FactSet Misses Q3 Earnings Despite Solid Revenue Growth and Reaffirmed Outlook
Summary
FactSet (NYSE: FDS) reported mixed fiscal Q3 2025 results, with adjusted EPS of $4.27 narrowly missing the $4.30 consensus, but revenue of $585.5 million exceeded forecasts of $580.54 million, growing 5.9% year-over-year. Organic revenue rose 4.4% to $577.2 million, driven by wealth management and institutional buy-side segments. Despite the slight EPS miss, FactSet reaffirmed its full-year fiscal 2025 guidance for adjusted EPS ($16.80-$17.40) and revenue ($2.305B-$2.325B), signaling management's confidence in its strategic direction and client momentum.
FactSet Navigates Q3 with Revenue Beat and Reaffirmed Outlook Despite Slight EPS Miss
NORWALK, CT – June 23, 2025 – FactSet Research Systems (NYSE: FDS), a leading provider of integrated financial information and analytical applications, today announced its fiscal third-quarter results, revealing a mixed performance that saw revenue surpass analyst expectations even as adjusted earnings per share (EPS) narrowly missed the consensus. The company's reaffirmation of its full-year guidance signals management's continued confidence in its strategic trajectory and market position.
Fiscal Third Quarter 2025 Highlights
For the quarter ended May 31, 2025, FactSet reported the following key financial metrics:
- Adjusted Earnings Per Share (EPS): $4.27
- Analyst Consensus: $4.30
- Variance: A slight miss of $0.03 per share.
- Revenue: $585.5 million
- Analyst Consensus: $580.54 million
- Year-over-Year Growth: 5.9%
- Performance: Exceeded expectations, demonstrating robust top-line expansion.
- Organic Revenue: $577.2 million
- Year-over-Year Growth: 4.4%
- Drivers: Growth was primarily fueled by strong performance across both the wealth management and institutional buy-side segments, indicating broad-based demand for FactSet's core offerings.
Despite the marginal earnings miss, the company's ability to outperform on the revenue front underscores the resilience of its business model and the continued demand for its comprehensive financial data and analytics solutions. The organic revenue growth, which strips out the effects of currency fluctuations and acquisitions, provides a clearer picture of the underlying health and expansion of FactSet's core operations.
Management Commentary and Strategic Direction
FactSet's management team expressed optimism regarding the company's future prospects, emphasizing strong client momentum and a healthy sales pipeline. This positive outlook is further reinforced by the decision to reaffirm the full-year fiscal 2025 guidance, aligning with market expectations.
Fiscal Year 2025 Guidance Reaffirmed
FactSet reiterated its financial outlook for the full fiscal year 2025:
- Adjusted EPS: Projected to be in the range of $16.80 to $17.40.
- Revenue: Expected to be between $2.305 billion and $2.325 billion.
Both guidance ranges are broadly consistent with current Street expectations, suggesting that the company anticipates continued steady performance through the remainder of the fiscal year. The reaffirmation of guidance, particularly after a quarter with a slight EPS miss, can be interpreted as a signal of management's confidence in its operational efficiency and market strategy.
Market Implications
FactSet's Q3 results present a nuanced picture. While the EPS miss might initially trigger some concern, the stronger-than-expected revenue growth and, crucially, the reaffirmation of full-year guidance, are likely to reassure investors. The company's consistent organic growth in key segments highlights its competitive strength in the financial data industry. Investors will likely focus on the sustained revenue momentum and the stability implied by the reaffirmed outlook, rather than dwelling on the minor EPS shortfall.