NORWALK, Conn., June 23, 2025 (GLOBE NEWSWIRE) -- FactSet ("FactSet" or the "Company") (NYSE:FDS) (NASDAQ:FDS), a global financial digital platform and enterprise solutions provider, today announced results for its third quarter fiscal 2025 ended May 31, 2025. (2) Beginning in fiscal 2025, FactSet is reporting Organic ASV, rather than Organic ASV plus Professional Services, to focus on the recurring nature of its revenues. This underscores the shift of FactSet's offerings toward providing more managed servi ...

[Third Quarter Fiscal 2025 Financial Performance](index=1&type=section&id=Third%20Quarter%20Fiscal%202025%20Financial%20Performance) FactSet reported a 5.9% increase in Q3 fiscal 2025 GAAP revenues to $585.5 million, driven by strong ASV growth across client segments and geographies, despite a decline in operating margins due to higher expenses [Key Financial Highlights](index=1&type=section&id=Third%20Quarter%20Fiscal%202025%20Highlights) FactSet reported Q3 fiscal 2025 GAAP revenues of $585.5 million, a 5.9% increase year-over-year, driven by wealth and institutional buy-side clients, though profitability declined with GAAP operating margin falling 350 basis points to 33.2% and GAAP diluted EPS decreasing 5.4% to $3.87, primarily due to higher operating expenses Key Financial Measures | Key Financial Measures | Q3 2025 | Q3 2024 | Change YoY | | :--- | :--- | :--- | :--- | | **GAAP Revenues** | $585.5 million | $552.7 million | +5.9% | | **Organic Revenues** | $577.2 million | $552.7 million | +4.4% | | **GAAP Operating Margin** | 33.2% | 36.6% | -350 bps | | **Adjusted Operating Margin** | 36.8% | 39.4% | -270 bps | | **GAAP Diluted EPS** | $3.87 | $4.09 | -5.4% | | **Adjusted Diluted EPS** | $4.27 | $4.37 | -2.3% | | **Organic ASV** | $2,296.9 million | - | +4.5% | - The decrease in operating margins was primarily attributed to lapping a **lower bonus accrual** and a **one-time payroll tax adjustment** from the prior year, along with **higher annual base salaries**[4](index=4&type=chunk) - Net cash provided by operating activities increased by **6.5%** to **$253.8 million**, and free cash flow grew by **5.4%** to **$228.6 million** for the quarter[4](index=4&type=chunk) [Annual Subscription Value (ASV) Analysis](index=2&type=section&id=Annual%20Subscription%20Value%20(ASV)) As of May 31, 2025, total Annual Subscription Value (ASV) reached $2,335.1 million, with organic ASV, excluding recent acquisitions and currency impacts, growing 4.5% year-over-year to $2,296.9 million, driven equally by 4.0% expansion in both buy-side and sell-side client segments Annual Subscription Value Metrics | ASV Metric | Value (as of May 31, 2025) | YoY Growth | | :--- | :--- | :--- | | **Total ASV** | $2,335.1 million | - | | **Organic ASV** | $2,296.9 million | +4.5% | | **Organic ASV Increase (YoY)** | +$98.5 million | - | | **Organic ASV Increase (QoQ)** | +$22.6 million | - | - Buy-side clients, including asset managers, wealth managers, and hedge funds, constitute **82%** of organic ASV, while sell-side firms account for the remaining **18%**[8](index=8&type=chunk) - Both buy-side and sell-side segments reported an organic ASV annual growth rate of **4.0%**[8](index=8&type=chunk) [Segment Performance by Geography](index=2&type=section&id=Segment%20Revenues%20and%20ASV) The Americas remains the largest segment, contributing $1,513.1 million in ASV with a 5.0% organic growth rate, while the Asia Pacific region demonstrated the highest organic ASV growth at 7.1%, reaching $235.7 million, and EMEA showed more modest growth with organic ASV increasing by 2.1% Regional Organic Growth Rates | Region | Q3 Organic ASV Growth | Q3 Organic Revenue Growth | | :--- | :--- | :--- | | **Americas** | 5.0% | 5.0% | | **EMEA** | 2.1% | 2.3% | | **Asia Pacific** | 7.1% | 6.4% | - Americas: ASV reached **$1,513.1 million**, with quarterly revenues of **$380.5 million**[9](index=9&type=chunk) - EMEA: ASV stood at **$581.9 million**, with quarterly revenues of **$145.7 million**[10](index=10&type=chunk) - Asia Pacific: ASV was **$240.1 million**, with quarterly revenues of **$59.3 million**[11](index=11&type=chunk) [Operational Highlights and Corporate Developments](index=3&type=section&id=Operational%20Highlights%20and%20Corporate%20Developments) FactSet demonstrated strong operational performance with increased client and user counts, high ASV retention, and strategic capital allocation through share repurchases and dividend increases, alongside a key CEO leadership transition [Key Operational Metrics](index=3&type=section&id=Operational%20Highlights%20%E2%80%93%20Third%20Quarter%20Fiscal%202025) FactSet's operational metrics showed positive