Executive Summary

Q4 FY25 delivered 6.2% revenue growth to $596.9M and record quarterly organic ASV adds ($81.8M), with revenue slightly above consensus but adjusted EPS modestly below; GAAP EPS rose 73.7% YoY on a divestiture gain and expense lapping effects . Versus S&P Global consensus, revenue beat ($596.9M vs $593.4M*) while adjusted EPS missed ($4.05 vs $4.13*) (values from S&P Global).
Adjusted operating margin compressed 200 bps YoY to 33.8% on higher technology spend and lapping a lower bonus accrual; GAAP operating margin expanded ~700 bps YoY to 29.7% due to lapping a prior-year sales tax charge .
Management issued FY26 guidance: organic ASV +$100–$150M, revenue $2.423–$2.448B, adjusted op margin 34.0%–35.5%, adjusted EPS $16.90–$17.60; tax rate 18%–19% .
Strategic drivers: wealth remained the growth engine (>10% organic growth in Q4) with seven‑figure wins and competitive displacements; AI products and roadmap were cited as meaningful contributors to wins and renewals, supporting pipeline momentum into FY26 .

What Went Well and What Went Wrong

What Went Well

Wealth momentum and competitive wins: “Wealth delivered strong Q4 performance with continued organic growth at greater than 10%, fueled by seven‑figure deals, including two competitive displacements” .
Record ASV adds and broad-based demand: Q4 organic ASV increased $81.8M—the largest in company history—driven by wealth and institutional buy-side clients; organic ASV growth accelerated to 5.7% YoY .
AI traction as a differentiator: 60% of AI tooling/content sales came in Q4; ~35% of renewals cited GenAI tooling and strategy as a factor, and three very large banking renewals highlighted AI as a key decision driver . CEO emphasized FactSet’s open, cloud‑native architecture as an advantage to implement AI and agentic workflows at scale .

What Went Wrong

Adjusted margin pressure: Adjusted operating margin fell to 33.8% (down 200 bps YoY) on higher technology expenses and lapping a lower bonus accrual; Q4 adjusted EPS grew 8.3% but missed consensus (see Estimates Context) .
Longer sales cycles and rigorous approvals: Management guided conservatively for FY26 organic ASV given “longer sales cycles and more rigorous client approval processes,” despite strong positioning and pipeline .
Regional/pricing pressures: APAC growth faced pricing pressure in some markets (offset by solution expansion and new clients), and EMEA mid‑sized asset managers/owners continue to face secular headwinds, constraining regional growth relative to Americas .

Financial Results

Consolidated Performance vs Prior Periods and Estimates

Metric	Q4 2024	Q2 2025	Q3 2025	Q4 2025
Revenue ($USD Millions)	$562.2	$570.7	$585.5	$596.9
GAAP Diluted EPS ($)	$2.32	$3.76	$3.87	$4.03
Adjusted Diluted EPS ($)	$3.74	$4.28	$4.27	$4.05
GAAP Operating Margin (%)	22.7%	32.5%	33.2%	29.7%
Adjusted Operating Margin (%)	35.8%	37.3%	36.8%	33.8%

Actual vs. S&P Global Consensus (Q4 2025):

Revenue: $596.9M vs $593.4M* → Beat (Values retrieved from S&P Global) .
Adjusted/Normalized EPS: $4.05 vs $4.13* → Miss (Values retrieved from S&P Global) .

Non‑GAAP adjustments (selected): Intangible amortization, business divestiture gain, acquisitions/related costs, prior-year sales tax dispute, executive search costs, restructuring/severance .

Segment and Regional Detail (Q4)

Region	Q4 Revenue ($M)	YoY Organic Revenue Growth	ASV ($M)	Organic ASV ($M)	Organic ASV YoY
Americas	$388.7	5.3%	$1,570.1	$1,541.9	6.0%
EMEA	$147.4	1.7%	$591.6	$586.3	4.2%
Asia Pacific	$60.8	5.9%	$243.9	$242.7	7.2%

Buy‑Side vs Sell‑Side ASV mix and growth:

Buy‑side: 82% of organic ASV; growth 5.5% YoY .
Sell‑side: 18% of organic ASV; growth 4.3% YoY .

KPIs and Cash Flow (Q4)

KPI	Q4 FY25	Prior Quarter (Q3 FY25)	Notes
Organic ASV ($M)	$2,370.9	$2,296.9	+$74.0M QoQ; Q4 organic adds $81.8M (record)
Client Count	8,996	8,811	+185 QoQ
User Count	237,324	220,496	+16,828 QoQ
Retention	>95% ASV; 91% by client	>95% ASV; 91% by client	Stable
Free Cash Flow ($M)	$178.1	$228.6	Q4 increase 29.8% YoY; Q3 shown for context
Share Repurchases	$106.6M in Q4	$80.7M in Q3	New $400M authorization effective Sep 1
Dividend	$1.10 paid Sep 18, 2025	$1.10 paid Jun 18, 2025	Next declared $1.10 payable Dec 18, 2025

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Organic ASV ($ increase)	FY 2026	N/A	+$100M to +$150M	New
GAAP Revenue	FY 2026	N/A	$2,423M – $2,448M	New
GAAP Operating Margin	FY 2026	N/A	29.5% – 31.0%	New
Adjusted Operating Margin	FY 2026	N/A	34.0% – 35.5%	New
GAAP Diluted EPS	FY 2026	N/A	$14.55 – $15.25	New
Adjusted Diluted EPS	FY 2026	N/A	$16.90 – $17.60	New
Effective Tax Rate	FY 2026	N/A	18% – 19%	New
Dividend	Ongoing	$1.10/qtr paid Sep 18, 2025	$1.10/qtr declared for Dec 18, 2025	Maintained

