Source: Gordon Thompson
FactSet Reports Q4 2025 Earnings: An Analysis
FactSet Research Systems Inc. (NYSE:FDS), a globally recognized provider of integrated financial information and analytical applications, reported its earnings for the fourth quarter on September 18, 2025. The company’s wide range of services, such as data feeds, portfolio analytics, and research management solutions, put it in direct competition with other financial data giants like Bloomberg and Thomson Reuters.
FactSet’s Q4 report included noteworthy figures, some of which surpassed estimates, while others fell short. However, the overall financial health of the company appears to be strong, as indicated by consistent revenue growth and improved operating margins.
FactSet’s Earnings Per Share (EPS)
The company reported an earnings per share (EPS) of $4.05, which, while not quite hitting the estimated $4.13, only marked a slight earnings surprise of -2.41%. Zacks highlighted this figure, which, despite being less than expected, still represents growth compared to the same quarter of the previous year. In 2024, the Q4 EPS was reported as $3.74, indicating a year-over-year improvement in earnings. This suggests that despite the slight miss, FactSet’s overall earnings potential remains strong.
Revenue Surpasses Estimates
FactSet’s reported revenue for the fourth quarter was $596.9 million, a figure that not only surpassed the estimated $592.8 million but also exceeded the Zacks Consensus Estimate by 0.73%. This marked a 6.2% increase from the $562.19 million reported for the same period in 2024. This consistent revenue growth is a reflection of FactSet’s strong market position and the robust demand for its services.
Yearly Revenue and Subscription Growth
Looking at the full fiscal year 2025, FactSet reported GAAP revenues of $2.32 billion, a 5.4% increase from the previous year. Additionally, the company’s organic Annual Subscription Value (ASV) grew by 5.7% to $2.37 billion. This growth in ASV indicates FactSet’s ability to expand its customer base and increase subscription revenue, a crucial factor for the company’s long-term financial health and stability.
Improved Operating Margins
Another positive sign from FactSet’s Q4 report was the improvement in its GAAP operating margins. The company reported a Q4 GAAP operating margin of 29.7%, a significant improvement of approximately 700 basis points. However, the adjusted operating margin decreased by 200 basis points to 33.8%.
Looking at the full fiscal year, the GAAP operating margin was 32.2%, while the adjusted operating margin was 36.3%. These figures, while reflecting some variability, generally indicate efficient cost management and profitability. Higher operating margins can often translate to more profits being returned to shareholders, making this a key metric for potential investors.
Final Thoughts
While the slight miss in EPS might catch some eyes, the overall financial picture for FactSet appears to be quite strong. The company’s consistent revenue growth, improved operating margins, and increasing ASV indicate a robust business model and effective management. As the company continues to evolve in a competitive market, these factors could be pivotal in driving long-term growth and providing value to shareholders.