Q3 2025 FactSet Research Systems Inc Earnings Call

Okay.

Unknown Attendee: Good day, and welcome to the FactSet Third Quarter Earnings Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session.

Speaker Change: Good day and welcome to the Factset third quarter earnings call. At this time, all participants are in listen only mode. After the speaker's presentation there'll be a question answer session and instructions will be given at that time.

Unknown Attendee: Instructions will be given at that time. As a reminder, this call may be recorded.

Speaker Change: As a reminder, this call maybe recorded.

Kevin Toomey: I would like to turn the call over to Kevin Toomey, Head of Investor Relations. Please go ahead. Thank you, and good morning, everyone.

Speaker Change: During the call over to Kevin Toomey head of Investor Relations. Please go ahead.

Speaker Change: Yeah.

Speaker Change: Thank you and good morning, everyone welcome to Factset third fiscal quarter 2025 earnings call before we begin the slides we reference during this presentation can be found through the webcast on the Investor Relations section of our website at Factset Dot com.

Kevin Toomey: Welcome to FactSet's third fiscal quarter 2025 earnings call. Before we begin, the slides we referenced during this presentation can be found through the webcast on the Investor Relations section of our website at factset.com. A replay of today's call will be available on our website. After our prepared remarks, we will open the call to questions. The call is scheduled to last for one hour. To be fair to everyone, please limit yourself to one question. You may reenter the queue for additional follow-up questions, which we will take if time permits.

Speaker Change: A replay of today's call will be available on our website.

Speaker Change: After our prepared remarks, we will open the call to questions.

Speaker Change: The call is scheduled to last for one hour to be fair to everyone. Please limit yourself to one question you may reenter the queue for additional follow up questions, which we will take if time permits.

Kevin Toomey: Before we discuss our results, I encourage all listeners to review the legal notice on slide 2. Discussions on this call may contain forward-looking statements. Such statements are subject to risks and uncertainties that may cause actual results to differ materially from results anticipated in these forward-looking statements. Additional information concerning these risks and uncertainties can be found in our Forms 10-K and 10-Q.

Speaker Change: Before we discuss our results I encourage all listeners to review the legal notice on slide two discussions on this call may contain forward looking statements such statements are subject to risks and uncertainties that may cause the actual results to differ materially from results anticipated in these forward looking statements additional information concerning these risks and uncertainties can be.

Speaker Change: And our forms 10-K, and 10-Q, our slide presentation and discussions on this call will include certain non-GAAP financial measures for such measures reconciliations to the most directly comparable GAAP measures are in the appendix to the presentation and in our earnings release issued earlier today, both of which can be found on our website in the investor got Factset Dot com.

Kevin Toomey: Our slide presentation and discussions on this call will include certain non-GAAP financial measures. For such measures, reconciliations to the most directly comparable GAAP measures are in the appendix to the presentation and in our earnings release issued earlier today, both of which can be found on our website at investor.factset.com. During this call, unless otherwise noted, relative performance metrics reflect changes as compared to the respective fiscal 2024 period.

Speaker Change: During this call unless otherwise noted relative performance metrics reflect changes as compared to the respective fiscal 2024 period also consistent with the last quarter. Please note that starting fiscal 'twenty twenty-five factset is reporting organic U S b, rather than organic <unk> plus professional services to folks.

Kevin Toomey: Also, consistent with the last quarter, please note that starting fiscal 2025, FactSet is reporting organic ASV rather than organic ASV plus professional services to focus on the recurring nature of our revenues.

Speaker Change: On the recurring nature of our revenues.

Kevin Toomey: Joining me today are Phil Snow, Chief Executive Officer, Helen Shan, Chief Financial Officer, and Goran Skoko, Chief Revenue Officer.

Phil Snow: Joining me today are Phil Snow, Chief Executive Officer, Helen Shan, Chief Financial Officer, and Gordon's Cocoa Chief revenue Officer.

Phil Snow: I will now turn the discussion over to Phil Snow. Thank you, Kevin, and good morning, everyone. Thanks for joining us today.

Phil Snow: I will now turn the discussion over to Phil Snow.

Phil Snow: Thank you, Kevin and good morning, everyone. Thanks for joining us today.

Phil Snow: Before we discuss our Q3 results, I just want to take a moment to recognize an important milestone for FactSet and for me personally. Earlier this month, we announced my decision to retire after 30 years with FactSet and the past decade as CEO. It's been a privilege to spend my career here working alongside such a talented, collaborative, and mission-driven team. Together, we've expanded our data and workflow capabilities, deepened client relationships, and more than doubled our revenue over the past 10 years, positioning FactSet as a trusted global enterprise leader, empowering smarter, data-driven investment decisions. It's been an incredible journey, and I'm proud of all we've accomplished together.

Phil Snow: Before we discuss our Q3 results I just wanted to take a moment to recognize an important milestone for factset.

Speaker Change: And for me personally earlier this month, we announced my decision to retire after 30 years with Factset and the past decade as CEO.

Phil Snow: It's been a privilege to spend my career here working alongside such a talented collaborative and mission driven team together, we've expanded our data and workflow capabilities deepen client relationships and more than doubled our revenue over the past 10 years positioning Factset is a trusted global enterprise leader empowering smarter data driven investment.

Phil Snow: Yes.

Phil Snow: It's been an incredible journey and I'm proud of all we've accomplished together looking ahead I'm, even more confidence in Factset future. I'm also pleased to share that so that's one of the Sun will become <unk> next CEO in early September So no brings over 25 years of global leadership experience in financial services and technology most.

Phil Snow: Looking ahead, I'm even more confident in FactSet's future. I'm also pleased to share that Sanok Viswanathan will become FactSet's next CEO in early September. Sanok brings over 25 years of global leadership experience in financial services and technology, most recently at JPMorgan Chase, and he has a strong strategic mindset and a proven track record of delivering technology-driven growth at scale. As FactSet prepares for its next chapter of leadership, I'm proud of the solid foundation we've established, built on innovation, client trust, and industry-leading data and workflow solutions. I'm confident CINOS leadership will guide FactSet through its next phase of growth and look forward to working with them closely to ensure a smooth and thoughtful transition.

