What You Need to Know Ahead of FactSet Research Systems' Earnings Release

Valued at a market cap of $16 billion, FactSet Research Systems Inc. (FDS) is a financial data and analytics company that provides integrated digital platforms and enterprise solutions to the global investment community. The Norwalk, Connecticut-based company offers a wide range of tools and resources, including company and industry analysis, screening tools, portfolio analytics, risk assessment, alpha-testing, portfolio optimization, and research management solutions. It is expected to announce its fiscal Q3 earnings for 2025 on Friday, Jun. 20.

Prior to this event, analysts project this financial data and analytics company to report a profit of $4.31 per share, down 1.4% from $4.37 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street’s bottom-line estimates in each of the last four quarters. Its earnings of $4.28 per share in the previous quarter exceeded the consensus estimates by 2.2%. 

For the full year, analysts expect FDS to report EPS of $17.10, up almost 4% from $16.45 in fiscal 2024. Furthermore, its EPS is expected to grow 7.5% year over year to $18.38 in fiscal 2026.

FDS has gained 1.4% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 8.7% rise, and the Financial Select Sector SPDR Fund’s (XLF) 19.4% uptick over the same time frame.

On Mar. 20, shares of FDS plunged 1.7% after its Q2 earnings release. The company’s revenue grew 4.5% year-over-year to $570.7 million and aligned with the consensus estimates, thanks to a 4% rise in organic revenues. Moreover, its adjusted EPS came in at $4.28, marking a 1.4% year-over-year increase and exceeding analyst expectations. FactSet raised its fiscal 2025 revenue guidance to a range of $2.31 billion to $2.33 billion, and reaffirmed its adjusted EPS outlook of $16.80 to $17.40.

However, on the downside, its adjusted operating margin declined 100 basis points compared to the same quarter last year. Additionally, the company lowered its fiscal 2025 operating margin guidance to a range of 32% to 33%, which might have further contributed to negative investor sentiment. 

Wall Street analysts are moderately bearish about FDS’ stock, with a “Moderate Sell" rating overall. Among 18 analysts covering the stock, one recommends a "Strong Buy," 10 indicate “Hold,” and seven suggest “Strong Sell.” The mean price target for FDS is $440.86, which indicates a 2.8% potential upside from the current levels.