FactSet Research Systems Inc

Latest Results (21.09.2025):

FactSet Research Systems Inc reported its financial results for the third quarter of 2025, showcasing growth in revenues and annual subscription value (ASV) despite a decline in operating margins and earnings per share. The company also announced a leadership transition with the appointment of a new CEO.

Revenue Growth

In Q3 2025, FactSet achieved GAAP revenues of $585.5 million, marking a 5.9% increase compared to Q3 2024. Organic revenues also grew by 4.4% year-over-year to $577.2 million, driven by wealth and institutional buy-side clients.

Annual Subscription Value (ASV)

Organic ASV reached $2,296.9 million in Q3 2025, reflecting a 4.5% year-over-year increase. The total ASV stood at $2,335.1 million as of May 31, 2025, up from $2,199.1 million the previous year.

Operating Margins and Earnings

FactSet reported a GAAP operating margin of 33.2% for Q3 2025, a decrease of approximately 350 basis points from the prior year. Adjusted operating margin was 36.8%, down 270 basis points. GAAP diluted EPS fell by 5.4% to $3.87, while adjusted diluted EPS decreased by 2.3% to $4.27.

Leadership Transition

FactSet appointed Sanoke Viswanathan as CEO effective September 2025, succeeding Phil Snow, who will retire and remain as a senior advisor until the end of the year. This transition marks a significant change in the company's leadership.

Cash Flow and Tax Rate

Net cash provided by operating activities increased by 6.5% to $253.8 million, and free cash flow rose by 5.4% to $228.6 million in Q3 2025. The GAAP effective tax rate increased to 17.5% from 17.0% year-over-year.

Dividend and Share Repurchase

FactSet declared a quarterly dividend of $1.10 per share, a 6% increase from the previous quarter, continuing its 26-year streak of dividend growth. Additionally, the company repurchased 184,050 shares of its common stock.

Future Outlook

For fiscal year 2025, FactSet expects organic ASV to grow between $100 million and $130 million, with GAAP revenues projected between $2,305 million and $2,325 million. The company anticipates GAAP operating margins to range from 32.0% to 33.0% and adjusted diluted EPS between $16.80 and $17.40.