TLDR
- Q3 adjusted EPS at $4.27 missed analyst expectations of $4.29
- GAAP earnings dropped to $3.87 from $4.09 last year
- Revenue rose 5.9% YoY to $585.52 million, beating estimates
- $400 million share repurchase announced, starting Sept. 1, 2025
- FY25 guidance reaffirmed despite 12.1% YTD stock decline
FactSet Research Systems Inc. (NYSE: FDS) shares were trading at $442.00, up 4.65%, as of 10:30 AM EDT following its fiscal Q3 results for the period ended May 31.
FactSet Research Systems Inc. (FDS)
The company reported GAAP net income of $148.54 million or $3.87 per share, falling short of last year’s $158.13 million or $4.09 per share. Adjusted earnings came in at $4.27 per share, below the $4.29 average analyst estimate and a decline from $4.37 a year ago.
FactSet has now missed EPS estimates once in the past four quarters but has beaten revenue forecasts three times over the same period.
$FDS Earnings:
– Q3 GAAP revenues of $585.5 million, up 5.9% from Q3 2024.
– Organic Q3 ASV of $2,296.9 million, up 4.5% year over year.
– Q3 GAAP operating margin of 33.2%, down approximately 350 bps year over year, and adjusted operating margin of 36.8%, down 270 bps year over… pic.twitter.com/hLZPfGfT1v— AlphaSense (@AlphaSenseInc) June 23, 2025
Revenue Beats, But EPS Lags
Total revenue climbed 5.9% year-over-year to $585.52 million, surpassing analyst expectations of $580.50 million. The Business – Information Services segment performed relatively well despite the earnings miss. Analysts had forecast EPS to range between $4.13 and $4.57, placing the reported figure on the lower end.
The stock has declined 12.1% year-to-date and 7.1% this quarter, underperforming the S&P 500’s 1.5% gain.
Forecast Reaffirmed and Buyback Announced
Despite the earnings shortfall, FactSet reaffirmed its full-year fiscal 2025 guidance. The company still expects GAAP earnings between $14.80 and $15.40 per share and adjusted earnings between $16.80 and $17.40 per share. Revenue is projected to land between $2.305 billion and $2.325 billion. These projections are largely aligned with consensus estimates of $17.07 EPS on $2.31 billion in revenue.
A $400 million share repurchase authorization, effective from September 1, 2025, was also announced by the Board of Directors. The move signals confidence in long-term shareholder value despite near-term pressure.
Analyst Sentiment and Valuation
The average analyst recommendation for FactSet stock remains “hold,” with only three out of 21 analysts rating it a “buy” or “strong buy.” Seven analysts rate it a “sell” or “strong sell.” The median 12-month price target is $438.00, slightly above the last closing price of $422.34.
Recent estimate revisions have been slightly negative, with one downward adjustment in the past 30 days. FactSet carries a Zacks Rank #4 (Sell), suggesting continued underperformance in the near term.
Industry Position
Despite company-specific struggles, the broader Zacks Business – Information Services industry ranks in the top 11% among over 250 industries. That strong relative ranking may lend some support to the stock, though investors remain cautious amid declining EPS and lukewarm analyst sentiment.