Phil Snow: At Jpmorgan Chase and he has a strong strategic mindset and a proven track record of delivering technology driven growth at scale.

Phil Snow: As Factset prepares for its next chapter of leadership I am proud of the solid Foundation. We've established built on innovation client trust and industry, leading data and workflow solutions I'm confidence Synovus leadership will guide factset through its next phase of growth and look forward to working with them closely to ensure a smooth and.

Phil Snow: <unk> whole transition.

Phil Snow: With that, let's turn to our third quarter results. In the third quarter, we achieved organic ASV growth of 4.5% year over year, fueled by recent wins in wealth, dealmakers, and partnerships. We also delivered an adjusted operating margin of 36.8% and adjusted diluted EPS of $4.27. As we previously indicated, we anticipated stronger growth in the second half of this fiscal year, and we're pleased with our Q3 performance. These results reflect the successful execution of our enterprise solution strategy and underscore our commitment to helping clients lower their total cost of ownership. We continue to see positive trends in ASV retention, and I am pleased to report that both expansion within existing accounts and new business accelerated in the quarter.

Phil Snow: With that let's turn to our third quarter results.

Phil Snow: In the third quarter, we achieved organic growth of four 5% year over year fueled by recent wins and wealth Dealmakers and partnerships. We also delivered an adjusted operating margin of 36, 8% and adjusted diluted EPS of $4 27 months out.

Phil Snow: As we previously indicated we anticipated stronger growth in the second half of this fiscal year and we're pleased with our Q3 performance. These results reflect the successful execution of our enterprise solution strategy and underscore our commitment to helping clients lower their total cost of ownership, we continue to see positive trends and asked me.

Phil Snow: Attention and I am pleased to report that both expansion within existing accounts and new business accelerated in the quarter.

Phil Snow: As you may recall, the fourth quarter is seasonally our highest ASV of the year, and with a healthy pipeline and growing momentum, we are well positioned for a strong close to the fiscal year. Accordingly, we are reaffirming our FY25 guidance.

Phil Snow: As you May recall, the fourth quarter is seasonally our highest ASB of the year and with a healthy pipeline and growing momentum we are well positioned for a strong close to the fiscal year. Accordingly, we are reaffirming our FY 'twenty five guidance Helen will cover our financial results and guidance in more detail later in her remarks.

Phil Snow: Helen will cover our financial results and guidance in more detail later in her remarks. Turning to third-quarter results, ASV retention remained strong at over 95%, while client retention was at 91%. Our client base grew to over 8,800, driven by strong demand from corporate, wealth, management, and buy-side clients, including those added through the Liquidity Book acquisition. Our user count rose to over 220,000, primarily reflecting growth among wealth management users.

Phil Snow: Turning to third quarter results ASB retention remains strong at over 95% while client retention was at 91% our client base grew to over 8800, driven by strong demand from corporate wealth management from buy side clients, including those added through the liquidity book acquisition.

Phil Snow: Account rose to over 220000, primarily reflecting growth among wealth management users starting with our performance by region.

Phil Snow: Starting with our performance by region. In the Americas, organic ASV increased by five percent. The strength of this quarter was driven by higher banking and asset manager retention, coupled with higher demand in wealth, hedge fund, and corporates. In EMEA, organic ASV growth was 2%. We saw improved retention in banking and wealth, however, this was offset by lower contributions from the annual price increase and buy-side headwinds. In Asia-Pacific, organic ASV growth increased 7%, primarily driven by higher retention in the banking sector. This growth was partially offset by the reduced pricing uplift and asset owner headwinds. Now turning to our results from a firm-type perspective, Wealth Organic ASV maintained its double-digit growth pace in Q3, marking a second consecutive quarter of acceleration.

Phil Snow: In the Americas organic ASB increased by 5% the.

Phil Snow: The strength of this quarter was driven by higher banking and asset manager retention, coupled with higher demand and well hedge funds and corporates in EMEA.

Phil Snow: <unk> growth was 2% we saw improved retention in banking and wealth. However, this was offset by lower contributions from the annual price increase and buy side headwinds.

Phil Snow: In Asia Pacific organic ASB growth increased 7%, primarily driven by higher retention in the banking sector. This growth was partially offset by the reduced pricing uplift and asset owner headwinds now turning to our results from a firm type perspective wealth organic ASB maintained its double digit growth pace in.

Phil Snow: Q3, marking a second consecutive quarter of acceleration, we continue to capture market share by displacing incumbent providers with new business sales nearly double the number of new logos versus a year ago.

Phil Snow: We continue to capture market share by displacing incumbent providers, with new business sales nearly double the number of new logos versus a year ago. Our product portfolio demonstrated broad-based strength among both new and existing clients, specifically a large seven-figure renewal and twice as many six-figure wins as a year ago. Notably, we are growing FactSet's presence in Wealth by selling more data feeds and digital solutions to clients who already use our industry-leading desktop solution across their organization. The attach rate for off-platform products continues to rise, and so far in FY25, we are capturing attach rates that are around 1.5x what we saw in FY24.

Phil Snow: Our product portfolio demonstrated broad based strength, among both new and existing clients, specifically, a large seven figure renewal and twice as many as six figure wins as a year ago.

Notably we are growing factset has presence in wealth by selling more data feeds and digital solutions to clients, who already use our industry, leading desktop solution across their organization. The attach rate for off platform products continues to rise and so far in FY 'twenty five.

Phil Snow: We are capturing attach rates that are around one and a half X. What we saw in FY 'twenty four.

