV + Professional Services | $2,220.4 million| +5.0% | | GAAP Operating Margin | 36.6% | +420 bps | | Adjusted Operating Margin | 39.4% | +340 bps | | GAAP Diluted EPS | $4.09 | +18.2% | | Adjusted Diluted EPS | $4.37 | +15.3% | - GAAP and organic revenue growth were primarily driven by institutional asset managers, asset owners, partners, and corporate clients[4](index=4&type=chunk) - Operating margin improvement was mainly due to reduced bonus accruals, a one-time payroll tax adjustment, and increased capitalized gains[4](index=4&type=chunk) [CEO and CFO Commentary](index=1&type=section&id=1.2.%20CEO%20and%20CFO%20Commentary) CEO Phil Snow expressed optimism about platform and generative AI investments, while CFO Linda Huber noted continued shareholder value creation through EPS and adjusted operating margin growth despite reduced FY2024 organic ASV plus professional services guidance - CEO Phil Snow emphasized continued investment in the platform and leveraging generative AI to accelerate client efficiency and reduce their total cost of ownership[4](index=4&type=chunk) - CFO Linda Huber stated the company continues to create shareholder value through increased EPS and adjusted operating margin, offsetting softer revenue growth[7](index=7&type=chunk) - The FY2024 organic ASV plus professional services growth guidance was updated to **$85 million to $120 million** (midpoint 4.8%), down from the previous **$110 million to $150 million** guidance[7](index=7&type=chunk) [Financial Performance](index=1&type=section&id=2.%20Financial%20Performance) [Revenues and Annual Subscription Value (ASV)](index=1&type=section&id=2.1.%20Revenues%20and%20Annual%20Subscription%20Value%20(ASV)) FactSet's Q3 FY2024 revenue grew 4.3% (4.5% organic) to **$552.7 million**, with organic ASV plus professional services reaching **$2.2204 billion**, up 5.0%, primarily driven by buy-side clients Q3 FY2024 Revenue Performance | Metric | Q3 FY2024 Value | YoY Change | | :-------------- | :-------------- | :--------- | | GAAP Revenues | $552.7 million | +4.3% | | Organic Revenues| $553.4 million | +4.5% | ASV plus Professional Services | Metric | May 31, 2024 | May 31, 2023 | YoY Change | | :------------------------------------ | :-------------- | :-------------- | :--------- | | ASV plus Professional Services | $2,219.2 million| $2,120.1 million| +4.7% | | Organic ASV plus Professional Services| $2,220.4 million| $2,114.8 million| +5.0% | [Overall Revenue and ASV Growth](index=1&type=section&id=2.1.1.%20Overall%20Revenue%20and%20ASV%20Growth) Organic ASV plus professional services increased by **$11.7 million** over the past three months, reaching **$2.2204 billion** with a 5.0% year-over-year growth - Organic ASV plus professional services increased by **$11.7 million** over the past three months[4](index=4&type=chunk)[8](index=8&type=chunk) Organic ASV plus Professional Services Growth | Metric | Value | Growth Rate | | :------------------------------------ | :-------------- | :---------- | | Organic ASV plus Professional Services| $2,220.4 million| +5.0% YoY | [Segment Revenues and ASV](index=2&type=section&id=2.1.2.%20Segment%20Revenues%20and%20ASV) All geographic regions (Americas, EMEA, Asia Pacific) achieved positive organic ASV and revenue growth, with the Americas leading at **5.7% organic ASV** and **5.5% organic revenue** growth Segment Organic ASV and Revenue Growth (Q3 FY2024) | Region | Organic ASV Growth | Organic Revenue Growth | | :------------ | :----------------- | :--------------------- | | Americas | +5.7% | +5.5% | | EMEA | +4.4% | +2.4% | | Asia Pacific | +6.1% | +3.0% | - Segment ASV excludes professional services, which totaled **$17.2 million** as of May 31, 2024[12](index=12&type=chunk) [ASV by Client Type](index=2&type=section&id=2.1.3.%20ASV%20by%20Client%20Type) In Q3 FY2024, buy-side clients accounted for **82% of organic ASV** with **5.3% growth**, while sell-side clients represented **18%** with **3.7% growth** Organic ASV Growth Rate by Client Type (Q3 FY2024) | Client Type | % of Organic ASV | Growth Rate | | :---------- | :--------------- | :---------- | | Buy-side | 82% | +5.3% | | Sell-side | 18% | +3.7% | - Buy-side clients include institutional asset managers, wealth managers, asset owners, hedge funds, partners, and corporate clients[9](index=9&type=chunk) - Sell-side firms include broker-dealers, banks and consulting firms, and private equity and venture capital firms[9](index=9&type=chunk) [Profitability and Earnings](index=1&type=section&id=2.2.