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FactSet Earnings Miss Estimates in Q4, Revenues Increase Y/Y

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Key Takeaways

  • FactSet posted Q4 EPS of $4.05, missing estimates but rising 8.3% year over year.
  • Revenues were $596.9M, up 6.2% y/y, with 4.5% organic growth.
  • ASV plus professional services hit $2.4B, increasing 5.7% from last year.

FactSet (FDS - Free Report) has reported mixed results for the fourth quarter fiscal 2025, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same.

FDS’s earnings per share of $4.05 missed the consensus mark by 2.4% but increased 8.3% from the year-ago quarter. Revenues of $596.9 million beat the Zacks Consensus Estimate by a slight margin and increased 6.2% from the year-ago quarter.

The company’s shares have lost 20.9% in the past three months compared with the 10.6% fall of the industry it belongs to and the 12.2% increase of the Zacks S&P 500 composite.

FactSet Research Systems Inc. Price, Consensus and EPS Surprise

 

FactSet Research Systems Inc. Price, Consensus and EPS Surprise

FactSet Research Systems Inc. price-consensus-eps-surprise-chart | FactSet Research Systems Inc. Quote

FactSet’s Revenues in Detail

Organic revenues increased 4.5% year over year to $562.2 million. Region-wise, organic revenue growth was 5.3% for the Americas, 1.7% for the EMEA and 5.9% for the Asia Pacific.

Revenues generated from the Americas segment were $388.7 million, up 7.3% from the year-ago quarter, surpassing our estimate of $381.2 million. Revenues from the EMEA were $147.4 million, an increase of 3% from the year-ago quarter. The figure missed our estimate by a slight margin. Revenues from the Asia Pacific were $60.8 million, marking 7.4% growth on a year-over-year basis, outpacing our estimate of $60.2 million.

FDS’s ASV Plus Professional Services

FactSet’s Annual Subscription Value (“ASV”) plus professional services were $2.4 billion. Organic ASV plus professional services were $2.4 billion, up 5.7% from the year-ago quarter. The buy-side and the sell-side organic ASV growth rates were 5.5% and 4.3%, respectively. Nearly 82% of organic ASV was generated by the buy-side and the rest by sell-side firms.

Organic ASV generated from the United States was $1.5 billion, increasing 6% from the year-ago quarter. Organic ASV from the EMEA was $586.3 million, gaining 4.2% year over year. Organic ASV from the Asia Pacific was $242.7 million, up 7.2% on a year-over-year basis.

FactSet added 185 clients in the fourth quarter of fiscal 2025, driven by corporate and wealth management clients, taking the total to 8,996. The annual client retention rate is 91%.

FactSet’s Operating Results

The adjusted operating income was $201.7 million, which moved up marginally from the year-ago quarter and surpassed our estimate of $202.1 million. The adjusted operating margin of 33.8% declined 200 basis points from the year-ago quarter.

FDS’ Balance Sheet & Cash Flow

The company exited the quarter with a cash and cash-equivalent balance of $337.7 million compared with $356.4 million in the third quarter of fiscal 2025. The long-term debt was $1.4 billion, flat with the preceding quarter.

FDS generated $212.1 million in cash from operating activities. However, its capital expenditure was $34 million. The free cash flow utilized was $178.1 million.

FY26 Guidance for FactSet

For fiscal 2026, the company anticipates revenues of $2.423-$2.448 billion. The guided range is lower than the Zacks Consensus Estimate of $2.45 billion.

FDS anticipates earnings per share of $16.9-$17.6. The guided range is lower than the Zacks Consensus Estimate of $18.51. The adjusted operating margin is projected to be 34-35.5%.

FactSet carries a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

The Interpublic Group of Companies, Inc. (IPG - Free Report) reported impressive second-quarter 2025 results.

IPG’s adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and jumped 23% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion beat the consensus estimate by a slight margin but declined 19.8% year over year. Total revenues of $2.5 billion decreased 7.2% year over year and outpaced the Zacks Consensus Estimate of $2.2 billion.

Clean Harbors, Inc. (CLH - Free Report) posted mixed second-quarter 2025 results.

CLH’s earnings of $2.36 per share outpaced the Zacks Consensus Estimate by 1.3% but decreased 4.1% from the year-ago quarter. Total revenues of $1.5 billion missed the consensus estimate by 2% and decreased marginally on a year-over-year basis.

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