Financial Data and Key Metrics Changes - The company reported a 6.9% year-over-year increase in revenues to $608 million, with organic growth of 6% excluding foreign exchange and M&A impacts [23][29] - Adjusted operating margin was 36.2%, and adjusted diluted EPS increased by 3% year on year to $4.51 [6][24] - Organic ASV growth accelerated to 5.9%, an increase of $6.6 million, driven by strong demand across various sectors [20][29] Business Line Data and Key Metrics Changes - In the Americas, organic ASV grew 6%, primarily driven by asset managers and wealth, with increased demand for portfolio lifecycle solutions and AI-ready data [20] - EMEA saw a 4% organic ASV growth, with higher expansion in performance solutions, offsetting some softness in asset owners [20] - Asia-Pacific experienced an 8% organic ASV growth, up from 7% last quarter, driven by middle office solutions and AI-ready data [21] - Wealth management delivered a 10% organic ASV growth, with significant wins in workstations and analytics [22] Market Data and Key Metrics Changes - Client count grew to over 9,000, a 9% year-over-year increase, with retention rates remaining healthy at 91% for clients and above 95% for ASV [23] - The user base approached 240,000, with wealth and asset managers leading user growth, up 10% compared to the prior year [23] Company Strategy and Development Direction - The company is increasing its share repurchase authorization from $400 million to $1 billion, reflecting confidence in its balance sheet and intrinsic share value [7][28] - Three strategic priorities were outlined: driving commercial excellence, improving productivity, and solidifying long-term strategy for sustainable growth [14][18] - The company is focusing on enhancing its data universe, deepening client workflows, and modernizing core infrastructure to drive operational efficiency [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the pipeline and positive sentiment from clients, indicating a strong demand for new data products [62] - There is a belief that AI will amplify the company's essential offerings rather than replace them, with AI product adoption growing over 45% sequentially [14][68] - Management remains prudent in guidance, emphasizing the importance of executing well in the market while maintaining a strong pipeline [78] Other Important Information - Operating expenses increased by 9% year over year, driven by higher people-related expenses and technology costs [24] - The company is committed to returning capital to shareholders, having returned $554 million over the last 12 months through dividends and buybacks [28] Q&A Session Summary Question: Competitive positioning against AI startups and Big Four data incumbents - Management expressed confidence in proprietary assets and the ability to partner with the AI ecosystem, emphasizing the demand for secure AI solutions [34][36] Question: Changes in sales incentives and early results - Management highlighted renewed vigor in new business development and faster sales motions due to aligned incentives and the resonance of AI products [41][42] Question: Impact of AI on customer headcount and desktop business - Management noted no significant reductions in headcount, with increased hiring in banking and strong demand for AI products [50][51] Question: Margin impact from investments - Management discussed balancing structural investments for operating leverage with growth investments aligned to client demand [71][74] Question: Organic ASV growth expectations - Management remains confident in the pipeline but is taking a prudent approach to guidance, acknowledging the significant business still to be acquired [78][79] Question: Proprietary versus non-proprietary products - Management provided a detailed breakdown of proprietary and enriched data, emphasizing the high quality and client loyalty associated with their offerings [81][84]

Financial Data and Key Metrics Changes - The company reported a 6.9% year-over-year increase in revenues to $608 million, with organic growth of 6% excluding foreign exchange and M&A impacts [21][27] - Adjusted operating margin was 36.2%, and adjusted diluted EPS increased by 3% year-over-year to $4.51 [4][21] - Organic ASV growth accelerated to 5.9%, an increase of $6.6 million, driven primarily by expansion with existing clients [17][21] Business Line Data and Key Metrics Changes - In the Americas, organic ASV grew 6%, driven by asset managers and wealth, with increased demand for portfolio lifecycle solutions and AI-ready data [18] - EMEA saw a 4% organic ASV growth, with higher expansion in performance solutions offsetting some softness in asset owners [18] - Asia-Pacific experienced an 8% organic ASV growth, up from 7% last quarter, driven by middle office solutions and AI-ready data [19] - Wealth management delivered a 10% organic ASV growth, with significant wins in workstations and analytics [20] Market Data and Key Metrics Changes - Client count grew to over 9,000, a 9% year-over-year increase, with retention rates remaining healthy at 91% for clients and above 95% for ASV [21] - The user base approached 240,000, with wealth and asset managers leading user growth, up 10% versus the prior year [21] Company Strategy and Development Direction - The company is increasing its share repurchase authorization from $400 million to $1 billion, reflecting confidence in its balance sheet and intrinsic value [6][26] - Three strategic priorities include driving commercial excellence, improving productivity, and solidifying long-term strategy for sustainable growth [12][15] - The company is focused on enhancing its data offerings, modernizing technology infrastructure, and improving client workflows to drive future growth [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the pipeline and positive client sentiment, indicating a strong demand for new data products [61] - The company is seeing increased hiring in banking, driven by a recovery in M&A activity, and is not currently observing reductions in headcount [49][60] - Management is maintaining a prudent approach to guidance, reaffirming previously issued FY26 guidance across all metrics [27][70] Other Important Information - Operating expenses increased by 9% year-over-year, driven by higher people-related expenses and technology costs [22] - The company is allocating roughly two-thirds of its investments to growth and one-third to internal infrastructure [23][25] - The company has returned $554 million to shareholders over the last 12 months through dividends and buybacks [26] Q&A Session Summary Question: Competitive positioning against AI startups and Big Four data incumbents - Management expressed confidence in proprietary assets and emphasized the strength of their data and analytics capabilities, viewing partnerships with the AI ecosystem as complementary [30][32][35] Question: Changes in sales incentives and early results - Management highlighted renewed vigor in new business development and faster sales motions, aided by AI product resonance [38][40] Question: Future hiring picture and AI efficiencies - Management noted no current reductions in headcount, with increased hiring observed, particularly in banking, and strong growth in AI product usage [46][49] Question: Margin impact from investments - Management indicated that investments are aimed at foundational elements and targeted growth areas, expecting benefits to play out in future years [51][54] Question: Organic ASV growth expectations - Management remains confident in the strength of the pipeline but is taking a prudent approach to guidance, anticipating potential deceleration in growth [70] Question: Proprietary versus non-proprietary products - Management clarified that 40% of the business is linked to client proprietary data, with 50% classified as proprietary and enriched data and tools [72][74]

