FactSet Research Systems delivered a solid QQ3 2024, marked by 5% organic ASV growth and a margin expansion that drove adjusted operating margin to 39.4% (up 340 bps YoY). The quarter featured abovethe-line metrics including GAAP revenue of $553 million, adjusted diluted EPS of $4.37, and EBITDA of $240 million, underpinned by strong cash flow: net cash provided by operating activities of $238 million and free cash flow of $217 million. Despite a slower end-market backdrop—layered with the UBS-Credit Suisse consolidation headwind that dampened ASV growth by roughly 30 bps QoQ—the company raised full-year guidance on operating margin and EPS, signaling ongoing discipline in cost management and a deliberate investment stance in AI-enabled data and front-/middle-office workflows.
Management commentary underscored three strategic pillars driving the multi-year growth thesis: (1) expanding market data and real-time capabilities with cloud-based infrastructure and deeper sector content; (2) enhancing client workflows spanning front-, middle-, and back-office through products like PM Hub, Portfolio Commentary, and Mercury; and (3) accelerating generative AI initiatives with incremental ASV expected in fiscal 2025. Management also highlighted a durable balance sheet and strong free cash flow generation, which supports continued capital allocation to dividends and buybacks, while funding key AI investments. The operating environment remains cautious, but management projects a path to sustainable, mid-single-digit ASV growth for the near term balanced against productivity gains and higher-margin product adoption.