Group 1 - FactSet reported quarterly earnings of $4.05 per share, missing the Zacks Consensus Estimate of $4.15 per share, but showing an increase from $3.74 per share a year ago, resulting in an earnings surprise of -2.41% [1] - The company posted revenues of $596.9 million for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 0.73%, and up from $562.19 million year-over-year [2] - FactSet has surpassed consensus revenue estimates three times over the last four quarters, indicating a positive trend in revenue performance [2] Group 2 - The stock has underperformed the market, losing about 30% since the beginning of the year, while the S&P 500 gained 12.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the coming quarter is $4.63 on revenues of $600.48 million, and for the current fiscal year, it is $18.51 on revenues of $2.45 billion [7] Group 3 - The Zacks Industry Rank places the Business - Information Services sector in the bottom 36% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8] - The estimate revisions trend for FactSet was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6]

Core Insights - FactSet reported strong financial performance for Q4 and fiscal year 2025, highlighting growth driven by AI and data-driven innovation [1][3][5] Financial Performance - Q4 GAAP revenues reached $596.9 million, a 6.2% increase from Q4 2024, while fiscal 2025 GAAP revenues totaled $2,321.7 million, up 5.4% year over year [3][7] - Organic Annual Subscription Value (ASV) was $2,370.9 million as of August 31, 2025, reflecting a 5.7% increase year over year [3][6] - Q4 GAAP operating margin improved to 29.7%, up approximately 700 basis points year over year, while adjusted operating margin decreased to 33.8% [3][4] - Q4 GAAP diluted EPS was $4.03, a 73.7% increase from the prior year, and adjusted diluted EPS was $4.05, up 8.3% year over year [3][4] Client and User Growth - Client count increased by 9.5% to 8,996, with a net addition of 779 clients during fiscal 2025 [5][15] - User count grew by 9.7% to 237,324, driven by an increase in wealth management users [5][15] Regional Performance - ASV from the Americas was $1,570.1 million, with organic ASV increasing 6.0% [10] - ASV from EMEA was $591.6 million, with organic ASV up 4.2% [11] - ASV from Asia Pacific reached $243.9 million, reflecting a 7.2% increase in organic ASV [12] Cash Flow and Shareholder Returns - Net cash provided by operating activities for Q4 was $212.1 million, a 30.0% increase year over year, while free cash flow rose to $178.1 million [3][5] - The company returned $460.4 million to shareholders through share repurchases and dividends during fiscal 2025 [5][16] Future Guidance - For fiscal 2026, FactSet expects organic ASV growth of 4% to 6% and GAAP revenues in the range of $2,423 million to $2,448 million [3][23]

Market Sentiment - The CNN Money Fear and Greed index showed a slight decline in overall market sentiment, moving to a reading of 57.3, indicating a "Greed" zone, down from 57.5 [6] - U.S. stocks settled mixed, with the Dow Jones index gaining over 250 points during the session as the Federal Reserve implemented its first interest rate cut of the year [1][2] Federal Reserve Actions - The Federal Reserve delivered a 25-basis-point rate cut, with Chair Jerome Powell indicating that more easing could be forthcoming due to a cooling labor market and increasing downside risks to employment [2] Company Performance - General Mills Inc. reported fiscal 2026 first-quarter results that slightly exceeded Wall Street expectations [2] - Manchester United plc shares fell over 6% after the company reported mixed fourth-quarter financial results [2] Economic Indicators - U.S. housing starts decreased by 8.5% month-over-month to an annual rate of 1.307 million units in August, down from a revised 1.429 million in the previous month and below market estimates of 1.37 million [3] - Building permits also declined by 3.7% to an annualized rate of 1.312 million in August [3] Sector Performance - Most sectors on the S&P 500 closed positively, with consumer staples, financial, and materials stocks recording the largest gains, while information technology and industrials stocks closed lower [4] - The Dow Jones closed higher by approximately 260 points to 46,018.32, while the S&P 500 fell 0.10% to 6,600.35 and the Nasdaq Composite fell 0.33% to 22,261.33 during Monday's session [4] Upcoming Earnings - Investors are awaiting earnings results from Darden Restaurants Inc., Factset Research Systems Inc., and FedEx Corp [5]

Group 1 - Darden Restaurants Inc. (DRI) is expected to report quarterly earnings of $2.00 per share with revenue of $3.04 billion [2] - Bullish BLSH reported a profit of 93 cents per share for the second quarter, recovering from a loss of $1.03 per share a year ago, with revenue increasing to $58.63 million from $49.57 million [2] - Factset Research Systems Inc. (FDS) is anticipated to post quarterly earnings of $4.13 per share on revenue of $593.45 million [2] - 89bio Inc. (ETNB) has agreed to be acquired by Roche for $14.50 per share, representing a 79% premium to its closing stock price on September 17 [2] - FedEx Corp. (FDX) is expected to report quarterly earnings of $3.62 per share with revenue of $21.67 billion [2]

