Core Insights - FactSet Research reported revenue of $596.9 million for the quarter ended August 2025, marking a year-over-year increase of 6.2% and a surprise of +0.73% over the Zacks Consensus Estimate of $592.55 million [1] - The EPS for the same period was $4.05, compared to $3.74 a year ago, but fell short of the consensus estimate of $4.15, resulting in an EPS surprise of -2.41% [1] Financial Performance Metrics - Total Annual Subscription Value (ASV) reached $2.41 billion, slightly above the estimated $2.4 billion [4] - Total Clients increased to 8,996, surpassing the average estimate of 8,856 [4] - Total Users rose to 237,324, exceeding the average estimate of 225,183 [4] - ASV from buy-side clients was 82%, close to the average estimate of 82.3% [4] - Domestic ASV was reported at $1.57 billion, above the average estimate of $1.55 billion [4] - International ASV was $835.5 million, slightly below the average estimate of $850.35 million [4] - Organic ASV was $2.37 billion, significantly higher than the average estimate of $2.06 billion [4] - ASV from sell-side clients was 18%, compared to the average estimate of 17.7% [4] Revenue Breakdown - Revenues from US clients were $388.7 million, exceeding the average estimate of $383.83 million, with a year-over-year change of +7.2% [4] - Revenues from international clients reached $208.2 million, slightly above the average estimate of $208.09 million, reflecting a year-over-year change of +4.3% [4] - Revenues from Asia Pacific clients were $60.8 million, compared to the average estimate of $60.66 million, showing a year-over-year change of +7.4% [4] - Revenues from EMEA clients totaled $147.4 million, in line with the average estimate of $147.48 million, representing a year-over-year change of +3% [4] Stock Performance - FactSet shares have returned -13.3% over the past month, contrasting with the Zacks S&P 500 composite's +2.5% 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 - For fiscal year 2025, the company achieved annual revenue of $2.3 billion, with an adjusted operating margin of 36.3% and adjusted EPS of $16.98, all within guidance ranges [15][24] - Fourth quarter revenues increased by 6.2% year-over-year, reaching $597 million, contributing to a 5.4% overall revenue growth for fiscal 2025 [24][25] - The company reported organic ASV growth of $127 million for FY25, with Q4 organic ASV of $81.8 million, marking the largest quarter in the company's history [14][15] Business Line Data and Key Metrics Changes - Wealth management delivered strong Q4 performance with organic growth exceeding 10%, driven by significant seven-figure deals and competitive displacements [17][18] - The banking segment saw a 4% year-over-year organic ASV growth, with strong quarterly results attributed to confidence in the AI roadmap [18][20] - Off-platform ASV with wealth clients grew over 50% year-over-year, indicating successful expansion beyond traditional offerings [17] Market Data and Key Metrics Changes - In the Americas, organic ASV growth accelerated to 6%, with asset managers increasing technology investments [16] - EMEA region saw organic ASV growth improve to 4%, with strategic wins despite ongoing challenges for mid-sized asset managers [16] - Asia-Pacific experienced a 7% increase in organic ASV growth, driven by strong demand for middle office solutions and AI-ready data [16][21] Company Strategy and Development Direction - The company aims to become the leading AI-powered financial intelligence platform, focusing on integrating AI into client workflows and enhancing product offerings [10][11] - Strategic investments in AI and data expansion are prioritized to maintain market leadership and drive future growth [28][30] - The company plans to deepen integration with client workflows and expand offerings in data feeds and analytics solutions [29][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current environment of tight client budgets and longer sales cycles but remains confident in the company's competitive positioning [22][23] - The outlook for fiscal 2026 anticipates organic ASV growth of $100 million to $150 million, reflecting a conservative approach due to market dynamics [32][33] - The company expects continued strong demand for solutions, particularly in wealth management and banking, supported by a robust sales pipeline [31][32] Other Important Information - The company returned over $460 million to shareholders in fiscal 2025 through dividends and share repurchases, demonstrating a commitment to shareholder value [27] - The company divested RMS Partners to focus on core growth areas, which led to a one-time gain recognized in GAAP results [27][28] Q&A Session Summary Question: Margin decline breakdown and future outlook - Management indicated that margin decline is primarily due to increased investments in growth and structural changes, with expectations for operating leverage in the future [36][37][38] Question: AI strategy and competitive dynamics - The CEO emphasized the significant opportunity in AI, with ongoing efforts to understand client priorities and enhance product offerings [41][42][43] Question: Strength in wealth management - Management highlighted strong momentum in wealth management, with opportunities for seven-figure deals and improved client engagement [45][46][48] Question: Trends in bank hiring - Management noted improved hiring trends in banking, with a focus on productivity tools and AI-related offerings [70][71] Question: Internal productivity initiatives - Management discussed the importance of internal productivity improvements and the potential for AI to enhance efficiency and output [72][76][77]

