Core Viewpoint - The market anticipates FactSet Research (FDS) to report a year-over-year increase in earnings driven by higher revenues for the quarter ended August 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - FactSet is expected to report quarterly earnings of $4.15 per share, reflecting an 11% increase year-over-year, with revenues projected at $592.55 million, a 5.4% rise from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.03% over the last 30 days, indicating a slight reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP of +2.07% indicates a likelihood of FactSet beating the consensus EPS estimate, despite the stock holding a Zacks Rank of 3 [11]. Historical Performance - In the last reported quarter, FactSet was expected to earn $4.31 per share but reported $4.27, resulting in a surprise of -0.93%. Over the last four quarters, the company has beaten consensus EPS estimates three times [12][13]. Conclusion - While FactSet is positioned as a strong candidate for an earnings beat, other factors should also be considered when evaluating the stock ahead of its earnings release [16].

Core Insights - FactSet has integrated MarketAxess' AI-powered CP+ data into its Workstation platform, becoming the only provider to offer this data directly within a terminal desktop environment [1][2]. Company Developments - The integration aims to enhance fixed income insights for institutional investors, allowing them to make data-backed decisions and respond quickly to market changes [2]. - FactSet users, including asset managers and institutional traders, will have exclusive access to real-time bond pricing data from approximately 40,000 securities across global credit and rates markets [3][4]. Industry Impact - This partnership is expected to streamline workflows and improve trade execution by centralizing capabilities into FactSet's platform, addressing inefficiencies in fragmented liquidity and opaque pricing structures [2][4]. - The integration allows investment professionals to access real-time pricing data and regulatory compliance tools, enhancing cost optimization and decision-making processes [4].

Group 1 - Factset Research Systems Inc. has been named "Stock to Study" by BetterInvesting Magazine for November 2025, indicating potential interest from investors regarding its stock valuation [1][2] - The upcoming issue will provide a comprehensive report on Factset's financial metrics, including sales, earnings, pre-tax profit, and return on equity, accessible through the National Association of Investors Corp. [2] - Robert Half Inc. has also been highlighted for further study from an undervalued perspective in the same issue of BetterInvesting Magazine [3] Group 2 - The Editorial Advisory and Securities Review Committee of BetterInvesting consists of several CFA members, indicating a level of expertise in their evaluations [3] - BetterInvesting is a nonprofit organization focused on investment education, having empowered over 5 million individuals since its inception in 1951 [5]

Core Viewpoint - FactSet will release its financial results for the fourth quarter of fiscal 2025 on September 18, 2025, and will host a conference call to discuss these results [1][2]. Group 1: Earnings Call Details - The earnings call is scheduled for September 18, 2025, at 9:00 a.m. Eastern Time [2]. - Registration for the conference call is required in advance, and participants will receive dial-in information and a unique access pin upon registration [2]. Group 2: Earnings Presentation - The earnings presentation will be available on FactSet's Investor Relations website at 8:30 a.m. Eastern Time on the same day [3]. - A replay of the earnings call will be accessible after 1:00 p.m. Eastern Time on September 18, 2025, and will remain available until September 18, 2026 [3]. Group 3: Company Overview - FactSet is a global financial digital platform and enterprise solutions provider with over 47 years of expertise and a presence in 20 countries [4]. - The company serves more than 8,800 global clients and over 220,000 individual users, focusing on innovation and long-term client success [4].

Group 1 - The article discusses the soundness of FactSet (NYSE: FDS) but does not recommend it as a buy due to its excessive valuation [1] - A price target of $400 per share is identified as a good starting point for consideration [1] Group 2 - The author expresses a preference for fundamental analysis over technical analysis, focusing on actual company results rather than price movements [1] - The investment strategy is long-term with a contrarian view, primarily targeting US companies but also analyzing European and Chinese firms [1]

Group 1 - S&P added three companies to the Dividend Aristocrats in January 2025: Erie Indemnity, Eversource Energy, and FactSet Research Systems [1] - The inclusion of these companies is attributed to their long records of annual dividend increases [1] Group 2 - The article promotes a subscription service for tracking Dividend Aristocrats and related portfolios [2] - It encourages engagement on social media platforms, specifically highlighting a live video series that features potential portfolio candidates [2] - The content invites readers to comment on stock tickers for potential inclusion in future reports [2]

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].

Group 1 - The article emphasizes a fundamentals-based approach to value investing, focusing on companies with long-term durability and robust balance sheets rather than just low multiples [1] - It highlights the misconception that low multiple stocks are inherently cheap, advocating for a focus on steady long-term growth and minimal cyclicality [1] - The author acknowledges the risks associated with investing in successful companies, particularly the potential to overpay, but suggests that in certain situations, the growth potential outweighs immediate price concerns [1]

Core Insights - FactSet Research Systems reported mixed results for Q3, with sales of $585.52 million exceeding analyst expectations of $580.50 million, reflecting a 5.9% year-over-year increase [1] - Adjusted earnings per share were $4.27, slightly below the consensus estimate of $4.29 [1] Financial Performance - The company reiterated its adjusted diluted EPS outlook for the fiscal year at $16.80 to $17.40, compared to the consensus of $17.07 [2] - Revenue guidance was maintained at $2.305 billion to $2.325 billion, aligning closely with the consensus of $2.310 billion [2] - FactSet maintained an adjusted operating margin of 36% to 37% [2] Market Reaction - Following the earnings announcement, FactSet Research shares fell 0.3% to $435.65 [3] - Analysts adjusted their price targets for FactSet Research after the earnings report [3] Analyst Ratings - Morgan Stanley analyst Toni Kaplan maintained an Underweight rating and raised the price target from $390 to $393 [5] - Wells Fargo analyst Jason Haas also maintained an Underweight rating, increasing the price target from $402 to $405 [5] - RBC Capital analyst Ashish Sabadra reiterated a Sector Perform rating with a price target of $503 [5]

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]