FactSet Research Systems Inc. ($FDS) Stumbles in Q3: Revenue Growth & Buybacks Can’t Save Earnings Miss
Wall Street's data darling hits a speed bump.
FactSet Research Systems Inc. ($FDS) just served up a classic 'good news, bad news' sandwich for Q3—and analysts are choking on the bad bite first.
Revenue up, but profits down? Check. Buyback announcement to placate shareholders? Obviously. Another reminder that financial data firms print money regardless of market conditions? Absolutely.
The irony? FactSet's own metrics probably predicted this miss months ago—if only their clients had run the numbers.
TLDR
- Q3 adjusted EPS at $4.27 missed analyst expectations of $4.29
- GAAP earnings dropped to $3.87 from $4.09 last year
- Revenue rose 5.9% YoY to $585.52 million, beating estimates
- $400 million share repurchase announced, starting Sept. 1, 2025
- FY25 guidance reaffirmed despite 12.1% YTD stock decline
FactSet Research Systems Inc. (NYSE: FDS) shares were trading at $442.00, up 4.65%, as of 10:30 AM EDT following its fiscal Q3 results for the period ended May 31.
FactSet Research Systems Inc. (FDS)
The company reported GAAP net income of $148.54 million or $3.87 per share, falling short of last year’s $158.13 million or $4.09 per share. Adjusted earnings came in at $4.27 per share, below the $4.29 average analyst estimate and a decline from $4.37 a year ago.
FactSet has now missed EPS estimates once in the past four quarters but has beaten revenue forecasts three times over the same period.
$FDS Earnings:
– Q3 GAAP revenues of $585.5 million, up 5.9% from Q3 2024.
– Organic Q3 ASV of $2,296.9 million, up 4.5% year over year.
– Q3 GAAP operating margin of 33.2%, down approximately 350 bps year over year, and adjusted operating margin of 36.8%, down 270 bps year over… pic.twitter.com/hLZPfGfT1v
— AlphaSense (@AlphaSenseInc) June 23, 2025
Revenue Beats, But EPS Lags
Total revenue climbed 5.9% year-over-year to $585.52 million, surpassing analyst expectations of $580.50 million. The Business – Information Services segment performed relatively well despite the earnings miss. Analysts had forecast EPS to range between $4.13 and $4.57, placing the reported figure on the lower end.
The stock has declined 12.1% year-to-date and 7.1% this quarter, underperforming the S&P 500’s 1.5% gain.
Forecast Reaffirmed and Buyback Announced
Despite the earnings shortfall, FactSet reaffirmed its full-year fiscal 2025 guidance. The company still expects GAAP earnings between $14.80 and $15.40 per share and adjusted earnings between $16.80 and $17.40 per share. Revenue is projected to land between $2.305 billion and $2.325 billion. These projections are largely aligned with consensus estimates of $17.07 EPS on $2.31 billion in revenue.
A $400 million share repurchase authorization, effective from September 1, 2025, was also announced by the Board of Directors. The MOVE signals confidence in long-term shareholder value despite near-term pressure.
Analyst Sentiment and Valuation
The average analyst recommendation for FactSet stock remains “hold,” with only three out of 21 analysts rating it a “buy” or “strong buy.” Seven analysts rate it a “sell” or “strong sell.” The median 12-month price target is $438.00, slightly above the last closing price of $422.34.
Recent estimate revisions have been slightly negative, with one downward adjustment in the past 30 days. FactSet carries a Zacks Rank #4 (Sell), suggesting continued underperformance in the NEAR term.
Industry Position
Despite company-specific struggles, the broader Zacks Business – Information Services industry ranks in the top 11% among over 250 industries. That strong relative ranking may lend some support to the stock, though investors remain cautious amid declining EPS and lukewarm analyst sentiment.