Phil Snow: Within DealMakers, this quarter's banking gains were largely driven by the favorable comparison to last year's third quarter, which included the impact of the UBS Credit Suisse merger. Over the past three years, our seat count has grown considerably as we continue to displace incumbent providers as clients increasingly choose our best-in-class banking solutions. We're also encouraged by meaningful improvements in retention, highlighted by the signing of several multi-year deals, including a favorable outcome on a large global banking renewal. These long-term agreements reinforce FactSet's position as a trusted enterprise partner and create new opportunities for future growth.

Phil Snow: Within steelmakers. This quarter's banking gains were largely driven by the favorable comparisons to last year's third quarter, which included the impact of the UBS credit Suisse merger over the past three years, our seat count has grown considerably as we continue to displace incumbent providers as clients increasingly choose our best in class banking.

Phil Snow: <unk>.

Phil Snow: We're also encouraged by meaningful improvements in retention highlighted by the signing of several multiyear deals, including a favorable outcome on a large global banking renewal. These long term agreements reinforce <unk> position as a trusted enterprise partner and create new opportunities for future growth, while it's still early to assess some of hiring.

Phil Snow: While it's still early to assess summer hiring trends, preliminary indications suggest they may be in line with last year's level. We're optimistic about our ability to expand the footprint of FactSet services to drive add-on sales beyond the workstation. We continue to execute on our robust Pitch Creator pipeline, and within just six months of launch, we now have 10 signed deals and over 45 opportunities, with large banking clients in active trials and others in later stages of commercial negotiation. In addition to Pitch Creator, our recently acquired Logo Intern solution is proving to be a valuable utility tool for clients and strengthens our position in banker automation.

Phil Snow: <unk> preliminary indications suggest they may be in line with last year's levels.

Phil Snow: We're optimistic about our ability to expand the footprint of Factset services to drive add on sales beyond the workstation, we continue to execute on our robust pitch create a pipeline and within just six months of launch. We now have 10 signed deals in over 45 opportunities with large banking clients and active trials and others and latest.

Phil Snow: Stages of commercial negotiation.

Phil Snow: In addition to pitch Greta our recently acquired logo into solution is proving to be a valuable utility tool for clients and strengthens our position in Banca automation.

Phil Snow: Together, these tools are creating greater workflow efficiencies, driving adoption, client conversations, and closings. Outside of banking, PEVC remains a bright spot, with Q3 marking our fourth consecutive quarter of accelerating growth, driven by the strength of our private markets offering and Cobalt. Corporates also contributed meaningfully, supported by strong tailwinds from our Erwin business, which drove increases in both ASV and seed counts. Since the acquisition of Erwin earlier this year, nearly half of new corporates' ASV has come from competitive displacements. This success validates our land and expand strategy, using investor relations users as an entry point to deepen relationships within the office of the CFO.

Phil Snow: These tools are creating greater workflow efficiencies driving adoption client conversations and closes.

Phil Snow: Outside of banking PVC remains a bright spot with Q3, marking our fourth consecutive quarter of accelerating growth driven by the strength of our private markets offering in cobalt corporates also contributed meaningfully supported by a strong tailwind from our <unk> business, which drove increases in both <unk> and Steve counts since the.

Phil Snow: <unk> of our win earlier this year nearly half of new corporate TSB has come from competitive displacements. This success validates our land and expand strategy using an investor relations users as an entry point to deepen relationships within the office of the CFO.

Phil Snow: Within the institutional buy side, we had several positive developments this quarter. We secured strategic wins for our front and middle office solutions, and improved retention with our asset management clients. One example is a new IRN 2.0 deal with a major U.S. asset manager, choosing us to replace their legacy research management system, thanks to our advanced dashboard and Gen AI capabilities. Our managed services offering is also opening new growth channels as we replaced several incumbent vendors at a major asset manager who is now fully aligned with FactSet. Hedge funds were another area of strength with growth accelerating due to new fund launches, greater adoption of the workstation and data products, and the positive impact of our recent street account price increases.

Phil Snow: Within the institutional buy side, we had several positive developments this quarter, we secured strategic wins for our front and Middle office solutions and improved retention with our asset management clients. One example is a new IR and 2.0 deal with a major U S asset manager choosing us to replace their legacy <unk>.

Phil Snow: Ex management system, Thanks to our advanced dashboard Amgen AI capabilities on <unk>.

Phil Snow: Services offering is also opening new growth channels as we replaced several incumbent vendors at a major asset manager, who is now fully aligned with Factset hedge.

Phil Snow: Hedge funds that were another area of strength with growth accelerating due to new fund launches greater adoption of the workstation and data products and the positive impact of our recent street account price increases we expect hedge fund demand to continue in fiscal 2025 at.

Phil Snow: We expect hedge fund demand to continue in fiscal 2025.

Phil Snow: At the same time, we face several headwinds. Reduced contribution from the annual price increase offsets some of our gains. Additionally, as clients, especially asset owners, continue to optimize costs and streamline their vendor relationships, we are seeing more pressure in these areas. We are committed to leveraging our innovative solutions and client relationships to drive future growth.

Phil Snow: At the same time, we faced several headwinds reduced contribution from the annual price increase offset some of our games. Additionally, as clients, especially asset owners continue to optimize costs and streamline their vendor relationships. We are seeing more pressure in these areas. We are committed to leveraging our innovative solutions and client relationships to.

Phil Snow: Drive future growth.

Phil Snow: For partnerships in CGS, growth continued in the third quarter, driven by a significant real-time win, and strength in the new issuance markets for CGS. New business and expansion activity remain strong across multiple partner types. Looking ahead, we expect this positive trajectory to continue into the fourth quarter.

Phil Snow: For partnerships in the CGS growth continued in the third quarter driven by a significant real time win and strengthen the new issuance market with CBS, new business and expansion activity remained strong across multiple partner types. Looking ahead. We expect this positive trajectory to continue into the fourth quarter in.

