Q3 2025 Factset Research Systems Inc Earnings Call Transcript
Key Points
- FactSet Research Systems Inc (FDS) achieved organic ASV growth of 4.5% year over year, driven by recent wins in wealth, dealmakers, and partnerships.
- The company delivered an adjusted operating margin of 36.8% and adjusted diluted EPS of $4.27, reflecting successful execution of its enterprise solutions strategy.
- ASV retention remained strong at over 95%, with client retention at 91%, and the client base grew to over 8,800.
- FactSet Research Systems Inc (FDS) reported strong demand from corporate wealth management and buy-side clients, including those added through the LiquidityBook acquisition.
- The company is optimistic about its ability to expand the footprint of FactSet services, with a strong pipeline and growing momentum for a strong close to the fiscal year.
- FactSet Research Systems Inc (FDS) faced headwinds from reduced contributions from the annual price increase, impacting some of its gains.
- The company experienced pressure as clients, especially asset owners, continue to optimize costs and streamline vendor relationships.
- GAAP operating expenses increased 11.7% year over year, driven by higher employee and technology expenses.
- The adjusted operating margin decreased by 270 basis points year over year, reflecting normalization of bonus accruals and increased technology expense.
- FactSet Research Systems Inc (FDS) noted lower contributions from the annual price increase in EMEA and Asia Pacific regions due to lower CPI in pricing.
Good day and welcome to the FactSet third-quarter earnings call. (Operator Instructions) As a reminder, this call may be recorded.
I would now like to turn the call over to Kevin Toomey, Head of Investor Relations. Please go ahead.
Thank you and good morning, everyone. Welcome to FactSet's third fiscal quarter 2025 earnings call. Before we begin, the slides we reference during this presentation can be found through the webcast on the Investor Relations section of our website at factset.com. A replay of today's call will be available on our website. After our prepared remarks, we will open the call to questions. The call is scheduled to last for one hour. (Operator Instructions)
Before we discuss our results, I encourage all listeners to review the legal notice on slide 2. Discussions on this call may contain forward-looking statements. Such statements are subject to risks and uncertainties that may cause actual results to differ materially from results anticipated in these
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