Management noted FY26 margin guidance reflects higher technology/content costs and targeted investments (wealth/buy‑side/AI), partially offset by productivity and cost discipline .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3 FY25)	Current Period (Q4 FY25)	Trend
AI/Technology initiatives	Launched Pitch Creator; acquisitions (LiquidityBook) to integrate OMS/IBOR; reaffirmed adjusted EPS margin guidance while absorbing dilution . Q3 noted margin compression on lapping lower bonus; ongoing investments .	CEO: “uniquely positioned to become the leading AI‑powered financial intelligence platform”; open, API‑first architecture; 60% of AI sales in Q4; ~35% renewals cited GenAI; conservative FY26 ASV guide due to adoption cycles .	Accelerating client engagement; investment ramp with measured payback.
Wealth	Driver of growth in Q2/Q3; expanding workstation and data feeds; desktop-to-enterprise land‑and‑expand .	>10% organic growth; two seven‑figure competitive displacements; off‑platform ASV with wealth +50% YoY .	Strengthening, share gains.
Buy‑Side/Analytics & Data	Q2/Q3: demand for analytics; double‑digit growth in data ASV; portfolio lifecycle focus (OMS/IBOR) .	Largest quarterly ASV increase on record; multiple seven‑figure wins; stronger demand for analytics and data .	Improving.
Dealmaker/Banks	Bank productivity focus; banker tools (Pitch Creator, LogoIntern); multi‑year contracts with top banks .	Improved hiring trends; three large banking renewals cited AI tools; broader CRM convergence focus in banks .	Stabilizing to improving.
Pricing & Sales cycles	Pricing contributions stable in Q2/Q3; some pressure regionally .	Pricing discipline maintained within ~5% realization; acknowledging longer sales cycles and rigorous approvals .	Discipline maintained; cycle lengthening.
Capital allocation	Q2/Q3 buybacks; new $400M authorization approved June; dividend up 6% in May .	$106.6M repurchases in Q4; $1.10 dividend paid; new authorization active Sept 1 .	Continuing returns.

Management Commentary

CEO vision and positioning: “We are extremely well‑positioned to become the leading AI‑powered financial intelligence platform for our clients… our open architecture… is a huge advantage when it comes to implementing AI and agentic workflows at scale” .
Operating posture: “We are operating from a position of strength… With more than $600 million of free cash flow and a strong balance sheet, we are able to invest confidently in our future… [with] a disciplined, measured approach” .
CFO on Q4 and FY26: “Q4 organic ASV of $81.8 million was the largest quarter in the company's history… We’re guiding to organic ASV growth of $100 million to $150 million… and an adjusted operating margin of 34% to 35.5%” .

Q&A Highlights

Margin/investment mix: About ~250 bps of FY26 margin headwind is investment, with ~two‑thirds growth (AI, data, portfolio lifecycle) and ~one‑third structural (cyber, internal AI); expect operating leverage on structural investments over time .
AI monetization and adoption: AI contributed 30–50 bps to ASV growth in FY25—at the midpoint of guidance—and materially influenced renewals; management sees early phase of enterprise AI adoption in regulated clients, requiring high‑quality data and integration .
Wealth runway: Management sees continued seven‑figure opportunities and higher attach into additional departments and data feeds; secular trends in wealth support sustained growth .
Banking trends: Hiring better than modeled in Q4; strong interest in banker productivity tools; universal banks focusing on CRM convergence and AI-enabled workflows .
Pricing: Realization maintained within ~5% range; FY26 outlook assumes similar pricing, with longer sales cycles and rigorous client approvals acknowledged .

Estimates Context

Q4 FY25 vs consensus: Revenue $596.9M vs $593.4M* → beat; Adjusted/Normalized EPS $4.05 vs $4.13* → modest miss (Values retrieved from S&P Global) .
FY26 guidance vs consensus: Revenue guidance $2.423–$2.448B brackets consensus ~$2.441B*; Adjusted/Normalized EPS guidance $16.90–$17.60 vs consensus ~$17.32*—midpoint roughly in line (Values retrieved from S&P Global) .

Where estimates may adjust:

Upward revenue revisions modestly supported by stronger Q4 run‑rate and new FY26 range bracketing consensus (top of range above consensus) .
EPS estimates may compress if investment spend runs toward the high end of guided range or if adjusted margins track nearer 34% than 35.5% .

Key Takeaways for Investors

Revenue momentum is intact, aided by record quarterly organic ASV adds and broad‑based demand (wealth, buy‑side analytics, data), though adjusted margins face near‑term pressure from strategic investments .
AI is moving from proof‑points to commercial impact, contributing meaningfully to wins and renewals; FactSet’s open, cloud‑native architecture and curated datasets create a competitive moat for enterprise AI adoption .
FY26 guide is intentionally conservative on ASV given longer enterprise sales cycles; range still implies mid‑single‑digit growth with investment-fueled upside if adoption accelerates .
Wealth remains a multi‑year growth engine, with evidence of share gains, larger deals, and rising off‑platform data monetization (>50% YoY) .
Watch margin trajectory: investment mix (~2.5% of revenue) and structural spend (cyber, internal AI) weigh near‑term, but management targets operating leverage and productivity (100 bps efficiency already embedded for FY26) .
Capital returns continue (dividend maintained at $1.10 and active repurchases), supported by robust free cash flow .
Near‑term trading: stock likely sensitive to EPS/margin cadence vs. FY26 targets and visible AI-driven deal flow; medium‑term thesis hinges on AI-enabled workflow adoption, wealth expansion, and data monetization translating into sustained ASV acceleration and margin recapture .

Notes:

Asterisk (*) denotes values retrieved from S&P Global.

FACTSET RESEARCH SYSTEMS INC (FDS)·Q4 2025 Earnings Summary