%20Profitability%20and%20Earnings) FactSet demonstrated strong Q3 FY2024 profitability with GAAP operating income up **17.7%** and adjusted operating margin improving **340 bps to 39.4%**, driven by double-digit net income and diluted EPS growth Q3 FY2024 Profitability Overview | Metric | Q3 FY2024 Value | YoY Change | | :---------------------- | :-------------- | :--------- | | Operating Income | $202.5 million | +17.7% | | Adjusted Operating Income| $218.0 million | +14.2% | | Operating Margin | 36.6% | +420 bps | | Adjusted Operating Margin| 39.4% | +340 bps | | Net Income | $158.1 million | +17.4% | | Adjusted Net Income | $168.8 million | +14.3% | | Diluted EPS | $4.09 | +18.2% | | Adjusted Diluted EPS | $4.37 | +15.3% | [Operating Income and Margin](index=1&type=section&id=2.2.1.%20Operating%20Income%20and%20Margin) GAAP operating income grew **17.7% to $202.5 million**, and adjusted operating income increased **14.2% to $218.0 million**, with margins expanding due to reduced bonus accruals, payroll tax adjustments, and increased capitalized gains - GAAP operating margin increased to **36.6%** (up **420 bps** year-over-year), and adjusted operating margin improved to **39.4%** (up **340 bps** year-over-year)[4](index=4&type=chunk)[12](index=12&type=chunk) - Margin expansion was primarily attributed to reduced bonus accruals, a one-time payroll tax adjustment, and increased capitalized gains[4](index=4&type=chunk) [Net Income and Earnings Per Share (EPS)](index=1&type=section&id=2.2.2.%20Net%20Income%20and%20Earnings%20Per%20Share%20(EPS)) GAAP net income grew **17.4% to $158.1 million**, and adjusted net income increased **14.3% to $168.8 million**, with diluted EPS rising due to higher revenue, margin expansion, and reduced share count - GAAP diluted EPS increased **18.2% to $4.09**, and adjusted diluted EPS grew **15.3% to $4.37**[4](index=4&type=chunk)[12](index=12&type=chunk) - EPS growth was attributed to higher revenue, margin expansion, and a reduced share count, partially offset by increased income tax provision for GAAP EPS[4](index=4&type=chunk) [Adjusted EBITDA](index=1&type=section&id=2.2.3.%20Adjusted%20EBITDA) Adjusted EBITDA for Q3 FY2024 increased **16.9% to $239.9 million** from **$205.3 million** in the prior year, primarily due to higher operating income Adjusted EBITDA Performance | Metric | Q3 FY2024 Value | Q3 FY2023 Value | YoY Change | | :-------------- | :-------------- | :-------------- | :--------- | | Adjusted EBITDA | $239.9 million | $205.3 million | +16.9% | - The increase in adjusted EBITDA was due to improved operating income[4](index=4&type=chunk) [Cash Flow and Capital Allocation](index=3&type=section&id=2.3.%20Cash%20Flow%20and%20Capital%20Allocation) FactSet reported strong operating cash flow of **$238.2 million**, leading to a **12.6% increase in free cash flow to $216.9 million**, while continuing capital allocation through **$59.8 million** in share repurchases and a **6% dividend increase** Q3 FY2024 Cash Flow Performance | Metric | Q3 FY2024 Value | Q3 FY2023 Value | YoY Change | | :------------------------------------ | :-------------- | :-------------- | :--------- | | Net Cash Provided by Operating Activities| $238.2 million | $218.6 million | +9.0% | | Free Cash Flow | $216.9 million | $192.6 million | +12.6% | [Cash Flow from Operating Activities and Free Cash Flow](index=3&type=section&id=2.3.1.%20Cash%20Flow%20from%20Operating%20Activities%20and%20Free%20Cash%20Flow) Net cash provided by operating activities increased to **$238.2 million**, driven by higher revenue, improved collections, and timing-related reductions in accounts payable and accrued expenses, resulting in a **12.6% rise in quarterly free cash flow to $216.9 million** - Net cash provided by operating activities was primarily due to increased revenue, improved collection rates, and timing-related reductions in payments for accounts payable and accrued expenses[15](index=15&type=chunk) - Quarterly free cash flow increased **12.6% to $216.9 million**[15](index=15&type=chunk)[42](index=42&type=chunk) [Share Repurchase Program](index=3&type=section&id=2.3.2.