FactSet Research Systems Inc Earnings
FactSet Research Systems Inc, a prominent financial digital platform and enterprise solutions provider, has unveiled a solid performance for the fourth quarter and full fiscal year 2025. Their offerings cater to the buy-side, sell-side, and wealth management sectors, with established expertise in multi-asset class coverage. Moreover, FactSet remains consistently focused on driving client success and innovation.
FactSet Research Systems Inc Results
FactSet's earnings demonstrate robust growth and consistent revenue advancements, underpinning a resilient performance even amidst market volatility.
| Metric | Q4 2025 | Q4 2024 | % Change YoY | Fiscal 2025 | Fiscal 2024 | % Change YoY |
|---|---|---|---|---|---|---|
| GAAP Revenue (million $) | 596.9 | 562.2 | 6.2% | 2,321.7 | 2,203.6 | 5.4% |
| GAAP Operating Margin | 29.7% | 22.7% | 30.9% (increase) | 32.2% | 31.8% | 1.3% (increase) |
| Adjusted Operating Margin | 33.8% | 35.8% | -5.6% | 36.3% | 37.8% | -4.0% |
| GAAP Diluted EPS | 4.03 | 2.32 | 73.7% | 15.55 | 13.91 | 11.8% |
| Adjusted Diluted EPS | 4.05 | 3.74 | 8.3% | 16.98 | 16.46 | 3.2% |
The fourth quarter showcased a striking increase in GAAP diluted earnings per share (EPS) by 73.7% year-over-year, largely stemming from revenue growth, business divestiture gains, and decreased operating expenses. The fiscal year’s revenue performance continued a longstanding trend of annual growth for FactSet.
Revenue Breakdown
The revenue surge traces back to diverse geographic markets, indicating strong demand across regions. Here’s how different segments performed:
| Segment | Q4 Revenue (million $) | % Growth YoY | Q4 Organic ASV (million $) | Organic ASV Growth YoY |
|---|---|---|---|---|
| Americas | 388.7 | 7.2% | 1,541.9 | 6.0% |
| EMEA | 147.4 | 3.0% | 586.3 | 4.2% |
| Asia Pacific | 60.8 | 7.4% | 242.7 | 7.2% |
An analysis of these figures reveals that the Americas lead with the highest revenue, driven by a significant proportion of asset managers and wealth clients. In Asia-Pacific, robust demand propelled both revenue and organic ASV growth, making it the fastest-growing segment.
Key Developments
The quarter was defined by strategic undertakings aimed at enhancing FactSet's competitive positioning in the industry. Notably, FactSet completed the divestiture of RMS Partners to BlueMatrix. This move aligns with their strategic objective to streamline offerings and bolster the Dealmakers product line. Furthermore, FactSet's investment in BondCliQ integrates cutting-edge intra-day bond pricing data into their portfolios, underscoring their commitment to improving financial analytics capabilities.
Comments from Company Officers
Sanoke Viswanathan, CEO of FactSet, highlighted, "FactSet's strong fourth quarter performance reflects the power of our differentiated data, open platform, and client-centric culture. We are at a strategic inflection point, where AI and data-driven innovation are reshaping workflows across financial markets."
Adding to this positive outlook, CFO Helen Shan stated, "Looking ahead to fiscal 2026, we remain focused on balancing investments with disciplined execution to drive durable, long-term stockholder value."
Dividends and Share Repurchases
FactSet has displayed a steadfast commitment to shareholder returns through both dividends and an active share repurchase program. In fiscal 2025, the company increased its quarterly dividend by 6% to $1.10 per share, marking the 26th consecutive year of dividend growth. Furthermore, FactSet repurchased $106.6 million worth of shares, signaling robust confidence in its own stock’s value.
FactSet Research Systems Inc Stock Forecast
Based on the fiscal 2025 performance and strategic initiatives, we project the stock will potentially range between a low of $400 and a high of $450 in fiscal 2026. This estimate considers sustained revenue growth, effective cost management, and ongoing investments in AI-driven solutions as critical factors bolstering the stock's valuation. Given the after-event price change of -2.7%, FactSet’s market cap stands at approximately $15.8 billion, indicating a strong potential for upward movement once market conditions stabilize.
In conclusion, FactSet’s robust performance and strategic decisions position it well for continued growth. With consistent revenue increases and innovative strides in technology integration, the company stands poised to navigate market challenges while driving shareholder value in the coming years.
