FactSet Reports Strong Q3 Fiscal 2025 Results Amid Leadership Transition and Strategic Growth
FactSet (NYSE:FDS), a leading global financial digital platform and enterprise solutions provider, announced robust financial results for its third quarter fiscal 2025 ended May 31, 2025, showcasing continued growth and strategic execution despite some margin pressures. This report highlights key financial metrics, operational achievements, and forward-looking guidance, positioning FactSet for sustained success in the competitive financial data services industry.
Key Financial Highlights: - GAAP revenues increased by 5.9% year-over-year to \(585.5 million, driven primarily by wealth and institutional buy-side client growth. - Organic Annual Subscription Value (ASV) rose 4.5% to \)2,296.9 million, reflecting strong recurring revenue streams. - GAAP operating margin declined by approximately 350 basis points to 33.2%, while adjusted operating margin decreased by 270 basis points to 36.8%, impacted by higher base salaries from acquisitions and increased intangible asset amortization. - GAAP diluted earnings per share (EPS) decreased 5.4% to \(3.87, with adjusted diluted EPS down 2.3% to \)4.27. - Net cash provided by operating activities grew 6.5% to \(253.8 million, and free cash flow increased 5.4% to \)228.6 million, underscoring strong cash generation capabilities.
Operational and Strategic Developments: - Client count reached 8,811, with a net increase of 166 clients in the quarter, driven by hedge fund, corporate, and wealth management sectors. - User count expanded by 1,355 to 220,496, reflecting increased adoption among wealth management users. - FactSet paid a quarterly dividend of \(1.10 per share, marking a 6% increase and continuing its 26-year streak of dividend growth. - The company appointed Sanoke Viswanathan as CEO, effective September 2025, succeeding Phil Snow who will retire but remain as senior advisor through year-end. - FactSet secured a new credit agreement with a \)500 million term loan and a $1 billion revolving credit facility, enhancing financial flexibility.
Geographic Revenue Breakdown: - Americas: Organic ASV grew 5.0% to \(1,486.0 million, with revenues increasing to \)380.5 million. - EMEA: Organic ASV increased 2.1% to \(575.2 million, with revenues rising to \)145.7 million. - Asia Pacific: Organic ASV surged 7.1% to \(235.7 million, with revenues climbing to \)59.3 million.
Financial Impact and Forward Outlook: FactSet’s Q3 results demonstrate solid revenue growth and strong cash flow generation, despite margin compression due to acquisition-related costs and higher compensation expenses. The company reaffirmed its fiscal 2025 guidance, expecting organic ASV growth between \(100 million and \)130 million, GAAP revenues of \(2.305 billion to \)2.325 billion, and adjusted operating margins between 36.0% and 37.0%. Adjusted diluted EPS is projected in the range of \(16.80 to \)17.40.
This performance aligns with FactSet’s strategic focus on expanding its enterprise solutions and managed services offerings, as highlighted in previous earnings calls where management emphasized innovation, client trust, and data integration capabilities as key growth drivers.
Conclusion: FactSet’s Q3 fiscal 2025 earnings reflect a resilient business model with strong subscription revenue growth, effective capital allocation, and a seamless leadership transition. The company’s robust cash flow and disciplined financial management position it well to capitalize on market opportunities and deliver long-term shareholder value.
For detailed financial data and the full report, please visit the source document.
Tags: FDS, FactSet, Q3 2025, subscription revenue growth, leadership transition, financial data services