%20Share%20Repurchase%20Program) FactSet repurchased **135,150 shares** of common stock for **$59.8 million** at an average price of **$442.12 per share** in Q3 FY2024, with **$128.1 million** remaining under the program as of May 31, 2024 - FactSet repurchased **135,150 shares** for **$59.8 million** at an average price of **$442.12 per share**[14](index=14&type=chunk) - As of May 31, 2024, **$128.1 million** remained available for share repurchases under the program[14](index=14&type=chunk) [Dividends](index=3&type=section&id=2.3.3.%20Dividends) The company paid a quarterly dividend of **$1.04 per share** (totaling **$39.6 million**) on June 20, 2024, a **6% increase** from the prior quarter, marking its 25th consecutive year of dividend increases on a split-adjusted basis - A quarterly dividend of **$1.04 per share** was paid, representing a **6% increase** from the prior quarter[15](index=15&type=chunk) - This marks the company's 25th consecutive year of increasing its dividend on a split-adjusted basis[15](index=15&type=chunk) [Operational Highlights and Strategic Initiatives](index=3&type=section&id=3.%20Operational%20Highlights%20and%20Strategic%20Initiatives) [Client and User Metrics](index=3&type=section&id=3.1.%20Client%20and%20User%20Metrics) Client count increased by **9 to 8,029**, driven by wealth management, corporate, and partners, while user count grew by **1,662 to 208,140**, primarily in wealth management, with annual ASV retention exceeding **95%** and client retention at **90%** Client and User Metrics (Q3 FY2024) | Metric | Value | Change (past 3 months) | | :---------------------- | :-------- | :--------------------- | | Client Count | 8,029 | +9 | | User Count | 208,140 | +1,662 | | Annual ASV Retention | >95% | N/A | | Annual Client Retention | 90% | N/A | - Client growth was driven by wealth management, corporate, and partners, while user growth was primarily in wealth management, covering all firm types except banking[15](index=15&type=chunk) [Employee Count](index=3&type=section&id=3.2.%20Employee%20Count) As of May 31, 2024, FactSet's employee count grew **1.6% to 12,262** over the past twelve months, primarily in content teams, with approximately **68%** of employees located in its Centers of Excellence - As of May 31, 2024, the employee count was **12,262**, representing a **1.6% increase** over the past twelve months, primarily within content teams[15](index=15&type=chunk) - FactSet's Centers of Excellence account for approximately **68%** of the company's total employee base[15](index=15&type=chunk) [Product Innovation and Strategic Investments](index=3&type=section&id=3.3.%20Product%20Innovation%20and%20Strategic%20Investments) FactSet launched two generative AI-powered solutions, Transcript Assistant and Portfolio Commentary, and made a **$12.5 million** strategic investment in Aidentified, Inc., an AI-driven client development and relationship intelligence platform for financial professionals - Launched Transcript Assistant, a GenAI-powered conversational chatbot for earnings call transcript research[15](index=15&type=chunk) - Introduced the Portfolio Commentary solution, powered by Large Language Models (LLMs), significantly reducing the challenging, time-consuming, and meticulous process of writing attribution summaries[15](index=15&type=chunk) - Made a **$12.5 million** investment in Aidentified, Inc., a leading AI-driven client development and relationship intelligence platform for financial services professionals[15](index=15&type=chunk) [Fiscal 2024 Business Outlook](index=1&type=section&id=4.%20Fiscal%202024%20Business%20Outlook) [Updated Guidance](index=1&type=section&id=4.1.%20Updated%20Guidance) The company updated its FY2024 guidance, lowering organic ASV plus professional services growth and GAAP revenue expectations, but raising GAAP and adjusted operating margin, and GAAP and adjusted diluted EPS forecasts, with the effective tax rate guidance unchanged Updated FY2024 Guidance | Metric | New Guidance Range (FY2024) | Previous Guidance Range (FY2024) | Change | | :------------------------------------ | :-------------------------- | :------------------------------- | :-------- | | Organic ASV + Professional Services Growth| $85-$120 million (4-5.5%) | $110-$150 million | Reduced | | GAAP Revenues | $2,180-$2,190 million | $2,200-$2,210 million | Reduced | | GAAP Operating Margin | 33.7%-34.0% | 32.5%-33.0% | Increased | | Adjusted Operating Margin | 37.0%-37.5% | 36.3%-36.7% | Increased | | Annual Effective Tax Rate | 16.5%-17.5% | 16.5%-17.5% | Unchanged | | GAAP Diluted EPS | $14.55-$14.95 | $13.95-$14.35 | Increased | | Adjusted Diluted EPS | $16.00-$16.40 | $15.60-$16.00 | Increased | - The updated guidance reflects a reduction in revenue growth expectations but an improvement in profitability metrics[7](index=7&type=chunk)[16](index=16&type=chunk)[24](index=24&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=5.