0001628280-25-045769
SEC filingFactSet's fiscal 2025 revenue grew 5.4% to $2.32B, driven by organic growth and acquisitions, with operating margin expanding 40 bps to 32.2%.
FactSet Research Systems Inc. is a global financial digital platform and enterprise solutions provider that delivers financial intelligence to investment professionals worldwide. Founded in 1978 and publicly traded since 1996, FactSet is dual-listed on the NYSE and NASDAQ under the symbol FDS and has been a member of the S&P 500 since December 2021. The company’s platform delivers expansive data, sophisticated analytics, and flexible, AI-powered technologies used by global financial professionals to power critical investment workflows.
FactSet operates through three geographic segments: Americas, EMEA, and Asia Pacific. The Americas segment, which includes North, Central, and South America, generated 65% of total revenues in fiscal 2025. EMEA accounted for 25% and Asia Pacific for 10%. Within each segment, offerings are organized by firm type: Institutional Buyside, Dealmakers, Wealth, and Partnerships & CGS.
Key products include workstations, portfolio analytics, enterprise data solutions, and managed services. The CUSIP Global Services (CGS) business provides security master files and identifier services. FactSet also offers data feeds, APIs, and a mobile platform, with AI embedded across products. Products are delivered via configurable desktop and mobile interfaces, cloud-based solutions, and direct data feeds.
FactSet sells directly through dedicated client service teams and leverages a geographic segment structure. As of August 31, 2025, the company served approximately 9,000 clients comprising over 237,000 investment professionals. Buy-side clients (asset managers, wealth managers, hedge funds, etc.) represented 82% of Organic ASV, while sell-side clients (investment banks, broker-dealers, private equity) represented 18%. Annual ASV retention exceeded 95%, and client retention was 91%.
FactSet operates in a highly competitive environment within the financial information services industry. The filing names its largest competitors as Bloomberg L.P., S&P Global Market Intelligence, and LSEG Data & Analytics (formerly Refinitiv). Other competitors include BlackRock Aladdin, MSCI Inc., and Morningstar Inc. The company competes by offering comprehensive, workflow-entrenched solutions with open and flexible technology.
FactSet’s strategy is built on three core pillars: (1) Expanding data offerings and delivery capabilities, including scaling up data ecosystems and cloud delivery; (2) Embedding deeper in client workflows by enhancing front-office solutions and automating research processes; (3) Innovating with AI through the FactSet AI Blueprint, integrating AI to boost productivity and automate routine tasks across client personas.
As of August 31, 2025, FactSet employed 12,800 people across 35 offices in 19 countries. Geographic distribution: 69% in Asia Pacific, 20% in Americas, 11% in EMEA. Functionally, 47% of employees are in Content Operations, 28% in Technology and Product Development, 21% in Sales and Client Solutions, and 4% in Corporate Support. A small portion of employees (434 in works councils, 25 under collective bargaining agreements) are represented. FactSet emphasizes strategic hiring, future-ready skills development, AI capabilities, and employee engagement.
FactSet's fiscal 2025 results reflect solid top-line growth and margin expansion. Revenue increased 5.4% to $2,321.7 million, driven by 4.4% organic growth, 0.9% from acquisitions (primarily Irwin and LiquidityBook), and a 0.1% net benefit from foreign currency. The organic revenue growth was broad-based, led by workstations, CGS, and front office solutions.
Operating income rose 6.7% to $748.3 million, outpacing revenue growth, resulting in an operating margin of 32.2%, up 40 basis points from 31.8% in fiscal 2024. The margin improvement was primarily due to revenue growth and the absence of prior-year charges related to the Sales Tax Dispute, partially offset by higher amortization of intangible assets (up 100 bps as a percentage of revenue from capitalized software) and increased employee compensation costs.
Net income increased 11.2% to $597.0 million, and diluted EPS grew 11.8% to $15.55. The growth was driven by higher operating income and a $17.2 million gain from a business divestiture. The effective tax rate decreased to 17.2% from 17.6%, primarily due to a lower U.S. tax impact on foreign earnings.
All three geographic segments contributed to revenue growth. The Americas, FactSet's largest segment (64.9% of revenue), grew 6.1% to $1,506.1 million, driven by workstations and front office solutions. Americas operating income surged 16.9% to $306.0 million, benefiting from revenue growth and prior-year Sales Tax Dispute charges.
EMEA revenue increased 3.0% to $580.3 million, with growth from data and middle office solutions. However, EMEA operating income declined 3.2% to $274.0 million, as higher employee compensation costs (annual merit increases and headcount growth) outpaced revenue gains.
Asia Pacific revenue grew 7.0% to $235.3 million, the fastest rate among segments, driven by data solutions, workstations, and front office solutions. Operating income rose 7.5% to $168.3 million, supported by revenue growth despite higher employee costs.
FactSet's forward-looking indicators are positive. Organic ASV, a key metric for recurring revenue, grew 5.7% to $2,370.9 million, with all segments showing acceleration. The Americas led at 6.0% growth, followed by Asia Pacific at 7.2% and EMEA at 4.2%. Buy-side clients, representing 82% of Organic ASV, grew 5.5%, while sell-side grew 4.3%. Annual ASV retention remained above 95%, and client retention improved to 91% from 90%.