Financial Data and Key Metrics Changes - The company reported a revenue growth of 6.9% year over year, reaching $608 million, with organic growth of 6% excluding foreign exchange and M&A impacts [22][27] - Adjusted operating margin was 36.2%, and adjusted diluted EPS increased by 3% year on year to $4.51 [4][22] - Organic ASV growth accelerated to 5.9%, an increase of $6.6 million, driven by strong demand in trading, workstations, and market data [18][22] Business Line Data and Key Metrics Changes - In the Americas, organic ASV grew 6%, primarily driven by asset managers and wealth [18] - EMEA saw a 4% organic ASV growth, with improved retention and expansion in performance solutions [18] - Asia-Pacific experienced an 8% organic ASV growth, up from 7% last quarter, driven by middle office solutions and AI-ready data [19] - Wealth management delivered a 10% organic ASV growth, with significant wins in workstations and analytics [20] Market Data and Key Metrics Changes - Client count grew to over 9,000, a 9% increase year over year, with retention rates at 91% for clients and above 95% for ASV [22] - The user base approached 240,000, with wealth and asset managers leading user growth, up 10% versus the prior year [22] Company Strategy and Development Direction - The company is increasing its share repurchase authorization from $400 million to $1 billion, reflecting confidence in its balance sheet and long-term growth potential [5][26] - Three strategic priorities include driving commercial excellence, improving productivity, and solidifying long-term strategy for sustainable growth [12][17] - The company is focused on enhancing its data offerings and integrating AI capabilities to maintain competitive differentiation [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the pipeline and client demand, indicating a positive sentiment in the market [46][48] - The company is maintaining a prudent approach to guidance, reaffirming previously issued FY26 guidance across all metrics [27][56] - There is an expectation of continued growth in AI product adoption, with a reported sequential growth of over 45% in AI products launched earlier this year [12][51] Other Important Information - Operating expenses increased by 9% year over year, driven by higher people-related expenses and technology costs [23][24] - The company is allocating roughly two-thirds of its investments to growth initiatives and one-third to internal infrastructure [24][25] Q&A Session Summary Question: Competitive positioning versus AI startups and Big Four data incumbents - Management emphasized confidence in proprietary assets and the ability to partner with the AI ecosystem, viewing distribution through various channels as complementary [29][30] Question: Changes in sales incentives and early results - Management highlighted alignment of sales incentives with desired outcomes, leading to faster sales motions and a richer pipeline [33][34] Question: AI's impact on customer hiring and desktop business - Management noted no significant reductions in headcount, with increased hiring observed in banking and strong demand for AI products [37][39] Question: Margin impact from investments - Management discussed the balance between structural investments for operating leverage and growth investments aligned with client demand [52][54] Question: Organic ASV growth expectations - Management expressed confidence in the pipeline but maintained a conservative approach to guidance, acknowledging the need for prudent execution [55][56] Question: Proprietary versus non-proprietary products - Management provided insights into the classification of proprietary data and the importance of proprietary methodologies in delivering high-quality outputs [57][59]

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] - The fourth quarter saw revenues increase by 6.2% year-over-year, reaching $597 million, contributing to a 5.4% overall revenue growth for fiscal 2025 [24][26] - The company reported a record Q4 organic ASV of $81.8 million, representing a sequential growth acceleration of 5.7% [15][24] 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 growth in organic ASV, with strong quarterly results attributed to client confidence in the AI roadmap [18][24] - 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, driven by strong demand for middle office solutions and AI-ready data [16] 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 [7][10] - Strategic investments in AI and data solutions are expected to drive top-line growth, with a disciplined approach to long-term growth guided by client needs [11][12] - The company plans to expand its offerings in data feeds and analytics solutions, particularly in wealth management and banking sectors [29][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the tight client budgets and evolving market dynamics, emphasizing the importance of quality data and technology as competitive advantages [22][23] - The outlook for fiscal 2026 anticipates organic ASV growth of $100 million to $150 million, reflecting a conservative approach due to longer sales cycles [32][33] - The company is positioned at an inflection point, with strategic investments beginning to translate into competitive advantages [34] 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, a non-core platform, to focus resources on core growth areas [27][28] - The company plans to continue building on momentum while investing in data expansion and AI capabilities [28][30] Q&A Session Summary Question: Margin decline breakdown and future outlook - Management indicated that margin decline was influenced by increased investments and cost inflation, with expectations for operating leverage from structural investments in the future [36][37][38] Question: AI strategy and competitive dynamics - The CEO highlighted AI as a significant opportunity, with ongoing efforts to understand client priorities and enhance product offerings [41][42][43] Question: Strength in wealth management and future growth - Management noted strong momentum in wealth management, with opportunities for seven-figure deals and improved attach rates at existing clients [45][46][48] Question: Trends in bank hiring - Management observed improved hiring trends in banking, with technology investments driving productivity [68][70] Question: Internal productivity initiatives and AI impact - Management discussed the potential for AI to enhance productivity and drive top-line growth, with a focus on redeploying talent for greater efficiency [72][75]

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]