FactSet 2025 Q4 Earnings Strong Performance as Net Income Surges 71.6%

FactSet (FDS) reported its fiscal 2025 Q4 earnings on September 18, 2025. The company delivered robust financial results, with both revenue and earnings rising significantly year-over-year. FactSet guided for continued growth in 2026, reflecting confidence in its long-term AI and data strategy.

FactSet’s Q4 earnings marked a clear beat against expectations, with both revenue and net income expanding meaningfully. The company’s full-year guidance for 2026 reflected a conservative but disciplined approach, taking into account extended sales cycles and rising technology costs. While the stock has faced recent volatility, the company's strategic focus on AI-powered financial intelligence positions it for long-term value creation.

Revenue

FactSet's total revenue increased by 6.2% year-over-year to $596.90 million in Q4 2025, up from $562.19 million in Q4 2024. This growth highlights the company’s strong market position and continued demand for its financial data and analytics services.

Earnings/Net Income

FactSet's earnings per share (EPS) surged by 73.2% in Q4 2025 to $4.07, compared to $2.35 in the prior year. The company's net income also saw a substantial increase of 71.6% to $153.62 million from $89.50 million in Q4 2024. This impressive growth in profitability, coupled with the company’s ability to maintain profitability for over two decades in the same quarter, underscores its operational resilience and strong business model.

The earnings and net income performance were particularly strong, driven by operational efficiency and disciplined cost management, even as the company invests in future growth initiatives.

Price Action

The stock price of FactSet experienced significant downward pressure in the post-earnings period. Over the latest trading day, the stock fell by 11.02%. The decline worsened over the following week with a drop of 18.70%, and the stock further declined by 18.84% month-to-date. This sell-off reflects market skepticism or uncertainty around the company’s post-earnings performance and broader market dynamics.

Post-Earnings Price Action Review

Sanoke Viswanathan, CEO & Director of FactSet, emphasized the company's strategic transformation toward becoming a leading AI-powered financial intelligence platform. He highlighted FactSet’s competitive advantages, including its deep client integration, strong customer service, and open architecture. While acknowledging the challenges in implementing AI across complex client environments, Viswanathan expressed confidence in FactSet’s long-term potential. The company’s strong balance sheet, with over $600 million in free cash flow, supports its disciplined and client-driven investment approach. Viswanathan also pointed to growing client adoption of AI tools and a refined long-term vision, reinforcing the company’s strategic momentum.

Guidance

FactSet provided updated guidance for fiscal 2026, projecting organic ASV growth of $100 million to $150 million (5% at midpoint), with GAAP revenue expected to reach $2.42 billion to $2.45 billion. On the earnings front, the company anticipates adjusted EPS of $16.90 to $17.60 and GAAP EPS of $14.55 to $15.25. The guidance incorporates a cautious stance due to extended sales cycles and rigorous client approval processes, while also accounting for higher technology and content costs, partially offset by productivity gains and cost discipline.

Additional News

FactSet did not announce any M&A activity, C-level changes, or dividend/buyback news in the provided content. The company remains focused on internal growth and strategic AI investments. Outside of its own earnings release, no significant non-earnings related news directly involving FactSet was reported within the relevant time frame.