FactSet (FDS) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 GAAP revenues reached $570.7 million, up 4.5% year over year, with organic revenues up 4.0% to $568.0 million, driven by wealth, corporates, and institutional buy-side clients.

• Organic ASV grew 4.1% year-over-year to $2,276.2 million, with buy-side clients accounting for over 82% of organic ASV and client base expanding to over 8,600.

• Adjusted operating margin was 37.3% (down 100 bps), and adjusted diluted EPS rose 1.4% to $4.28; GAAP diluted EPS increased 3.0% to $3.76.

• Free cash flow for Q2 was $150.2 million, up 23.3% year over year, reflecting higher net cash from operating activities.

• Major enterprise wins included UBS in wealth management, and acquisitions of Irwin, LiquidityBook, and LogoIntern are driving cross-sell opportunities and workflow automation.

Financial highlights

• Q2 FY2025 revenues: $570.7 million (+4.5% YoY); organic revenues up 4.0% to $568 million.

• Adjusted operating margin was 37.3% (down 100 bps); GAAP operating margin at 32.5% (down 80 bps YoY).

• Adjusted EPS increased 1.4% to $4.28; GAAP diluted EPS up 3.0% to $3.76.

• EBITDA grew 3.6% to $224.6 million; free cash flow up 23% to $150.2 million.

• Returned $392 million to shareholders over 12 months via dividends and buybacks; $186.9 million remains authorized for repurchases.

Outlook and guidance

• Fiscal 2025 organic ASV growth expected between $100 million and $130 million (4.4% to 5.8%).

• Revenue guidance raised to $2.305–$2.325 billion, reflecting recent acquisitions.

• Adjusted operating margin guidance maintained at 36%–37%; adjusted EPS at $16.80–$17.40.

• GAAP operating margin expected at 32%–33%; GAAP EPS at $14.80–$15.40, reflecting one-time acquisition costs.

• Anticipates higher second-half expenses for GenAI and infrastructure investments.