FactSet Research Systems Inc. Preps for Q3 Earnings Announcement

FactSet Research Systems Inc. (FDS), with a market capitalization of $16 billion, is a leading financial data and analytics provider based in Norwalk, Connecticut. The firm supplies integrated digital platforms and enterprise solutions crucial for the global investment community. Its extensive offerings include tools for company and industry analysis, screening, portfolio analytics, risk assessment, alpha-testing, portfolio optimization, and management of research solutions. The company is set to announce its fiscal Q3 earnings for 2025 on Friday, June 20.

Analysts Predict Modest Earnings Decline

In anticipation of the earnings report, analysts forecast FactSet will report a profit of $4.31 per share, reflecting a 1.4% decrease from $4.37 per share reported in the same quarter last year. Notably, FactSet has consistently surpassed Wall Street’s bottom-line estimates over the last four quarters. In the previous quarter, it reported earnings of $4.28 per share, exceeding consensus estimates by 2.2%.

Full-Year Expectations and Future Growth

For the full fiscal year, analysts predict that FDS will achieve earnings per share (EPS) of $17.10, a nearly 4% increase from $16.45 in fiscal 2024. Moreover, EPS is projected to grow by 7.5% annually, reaching $18.38 in fiscal 2026.

Stock Performance Compared to Major Indices

Over the past year, FDS shares have increased by 1.4%. However, this performance falls short compared to the S&P 500 Index’s rise of 8.7% and the Financial Select Sector SPDR Fund’s 19.4% gain during the same period.

Recent Earnings Insights

On March 20, stock prices for FDS dropped by 1.7% following the release of its Q2 earnings. The company posted a revenue increase of 4.5% year-over-year, totaling $570.7 million, which met consensus estimates, aided by a 4% rise in organic revenues. Additionally, adjusted EPS was reported at $4.28, representing a 1.4% increase compared to the previous year, and it surpassed analyst expectations. Furthermore, FactSet raised its fiscal 2025 revenue guidance to between $2.31 billion and $2.33 billion, while reaffirming its adjusted EPS outlook within a range of $16.80 to $17.40.

Nonetheless, the company experienced a decline in its adjusted operating margin, decreasing by 100 basis points year-over-year. It has also lowered its fiscal 2025 operating margin guidance to a range of 32% to 33%, which may have contributed to a decline in investor sentiment.

Analyst Outlook on FDS Stock

Wall Street analysts currently maintain a “Moderate Sell” rating for FDS overall. Among 18 analysts covering the stock, one recommends a “Strong Buy,” while 10 suggest a “Hold” and seven advise a “Strong Sell.” The mean price target for FDS stands at $440.86, presenting a potential upside of 2.8% from current levels.

On the date of publication, Neharika Jain did not hold any positions in the securities mentioned in this article. All information and data herein are for informational purposes only.