July 23, 2025 — 11:30 am EDT\n\nWritten by Zacks Equity Research for <a> Zacks-&gt; </a>\n\nIt has been about a month since the last earnings report for FactSet Research (FDS). Shares have lost about 4.7% in that time frame, underperforming the S&P 500.\n\nBut investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is FactSet due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.\n\nFactSet Research Systems has reported the results for the third quarter of fiscal 2025, with earnings missing the Zacks Consensus Estimate but revenues surpassing the same.\n\nFDS’s earnings per share of $4.27 missed the consensus mark by a slight margin and decreased 2.3% from the year-ago quarter. Revenues of $585.5 million beat the Zacks Consensus Estimate by a slight margin and gained 5.9% from the year-ago quarter.\n\nFactSet’s Revenues in Detail\n\nOrganic revenues increased 4.4% year over year to $577.2 million. Region-wise, organic revenue growth was 5% for the Americas, 2.3% for the EMEA and 6.4% for the Asia Pacific.\n\nRevenues generated from the Americas segment were $380.5 million, up 6.7% from the year-ago quarter, surpassing our estimate of $374.8 million. Revenues from the EMEA were $145.7 million, an increase of 3.1% from the year-ago quarter. The figure missed our projection of $147.2 million. Revenues from the Asia Pacific were $59.3 million, marking 7.8% growth on a year-over-year basis, outpacing our estimate of $58.4 million.\n\nFDS’s ASV Plus Professional Services\n\nFactSet’s Annual Subscription Value (“ASV”) plus professional services were $2.3 billion. Organic ASV plus professional services were $2.3 billion, up 4.5% from the year-ago quarter. The buy-side and the sell-side organic ASV growth rate was 4%. Nearly 82% of organic ASV was generated by the buy-side and the rest by sell-side firms.\n\nOrganic ASV generated from the United States was $1.4 billion, increasing 5% from the year-ago quarter. Organic ASV from the EMEA was $575.2 million, gaining 2.1% year over year. Organic ASV from the Asia Pacific was $235.7 million, up 7.1% on a year-over-year basis.\n\nFactSet added 166 clients in the third quarter of fiscal 2025, driven by hedge fund, corporate, and wealth management clients and clients from the LiquidityBook acquisition, taking the total to 8,811. The annual client retention rate was 91%.\n\nOperating Results for FDS\n\nThe adjusted operating income was $194.2 million, which decreased 4.1% from the year-ago quarter and beat our estimate of $191.3 million. The adjusted operating margin of 36.8% declined 260 basis points from the year-ago quarter.\n\nFactSet’s Balance Sheet & Cash Flow\n\nThe company exited the quarter with a cash and cash-equivalent balance of $356.4 million compared with $278.5 million in the second quarter of fiscal 2025. The long-term debt was $1.4 billion compared with $1.5 billion in the preceding quarter.\n\nFDS generated $253.8 million in cash from operating activities. However, its capital expenditure was $25.2 million. The free cash flow utilized was $228.6 million.\n\nFY25 Guidance for FDS\n\nFor fiscal 2025, the company anticipates revenues of $2.305-$2.325 billion. FDS anticipates earnings per share of $16.8-$17.4. The adjusted operating margin is projected to be 36-37%.\n\nHow Have Estimates Been Moving Since Then?\n\nIn the past month, investors have witnessed a downward trend in estimates revision.\n\nVGM Scores\n\nCurrently, FactSet has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.\n\nOverall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.\n\nOutlook\n\nEstimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, FactSet has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

FactSet (FDS) Down 4.7% Since Last Earnings Report: Can It Rebound?

FactSet Research (FDS) reported third-quarter 2025 earnings that missed the Zacks Consensus Estimate but exceeded revenue expectations, with regional revenue growth across Americas, EMEA, and Asia Pacific. The company outlined FY25 guidance, operating results, and cash flow details, while investor sentiment remains cautious amid downward estimate revisions.