FactSet (FDS) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenues rose 5.9% year-over-year to $585.5 million, with organic revenues up 4.4% and organic ASV up 4.5%, driven by wealth, dealmakers, and partnerships.

• Adjusted operating margin was 36.8% (down 270 bps), and GAAP operating margin was 33.2% (down 350 bps), reflecting higher expenses and prior-year one-time items.

• Adjusted diluted EPS was $4.27 (down 2.3%), and GAAP diluted EPS was $3.87 (down 5.4%), mainly due to increased operating costs.

• Client base grew to 8,811, with user accounts surpassing 220,000, reflecting strong demand from wealth management and corporates.

• CEO transition announced: Phil Snow retiring, Sanoke Viswanathan to become CEO in September 2025.

Financial highlights

• Q3 revenues reached $585.5 million (+5.9% YoY); organic revenues were $577.2 million (+4.4% YoY).

• Net income for Q3 was $148.5 million (down 6.1% YoY); adjusted net income was $163.9 million (down 2.9%).

• EBITDA for the quarter was $235.9 million (down 1.7% YoY); free cash flow increased 5.4% to $228.6 million.

• Quarterly dividend increased 6% to $1.10 per share, marking 26 consecutive years of increases.

• Share repurchases totaled $80.7 million in Q3; $106.2 million remains under current authorization, with a new $400 million program effective September 2025.

Outlook and guidance

• Fiscal 2025 revenue guidance: $2,305–$2,325 million; organic ASV growth expected at ~4.4% to ~5.8%.

• Adjusted operating margin forecasted at 36.0%–37.0%; GAAP operating margin at 32.0%–33.0%.

• Adjusted diluted EPS projected at $16.80–$17.40; GAAP diluted EPS at $14.80–$15.40.

• FY25 guidance reaffirmed, with strong Q4 pipeline and highest ASV of the year expected in Q4.

• Q4 expected to be the highest expense quarter, with investments focused on GenAI and infrastructure.