Phil Snow: In summary, I want to reiterate that our number one priority is to drive top-line growth. The breadth and quality of our opportunities give us visibility and confidence as we look ahead. We are well-positioned to deliver in Q4 and meet our full-year fiscal 2025 guidance. The majority of the pipeline for the remainder of the year is driven by the institutional buy-side. As noted earlier, the demand for middle-office solutions, in particular performance and managed services, is high as clients look for longer-term help as they upgrade their tech stack. Our innovation with using GenAI in our buy-side solutions is supporting strong client engagement and opportunities as well.

Phil Snow: In summary, I want to reiterate that our number one priority is to drive topline growth.

Phil Snow: And quality of our opportunities give us visibility and confidence as we look ahead, we are well positioned to deliver in Q4 and meet our full year fiscal 2025 guidance. The majority of the pipeline for the remainder of the year is driven by the institutional buy side as noted earlier the demand for Middle office solutions in particular.

Phil Snow: Our performance in managed services as high as clients look for longer term help as they upgrade their tech stack, our innovation with using Gen. AI in a buy side solutions supporting strong client engagement and opportunities as well.

Phil Snow: Demand for our data solutions is expected to be a notable contributor to our Q4 results. The need for fundamental and estimates data remains high, in part driven by hedge funds and wealth. Engagement on real-time and benchmarks has grown as clients look for modern technology quality and stability, and these solutions represent more than a third of the data opportunities.

Phil Snow: Demand for our data solutions is expected to be a notable contributor to our Q4 results the need for fundamental and estimates data remains high in part driven by hedge funds and wealth engagement on real time and benchmark has grown as clients look for modern technology quality and stability at these solutions represent more than a third of the data.

Phil Snow: <unk>.

Phil Snow: Wealth remains our growth engine. Our success in displacing incumbents and expanding from the advisor desktop into adjacent areas, such as APIs, widgets, and data feeds, is resulting in meaningful client demand. Our wealth pipeline is strong, expanding desktops and real-time data, and a growing demand for more sophisticated PLC tools, where FactSet has deep industry credibility, giving us greater confidence to extend our success, both geographically and within the wealth home office. Our teams are capitalizing on FactSet's first-mover advantage in Gen AI, executing our go-to-market strategy to deliver innovative solutions that streamline workflows and help clients unlock greater efficiency.

Phil Snow: Wealth remains a growth engine our success in displacing incumbents and expanding from the advisor desktop into adjacent areas such as Apis widgets and data feeds as resulting in meaningful client demand. Our wealth pipeline is strong spanning desktops and real time data and a growing demand for more sophisticated plc tools.

Phil Snow: Factset has deep industry credibility.

Phil Snow: Giving us greater confidence to extend our success, both geographically and within the wealth home office.

Phil Snow: Our teams are capitalizing on Factset is first mover advantage in journey II executing our go to market strategy to deliver innovative solutions that streamline workflows and help clients unlock greater efficiencies.

Phil Snow: With the strong foundation we've built, we are well positioned to fulfill our mission of supercharging financial intelligence.

Phil Snow: With the strong foundation, we've built we are well positioned to fulfill our mission of Supercharging financial intelligence I will now turn it over to Helen to take you through our third quarter performance and FY 'twenty five guidance in more detail.

Helen Shan: I will now turn it over to Helen to take you through our third quarter performance and FY25 guidance in more detail. Thank you, Phil, and hello to everyone on the call. We anticipated a better performance in the second half, and I'm pleased to report that the third quarter showed strength in both financial and operating results. As Phil mentioned, our pipeline is solid, positioning us well for continued ASV growth to finish out the year. Given this momentum, we are reaffirming our guidance for FY25.

Helen: Thank you, Phil and Hello to everyone on the call we anticipated a better performance in the second half and I'm pleased to report that the third quarter showed strength in both financial and operating results.

Helen: As Phil mentioned, our pipeline is solid positioning us well for continued ASP growth to finish out the year.

Helen: Given this momentum we are reaffirming our guidance for FY 'twenty five.

Helen Shan: I'll share more details shortly, but let's first review the quarterly results. Organic ASV grew by 22.6 million in the quarter, representing a 4.5% increase year-over-year. We successfully captured an additional 11 million in our annual price increase, primarily in the EMEA and Asia-Pac regions. This amount was lower than prior year and reflects the anticipated headwind of lower CPI in our price. Gap revenues increased 5.9% year-over-year, reaching $586 million. When we look at organic revenues, which exclude foreign exchange movements and impact from acquisitions or dispositions during the past 12 months, we saw a 4.4% increase, reaching $577 million.

Helen: I'll share more details shortly but let's first review the quarterly results.

Helen: Organic ASB grew by $22 6 million in the quarter, representing a four 5% increase year over year we.

Helen: We successfully captured an additional $11 million and our annual price increase primarily in the EMEA and Asia Pac regions.

Helen: This amount was lower than prior year and reflects the anticipated headwinds of lower CPI in our pricing.

Helen: GAAP revenues increased five 9% year over year, reaching $586 million.

Helen: When we look at organic revenues, which exclude foreign exchange movements and impact from acquisitions or dispositions. During the past 12 months, we saw a four 4% increase reaching $577 million.

Helen Shan: For our geographic segments, organic revenue grew by 5% in the Americas, 2% in EMEA, and 6% in Asia Pacific.

Helen: For our geographic segments organic revenue grew by 5% in the Americas, 2% in EMEA, and 6% and Asia Pacific.

Helen Shan: Now turning to expense. GAAP operating expenses, which include one-time, non-recurring items, increased 11.7% year-over-year to $391 million. This was primarily driven by both higher employee and technology expenses. On an adjusted basis, operating expense grew 10.6%. Employee expense increased 12% compared to the same quarter last year. This reflects our return to a normal bonus accrual and excludes a one-time payroll tax adjustment in the third quarter of the prior period. These two factors account for approximately two-thirds of the year-over-year change. Our workforce has grown by 2.6% year-over-year, strengthened by our strategic acquisitions of Erwin and Liquidity Book earlier this fiscal year.