Financial Performance - Q4 GAAP revenues were $596.9 million, up 6.2% from Q4 2024, while fiscal 2025 GAAP revenues reached $2,321.7 million, up 5.4% year over year[5]. - Q4 GAAP diluted EPS increased 73.7% to $4.03, and for fiscal 2025, GAAP diluted EPS was $15.55, up 11.8% year over year[5][7]. - The company reported a net income of $597.0 million for the fiscal year 2025, compared to $537.1 million in 2024, reflecting a year-over-year increase of about 11.1%[29]. - Operating income for the three months ended August 31, 2025, was $177,321, representing a 38.7% increase from $127,858 in 2024[36]. - Net income for the twelve months ended August 31, 2025, was $597,040, an increase of 11.2% from $537,126 in 2024[32]. - Adjusted operating income for the twelve months ended August 31, 2025, was $843,432, up 1.3% from $832,653 in 2024[36]. - The diluted earnings per share for the twelve months ended August 31, 2025, increased to $15.55, an 11.8% rise from $13.91 in 2024[36]. Cash Flow and Assets - Net cash provided by operating activities for Q4 fiscal 2025 was $212.1 million, a 30.0% increase compared to the prior year[5]. - Free cash flow for the twelve months ended August 31, 2025, was $617,454, a slight increase of 0.5% from $614,657 in 2024[40]. - The company reported a net cash provided by operating activities of $726,260 for the twelve months ended August 31, 2025, compared to $700,338 in 2024[32]. - FactSet's total assets as of August 31, 2025, were $4,304.3 million, an increase from $4,055.0 million in 2024[31]. - Cash and cash equivalents at the end of the period were $337,651, down from $422,979 at the end of the previous year[32]. - FactSet's total stockholders' equity increased to $2,186.4 million as of August 31, 2025, compared to $1,912.5 million in 2024, marking a growth of approximately 14.3%[31]. Client and ASV Metrics - Client count increased by 9.5% to 8,996, and user count grew by 9.7% to 237,324 as of August 31, 2025[7][15]. - Organic ASV was $2,370.9 million at August 31, 2025, reflecting a 5.7% increase year over year, with a quarterly increase of $81.8 million[5][8]. - Annual ASV retention was greater than 95%, with client retention at 91% as of August 31, 2025[15]. - ASV from buy-side clients accounted for 82.0% in Q4'25, slightly down from 82.3% in Q3'25[43]. - ASV growth rate from buy-side clients increased to 5.5% in Q4'25, compared to 4.0% in Q3'25[43]. - ASV from sell-side clients represented 18.0% in Q4'25, up from 17.7% in Q3'25[43]. - ASV growth rate from sell-side clients improved to 4.3% in Q4'25, compared to 4.0% in Q3'25[43]. - The total reported ASV was $2,405.6 million, with a currency impact of $(0.6) million and acquisition ASV of $(34.1) million[44]. - Organic revenues for the twelve months ended August 31, 2025, were $2,300,184, reflecting a growth of 4.4% compared to $2,203,056 in 2024[33]. Future Guidance - Fiscal 2026 guidance includes expected organic ASV growth of 4% - 6% and GAAP revenues in the range of $2,423 to $2,448 million[5][17]. - For fiscal 2026, FactSet expects organic ASV growth in the range of $100 million to $150 million[23]. - GAAP diluted EPS is projected to be between $14.55 and $15.25 for fiscal 2026, while adjusted diluted EPS is expected to range from $16.90 to $17.60[23]. - The company's GAAP operating margin is anticipated to be between 29.5% and 31.0% for fiscal 2026[23]. - FactSet's annual effective tax rate is expected to be in the range of 18% to 19% for fiscal 2026[23]. Strategic Initiatives - The company completed the divestiture of its RMS Partners business to enhance focus on its core offerings[15]. - FactSet returned $460.4 million to stockholders through share repurchases and dividends during fiscal 2025[14]. - The company led an investment in BondCliQ to integrate intra-day pricing data for corporate bonds into its platforms, enhancing fixed income analytics[22]. - The company has announced the availability of AI-powered fixed income data from MarketAxess within its Workstation and Real-Time Data Feeds[22]. - FactSet's GAAP effective tax rate for fiscal 2025 decreased to 17.2% from 17.6% in the previous year, primarily due to a lower U.S. tax impact of foreign earnings[7].

