FactSet's Q3 CY2025 Results: Revenue Ahead, Guidance Below Expectations

FactSet reported Q3 CY2025 revenue of $596.9 million, up 6.2% YoY, beating analyst estimates. However, non-GAAP profit of $4.05 per share was 1.9% below estimates. The company's full-year revenue guidance of $2.44 billion was 0.6% below analyst estimates. FactSet's CEO attributed the strong performance to AI-driven product momentum, client wins in wealth and asset management, and successful integration of recent acquisitions.

FactSet (NYSE: FDS) reported a strong performance in the third quarter of fiscal year 2025, with revenue up 6.2% year-on-year to $596.9 million, surpassing Wall Street's expectations of $593.4 million. The company's adjusted earnings per share (EPS) of $4.05 per share were 1.9% below the consensus estimates, however, the full-year revenue guidance of $2.44 billion was just 0.6% below analyst projections.

The company's CEO, Sanoke Viswanathan, attributed the strong revenue growth to AI-driven product momentum, client wins in wealth and asset management, and successful integration of recent acquisitions. The integration of LiquidityBook for trading solutions and Irwin for investor relations workflows was cited as key drivers of growth, particularly among asset managers and corporate clients.

FactSet also reported a 41% margin on adjusted EBITDA, up from 22.7% in the same quarter last year, highlighting the company's efficiency in managing costs while driving growth. The company's operating margin was 29.7%, up from 22.7% in the previous year.

Despite the strong revenue performance, investors reacted negatively to the earnings miss, with the stock price falling from $335.80 to $291.65 following the announcement. FactSet's guidance for the upcoming financial year 2026 was also below analyst estimates by 5.6%, reflecting a more conservative approach to revenue growth expectations.

Looking ahead, FactSet expects continued investment in AI, data expansion, and enhanced workflow solutions to drive future growth. The company plans to prioritize productivity gains and disciplined investment, while expecting strategic initiatives in AI and workflow integration to drive future growth.