Helen: Now turning to expense GAAP operating expenses, which include one time nonrecurring items increased 11, 7% year over year to $391 million. This was primarily driven by both higher employee and technology expenses.

Helen: On an adjusted basis operating expense grew 10, 6%.

Helen: Employee expense increased 12% compared to the same quarter last year. This reflects a return to a normal bonus accrual and exclude the one time payroll tax adjustment in the third quarter of the prior period. These two factors account for approximately two thirds of the year over year change.

Helen: Our workforce has grown by two 6% year over year strengthened by our strategic acquisitions of Irwin and liquidity book earlier. This fiscal year from Q2 to Q3, we have managed down our head count in our core business as we continue our disciplined approach of self funding investment priorities to enhance productivity and.

Helen Shan: From Q2 to Q3, we have managed down our headcount in our core business as we continue our disciplined approach of self-funding investment priorities to enhance productivity and operational efficiency. Technology related expenses increased 21%, reflecting the higher amortization of internal use software and our ongoing investment in generative AI capabilities. As previously communicated, we are strategically focusing our growth spend on technology to drive market leadership through product innovation. These costs now represent approximately 11% of revenue this quarter, up slightly from 10% from the same period a year ago. We have managed the two remaining large spend categories effectively.

Helen: Operational efficiency.

Helen: Technology related expenses increased 21%, reflecting the higher amortization of internal use software and our ongoing investment in generative AI capabilities.

Helen: As previously communicated we are strategically focusing our growth spend on technology to drive market leadership through product innovation. These costs now represent approximately 11% of revenue this quarter up slightly from 10% from the same period a year ago.

Helen: We have managed the two remaining large spend categories effectively.

Helen Shan: Third party content costs increased 1% year over year, now representing under 5% of revenue, about 20 basis points lower than the prior year. Our real estate and related facilities expense remains steady year over year at just under 3% of revenue, also 20 basis points lower as compared to last year.

Helen: Third party content costs increased 1% year over year now representing under 5% of revenue about 20 basis points lower than the prior year.

Helen: Our real estate and related facilities expense remained steady year over year at just under 3% of revenue also 20 basis points lower as compared to last year.

Helen Shan: For a more detailed breakdown of our expense progression from revenue to adjusted operating income, I encourage you to reference the appendix in today's earnings presentation.

Helen: For a more detailed breakdown of our expense progression from revenue to adjusted operating income I encourage you to reference the appendix in today's earnings presentation.

Helen Shan: Moving to our margin performance. A gap operating margin was 33.2%, lower by 350 basis points compared to a year ago. Adjusted operating margin was 36.8%, a decrease of 270 basis points year over year. These figures reflect the normalization of our bonus accruals this year, the one-time favorable tax adjustment in the prior year, and increased technology expense. SG&A as a percentage of revenue is approximately 20 basis points higher year-over-year on a gap basis, primarily due to increased compensation expense and professional fees related to our acquisition. On an adjusted basis, excluding one-time items, our SG&A improved by about 15 basis points, demonstrating our ongoing commitment to operational efficiency.

Helen: Moving to our margin performance.

Helen: GAAP operating margin was 33, 2% lower by 350 basis points compared to a year ago. Adjusted operating margin was 36, 8% a decrease of 270 basis points year over year.

Helen: These figures reflect the normalization of our bonus accruals. This year. The one time favorable tax adjustment in the prior year and increased technology expense.

Helen: SG&A as a percentage of revenue was approximately 20 basis points higher year over year on a GAAP basis, primarily due to increased compensation expense and professional fees related to our acquisitions.

Helen: On an adjusted basis, excluding one time items, our SG&A improved by about 15 basis points, demonstrating our ongoing commitment to operational efficiency.

Helen Shan: Our GAAP effective tax rate in the third quarter was 17.5%, an increase from 17% we saw in the same quarter last year, primarily reflecting lower excess tax benefits from our stock-based compensation. Regarding earnings per share, our GAAP diluted EPS with $3.87, a decrease of 22 cents, or 5.4%, versus $4.09 in the same period last year. Adjusted EPS decreased by 10 cents, or 2.3%, to $4.27. These results reflect our continued investment in the business, which drives our revenue growth. Our EBITDA was $236 million, a decrease of 1.7% compared to the prior year period, reflecting lower net income.

Helen: GAAP effective tax rate in the third quarter were 17, 5% an increase from 17%. We saw in the same quarter last year, primarily reflecting lower excess tax benefits from stock based compensation.

Helen: Regarding earnings per share our GAAP diluted EPS was $3 87, a decrease of 22.

Helen: Or five 4% versus $4 nine in the same period last year.

Helen: Adjusted EPS decreased by <unk>.

Helen: Two 3% to $4 27.

Helen: These results reflect our continued investment in the business, which drives our revenue growth.

Helen: Our EBITDA was $236 million, a decrease of one 7% compared to the prior year period, reflecting lower net income most notably our free cash flow, which we define as cash generated from operations minus capital spending grew to $229 million in the third quarter up.

Helen Shan: Most notably, our free cash flow, which we define as cash generated from operations minus capital spending, grew to $229 million in the third quarter, up 5% over the same period last year. This improvement was driven by stronger operating cash flows, highlighting the underlying financial strength of our business and our ability to increase cash generation even as we invest for future growth.

Helen: 5% over the same period last year.

Helen: This improvement was driven by stronger operating cash flows highlighting the underlying financial strength of our business and our ability to increase cash generation, even as we invest for future growth.

Helen Shan: Turning now to the use of capital for shareholder return. In the quarter, we repurchased approximately 184,000 shares for around $81 million at an average share price of $438.45. At the end of the fiscal quarter, we had $106 million remaining under the $300 million share repurchase authorization our board approved last September. Additionally, on June 17, 2025, our Board of Directors approved a new share repurchase authorization of up to $400 million, which will become available on September 1, 2025. On June 18, 2025, we paid a quarterly dividend of $1.10 per share to holders of record as of May 30, 2025.

