# FactSet Reports Results for Third Quarter 2025 on NYSE:FDS and NASDAQ:FDS
On June 23, FactSet, a global financial digital platform and enterprise solutions provider, announced its results for the third quarter of fiscal 2025 ended May 31, 2025, showing positive growth in various financial metrics compared to the same period a year ago.
### Key Points from FactSet’s Q3 2025 Report:
– **Revenues:**
– Q3 GAAP revenues were $585.5 million, up by 5.9% from the prior year.
– Organic Q3 Annual Subscription Value (ASV) was $2,296.9 million, showing a 4.5% increase year over year.
– **Operating Margin and EPS:**
– GAAP operating margin was 33.2%, down approximately 350 bps from the prior year.
– Adjusted operating margin was 36.8%, down 270 bps year over year.
– GAAP diluted EPS was $3.87, a decrease of 5.4% from the previous year.
– Adjusted diluted EPS was $4.27, down by 2.3% year over year.
– **Leadership Change:**
– Sanoke Viswanathan was appointed as CEO in early September 2025, succeeding Phil Snow, who will retire as CEO and Board member.
– **Financial Highlights:**
– Net cash provided by operating activities increased by 6.5% to $253.8 million.
– Free cash flow rose to $228.6 million, marking a 5.4% increase compared to the prior year.
– The GAAP effective tax rate for Q3 2025 increased to 17.5% from 17.0% in Q3 2024.
### Percentage Changes in Key Metrics:
– Revenue: Up 5.9%
– Organic ASV: Up 4.5%
– Operating Margin: Down 350 bps (GAAP) and 270 bps (Adjusted)
– GAAP Diluted EPS: Down 5.4%
– Adjusted Diluted EPS: Down 2.3%
### Guidance for Fiscal 2025:
– FactSet reaffirms fiscal 2025 guidance:
– Organic ASV growth expected in the range of $100-$130 million.
– GAAP revenues projected in the range of $2,305 million to $2,325 million.
– GAAP operating margin expected to be 32.0% to 33.0%.
– Adjusted operating margin forecasted in the range of 36.0% to 37.0%.
– GAAP diluted EPS anticipated in the range of $14.80 to $15.40.
– Adjusted diluted EPS predicted to be in the range of $16.80 to $17.40.
### Conclusion:
FactSet’s Q3 2025 results show solid performance with revenue growth and improved cash flows. Despite some decline in margins and EPS, the company has reaffirmed its outlook for fiscal 2025, aiming for continued growth in organic ASV and financial metrics.
These results demonstrate FactSet’s continued focus on financial innovation and strengthening its position as a leading financial digital platform provider. Investors are encouraged by the positive trajectory the company is following.
### Consolidated Statements of Income(Unaudited)
Amounts in millions, except per share data
| Three Months Ended May 31, | Nine Months Ended May 31, | |
|---|---|---|
| Revenues | $585.5 | $1,724.8 |
| Operating expenses | $391.4 | $1,153.9 |
| Operating income | $194.2 | $571.0 |
| Net income | $148.5 | $443.4 |
| Diluted EPS | $3.87 | $11.53 |
| Basic weighted average common shares | 37,907 | 37,976 |
| Diluted weighted average common shares | 38,344 | 38,457 |
### Consolidated Balance Sheets(Unaudited)
Amounts in thousands
| May 31, 2025 | August 31, 2024 | |
|---|---|---|
| Cash and cash equivalents | $356,361 | $422,979 |
| Investments | $7,684 | $69,619 |
| Accounts receivable | $271,851 | $228,054 |
| Goodwill | $1,277,855 | $1,011,129 |
| Intangible assets | $1,931,210 | $1,844,141 |
| Deferred taxes | $66,870 | $61,337 |
| Lease right-of-use assets | $119,191 | $130,494 |
| Other assets | $103,531 | $89,578 |
| Total Assets | $4,338,762 | $4,055,040 |
### Consolidated Statements of Cash Flows (Unaudited)
Amounts in thousands
| Nine Months Ended May 31, 2025 | Nine Months Ended May 31, 2024 | |
|---|---|---|
| Net income | $443,424 | $447,630 |
| Operating activities | $514,160 | $537,177 |
| Investing activities | -$369,373 | -$104,658 |
| Financing activities | -$199,327 | -$402,908 |
| Free Cash Flow | $228,603 | $216,896 |