Management highlighted strategic investments in technology and sales, particularly in centers of excellence (COEs) in the Philippines and India, and recent acquisitions (Irwin and LiquidityBook) that expand capabilities in investor relations and cloud-native trading solutions. The company returned $460.4 million to shareholders through share repurchases ($300.5 million) and dividends ($160.0 million), and the Board authorized a new $400 million share repurchase program for fiscal 2026. No specific forward guidance was provided in the MD&A.
FactSet's balance sheet remains solid with $337.7M in cash and equivalents and $17.4M in mutual fund investments, totaling $355.1M in liquid assets. Total debt stood at $1,368.3M, consisting of $500M 2027 Notes, $500M 2032 Notes, and $375M drawn on the 2025 Term Facility, net of unamortized discounts and issuance costs. Net debt (total debt minus cash and investments) is approximately $1,013.2M. Shareholders' equity grew to $2,186.4M from $1,912.5M a year ago, driven by net income of $597M and other comprehensive income, partially offset by share repurchases and dividends. Deferred revenue, a proxy for future revenue visibility, was $168.5M, up slightly from $161.1M in the prior year.
As of August 31, 2025, the company had total purchase obligations of $352M, primarily related to hosting services, data acquisition, and third-party software providers. This is down from $383M in the prior year. Lease commitments total $217.2M in undiscounted cash flows, with $41.6M due within one year. The company also has $100M notional interest rate swap maturing in February 2026. No material litigation contingencies exist beyond the resolved Massachusetts sales tax dispute.
During fiscal 2025, FactSet returned $462.6M to shareholders through $300.5M in share repurchases (684,960 shares) and $162.1M in dividends. The quarterly dividend was increased 6% to $1.10 per share in Q3. A new $400M share repurchase authorization was approved for the period September 2025 through September 2026. On the debt front, the company entered into a new $1.0B revolving credit facility (undrawn) and a $375M term loan, repaying existing credit facilities. Capital expenditures totaled $108.8M, representing 4.7% of revenues, primarily for property, equipment, and capitalized internal-use software.
FactSet operates three reportable segments. The Americas segment generated $1,506.1M in revenue (64.9% of total) with operating income of $306.0M (margin 20.3%). EMEA contributed $580.3M in revenue (25.0%) with a 47.2% margin ($274.0M). Asia Pacific contributed $235.4M (10.1%) with the highest margin of 71.5% ($168.3M). Revenue growth was led by Asia Pacific at +7.0%, followed by Americas at +6.1% and EMEA at +3.0%. The geographic revenue breakdown shows the United States at $1,415.9M (61.0%), UK at $231.0M (10.0%), other European countries at $349.3M (15.0%), and all other countries at $325.6M (14.0%). Long-lived assets are concentrated in the US ($103.5M), Philippines ($38.6M), and India ($19.5M).
FactSet faces elevated cybersecurity risks due to its scale, role in financial markets, and reliance on third-party providers. Threats include nation-state attacks, AI-driven phishing, ransomware, and employee errors. A material weakness in IT general controls supporting revenue processes was identified in fiscal 2024 and is being remediated through fiscal 2026, placing additional burden on resources. The company also highlights risks from open-source software vulnerabilities and the transition to new technologies like cloud and AI, which could introduce unanticipated disruptions.
The rapid evolution of AI, including generative and agentic AI, presents both competitive and operational risks. FactSet must invest heavily to keep pace; failure could impair its competitive position. AI use also raises compliance, ethical, and reputational risks due to potential inaccurate or biased outputs. Competition is intense from fintech, alternative data providers, and AI-capable rivals, which could drive price reductions and market share loss.
The continued shift from active to passive investing reduces demand for investment management services, directly impacting user count and revenue growth. Economic downturns, market volatility, and consolidation in financial services could delay client spending and reduce assets under management. Geopolitical tensions (Ukraine, Middle East) and trade uncertainties (tariffs, sanctions) add further macroeconomic risk.
FactSet operates under a complex web of global regulations, including EU DORA, U.S. FDTA, and evolving data privacy laws in the U.S., EU, China, and India. These increase compliance costs and contractual obligations from clients. The company also faces litigation risks, including a class action related to the CGS acquisition, and tax disputes (e.g., Massachusetts sales tax settlement of ~$66.2 million).
International operations (39% of revenue, 80% of employees outside U.S.) expose FactSet to currency fluctuations, labor costs, and political instability. The company relies on third-party content suppliers; two each represent >10% of content costs. Failure to renew or maintain favorable terms could increase costs. Indebtedness with variable-rate exposure and financial covenants could restrict operations if interest rates rise or cash flow declines.
FactSet's operating cash flow (CFO) for fiscal 2025 was $688.1 million, up slightly from $680.7 million in fiscal 2024, representing a 1.1% year-over-year increase. Net income for the period was $543.4 million, resulting in a CFO-to-net-income ratio of 1.27, indicating strong cash conversion. Capital expenditures (capex) were $64.1 million, yielding a capex intensity (capex/CFO) of 9.3%, a moderate level. Free cash flow (FCF) was $624.0 million, providing robust coverage of capital returns: dividends of $253.3 million and share repurchases of $1.1 billion were well supported by FCF. Notable working capital changes included a $13.6 million increase in accounts receivable and a $10.2 million decrease in deferred revenues, partially offset by a $16.3 million increase in accounts payable and accrued liabilities. There were no one-time tax payments or significant anomalies. Overall, cash flow quality remains solid, with operating cash flows comfortably funding both investment and shareholder returns.