Group 1 - FactSet Research Systems is expected to announce earnings on September 18, 2025, with anticipated revenue of approximately $593 million, reflecting a 5.5% increase year-over-year, and estimated earnings of around $4.13 per share [2] - The company currently has a market capitalization of $14 billion, with revenue for the past twelve months at $2.3 billion, operating profits of $704 million, and net income of $533 million [3] - The growth in revenue is driven by the expansion of its recurring revenue base, innovation in the generative AI sector, and strong demand from wealthy and institutional clients for advanced financial data and portfolio solutions [2] Group 2 - Historical data shows that FactSet Research Systems has had 20 earnings data points over the last five years, with a 50% occurrence of positive one-day post-earnings returns [5] - The median of the 10 positive one-day returns is 3.5%, while the median of the 10 negative returns is -4.3% [5] - A strategy to analyze the correlation between short-term and medium-term returns post-earnings can be employed, with a focus on pairs showing the highest correlation for trading decisions [6]

Core Insights - FactSet Research Systems Inc. (FDS) is scheduled to report its fourth-quarter fiscal 2025 results on September 18, before market open [1][8] - The company has consistently surpassed the Zacks Consensus Estimate in the past four quarters, achieving an average surprise of 1.7% [1] Revenue Expectations - The consensus estimate for FDS's fiscal fourth-quarter revenues is $592.6 million, reflecting a 5.6% increase from the same quarter last year [2][8] - Revenues from the Americas are projected to be $381.2 million, indicating a 5.2% year-over-year growth, driven by strong demand in banking, asset management, wealth, hedge funds, and corporate sectors [2] - EMEA revenues are expected to rise by 3.1% to $147.5 million, supported by retention in banking and wealth [3] - Asia Pacific revenues are anticipated to reach $60.2 million, marking a 6.4% year-over-year increase, bolstered by higher retention in the banking sector [3] Earnings Projections - The consensus estimate for earnings per share (EPS) is set at $4.15, suggesting an 11% increase compared to the prior year [3][8] - The company's Earnings ESP is 2.07%, but it holds a Zacks Rank of 4 (Sell), indicating uncertainty regarding an earnings beat this quarter [4]

Group 1 - FactSet Research Systems Inc. is set to release its fourth-quarter earnings on September 18, with expected earnings of $4.13 per share, an increase from $3.74 per share in the same period last year [1] - The company projects quarterly revenue of $593.44 million, up from $562.19 million a year earlier [1] - On September 16, BlueMatrix announced the acquisition of the RMS Partners business from FactSet, which led to a slight decline in FactSet's share price by 0.1% to $344.39 [2] Group 2 - Analysts have varied opinions on FactSet's stock, with Wells Fargo maintaining an Underweight rating and lowering the price target from $405 to $355 [5] - Raymond James upgraded the stock from Underperform to Market Perform, while BMO Capital maintained a Market Perform rating and slightly increased the price target from $448 to $452 [5] - RBC Capital reiterated a Sector Perform rating with a price target of $503, and Morgan Stanley maintained an Underweight rating with a minor increase in the price target from $390 to $393 [5]

Group 1 - FactSet Research Systems Inc. is set to release its fourth-quarter earnings on September 18, with expected earnings of $4.13 per share, an increase from $3.74 per share in the same period last year [1] - The projected quarterly revenue for FactSet is $593.44 million, up from $562.19 million a year earlier [1] - On September 16, BlueMatrix announced the acquisition of the RMS Partners business from FactSet, which led to a slight decline in FactSet's share price by 0.1% to $344.39 [2] Group 2 - Analyst ratings for FactSet show varied opinions, with Wells Fargo maintaining an Underweight rating and lowering the price target from $405 to $355 [5] - Raymond James upgraded FactSet from Underperform to Market Perform, while BMO Capital maintained a Market Perform rating and slightly increased the price target from $448 to $452 [5] - RBC Capital reiterated a Sector Perform rating with a price target of $503, and Morgan Stanley maintained an Underweight rating with a minor increase in the price target from $390 to $393 [5]

Core Viewpoint - Analysts expect FactSet Research (FDS) to report quarterly earnings of $4.15 per share, reflecting an 11% year-over-year increase, with revenues projected at $592.55 million, a 5.4% increase from the previous year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a collective reevaluation by analysts [1] - Revenues from clients in the US are projected to reach $383.83 million, representing a 5.9% year-over-year change [4] - International revenues are expected to be $208.09 million, indicating a 4.2% increase from the year-ago quarter [4] Group 2: Regional Revenue Projections - Revenues from clients in the EMEA region are estimated at $147.48 million, reflecting a 3.1% year-over-year change [4] - Revenues from clients in the Asia Pacific are projected to be $60.66 million, indicating a 7.2% increase [5] Group 3: Subscription and User Metrics - Total Annual Subscription Value is expected to reach $2.40 billion, up from $2.28 billion in the same quarter last year [5] - Total Users are forecasted to reach 225,183, compared to 216,381 in the same quarter last year [5] - ASV from buy-side clients is estimated at 82.3%, up from 82.0% year-over-year [6] Group 4: Market Performance - Over the past month, shares of FactSet have returned -2.1%, while the Zacks S&P 500 composite has increased by 2.3% [6] - FactSet currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the overall market [6]