%20Non-GAAP%20Financial%20Measures) [About Non-GAAP Financial Measures](index=4&type=section&id=5.1.%20About%20Non-GAAP%20Financial%20Measures) FactSet utilizes adjusted financial measures for internal and external reporting to help investors understand performance using management's tools and facilitate comparisons with historical results, though these metrics are not intended to replace GAAP outcomes - FactSet uses adjusted financial measures to present performance to shareholders and for internal evaluation, believing these metrics help investors view company performance using the same tools management uses to measure progress toward goals[23](index=23&type=chunk)[34](index=34&type=chunk) - The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP[23](index=23&type=chunk) [Reconciliation of GAAP to Adjusted Financial Measures](index=9&type=section&id=5.2.%20Reconciliation%20of%20GAAP%20to%20Adjusted%20Financial%20Measures) This schedule details adjustments made to reconcile GAAP operating income, net income, and diluted EPS to their non-GAAP counterparts, primarily including intangible asset amortization, business acquisition/integration costs, restructuring/severance, and income tax items - Organic revenue excludes revenue from acquisitions and dispositions completed within the past twelve months and the current year impact of foreign currency movements[24](index=24&type=chunk)[35](index=35&type=chunk) - Adjusted operating income and margin, adjusted net income, and adjusted diluted EPS exclude acquisition-related intangible asset amortization and non-recurring items[24](index=24&type=chunk) - EBITDA and Adjusted EBITDA represent earnings before interest expense, provision for income taxes, and depreciation and amortization, with Adjusted EBITDA further excluding non-recurring non-cash expenses[24](index=24&type=chunk)[25](index=25&type=chunk) - Free cash flow is reported as non-GAAP free cash flow by subtracting purchases of property, equipment, leasehold improvements, and capitalized internal-use software from net cash provided by operating activities[26](index=26&type=chunk) [Company Information](index=4&type=section&id=6.%20Company%20Information) [About FactSet](index=5&type=section&id=6.1.%20About%20FactSet) FactSet is a global financial digital platform and enterprise solutions provider serving over **8,000 clients** and **208,000 individual users** across buy-side, sell-side, wealth management, private equity, and corporate sectors, focusing on sustainable growth through financial data, analytics, and open technology - FactSet is a global financial digital platform and enterprise solutions provider[27](index=27&type=chunk) - It serves over **8,000 clients** and **208,000 individual users** globally across various financial sectors including buy-side, sell-side, wealth management, private equity, and corporate clients[27](index=27&type=chunk) - The company provides financial data, analytics, and open technology, committed to sustainable growth[27](index=27&type=chunk) [Investor Relations and Media Contacts](index=5&type=section&id=6.2.%20Investor%20Relations%20and%20Media%20Contacts) Contact information for FactSet's Investor Relations (Ali van Nes) and Media Relations (Megan Kovach) is provided for inquiries - Investor Relations contact: Ali van Nes (**+1.203.810.2273**, investor_relations@factset.com, avannes@factset.com)[28](index=28&type=chunk) - Media contact: Megan Kovach (**+1.512.736.2795**, megan.kovach@factset.com)[28](index=28&type=chunk) [Consolidated Financial Statements (Unaudited)](index=6&type=section&id=7.%20Consolidated%20Financial%20Statements%20(Unaudited)) [Consolidated Statements of Income](index=6&type=section&id=7.1.