FactSet Research Systems Inc. (FDS) Q3 Earnings: Revenue Growth Offsets EPS Miss

FactSet Research Systems Inc. (NYSE: FDS) reported mixed fiscal Q3 results, with revenue growth overshadowing an earnings miss. The financial data provider posted $585.52 million in revenue, a 5.9% year-over-year increase that beat analyst estimates. However, adjusted EPS of $4.27 fell short of the $4.29 consensus.

Despite the earnings disappointment, investors responded positively to the company's $400 million share repurchase authorization set to begin in September 2025. Shares ROSE 4.65% to $442.00 in morning trading following the announcement. The buyback signals confidence in long-term value creation, even as GAAP earnings declined to $3.87 per share from $4.09 in the prior-year period.

Organic annual subscription value (ASV) grew 4.5% to $2.30 billion, demonstrating steady demand for FactSet's financial data services. Margin compression remains a challenge, with GAAP operating margin contracting 350 basis points to 33.2%. Management reaffirmed full-year guidance despite the stock's 12.1% year-to-date decline.