Financial data provider FactSet (NYSE:FDS) announced better-than-expected revenue in Q3 CY2025, with sales up 6.2% year on year to $596.9 million. On the other hand, the company’s full-year revenue guidance of $2.44 billion at the midpoint came in 0.6% below analysts’ estimates. Its non-GAAP profit of $4.05 per share was 1.9% below analysts’ consensus estimates.
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FactSet (FDS) Q3 CY2025 Highlights:
- Revenue: $596.9 million vs analyst estimates of $593.4 million (6.2% year-on-year growth, 0.6% beat)
- Pre-tax Profit: $189 million (31.7% margin, 61.3% year-on-year growth)
- Adjusted EPS: $4.05 vs analyst expectations of $4.13 (1.9% miss)
- Adjusted EPS guidance for the upcoming financial year 2026 is $17.25 at the midpoint, missing analyst estimates by 5.6%
- Market Capitalization: $12.7 billion
“FactSet’s strong fourth quarter performance reflects the power of our differentiated data, open platform, and client-centric culture,” said Sanoke Viswanathan, CEO of FactSet.
Company Overview
Founded in 1978 when financial data was still primarily delivered through paper reports, FactSet (NYSE:FDS) provides financial data, analytics, and technology solutions that investment professionals use to research, analyze, and manage their portfolios.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, FactSet grew its revenue at a decent 9.2% compounded annual growth rate. Its growth was slightly above the average financials company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. FactSet’s recent performance shows its demand has slowed as its annualized revenue growth of 5.5% over the last two years was below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, FactSet reported year-on-year revenue growth of 6.2%, and its $596.9 million of revenue exceeded Wall Street’s estimates by 0.6%.
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Key Takeaways from FactSet’s Q3 Results
We were impressed by how significantly FactSet blew past analysts’ EBITDA expectations this quarter. On the other hand, its full-year EPS guidance missed and its EPS fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 2.8% to $326.34 immediately after reporting.
FactSet’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.