%20Consolidated%20Statements%20of%20Income) The consolidated statements of income show Q3 FY2024 revenue of **$552.7 million**, up from **$529.8 million** in Q3 FY2023, with net income at **$158.1 million** and diluted EPS at **$4.09** Consolidated Statements of Income (Q3 FY2024 vs Q3 FY2023, in thousands) | Metric | Three Months Ended May 31, 2024 | Three Months Ended May 31, 2023 | | :-------------------------- | :------------------------------ | :------------------------------ | | Revenues | $552,708 | $529,811 | | Operating income | $202,459 | $171,959 | | Net income | $158,135 | $134,663 | | Diluted earnings per common share | $4.09 | $3.46 | [Consolidated Balance Sheets](index=7&type=section&id=7.2.%20Consolidated%20Balance%20Sheets) As of May 31, 2024, FactSet reported total assets of **$4.0397 billion**, up from **$3.9629 billion** on August 31, 2023, with total liabilities decreasing to **$2.1493 billion** and total stockholders' equity increasing to **$1.8904 billion** Consolidated Balance Sheets (May 31, 2024 vs August 31, 2023, in thousands) | Metric | May 31, 2024 | August 31, 2023 | | :-------------------------- | :-------------- | :-------------- | | Total Assets | $4,039,701 | $3,962,922 | | Total Liabilities | $2,149,297 | $2,342,992 | | Total Stockholders' Equity | $1,890,404 | $1,619,930 | [Consolidated Statements of Cash Flows](index=8&type=section&id=7.3.%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended May 31, 2024, net cash provided by operating activities increased to **$537.2 million**, net cash used in investing activities was **$104.7 million**, and net cash used in financing activities was **$402.9 million**, with cash and cash equivalents at period-end totaling **$453.1 million** Consolidated Statements of Cash Flows (Nine Months Ended May 31, 2024 vs 2023, in thousands) | Metric | Nine Months Ended May 31, 2024 | Nine Months Ended May 31, 2023 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities| $537,177 | $489,903 | | Net cash used in investing activities | $(104,658) | $(72,310) | | Net cash used in financing activities | $(402,908) | $(437,357) | | Cash and cash equivalents at end of period| $453,144 | $486,627 | [Supplementary Schedules](index=9&type=section&id=8.%20Supplementary%20Schedules) [Reconciliation of Revenues to Organic Revenues](index=9&type=section&id=8.1.%20Reconciliation%20of%20Revenues%20to%20Organic%20Revenues) The reconciliation shows Q3 FY2024 GAAP revenue of **$552.7 million**, which, after adjusting for **$0.1 million** in acquisition revenue and **$0.8 million** in currency impact, resulted in organic revenue of **$553.4 million**, representing a **4.5% growth rate** Reconciliation of Revenues to Organic Revenues (Q3 FY2024, in thousands) | Metric | Q3 FY2024 Value | Q3 FY2023 Value | Change | | :---------------- | :-------------- | :-------------- | :----- | | Revenues | $552,708 | $529,811 | 4.3% | | Acquisition revenues| $(119) | — | | | Currency impact | $843 | — | | | Organic revenues | $553,432 | $529,811 | 4.5% | [Reconciliation of Operating Income, Net Income, and EPS to Adjusted Measures](index=10&type=section&id=8.2.%20Reconciliation%20of%20Operating%20Income,%20Net%20Income,%20and%20EPS%20to%20Adjusted%20Measures) This schedule details adjustments made to reconcile GAAP operating income, net income, and diluted EPS to their non-GAAP counterparts, primarily including intangible asset amortization, business acquisition/integration costs, restructuring/severance, and income tax items Reconciliation of Operating Income to Adjusted Operating Income (Q3 FY2024, in thousands) | Metric | Q3 FY2024 Value | Q3 FY2023 Value | % Change | | :---------------------------- | :-------------- | :-------------- | :------- | | Operating income | $202,459 | $171,959 | 17.7% | | Intangible asset amortization | $16,674 | $17,655 | | | Business acquisition / integration costs | $423 | — | | | Restructuring / severance | $(1,596) | $1,318 | | | Adjusted operating income | $217,960 | $190,932 | 14.2% | Reconciliation of Net Income to Adjusted Net Income (Q3 FY2024, in thousands) | Metric | Q3 FY2024 Value | Q3 FY2023 Value | % Change | | :---------------------------- | :-------------- | :-------------- | :------- | | Net income | $158,135 | $134,663 | 17.4% | | Intangible asset amortization | $11,466 | $14,406 | | | Business acquisition / integration costs | $291 | — | | | Restructuring / severance | $(1,096) | $1,075 | | | Income tax items | — | $(2,477) | | | Adjusted net income | $168,796 | $147,667 | 14.3% | Reconciliation of Diluted EPS to Adjusted Diluted EPS (Q3 FY2024, in dollars) | Metric | Q3 FY2024 Value | Q3 FY2023 Value | % Change | | :---------------------------- | :-------------- | :-------------- | :------- | | Diluted EPS | $4.09 | $3.46 | 18.2% | | Intangible asset amortization | $0.30 | $0.36 | | | Business acquisition / integration costs | $0.01 | — | | | Restructuring / severance | $(0.03) | $0.03 | | | Income tax items | — | $(0.06) | | | Adjusted Diluted EPS | $4.37 | $3.79 | 15.3% | [Free Cash Flow Reconciliation](index=11&type=section&id=8.3.