FactSet Research Systems Inc. (NYSE:FDS) Earnings Report and Leadership Change

• FactSet reported earnings per share (EPS) of $4.27, slightly below the estimated $4.30, but generated revenue of approximately $585.5 million, surpassing the estimated $580.8 million.

• The company's Organic Annual Subscription Value (ASV) rose by 4.5% year over year, reaching $2.3 billion.

• FactSet announced the appointment of Sanoke Viswanathan as CEO, succeeding Phil Snow in September 2025.

FactSet Research Systems Inc. (NYSE:FDS) is a leading provider of financial data and technology solutions. The company offers a wide range of services, including analytics, content, and technology solutions to investment professionals worldwide. FactSet competes with other financial data providers like Bloomberg and Thomson Reuters. The company is known for its comprehensive data offerings and innovative technology solutions.

On June 23, 2025, FactSet reported earnings per share (EPS) of $4.27, slightly below the estimated $4.30. Despite this, the company generated revenue of approximately $585.5 million, surpassing the estimated $580.8 million. This revenue marks a 5.9% increase from the same quarter in 2024, driven by increased demand from wealth and institutional buy-side clients.

FactSet's Organic Annual Subscription Value (ASV) rose by 4.5% year over year, reaching $2.3 billion. However, the company's GAAP operating margin decreased by approximately 350 basis points to 33.2%, and the adjusted operating margin fell by 270 basis points to 36.8%. This indicates that while revenue and subscription value are growing, the company is facing challenges in maintaining its operating efficiency.

The GAAP diluted EPS dropped by 5.4% to $3.87, and the adjusted diluted EPS decreased by 2.3% to $4.27. Despite these declines, FactSet has consistently surpassed the Zacks Consensus Estimate in the past four quarters, achieving an average surprise of 4.9%. This track record highlights the company's ability to perform better than market expectations.

In a significant leadership change, FactSet announced the appointment of Sanoke Viswanathan as CEO, effective early September 2025. He will succeed Phil Snow, who will retire as CEO and Board member. Phil Snow will continue to serve as a senior advisor until the end of the calendar year, ensuring a smooth transition in leadership.