FactSet, a global provider of financial data and enterprise solutions, reported its third-quarter results for fiscal year 2025, ending May 31. The company experienced organic Annual Subscription Value (ASV) growth of 4.5%, reaching $2.297 billion, an increase of $22.6 million over the previous quarter. GAAP revenues also rose by 5.9% year-over-year to $585.5 million, compared to $552.7 million in the previous year.

In terms of profitability, GAAP operating margin decreased to 33.2%, down from 36.6% a year ago, while adjusted operating margin fell to 36.8% from 39.4% during the same period. The decline in margins primarily resulted from increased technology expenses and the normalization of bonus accruals. The company reported GAAP net income of $148.5 million, a decrease of 6.1% year-over-year, with diluted earnings per share (EPS) of $3.87, down 5.4% from $4.09 in the third quarter of fiscal 2024. Adjusted diluted EPS was $4.27, a 2.3% decrease compared to $4.37 in the prior year.

FactSet’s Client retention remained robust, with annual ASV retention exceeding 95% and client retention at 91%. The total client base grew to over 8,800 during the quarter, fueled by strong demand from corporate clients and wealth management sectors, including contributions from its recent LiquidityBook acquisition. The user count increased to over 220,000, primarily driven by growth in wealth management.

Regionally, FactSet reported varied organic ASV performance. The Americas segment saw a 5% increase in organic ASV, amounting to $1.486 billion, supported by higher retention across banking and asset management. In EMEA, organic ASV grew by 2.1% to $575.2 million, hindered by lower annual price increases and challenges in the buy-side market. Asia Pacific had the strongest performance, with a 7.1% increase in organic ASV to $235.7 million.

Operating expenses rose by 11.7% year-over-year, reaching $391 million, primarily due to increases in employee and technology costs. Operating income decreased to $194.2 million, with adjusted operating income at $215.3 million, declining 1.2% from the previous year.

FactSet reaffirmed guidance for fiscal 2025, anticipating organic ASV growth ranging from $100 million to $130 million, with GAAP revenues projected between $2.305 billion and $2.325 billion. The company also declared a quarterly dividend of $1.10 per share, marking a 6% increase from the previous quarter, continuing its history of dividend growth for 26 consecutive years.

As of May 31, FactSet had approximately $106 million remaining under its share repurchase authorization, having repurchased 184,000 shares for around $81 million in the quarter. A new share repurchase program for up to $400 million was also announced, effective September 1, 2025.