%20Free%20Cash%20Flow%20Reconciliation) The free cash flow reconciliation shows Q3 FY2024 net cash provided by operating activities of **$238.2 million**, which, after subtracting **$21.3 million** for property, equipment, leasehold improvements, and capitalized internal-use software, resulted in free cash flow of **$216.9 million**, a **12.6% year-over-year increase** Free Cash Flow Reconciliation (Q3 FY2024, in thousands) | Metric | Q3 FY2024 Value | Q3 FY2023 Value | Change | | :------------------------------------ | :-------------- | :-------------- | :----- | | Net Cash Provided for Operating Activities| $238,235 | $218,589 | | | Less: purchases of property, equipment, leasehold improvements and capitalized internal-use software | $(21,339) | $(26,005) | | | Free Cash Flow | $216,896 | $192,584 | 12.6% | [Historical ASV by Client Type](index=12&type=section&id=8.4.%20Historical%20ASV%20by%20Client%20Type) This schedule provides historical organic ASV percentages and growth rates by client type (buy-side and sell-side) across multiple quarters, excluding professional services and issuer fees, showing buy-side clients consistently represent the majority of ASV, with growth rates for both client types slowing over the past year Organic ASV by Client Type (Q3 FY2024 vs Q3 FY2023) | Metric | Q3'24 | Q3'23 | | :-------------------------- | :------ | :------ | | % of ASV from buy-side clients | 82.3% | 82.1% | | % of ASV from sell-side clients | 17.7% | 17.9% | | ASV Growth rate from buy-side clients | 5.3% | 7.3% | | ASV Growth rate from sell-side clients | 3.7% | 12.3% | - Buy-side clients consistently account for over **80% of ASV**[45](index=45&type=chunk) - Both buy-side and sell-side ASV growth rates have slowed compared to the prior year[45](index=45&type=chunk)

Core Insights - FactSet Research Systems Inc. is expected to report quarterly earnings of $3.90 per share, an increase from $3.79 per share in the same period last year, with projected revenue of $552.71 million [4] - The company's board approved a 6% increase in the regular quarterly cash dividend from 98 cents per share to $1.04 per share [2] Analyst Ratings - Morgan Stanley analyst Toni Kaplan maintained an Underweight rating and reduced the price target from $372 to $350 [8] - Wolfe Research analyst Scott Wurtzel initiated coverage with an Underperform rating and a price target of $430 [8] - BMO Capital analyst Jeffrey Silber maintained a Market Perform rating and raised the price target from $447 to $458 [8] - Stifel analyst Shlomo Rosenbaum reiterated a Hold rating with a price target of $469 [8] - Barclays analyst Manav Patnaik downgraded the stock from Overweight to Equal-Weight and cut the price target from $480 to $460 [8] Stock Performance - FactSet Research shares increased by 0.3% to close at $408.35 [7]

Core Viewpoint - FactSet Research Systems Inc. is expected to report its third-quarter fiscal 2024 results on June 21, with anticipated revenue growth driven by GenAI banker efficiency tools and the release of Transcript Assistant [1][2]. Revenue Expectations - The consensus estimate for FactSet's fiscal third-quarter revenues is $554.1 million, reflecting a 4.6% increase from the previous year's figure [2]. - Revenue from the Americas is projected to be $353.7 million, indicating a 4.7% year-over-year growth [6]. - EMEA revenues are expected to rise by 3.8% to $143.3 million, while Asia Pacific revenues are estimated at $58.6 million, implying an 8.3% year-over-year increase [6]. Earnings Expectations - The consensus estimate for earnings is $3.9 per share, suggesting a 3.2% growth year-over-year [3]. - FactSet has an Earnings ESP of +1.31% but holds a Zacks Rank of 4 (Sell), indicating uncertainty regarding an earnings beat this quarter [4][11]. Historical Performance - FactSet has surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average negative surprise of 0.17% [14].