Financial Data and Key Metrics Changes - For FY25, the company added $127 million of organic ASV, near the top end of guidance range [12] - Annual revenue increased to $2.3 billion, with an adjusted operating margin of 36.3% and adjusted EPS growing to $16.98 [13] - Q4 organic ASV reached $81.8 million, the largest quarter in company history, representing a sequential growth acceleration of 5.7% [13][22] - Q4 revenues increased 6.2% year over year, reaching $597 million, with FY25 delivering 5.4% overall revenue growth [22] Business Line Data and Key Metrics Changes - Wealth management delivered strong Q4 performance with organic growth exceeding 10%, driven by seven-figure deals [15] - Off-platform ASV with wealth clients grew more than 50% year-over-year [15] - Dealmaker's organic ASV grew 4% year-over-year, with strong quarterly results in banking [16] - The integration of Irwin and FactSet is driving growth in corporate IR needs [17] Market Data and Key Metrics Changes - In the Americas, organic ASV growth accelerated to 6%, with asset managers increasing technology investments [14] - EMEA organic ASV growth improved to 4%, with strategic wins including competitor displacement [14] - Asia-Pacific organic ASV growth increased 7%, driven by strong demand for middle office solutions and AI-ready data [14] Company Strategy and Development Direction - The company aims to become the leading AI-powered financial intelligence platform, focusing on client engagement and product innovation [5][10] - Strategic investments in AI and data solutions are expected to drive top-line growth and enhance client workflows [10][28] - The company plans to expand its offerings in data feeds and analytics solutions to meet the growing needs of advisors [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledges tight client budgets and evolving market dynamics, leading to longer sales cycles [19] - The company is positioned at an inflection point with strategic investments beginning to translate into competitive advantages [32] - Guidance for FY26 anticipates organic ASV growth of $100 million to $150 million, reflecting a conservative approach due to current market conditions [30][31] Other Important Information - The company repurchased approximately 260,000 shares for $107 million during the quarter, concluding a $300 million share repurchase program [24] - A quarterly dividend of $1.10 per share was paid, marking the 26th consecutive year of dividend increases [25] - The company divested RMS Partners to concentrate resources on core growth areas [25][26] Q&A Session Summary Question: Margin decline breakdown and future outlook - Management indicated that margin decline is due to bonus normalization and additional hiring for investments, with expectations for operating leverage in the future [36][38] Question: AI strategy and competitive dynamics - The focus will be on understanding client priorities and enhancing product offerings, with AI seen as a significant opportunity for growth [41][42] Question: Strength in wealth management and future growth - The company sees ongoing demand for analytics and AI in wealth management, with opportunities for seven-figure deals and geographic expansion [46][48] Question: AI strategy and competitive moat - AI investments are expected to enhance internal efficiencies and client engagement, with a strong focus on implementation quality [52][56] Question: Trends in bank hiring - Improved hiring trends were noted in Q4, with expectations for continued momentum in the banking sector [73] Question: Accelerating organic revenue growth - The company believes that increased use of analytics and AI will drive demand for services, with a focus on executing existing opportunities [81][82]

