We are harnessing the power of gen AI to build cutting edge solutions and capture market share.
— Philip Snow
03Detailed Report
FDS
Company FDS
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 19, 2026
Swipe to view all report sections
Executive Summary
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.
Key Performance Indicators
Revenue
Increasing
552.71M
QoQ: 1.24% | YoY: 4.32%
Gross Profit
Increasing
305.72M
55.31% margin
QoQ: 5.13% | YoY: 6.11%
Operating Income
Increasing
201.97M
QoQ: 4.78% | YoY: 17.45%
Net Income
Increasing
158.14M
QoQ: 12.20% | YoY: 17.43%
EPS
Increasing
4.15
QoQ: 12.16% | YoY: 17.90%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability
- Revenue (GAAP): $553.0 million for Q3'24, up 4% YoY; QoQ not disclosed in press release, but YoY delta is supported by 4Q commentary and transcript data (revenue run-rate framed by annual guidance).
- Gross profit: $305.7 million; gross margin 55.3%.
- EBITDA: $247.6 million; EBITDA margin 44.8%.
- Operating income: $202.0 million; operating margin 36.5%.
- Net income: $158.1 million; net margin 28.6%.
- EPS (diluted): $4.09 GAAP; $4.37 adjusted (YoY EPS growth 17.9%); adjusted EPS beat due to mix and margin expansion.
- Weighted average shares: 38.089 million (basic); 38.64 million (diluted).
- Liquidity and cash flow:
- Net cash provided by operating activities: $238.2 million.
- Free cash flow: $216.9 million (defined as cash from operations less capex).
- Cash balance at end of period: $453.1 million; beginning: $381.7 million.
- Capex: $21.3 million; dividends paid: $37.2 million; share repurchases: $60.0 million (135,150 shares at $442.12).
- Balance sheet and leverage:
- Total debt: $1.641 billion; net debt: $1.189 billion; gross leverage ~1.7x.
- Total current assets: $858.3 million; total assets: $4.040 billion; total liabilities and equity: $4.040 billion.
- Segments and geography: Americas ASV growth 5.7% YoY; EMEA 4.4%; Asia Pacific 6.1% (organic ASV growth). Client base: 8,029 clients, 9 net new logos; user base >208,000; ASV retention >95%; client retention around 90%.
- Guidance and outlook:
- Fiscal 2024: organic ASV plus professional services growth of 4.8% midpoint; revenue guidance $2.18–$2.19 billion.
- Margin guidance: GAAP operating margin 33.7–34.0% (up ~100 bps); adjusted operating margin 37.0–37.5% (up 70–80 bps); adjusted EPS guidance raised by $0.40 to $16.00–$16.40.
- Tax rate guidance unchanged at 16.5%–17.5%.
- Valuation context: stock and earnings multipliers reflect a premium software/data analytics franchise; current P/E around 24.3x; P/BV around 8.15x; P/S around 27.9x; EV/Sales in the mid-60s; indicative of a high-quality, growth-oriented analytics platform with a focus on AI-enabled workflows.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
552.71M
4.32%
1.24%
Gross Profit
305.72M
6.11%
5.13%
Operating Income
201.97M
17.45%
4.78%
Net Income
158.14M
17.43%
12.20%
EPS
4.15
17.90%
12.16%
Key Financial Ratios
Gross Profit Margin
Good
55.30%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Excellent
36.50%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
28.60%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
3.91%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
8.37%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.28
Current ratio meets minimum requirements but limited cushion
FactSet Research Systems Inc (FDS) QQ2 2025 Results Analysis: Gen AI Leadership, 4.1% Organic ASV Growth, and a Reaffirmed 5% Midpoint Guiding a Path ...