momentum in Q3 2025, with the client base growing by **166** to **8,811** and user count increasing by **1,355** to **220,496**, driven by wealth management, while annual ASV retention remained strong at **greater than 95%** and employee headcount rose **2.6%** year-over-year to **12,579** - Client count increased by **166** in the past three months to **8,811**, driven by hedge fund, corporate, and wealth management clients[16](index=16&type=chunk) - User count rose by **1,355** to **220,496**, primarily due to an increase in wealth management users[16](index=16&type=chunk) - Annual ASV retention was **greater than 95%**, and client retention was **91%**[16](index=16&type=chunk) - Employee headcount grew **2.6%** over the last 12 months to **12,579**, with increases mainly in sales and technology groups and from recent acquisitions[16](index=16&type=chunk) [Capital Allocation](index=3&type=section&id=Share%20Repurchase%20Program) During the third quarter, FactSet executed on its capital return strategy by repurchasing **$80.7 million** of its common stock, increasing its quarterly dividend by **6%** to **$1.10 per share** for the 26th consecutive year, and refinancing its debt with a new credit agreement including a **$500 million term loan** and an undrawn **$1.0 billion revolving credit facility** - Repurchased **184,050 shares** for **$80.7 million** during Q3, with the Board approving a new **$400 million** share repurchase authorization available from September 1, 2025[13](index=13&type=chunk) - Paid a quarterly dividend of **$1.10 per share**, a **6% increase** from the previous quarter, marking the **26th consecutive year** of dividend growth[16](index=16&type=chunk) - Entered into a new credit agreement with a **$500 million term loan** and a **$1.0 billion revolving credit facility** to repay previous borrowings[16](index=16&type=chunk) [Corporate Updates](index=1&type=section&id=Corporate%20Updates) FactSet announced a significant leadership transition, with **Sanoke Viswanathan** appointed as the **new CEO**, succeeding **Phil Snow**, effective early September 2025, and received recognition as **Databricks' Financial Services Data Partner of the Year**, highlighting its data integration capabilities - **Sanoke Viswanathan** was appointed as the **new CEO**, effective early September 2025, succeeding **Phil Snow**, who is retiring[4](index=4&type=chunk)[16](index=16&type=chunk) - FactSet was named **Databricks' Financial Services Data Partner of the Year**, making its data available on the Databricks Marketplace to streamline client data integration[16](index=16&type=chunk) - After the quarter, CUSIP Global Services collaborated with Aumni, Inc. to expand CUSIP coverage for private equity and venture-backed companies[16](index=16&type=chunk) [Fiscal 2025 Business Outlook](index=3&type=section&id=Fiscal%202025%20Business%20Outlook) FactSet reaffirmed its full-year fiscal 2025 guidance, projecting continued organic ASV growth and stable revenue and earnings per share ranges [Reaffirmed Guidance](index=3&type=section&id=Fiscal%202025%20Expectations) FactSet reaffirmed its full-year fiscal 2025 guidance, projecting organic ASV growth between $100 million and $130 million, with GAAP revenues expected in the range of $2,305 million to $2,325 million and adjusted diluted EPS between $16.80 and $17.40 Fiscal 2025 Guidance | Metric | Fiscal 2025 Guidance Range | | :--- | :--- | | **Organic ASV Growth** | $100 million to $130 million | | **GAAP Revenues** | $2,305 million to $2,325 million | | **GAAP Operating Margin** | 32.0% to 33.0% | | **Adjusted Operating Margin** | 36.0% to 37.0% | | **Annual Effective Tax Rate** | 17% to 18% | | **GAAP Diluted EPS** | $14.80 to $15.40 | | **Adjusted Diluted EPS** | $16.80 to $17.40 | [Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) FactSet's financial statements for Q3 fiscal 2025 show revenue growth but a decline in net income, an increase in total assets driven by goodwill, and a net decrease in cash from operating, investing, and financing activities [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20(Unaudited)) For the third quarter of fiscal 2025, FactSet's revenues grew to $585.5 million from $552.7 million in the prior year, but due to an 11.7% increase in total operating expenses, operating income declined by 4.1% to $194.2 million, and net income fell by 6.1% to $148.5 million Consolidated Statements of Income (in thousands) | (In thousands) | Three Months Ended May 31, 2025 | Three Months Ended May 31, 2024 | | :--- | :--- | :--- | | **Revenues** | $585,520 | $552,708 | | **Operating Income** | $194,155 | $202,459 | | **Net Income** | $148,542 | $158,135 | | **Diluted EPS** | $3.87 | $4.09 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets%20(Unaudited)) As of May 31, 2025, FactSet's total assets increased to $4.34 billion from $4.06 billion at the end of fiscal 2024, primarily driven by a significant increase in Goodwill to $1.28 billion reflecting recent acquisitions, while total liabilities saw a modest increase to $2.18 billion with long-term debt rising to $1.43 billion Consolidated Balance Sheets (in thousands) | (In thousands) | May 31, 2025 | August 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $356,361 | $422,979 | | **Goodwill** | $1,277,855 | $1,011,129 | | **Total Assets** | $4,338,762 | $4,055,040 | | **Long-term debt** | $1,430,197 | $1,241,131 | | **Total Liabilities** | $2,183,580 | $2,142,580 | | **Total Stockholders' Equity** | $2,155,182 | $1,912,460 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) For the nine months ended May 31, 2025, net cash from operating activities was $514.2 million, a slight decrease from the prior year, with investing activities using $369.4 million primarily for business acquisitions, and financing activities using $199.3 million for share repurchases and dividend payments, resulting in a net decrease in cash of $52.6 million Consolidated Statements of Cash Flows (in thousands) | (In thousands) | Nine Months Ended May 31, 2025 | Nine Months Ended May 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $514,160 | $537,177 | | **Net cash used in investing activities** | ($369,373) | ($104,658) | | **Net cash used in financing activities** | ($199,327) | ($402,908) | | **Net decrease in cash** | ($52,574) | $27,700 | [Reconciliation of U.S. GAAP to Adjusted Financial Measures](index=9&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20Results%20to%20Adjusted%20Financial%20Measures) This section reconciles FactSet's GAAP results to adjusted financial measures, detailing adjustments for operating income, net income, and EPS, and providing a reconciliation of free cash flow and organic ASV by client type [Reconciliation of Key Metrics](index=10&type=section&id=Non-GAAP%20Financial%20Measures) FactSet's adjusted financial measures for Q3 2025 exclude items like intangible asset amortization and business acquisition costs, resulting in adjusted operating income of $215.3 million with a margin of 36.8%, adjusted net income of $163.9 million, and an adjusted diluted EPS of $4.27, compared to the GAAP figure of $3.87 Reconciliation of GAAP to Adjusted Financial Measures (in thousands, except per share) | (In thousands, except per share) | Q3 2025 GAAP | Adjustments | Q3 2025 Adjusted | | :--- | :--- | :--- | :--- | | **Operating Income** | $194,155 | $21,158 | $215,313 | | **Net Income** | $148,542 | $15,379 | $163,921 | | **Diluted EPS** | $3.87 | $0.40 | $4.27 | - The primary adjustments to derive non-GAAP figures are the exclusion of **intangible asset amortization ($19.2 million)** and **business acquisition-related costs ($2.0 million)**[35](index=35&type=chunk) [Free Cash Flow Reconciliation](index=11&type=section&id=Free%20Cash%20Flow) In Q3 2025, FactSet generated $228.6 million in free cash flow, a 5.4% increase from the $216.9 million generated in the same period last year, calculated by subtracting $25.2 million in capital expenditures from the $253.8 million in net cash provided by operating activities Free Cash Flow Reconciliation (in thousands) | (In thousands) | Q3 2025 | Q3 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Cash Provided for Operating Activities** | $253,833 | $238,235 | +6.5% | | **Less: Capital Expenditures** | ($25,230) | ($21,339) | - | | **Free Cash Flow** | $228,603 | $216,896 | +5.4% | [Organic ASV Reconciliation and Client Type Analysis](index=12&type=section&id=Supplementary%20Schedules%20of%20Historical%20ASV%20by%20Client%20Type) FactSet's organic ASV growth of 4.5% in Q3 2025 was driven by 4.0% growth from both its buy-side and sell-side client segments, with the buy-side representing 82.3% of total ASV and seeing its growth rate moderate from 5.3% in the prior year, while the reported ASV of $2,335.1 million is adjusted for a negative currency impact of $5.7 million and $32.5 million from recent acquisitions to arrive at the organic ASV of $2,296.9 million Organic ASV Growth Rate by Client Type | ASV Growth Rate | Q3'25 | Q3'24 | | :--- | :--- | :--- | | **Buy-side clients** | 4.0% | 5.3% | | **Sell-side clients** | 4.0% | 3.7% | Organic ASV Reconciliation (in millions) | (In millions) | As of May 31, 2025 | | :--- | :--- | | **As reported ASV** | $2,335.1 | | **Currency impact** | ($5.7) | | **Acquisition ASV** | ($32.5) | | **Organic ASV** | $2,296.9 |

