FactSet Research Systems Inc. (NYSE:FDS) Earnings Report and Leadership Change
Summary
FactSet (NYSE:FDS) reported mixed Q2 2025 earnings, with revenue of $585.5 million exceeding estimates but EPS of $4.27 slightly missing. Organic ASV grew 4.5% to $2.3 billion, though operating margins declined. The company also announced Sanoke Viswanathan will succeed Phil Snow as CEO in September 2025, marking a significant leadership transition for the financial data provider.
FactSet Reports Mixed Earnings Amidst Leadership Transition
NEW YORK, NY – June 23, 2025 – FactSet Research Systems Inc. (NYSE:FDS), a leading global provider of financial data and technology solutions, today announced its latest quarterly financial results, revealing a mixed performance with revenue surpassing estimates but earnings per share (EPS) slightly missing expectations. The company also confirmed a significant leadership change, with Sanoke Viswanathan appointed as the new CEO.
Financial Highlights
FactSet reported EPS of $4.27, marginally below the analyst consensus of $4.30. However, the company's revenue reached approximately $585.5 million, exceeding the estimated $580.8 million. This revenue figure represents a robust 5.9% increase compared to the same quarter in 2024, primarily driven by heightened demand from both wealth management and institutional buy-side clients.
Key financial metrics include:
- Revenue: $585.5 million (vs. $580.8 million estimate)
- Reported EPS: $4.27 (vs. $4.30 estimate)
- Organic Annual Subscription Value (ASV): Rose 4.5% year-over-year to $2.3 billion
Despite the positive revenue growth and ASV increase, FactSet experienced some pressure on its profitability margins. The GAAP operating margin declined by approximately 350 basis points to 33.2%, while the adjusted operating margin fell by 270 basis points to 36.8%. This indicates that while the company is successfully expanding its top line and subscription base, it faces challenges in maintaining operational efficiency.
Furthermore, the GAAP diluted EPS decreased by 5.4% to $3.87, and the adjusted diluted EPS saw a 2.3% reduction to $4.27. Despite these declines, FactSet has a strong track record of outperforming market expectations, having surpassed the Zacks Consensus Estimate in the past four quarters with an average surprise of 4.9%. This consistent performance underscores the company's ability to deliver results that often exceed analyst projections.
Leadership Transition
In a pivotal corporate announcement, FactSet confirmed the appointment of Sanoke Viswanathan as its new Chief Executive Officer, effective early September 2025. Mr. Viswanathan will succeed Phil Snow, who will retire from his role as CEO and step down from the Board of Directors. To ensure a seamless transition, Mr. Snow will continue to serve as a senior advisor until the end of the calendar year.
This leadership change marks a new chapter for FactSet as it continues to navigate the evolving landscape of financial data and technology solutions. The company competes with major industry players such as Bloomberg and Thomson Reuters, distinguishing itself through comprehensive data offerings and innovative technological solutions.
Company Overview
FactSet Research Systems Inc. is a premier provider of integrated financial information and analytical applications for the global investment community. Its comprehensive suite of services includes analytics, content, and technology solutions designed to empower investment professionals worldwide. The company's commitment to delivering robust data and cutting-edge technology has solidified its position as a key player in the financial services industry.