FactSet Reports Q3 Revenue Beat, Client Growth, Leadership Shift With JPMorgan Hire

FactSet Research Systems FDS stock experienced a positive movement following the release of its third-quarter results.

The company reported quarterly sales of $585.52 million, surpassing analyst expectations of $580.50 million and representing a 5.9% year-over-year gain.

The company reported quarterly adjusted earnings per share of $4.27, missing the street view of $4.29.

Also Read: FactSet Surpasses Q2 Earnings Estimates, Raises FY25 Revenue Outlook Amid Client Growth

Organic revenues grew 4.4% to $577.20 million during the quarter. 

The client count as of May 31, 2025, was 8,811, a net increase of 166 clients in the past three months. This increase was driven by hedge fund, corporate, and wealth management clients and now includes clients from the LiquidityBook acquisition.

Annual Subscription Value was $2.335 billion at May 31, 2025, compared with $2.199 billion a year ago. FactSet said organic ASV increased $98.5 million over the last three months.  

The company reported a quarterly adjusted operating margin of 36.8%, down 260 bps.

A quarterly dividend of $41.6 million, or $1.10 per share, is being paid on June 18 to holders of record of business on May 30. The dividend marked a 6% increase in the regular quarterly dividend from the $1.04 per share paid in the previous quarter.

FactSet exited the quarter with cash and equivalents worth $364.05 million. The company's long-term debt expanded to $1.43 billion at the end of the quarter from $1.24 billion as of August 31.

Employee headcount was 12,579 as of May 31, 2025, up 2.6% over the last 12 months, with the increase primarily in the sales and technology groups, mainly from the Irwin and LiquidityBook acquisitions and an increase in employees in its Centers of Excellence.

CEO Transition

FactSet announced that Phil Snow will retire as CEO and a member of the Board, effective early September 2025. The company named Sanoke Viswanathan, most recently CEO of International Consumer and Wealth at JPMorgan Chase as the new CEO. Snow will serve as a senior advisor through the end of the calendar year.

FY25 Outlook

FactSet reiterated its adjusted diluted EPS outlook of $16.80 to $17.40 versus the consensus of $17.07.

The company reiterated revenues of $2.305 billion-$2.325 billion versus the consensus of $2.310 billion.

FactSet maintained an adjusted operating margin of 36%-37%.

Price Action: FDS stock is trading higher by 3.67% to $437.85 at last check Monday.

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