Helen: Turning now to the use of capital for shareholder return and.

Helen: In the quarter, we repurchased approximately 184000 shares for around $81 million at an average share price of $438 45.

Helen: At the end of the fiscal quarter, we had $106 million remaining under the $300 million share repurchase authorization. Our board approved last September. Additionally.

Helen: Additionally on June 17th 2025, our board of directors approved a new share repurchase authorization of up to $400 million, which will become available on September one 2025.

Helen: On June 18th 2025, we paid a quarterly dividend of $1 10 per share to holders of record as of May 32025.

Helen Shan: This represents a 6% increase from the previous quarter's dividend and marks the 26th consecutive year of dividend increases on a stock split-adjusted basis. When we combine our dividends and share repurchases, we have returned $415 million to our shareholders over the past 12 months, demonstrating our ongoing commitment to delivering shareholder value.

Helen: This represents a 6% increase from the previous quarter's dividend and marks the 26th consecutive year of dividend increases on a stock split adjusted basis, when we combine our dividends and share repurchases. We have returned $415 million to our shareholders over the past 12 months demonstrating our ongoing commitment.

Helen: To delivering shareholder value.

Helen Shan: During the quarter, we refinanced the credit facility that was established three years ago for the CGS acquisition. Our new credit facility includes a $500 million funded term loan and a billion dollar undrawn revolver, providing us with additional liquidity and balance sheet flexibility to support business growth. We continued our disciplined approach to debt management by repaying $62.5 million of term loan principal, consistent with our previous pace, and ended the quarter with a gross leverage ratio of 1.7 times.

Helen: During the quarter, we refinanced the credit facility that was established three years ago for the CGS acquisition.

Helen: Our new credit facility includes a $500 million funded term loan and a $1 billion undrawn revolver, providing us with additional liquidity and balance sheet flexibility to support business growth.

Helen: We continued our disciplined approach to debt management by repaying $62 $5 million of term loan principal consistent with our previous pace and ended the quarter with a gross leverage ratio of one seven times.

Helen Shan: Finally, the second half of Fiscal 2025 is showing improved results, with third quarter organic ASV growth accelerating as we successfully meet client demands. Our visibility into the pipeline gives us confidence in Q4 performance, and we are reaffirming our previously issued guidance. We are making targeted investments in our strategic priorities, focusing on differentiated products and internal efficiency initiatives. We anticipate Q4 to be the highest quarter for expense this fiscal year with investments concentrated on our Gen-AI and infrastructure projects alongside go-to-market initiatives that are already strengthening pipeline volume and quality.

Helen: Finally, the second half of fiscal 2025 is showing improved results the third quarter organic ASC growth accelerating as we successfully meet client demands are there.

Helen: Visibility into the pipeline gives us confidence in Q4 performance and we are reaffirming our previously issued guidance.

Helen: We are making targeted investments in our strategic priorities focusing on differentiated products and internal efficiency initiatives, we anticipate Q4 to be the highest quarter for expense. This fiscal year with investments concentrated on our gen AI and infrastructure projects alongside go to market initiative.

Helen: Is that already strengthening pipeline volume and quality.

Helen Shan: In conclusion, we remain committed to driving ASV growth, maintaining operational focus, and allocating capital wisely to enable FactSet to deliver sustainable long-term value to shareholders.

Helen: In conclusion, we remain committed to driving ASP growth, maintaining operational focus and allocating capital wisely to enable factset to deliver sustainable long term value to shareholders.

Helen Shan: On behalf of the executive leadership team, I would also like to extend my sincere gratitude to Phil for his leadership and contributions. While many of us know Phil for his love of impossibly spicy foods and his deep knowledge of 80s rock bands, his unwavering focus has always been on two things, his family and FactSet. On a personal note, I've learned much from his open leadership style and truly value our partnership through both challenges and successes.

Speaker Change: Behalf of the executive leadership team I would also like to extend my sincere gratitude to Phil for his leadership and contributions while many of US know Phil for his love of impossibly spicy foods and his deep knowledge of <unk> rock band is unwavering focus has always been on two things his family and Factset on.

Helen: On a personal note I've learned much from has opened leadership style and truly value our partnership through both challenges and successes.

Helen Shan: And we are enthusiastic about welcoming Sunoke in September as he leads FactSet into its next chapter of success. Having been a FactSet client himself, he brings a unique perspective that will further help us enhance our client-first approach.

Helen: And we are enthusiastic about welcoming to note in September as he leads factset into its next chapter of success.

Helen: Having been a factset client himself. He brings a unique perspective that will further help us enhance our client first approach.

Helen Shan: On behalf of all FactSetters, we wish Phil only the best and look forward to having Chinook on board.

Helen: On behalf of all factors, we wish fell only the best and look forward to having sunoco onboard and with that we are now ready for your questions operator.

Unknown Attendee: And with that, we are now ready for your questions. Operator? Thank you.

Unknown Attendee: If you'd like to ask a question, please press star 1. If your question hasn't been answered and you'd like to remove yourself from the queue, please press star 11 again.

Speaker Change: Thank you if you'd like to ask a question. Please press star one one is.

Helen: For your question has been answered and you'd like to remove yourself from the queue. Please press star one again.

Phil Snow: Our first question comes from Shlomo Rosenbaum with Stiefel, your line is open. Shlomo, it's Phil. Thanks for the question. Yeah, we honestly, we've not seen that much difference, I would say, you know, this fiscal year. Obviously, we had in April, you know, the markets were dynamic. So we saw maybe a couple of weeks of clients probably waiting to kind of see how things played out.

Speaker Change: Our first question comes from Shlomo Rosenbaum with Stifel. Your line is open.

Shlomo Rosenbaum: Alright, Thank you very much.

Speaker Change: I wanted to ask if.