Core Viewpoint - FactSet Research Systems Inc. (FDS) is expected to report its third-quarter fiscal 2025 results on June 23, with a consensus estimate for revenues at $581.3 million, reflecting a 5.2% increase year-over-year [1][2][9] Revenue Expectations - Revenues from the Americas are projected to be $374.8 million, indicating a 5.2% year-over-year growth, driven by strength in wealth and hedge funds [3] - EMEA revenues are estimated to rise 4.2% year-over-year to $147.2 million, supported by continued momentum in hedge funds and private equity venture capital [3] - Asia Pacific revenues are anticipated to reach $58.4 million, implying a 6.2% increase year-over-year, attributed to robust sales of Data Solutions among various financial sectors [4] Earnings Forecast - The consensus estimate for earnings per share (EPS) is $4.31, suggesting a 1.4% decline year-over-year [4][9] - The company's Earnings ESP is 0.00% with a Zacks Rank of 4 (Sell), indicating that the model does not predict an earnings beat this time [5]

Group 1 - FactSet Research Systems Inc. is set to release its third-quarter earnings results on June 23, with expected earnings of $4.30 per share, a decrease from $4.37 per share in the same period last year [1] - The company is projected to report quarterly revenue of $580.9 million, an increase from $552.71 million a year earlier [1] - Sanoke Viswanathan has been appointed as the new CEO, effective early September 2025, succeeding Phil Snow [2] Group 2 - RBC Capital analyst Ashish Sabadra has reiterated a Sector Perform rating with a price target of $503 [4] - BMO Capital analyst Jeffrey Silber maintained a Market Perform rating and reduced the price target from $498 to $466 [4] - UBS analyst Alex Kramm maintained a Neutral rating and lowered the price target from $525 to $480 [4] - Wells Fargo analyst Jason Haas downgraded the stock from Equal-Weight to Underweight, cutting the price target from $450 to $402 [4] - Morgan Stanley analyst Toni Kaplan maintained an Underweight rating and reduced the price target from $409 to $390 [4]

Group 1 - FactSet Research Systems is set to release its Q3 earnings around June 23, with projected earnings of $4.30 per share, a slight decline from $4.37 in the same period last year, while revenues are expected to rise by 5.1% year-over-year to $580.7 million [2] - The company's current market capitalization stands at $16 billion, with revenue for the past twelve months at $2.3 billion, reporting $711 million in operating profits and a net income of $543 million [3] - The Trefis High Quality portfolio has outperformed the S&P 500, yielding returns exceeding 91% since its inception, providing an alternative for investors seeking potential upside with less volatility [3][6] Group 2 - Over the past five years, FactSet has recorded 20 earnings data points, with positive one-day returns occurring approximately 50% of the time, and the median of positive returns at 3.6% while negative returns had a median of -4.3% [5] - The correlation between 1D post-earnings returns and subsequent 5D returns can be utilized for trading strategies, particularly if the 1D return is positive [6]

Core Insights - The upcoming earnings report from FactSet Research is projected to show a quarterly earnings per share (EPS) of $4.31, reflecting a decline of 1.4% year-over-year, while revenues are expected to increase by 5.2% to $581.34 million [1] - Analysts have maintained their consensus EPS estimate over the last 30 days, indicating a collective reevaluation of initial estimates [1][2] Revenue Estimates - Revenues from clients in the US are expected to reach $376.58 million, marking a year-over-year increase of 5.6% [4] - International client revenues are projected at $204.15 million, indicating a 4.1% increase from the previous year [4] - Revenues from clients in the EMEA region are estimated to be $145.59 million, reflecting a 3.1% year-over-year change [4] - Revenues from clients in the Asia Pacific are forecasted at $58.64 million, suggesting a 6.6% increase year-over-year [5] Subscription Value and User Metrics - The total annual subscription value (ASV) is estimated at $2.32 billion, up from $2.22 billion year-over-year [5] - The total number of users is projected to reach 225,123, compared to 208,140 in the previous year [6] - ASV from international clients is expected to be $824.51 million, an increase from $784.90 million year-over-year [6] - ASV from domestic clients is projected at $1.50 billion, up from $1.42 billion [7] Market Performance - FactSet shares have experienced a decline of 11% over the past month, contrasting with a 1.4% increase in the Zacks S&P 500 composite [8] - The company holds a Zacks Rank of 4 (Sell), indicating expectations of underperformance relative to the overall market in the near future [8]

