FactSet Research Systems Shares Dip Despite Strong Q1 Results

FactSet Research Systems Inc. reported its Q1 2025 results, showing a 6.1% year-over-year EPS increase and a revenue growth of 4.9%. Despite these strong figures, analyst caution persists given the company's recent stock underperformance compared to competitors.

Date: 26-12-2024

AI Rating: 6

According to a recent report, FactSet Research Systems Inc. (FDS) has demonstrated strong operational performance, highlighted by the adjusted earnings per share (EPS) of $4.37, which is a 6.1% year-over-year increase and exceeds consensus estimates. Furthermore, the company's revenue for Q1 2025 equaled $568.7 million, surpassing market expectations and showcasing a revenue growth of 4.9% from the previous year.

Additionally, FactSet's Organic Annual Subscription Value (ASV) and professional services rose by 4.5% year-over-year, reaching $2.3 billion. These positive indicators are further reinforced as FactSet has raised its full-year fiscal 2025 revenue guidance to between $16.80 and $17.40.

However, despite these gains, FactSet's stock has struggled with underperformance, dropping 1.7% from its 52-week high and showing a 6% growth over the last three months, which lags behind the 14.3% rise of the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI). In the long-term perspective, the report indicates that FactSet's 15.6% increase over the past six months also falls short of IAI's 25.8% gain.

This performance has led analysts to rate the stock as a “Hold” based on its outlook, suggesting a degree of caution among market experts despite the positive financial results.

Stocks: FDS IAI MSCI