FactSet Reports 4.5% Revenue Growth to $570.7 Million in Q2 Fiscal 2025

FactSet Research Systems Inc. reported its financial results for the second quarter of fiscal 2025, ending February 28, 2025, revealing a revenue of $570.7 million, a 4.5% increase from $545.9 million in the same quarter of the previous year. The growth was attributed to a 4.0% rise in organic revenues and a 0.7% contribution from acquisitions, although foreign currency fluctuations negatively impacted revenues by 0.2%. For the first half of the fiscal year, total revenues reached $1.139 billion, up 4.7% from $1.088 billion in the prior year.

Operating income for the quarter was $185.5 million, reflecting a 2.0% increase from $181.9 million a year earlier, while net income rose by 2.8% to $144.9 million compared to $140.9 million in the prior year. The diluted earnings per share (EPS) increased to $3.76, a 3.0% rise from $3.65 in the same quarter last year. The operating margin slightly decreased to 32.5% from 33.3%, primarily due to higher professional fees and computer-related expenses.

In terms of strategic developments, FactSet completed two significant acquisitions: LiquidityBook for $243.8 million and Irwin for $120.2 million. These acquisitions are expected to enhance FactSet's capabilities in providing integrated workflow solutions for clients in the financial services sector. As of February 28, 2025, the company reported a total of 8,645 clients and 219,141 users, marking a net increase of 625 clients and 12,663 users over the past year.

FactSet's employee headcount rose to 12,598, a 2.6% increase from the previous year, driven by growth in the Americas and the integration of new employees from recent acquisitions. The company also reported a free cash flow of $210.7 million for the first half of fiscal 2025, down from $260.6 million in the same period last year, primarily due to increased working capital requirements and higher capitalized costs related to software development.

Looking ahead, FactSet remains focused on expanding its data offerings and integrating deeper into client workflows, with a particular emphasis on leveraging artificial intelligence to enhance its services. The company anticipates continued growth in organic annual subscription value, which reached $2.276 billion, reflecting a 4.1% increase year-over-year. Despite the challenges posed by market conditions and foreign currency fluctuations, FactSet's strategic initiatives and acquisitions position it for sustained growth in the financial services sector.