FactSet Reports 4.9% Revenue Growth to $568.7 Million in Q1 Fiscal 2025

FactSet Research Systems Inc. reported its financial results for the first quarter of fiscal 2025, ending November 30, 2024, revealing a revenue increase of 4.9% to $568.7 million, compared to $542.2 million in the same period last year. The growth was primarily driven by a 4.7% rise in organic revenues, with contributions from all segments, particularly the Americas. Operating income rose slightly to $191.3 million, reflecting a 1.2% increase from the previous year, while net income reached $150.0 million, up 1.0% year-over-year. Diluted earnings per share increased by 1.3% to $3.89.

The company experienced notable changes in its operational metrics, with a total client count of 8,249, representing a net increase of 304 clients, or 3.8%, over the past year. The user base also grew to 218,267 professionals, marking a 5.4% increase. FactSet's annual subscription value (ASV) reached $2.26 billion, a 4.5% increase from the prior year, driven by higher demand and price increases, particularly in workstations and CGS (CUSIP Global Services). The company’s employee headcount rose to 12,575, a 0.5% increase, with growth concentrated in the Asia Pacific region.

In terms of strategic developments, FactSet completed the acquisition of Platform Group Limited (Irwin) on November 5, 2024, for $123.2 million. This acquisition is expected to enhance FactSet's capabilities in investor relations and capital markets, building on a prior partnership with Irwin. The company also reported a significant increase in capital expenditures, which rose 57.1% to $25.9 million, primarily due to investments in internal-use software development.

The financial performance was impacted by increased operating expenses, which rose 6.8% to $377.3 million, driven by higher selling, general, and administrative costs. The operating margin decreased to 33.6% from 34.9% in the prior year, attributed to higher amortization of intangible assets and professional fees. Despite these challenges, FactSet returned $88.0 million to shareholders through share repurchases and dividends during the quarter.

Looking ahead, FactSet remains focused on expanding its data offerings, enhancing client workflow integration, and leveraging artificial intelligence to drive growth. The company anticipates continued demand for its services, supported by its strategic initiatives and recent acquisitions, while maintaining a strong commitment to shareholder returns.