FactSet(US:FDS)2025-06-23 14:00Financial Data and Key Metrics Changes - Organic ASV grew by $22.6 million in Q3 2025, representing a 4.5% year-over-year increase [25] - GAAP revenues increased by 5.9% year-over-year, reaching $586 million [25] - Adjusted diluted EPS decreased by $0.10 or 2.3% to $4.27 [30] - GAAP operating margin was 33.2%, a decrease of 350 basis points compared to the previous year [29] - Free cash flow grew to $229 million in Q3, up 5% over the same period last year [31] Business Line Data and Key Metrics Changes - Wealth organic ASV maintained double-digit growth, with new business sales nearly doubling compared to the previous year [12] - Dealmaker banking gains were driven by improved retention and several multiyear deals [14] - Private equity and venture capital (PEVC) saw its fourth consecutive quarter of accelerating growth [16] - Hedge funds experienced growth due to new fund launches and increased adoption of data products [19] Market Data and Key Metrics Changes - In the Americas, organic ASV increased by 5%, driven by higher banking and asset manager retention [11] - EMEA saw organic ASV growth of 2%, impacted by lower contributions from annual price increases [11] - Asia Pacific experienced a 7% increase in organic ASV, primarily due to higher retention in the banking sector [11] Company Strategy and Development Direction - The company is focused on driving top-line growth and expanding its footprint in wealth management and institutional buy-side solutions [20][22] - Investments in technology, particularly in generative AI, are prioritized to enhance product offerings and operational efficiency [27][33] - The leadership transition to Sanoq Viswanathan is expected to guide the company through its next growth phase [7] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are no significant macroeconomic changes, client demand for technology and data solutions remains strong [38] - The company is optimistic about Q4 performance, reaffirming its FY 2025 guidance based on a healthy pipeline and growing momentum [9][33] - Management highlighted the importance of executing on a diverse portfolio of opportunities to achieve projected results [95] Other Important Information - The company repurchased approximately 184,000 shares for around $81 million during the quarter [31] - A new share repurchase authorization of up to $400 million was approved, effective September 1, 2025 [31] - The company has returned $415 million to shareholders over the past twelve months through dividends and share repurchases [32] Q&A Session Summary Question: Changes in macro environment and ASP growth - Management indicated that there hasn't been a significant change in the macro environment, attributing ASP growth to better execution and product traction [37][38] Question: Q4 outlook and comparisons to last year - Management noted that both The Americas and EMEA regions look strong, with growth driven by enterprise solutions and improved retention [47][49] Question: Thoughts on fiscal 2026 - Management stated that they are focused on Q4 and will discuss fiscal 2026 in the September call [55] Question: Headwinds from asset owners optimizing costs - Management acknowledged competitive pressures but expressed optimism for improvement in the future [58][60] Question: Adjusted operating margin expectations for Q4 - Management confirmed that they expect to remain within the adjusted margin guidance range of 36% to 37% [65] Question: Internal efficiency initiatives related to GenAI - Management is focused on applying GenAI internally to improve productivity and reduce administrative tasks [72][76] Question: Demand for data solutions and momentum - Management highlighted a return to historical levels of demand for data solutions, driven by a broader suite of offerings [99][101]