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]