Shlomo Rosenbaum: There is any change in the macro environment Youre seeing.

Shlomo Rosenbaum: Little bit of a turn up in the ASP growth, which is certainly positive thereafter.

Speaker Change: Over a year of sequential decline. So I'm wondering is it all better execution in products, gaining traction or are you seeing anything in the end markets that are giving you any tailwind whatsoever.

Speaker Change: Well no. It's Phil Thanks for the question, Yes, we honestly we have not seen.

Shlomo Rosenbaum: That much difference I would say this fiscal year, obviously, we had.

Shlomo Rosenbaum: In April the markets with dynamic so we saw maybe a couple of weeks.

Shlomo Rosenbaum: Clients, probably waiting to kind of see how things played out.

Phil Snow: But I think the main takeaway, I would think, for you is that many of our clients are going through these multi-year transformations in terms of their technology and data. In fact, that's just such a great place to support them with that. And that's certainly what we're seeing, you know, in the pipeline for the rest of the year.

Shlomo Rosenbaum: But I think the main takeaway I would think so.

Shlomo Rosenbaum: Do you is that many of our clients are going through the multi year transformations in terms of that technology and data.

Shlomo Rosenbaum: Factset systems, that's such a great place to.

Shlomo Rosenbaum: To support them with that and that's certainly what we're seeing.

Goran Skoko: And maybe I'll ask Goran here just to add a few other comments. Hi, Shlomo. I think we see a little bit more positivity in client reactions over the past quarter, so there is some momentum there. I would attribute most of the momentum changing in our favor is to our products resonating. I think we're focused more on our data solutions in general, and I think we're seeing that pay dividends. And we do expect significant boost from our buy-side offerings in the fourth quarter. Our Gen-AI solutions have also helped us generate momentum, particularly, I would say, Pitch Creator and our conversational API, as well as our offerings on the buy side in that regard.

Shlomo Rosenbaum: And the pipeline for the rest of the year.

Shlomo Rosenbaum: I'll ask <unk> here just to add a few other comments.

Shlomo Rosenbaum: Hi, Shlomo so I think we see lower bit more positivity in clients' reactions or was this over the past over the past quarter. So there is some momentum there.

Shlomo Rosenbaum: I would attribute most took.

Shlomo Rosenbaum: Momentum changing in our favor as to our products resonating.

Shlomo Rosenbaum: Great.

Shlomo Rosenbaum: We're focused more on our data solutions since general trend I think we're seeing that pay dividends.

Shlomo Rosenbaum: And we do expect $2 significantly stronger from from our buy side offering soon.

Shlomo Rosenbaum: In the fourth quarter.

Shlomo Rosenbaum: Our journey our solutions have also helped us generate momentum.

Shlomo Rosenbaum: Particularly I would say.

Shlomo Rosenbaum: Its creator.

Shlomo Rosenbaum: Our conversational API.

Shlomo Rosenbaum: As well as our offerings from the buyer side in that regard.

Goran Skoko: So I would attribute it mostly to execution and really to product line maturing in some of the areas that are really helping us.

Shlomo Rosenbaum: I was attributed mostly to execution.

Shlomo Rosenbaum: Really took product climb maturing in some of the areas that really helps.

Unknown Attendee: Thank you.

Shlomo Rosenbaum: Thank you.

Alex Kramm: Our next question comes from Alex Kramm with UBS. Your line is open. Yes, hey, guys.

Shlomo Rosenbaum: Thank you.

Shlomo Rosenbaum: Our next question comes from Alex Kramm with UBS. Your line is open.

Alex Kramm: Yes, Hey, guys.

Phil Snow: Not sure if this is just a follow-on to the first question, but maybe a little bit more specific on the 4Q outlook. If I look at. The prepared remark was banking was kind of in line with last year. So maybe you touched on this a little bit just now.

Alex Kramm: Okay I'm not sure. If this is just a follow on to the first question, but maybe a little bit more specific on the <unk> outlook, if I if I look at the.

Alex Kramm: The guidance range, which is obviously unchanged I think to get to the low end do you need to basically do what you did.

Alex Kramm: In the last two years in the fourth quarter, I think mid $58 million or so range. So I think the one thing that you said earlier in your prepared remark was banking was kind of in line with.

Alex Kramm: With last year. So maybe you touched on this a little bit just now, but like maybe relative to last year can you just Nick.

Phil Snow: But like maybe relative to last year can you just Contrast where things are significantly better and where they're maybe a little bit weaker to kind of get a sense where they could actually be upside or downside to the low end. Yeah, thanks, Alex. I'll start and I'm sure Goran will have additional comments. So, we're definitely, we're significantly ahead of where we were at this time for the last two years. The areas that, you know, look like they're going to be driving growth are the Americas and EMEA. So, both of those regions look strong. I would say our core business, the workstations, you know, relatively flat to last year.

Alex Kramm: Contrast, where things are significantly better than where they are maybe a little bit weaker to kind of get a sense, where we could actually be upside or downside to the low end.

Speaker Change: Thank you yeah, Thanks, Alex I'll start and I'm sure will garner will have additional comments so.

Speaker Change: We're definitely we're significantly ahead of where we were at this time for the last two years.

Speaker Change: The areas that look like they're going to be driving growth or the Americas and EMEA, but both of those regions look strong.

Speaker Change: Our core business. The workstation is relatively flat to last year. So the strength is really coming from our enterprise solutions. So that's the portfolio lifecycle for the buy side as.

Phil Snow: So, the strength is really coming from our enterprise solutions. So, you know, that's the portfolio lifecycle for the buy side, as well as our feeds business, which is really doing great. So, that's showing a lot of momentum going into Q4. And the buy side, more specifically, I think as Goran mentioned, looks really strong for Q4. So, when you look at kind of the top 15 deals we have out there for Q4, I think 10 of those, or approximately two of those are coming from the institutional asset management part of our business. So, you know, Alex, just to add to what Phil already said, you know, I think obviously the, you know, bulk TSV or, you know, commitments that we have is well ahead of last year.

