FactSet Q3 EPS Up 6.1%, Revenue Rises 6.4%, Price Target Raised to $254
FDS•FactSet reported Q3 adjusted EPS of $4.53, up 6.1%, and revenue of $622.9 million, a 6.4% increase exceeding expectations. Organic ASV rose to $2.49 billion with client retention above 95%, while a Google Cloud AI partnership and the 27th consecutive dividend hike underpin growth prospects.
1. Q3 Financial Performance
FactSet delivered adjusted EPS of $4.53 per share in Q3, marking a 6.1% year-over-year increase, and generated revenue of $622.9 million, up 6.4% from the prior year, both figures surpassing consensus estimates.
2. Subscription Metrics and Retention
Organic Annual Subscription Value climbed to $2.49 billion, driven by strong contract renewals, while client retention stayed above 95%, reinforcing the stability of the firm’s recurring revenue base.
3. Strategic Partnership and Dividend Policy
The company expanded its AI capabilities through a strategic partnership with Google Cloud, and extended its record of returning cash to shareholders with the 27th consecutive annual dividend increase.
4. Analyst Outlook and Valuation
An analyst raised the price target for FactSet to $254 from $248, implying a 3.44% upside based on recent valuation, reflecting growing confidence in its earnings trajectory and strategic initiatives.
