FactSet (FDS) Q4 Revenue Beats Estimates, EPS Miss

FactSet Research Systems Inc. (NYSE:FDS) has reported its financial results for the fourth quarter and fiscal year 2025, showcasing a strong performance that surpassed market expectations. The company has also provided guidance for fiscal 2026, highlighting its focus on sustainable growth and innovation.

FDS Revenue Tops Estimates, EPS Slightly Misses Forecasts

FactSet’s fourth-quarter fiscal 2025 results highlighted a robust performance, with GAAP revenues reaching $596.9 million, marking a 6.2% increase from the same period last year. This figure surpassed the expected revenue of $592.55 million, driven by growth in institutional buy-side and wealth clients. The company’s organic revenues also saw a 4.5% year-over-year increase, amounting to $587.3 million.

Additionally, FactSet’s GAAP diluted EPS for Q4 was reported at $4.03, a significant 73.7% rise from the previous year. However, this fell slightly short of the anticipated EPS of $4.15. The adjusted diluted EPS stood at $4.05, reflecting an 8.3% increase year-over-year. A gain on the divestiture of a business and lower operating expenses bolstered these results.

Operating margins showed mixed results, with the GAAP operating margin improving to 29.7% from 22.7% in the prior year, while the adjusted operating margin decreased to 33.8% from 35.8%. The decrease in the adjusted margin was primarily due to higher technology expenses and the lapping of the prior year’s lower bonus accrual.

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FactSet Forecasts 4–6% ASV Growth, Strong Operating Margins

Looking ahead to fiscal 2026, FactSet has set ambitious targets. The company expects organic Annual Subscription Value (ASV) growth to be between 4% and 6%, with GAAP revenues projected to range from $2,423 million to $2,448 million. These projections reflect FactSet’s confidence in its strategic direction and the strength of its offerings.

The company anticipates a GAAP operating margin between 29.5% and 31.0%, while the adjusted operating margin is expected to range from 34.0% to 35.5%. FactSet also projects its GAAP diluted EPS to fall between $14.55 and $15.25, with adjusted diluted EPS expected to be between $16.90 and $17.60.

FactSet’s leadership emphasized their focus on balancing investments with disciplined execution to drive long-term value for stockholders. The company plans to continue leveraging its data and technology capabilities to lead the transformation in financial markets. This strategic focus is aimed at sustaining growth and enhancing client relationships, positioning FactSet as a leader in the financial data sector.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.