Core Insights - Analysts' forecasts for FactSet Research (FDS) indicate a positive outlook for revenues and earnings, with expected increases across various metrics compared to the previous year [2][3][6]. Revenue Estimates - 'Revenues from clients- US' are projected to be $356.23 million, reflecting a year-over-year increase of +5.5% [2]. - 'Revenues from clients- EMEA' are expected to reach $143.74 million, indicating a +4.2% change from the prior-year quarter [2]. - 'Revenues from clients- Asia Pacific' are forecasted at $57.57 million, suggesting a +6.4% year-over-year increase [2]. - Total revenues are anticipated to amount to $554.14 million, showing a +4.6% increase compared to the same quarter last year [3]. Earnings Estimates - Quarterly earnings per share (EPS) are expected to be $3.91, marking a year-over-year increase of +3.2% [3]. - There has been a slight downward revision of 0.4% in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their forecasts [4]. Subscription and Client Metrics - The 'Total Annual Subscription Value' is estimated to be $2.24 billion, up from $2.12 billion in the same quarter last year [6]. - The consensus estimate for 'Total Clients' stands at 8,191, compared to 7,770 in the same quarter last year [6]. - 'ASV from buy-side clients' is projected to be 82.0%, slightly down from 82.1% in the previous year [7]. - 'ASV - International' is expected to reach $792.09 million, up from $751.10 million in the same quarter last year [7]. - 'ASV - Domestic' is estimated at $1.44 billion, compared to $1.34 billion in the same quarter last year [9]. User Metrics - Analysts predict that 'Total Users' will reach 207,091, an increase from 187,845 in the previous year [8]. Market Performance - FactSet shares have decreased by -10.5% over the past month, contrasting with the Zacks S&P 500 composite's +3.7% performance [8].

The earnings report, which is expected to be released on June 21, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. Revenues are expected to be $554.14 million, up 4.6% from the year-ago quarter. FactSet Research (FDS) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended May 2024. This widely-known consensus outlook gives a good sense of ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? FactSet Research (FDS) , which belongs to the Zacks Business - Information Services industry, could be a great candidate to consider. This financial data firm has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 5.34%. For the most recent quarter, F ...

Core Viewpoint - FactSet will release its financial and operating results for the third quarter of fiscal 2024 on June 21, 2024, and will host a conference call to discuss these results [1][2]. Group 1: Conference Call Details - The conference call is scheduled for June 21, 2024, at 11:00 a.m. Eastern Time [2]. - Participants must register for the conference call in advance to receive dial-in numbers and a unique access pin [2]. - A live Q&A session will be included in the conference call [2]. Group 2: Earnings Presentation - Earnings presentation slides will be available on the investor relations website at 10:30 a.m. Eastern Time on June 21, 2024, 30 minutes before the call [3]. - A replay of the earnings call will be accessible on the investor relations website after 1:00 p.m. Eastern Time on June 21, 2024, until June 21, 2025 [3]. - The earnings call transcript will be available via FactSet CallStreet [3]. Group 3: Company Overview - FactSet serves nearly 8,000 global clients, including over 206,000 individual users, providing financial data, analytics, and technology solutions [4]. - The company is recognized as one of the Best Places to Work in 2023 by Glassdoor [4].