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

On Thursday, FactSet Research Systems Inc. FDS reported second-quarter adjusted earnings per share of $4.28, beating the street view of $4.16.

Quarterly sales of $570.66 million (up 4.5% year over year) marginally outpaced the analyst consensus estimate of $570.61 million.

Organic revenues grew 4.0% year over year to $568.0 million during the second quarter. 

Client count as of February 28, 2025 was 8,645, a net increase of 396 clients in the past three months, mainly due to corporates, which now includes clients from the Irwin acquisition.

Annual Subscription Value was $2.306 billion at February 28, 2025, compared with $2.185 billion a year ago. FactSet said organic ASV increased $19.6 million over the last three months.  

Also Read: What’s In Store For Darden This Earnings Season? Analyst Predicts Slight Miss In Same-store Sales

The company reported a quarterly adjusted operating margin of 37.3%, down 100 bps year over year.

A quarterly dividend of $39.5 million, or $1.04 per share, is being paid on March 20 to holders of record of business on February 28.

According to Benzinga Pro, FDS stock has lost over 10% in the past year. Investors can gain exposure to the stock via Gabelli ETFs Trust Gabelli Financial Services Opportunities ETF GABF.

FactSet exited the quarter with cash and equivalents worth $278.54 million. The company’s long-term debt expanded to $1.472 billion at the end of the quarter from $1.241 billion as of August 31, 2024.

FY25 Outlook: FactSet reiterated its adjusted diluted EPS outlook of $16.80 to $17.40 (consensus: $17.16).

“With increased visibility into the remainder of the fiscal year, we are reaffirming the 5% midpoint of our organic ASV growth guidance and narrowing the range of anticipated top-line outcomes,” said Phil Snow, CEO of FactSet.

The company projects revenues in the range of $2.305 billion to $2.325 billion (consensus: $2.309 billion), up from the prior view of $2.285 billion to $2.305 billion.

FactSet projects adjusted operating margin in the range of 36% to 37%, unchanged from the prior view.

Price Action: FDS shares closed lower by 0.32% at $438.40 on Wednesday.

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