Core Insights - FactSet Research Systems reported fourth-quarter sales of $596.9 million, exceeding analyst expectations of $593.5 million, marking a 6.2% year-over-year increase [1] - Adjusted earnings per share were $4.05, falling short of the expected $4.13 [1] - Organic revenues grew by 4.5% to $587.3 million during the quarter [2] Financial Performance - The quarterly adjusted operating margin was 33.8%, a decrease of 200 basis points due to increased technology expenses [3] - The company paid a quarterly dividend of $41.4 million, or $1.10 per share, on September 18, 2025 [3] - Cash and equivalents at the end of the quarter totaled $355.1 million, while long-term debt rose to $1.37 billion from $1.24 billion year-over-year [3] Client and Subscription Metrics - As of August 31, 2025, the client count reached 8,996, with a net increase of 185 clients in the last three months, primarily from corporate and wealth management sectors [2] - Annual Subscription Value (ASV) was $2.406 billion, up from $2.255 billion a year ago, with organic ASV increasing by $81.8 million over the last three months [2] Strategic Outlook - The company anticipates revenues between $2.423 billion and $2.448 billion, surpassing the analyst consensus estimate of $2.320 billion [5] - Projected adjusted diluted EPS is between $16.90 and $17.60, compared to the consensus estimate of $17.06 [5] - The company expects an adjusted operating margin of 34.0% to 35.5% [5] Market Reaction - FactSet's stock was trading lower by 0.90% to $333.00 in premarket trading [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]

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 - The asset management industry is undergoing structural changes in the era of index-based investment, focusing on achieving stable excess returns with controllable risks [2] - Index investing provides passive investors with low-cost, high-transparency allocation channels and opens new paradigms for traditional active investors through systematic, replicable, and verifiable research methodologies [2] - Wind is committed to reconstructing the investment research process using technology and data, launching the 2025 ALPHA Evolution - Alice AI Index Enhancement Competition to foster a professional platform for strategy development [2] Competition Overview - The competition runs from September 16, 2025, to December 31, 2025, and is open to all users of the Wind financial terminal [5] - Participants will focus on the CSI 800 Index, utilizing the Wind Alice AI Index Strategy Platform for index enhancement strategy research [6][8] - The competition will evaluate strategies based on their performance in a simulated trading environment, with awards based on annualized excess returns [9] Participation Details - Participants must use CSI 800 Index constituent stocks as the sample space for their enhancement strategies, and strategies based on other stock selections will not be eligible [8] - Once a strategy is submitted, it will be shared with other participants for modification and iteration [8] - The Wind Alice AI Index Strategy Platform offers a comprehensive solution for strategy generation, modeling, backtesting, result analysis, report output, and strategy optimization [11]

Core Viewpoint - OTC Markets Group Inc. has announced the integration of its trading data from MOON ATS and OTC Overnight sessions into the ICE Consolidated Feed, enhancing visibility and accessibility for global financial markets [1][2][4]. Group 1: Data Integration and Accessibility - The integration into the ICE Consolidated Feed allows OTC Markets' trading data to be accessed in a standardized, low-latency environment, which is widely utilized by global banks, asset managers, hedge funds, and analytics platforms [2][5]. - This move is aimed at increasing visibility into overnight trading activities, particularly in Asia, where local market hours align with MOON and OTC Overnight trading [2][4]. Group 2: Market Impact and User Demand - The distribution through ICE's Consolidated Feed is designed to provide seamless integration into trading systems, pricing engines, and analytics tools, thereby supporting global capital markets [3][5]. - As demand for real-time data beyond traditional U.S. market hours grows, this integration addresses the evolving needs of both institutional and retail users [4][5]. Group 3: OTC Markets' Role and Offerings - By joining the ICE ecosystem, OTC Markets reinforces its position as a key provider of real-time market data on global equities and a trusted partner to data vendors, investors, and trading firms [5][6]. - OTC Markets Group operates regulated markets for trading 12,000 U.S. and international securities, with a focus on data-driven disclosure standards [6][7].

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]