In the second quarter of 2025, FactSet achieved significant increases in revenue and profit, despite a decline in operating margins.
Revenue and Profit Growth
FactSet reported revenues of $570.7 million, marking a 4.5% increase compared to the same period last year. Organic revenues also saw a 4.0% growth, reaching $568.0 million. This revenue boost was primarily driven by the company's wealth management and institutional buy-side clients. GAAP diluted EPS rose by 3.0% to $3.76, while adjusted EPS increased by 1.4% to $4.28.
Decline in Operating Margins
Despite the revenue growth, FactSet experienced a slight decline in its operating margins. The GAAP operating margin fell from 33.3% to 32.5%, and the adjusted operating margin decreased from 38.3% to 37.3%. This decline was attributed to higher technology-related expenses and acquisition-related fees, which were partially offset by revenue growth and reduced employee compensation costs.
Future Outlook
FactSet provided updated guidance for fiscal 2025, expecting organic ASV growth between $100 million and $130 million. GAAP revenues are expected to range from $2,305 million to $2,325 million. The company’s guidance for adjusted operating margin remains at 36% to 37%, while the GAAP operating margin is projected to be between 32.0% and 33.0%. The effective tax rate is anticipated at 17% to 18%, and adjusted EPS is estimated to be between $16.80 and $17.40.
Despite rising expenses, FactSet demonstrates consistent improvement in key financial metrics, reflecting confidence in continued growth.