Viswanathan has held a range of leadership roles, most recently served as the Chief Executive Officer of International Consumer and Wealth of JPMorgan and as a member of JPMorgan's Operating Committee where he oversaw international consumer businesses as well as the International Private Bank and Workplace Solutions. Prior to that, Viswanathan served as JPMorgan's Chief Strategy and Growth Officer from 2022 to 2024 and Chief Administrative Officer of the Corporate and Investment Bank. Earlier in his career, ...

Financial Data and Key Metrics Changes - The company has seen consistent growth in its wealth management segment, now exceeding $300 million in annual recurring revenue (ARR), representing about 15% of total revenue [58] - The overall market for wealth management is expected to be in the billions, indicating significant growth potential [58] Business Line Data and Key Metrics Changes - The wealth management segment has captured significant market share, with the company gaining clients among the top 20 wealth managers globally, now serving 100,000 wealth advisers [30] - The company has improved its private company data coverage from approximately 3 million to 8-9 million, enhancing the quality of firmographics and predicted financials [35] Market Data and Key Metrics Changes - The fastest-growing client segments in the global market data fee pool are investment management and retail wealth management, where the company is well-positioned [27] - The company anticipates that half of the revenues in its end markets will come from wealth, hedge funds, and private equity, indicating strong momentum in these areas [29] Company Strategy and Development Direction - The company is focusing on becoming a trusted partner for buy-side clients, emphasizing technology upgrades and workflow solutions to help clients become more efficient [20] - The strategy includes expanding into adjacent markets and enhancing AI capabilities to improve client workflows and data integration [46][49] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing cost pressures in the buy-side market, which have persisted for over a decade, but sees opportunities for growth by becoming a trusted technology partner [19] - The company expects that the current cycle in the banking sector may not see a significant resurgence in hiring until later this year or next year [25] Other Important Information - The company has transitioned to an API-first platform, allowing clients to integrate data and analytics in various ways, which positions it well for the AI-driven market [7] - The company has made significant investments in private markets and deep sector data, enhancing its offerings for investment banks [13] Q&A Session Summary Question: What are the key growth drivers for the wealth vertical? - Continued market share gains and expansion into adjacent workflows are crucial for achieving low double-digit growth in the wealth vertical [56] Question: Who are the main competitors in the buy-side market? - The primary competitors are Bloomberg and BlackRock's Aladdin, both of which are strong firms in the buy-side space [78] Question: What is the company's approach to managed services? - The target customers for managed services include larger firms looking to outsource middle to back-office functions, with a focus on performance, risk, and reporting [79]

Core Viewpoint - FactSet will release its financial and operating results for the third quarter of fiscal 2025 on June 23, 2025, and will host a conference call to discuss these results [1] Group 1: Conference Call Details - The conference call is scheduled for June 23, 2025, at 9:00 a.m. Eastern Time [2] - Participants must register in advance to receive dial-in numbers and a unique access pin for the call [2] - A live Q&A session will be included in the conference call [2] Group 2: Earnings Presentation and Replay - Earnings presentation slides will be available on FactSet's investor relations website at 8:30 a.m. Eastern Time on June 23, 2025 [3] - A replay of the earnings call will be accessible on the investor relations website after 1:00 p.m. Eastern Time on June 23, 2025, until June 23, 2026 [3] - The earnings call transcript will be available via FactSet CallStreet [3] Group 3: Company Overview - FactSet is a global financial digital platform and enterprise solutions provider with over 47 years of expertise [4] - The company serves more than 8,600 global clients and nearly 220,000 individual users across various sectors [4] - FactSet integrates proprietary financial data, client datasets, and third-party sources to deliver tailored solutions [4]

Core Insights - FactSet's CEO Phil Snow will participate in a fireside chat at the Bernstein 41st Annual Strategic Decisions Conference on May 29, 2025, at 8:00 a.m. Eastern Time [1] - A live webcast of the event will be available, with an audio replay accessible for 90 days on FactSet's Investor Relations website [2] Company Overview - FactSet is a global financial digital platform and enterprise solutions provider, enhancing financial intelligence through integrated data and information solutions [3] - The company has over 47 years of expertise, operates in 20 countries, and serves more than 8,600 global clients and nearly 220,000 individual users [3] - FactSet is a member of the S&P 500, focusing on innovation and long-term client success [3]