Speaker Change: As well as our feeds business, which is really doing great. So.

Speaker Change: So that's showing a lot of momentum going into Q4, and the buy side more specifically I think as Gordon mentioned looks really strong for Q4. So when you look at kind of the top 15.

Speaker Change: Deals we have out there for Q4 in Canada.

Speaker Change: 10 of those are approximately two thirds of those are coming from the institutional asset management part of our business.

Shlomo Rosenbaum: So Alex just to add two or three of them already said that you're not seeing obviously the book.

Shlomo Rosenbaum: Book TSV or commitments that we have is well ahead of last year.

Goran Skoko: We see improved retention in the quarter, and I think we have good visibility into cancellations for the next 90 days, and we see significant improvements in that number. So those are two very tangible factors that increase our confidence in reaching the numbers that we are projecting. The pipeline itself, we couldn't be happier with the diversity of it. So we see pipeline is very diverse across the deal sizes, as well as firm types and solutions. So we're not dependent on any large deal to really get us over the finish line in the fourth quarter, and that gives us additional confidence.

Shlomo Rosenbaum: We see improved retention in the quarter.

Shlomo Rosenbaum: I think we have good visibility into constellation for the Max cancellations for the next 90 days.

Shlomo Rosenbaum: We see significant improvements in that number. So those are two very tangible factors to the increase our confidence in reaching the numbers.

Shlomo Rosenbaum: We're projecting.

Shlomo Rosenbaum: Pipeline itself couldnt be happier with the diversity of it services pipeline is very diverse across the deal sizes as well as firm type solutions.

Shlomo Rosenbaum: So we're not dependent on any large deal to really get us over to finish line in the fourth quarter and that gives us additional confidence personally im really happy about what we see is an uptick on the buyer side Theres still already mentioned and.

Goran Skoko: Personally, I'm really happy about what we see as an uptick on the buy side that's still already mentioned. And I think that would further, I think, reinforces our confidence is that we do have some, you know, quick, fast-developing deals in the fourth quarter that can help us offset any fallouts that can potentially happen. So we're quite confident that we'll be within the range that we have guided towards. Thanks for the additional coverage.

Shlomo Rosenbaum: Right.

Shlomo Rosenbaum: And I think that what <unk>.

Shlomo Rosenbaum: Further I think reinforces our confidence has to be to have some.

Shlomo Rosenbaum: Quick fast developing deals in the fourth quarter that can help us offset any falloff that can potentially happen. So we're quite confident the rupee versus the range that we have we have guided.

Shlomo Rosenbaum: Targeted towards.

Speaker Change: Excellent thanks for the additional color.

Faiza Alwy: Thank you, our next question comes from Faiza Alwy with Deutsche Bank, your line is Yes, hi, thank you. Um, I know it's a bit early, but I wanted to ask if you have any thoughts around how we should think about, you know, fiscal 26, because I know you've talked about, you typically do have visibility over the next six months. And really, if I can just ask a direct question, do you expect to see further acceleration beyond QP?

Speaker Change: Thank you. Our next question comes from Faiza <unk> with Deutsche Bank. Your line is open.

Faiza <unk>: Yes, hi, thank you.

Speaker Change: I know, it's early but I wanted to ask if you have any thoughts around how we should think about fiscal 'twenty because I know you've talked about you typically do have visibility over the next six months and really if I can just ask a direct question do you expect to see further acceleration.

Shlomo Rosenbaum: On Q4.

Helen Shan: Hey Faiza, Helen, let me try to take that one. So right now we're obviously focused on this quarter and executing against that. We feel very comfortable is what Goran and Phil both talked about. And you can imagine that the same trends that you're hearing us talk through will continue, but we don't talk about next year until we go into our September call. So that's what we plan on doing that. Thank you.

Shlomo Rosenbaum: Hey, Faiza, it's Helen let me try to take that one so right now we're obviously focused on this quarter.

Shlomo Rosenbaum: And in executing against that we feel very comfortable as what corn and sell both talked about.

Shlomo Rosenbaum: And you can imagine that the same trends that.

Shlomo Rosenbaum: Youre hearing us talk through will continue but we don't talk about next year until we go into our September call. So that's what we plan on doing that.

Shlomo Rosenbaum: Yes.

Ashish Sabadra: Our next question comes from Ashish Sabadra with RBC. Your line is . Thanks for taking my question.

Speaker Change: Thank you.

Speaker Change: Our next question comes from Ashish <unk> with RBC. Your line is open.

ashish: Thanks for taking my question Congrats on your economy.

Phil Snow: Phil, congrats on your retirement. Just on the in the prepared remark, there was a comment around AcidOwners continuing to optimize cost and streamline their vendor relationship. I was just wondering if you could provide some color on the headwinds there, but also how do we think about inflecting the growth for that particular group? Yeah, I mean, but we have a great business with AcidOwners and they utilize a lot of our, you know, core analytics product for the buy side. And our strategy has obviously been to be open, flexible and provide best in class point solutions for those firms. Many of them are essentially just looking how to further streamline their businesses.

Speaker Change: Just on the in the prepared remarks, there was a comment around asset.

ashish: Continuing to optimize cost and streamline settling designation chips.

Speaker Change: Maybe if you could provide some color on the headwinds there, but also how do we think about inflicting towards that particular flexibility.

Speaker Change: Yes.

Speaker Change: We have a great business with asset owners.

Speaker Change: And they utilize a lot of our core analytics product for the buy side.

Speaker Change: And our strategy has obviously been to the open flexible.

Speaker Change: And provide best in class point solutions for those firms.

Speaker Change: Many of them are essentially just looking at how to further streamline that businesses. So it's a competitive area.

Goran Skoko: So it's a competitive area. You know, we're partnered with many important firms in the space to provide solutions there. But it certainly, at least in this quarter, was a bit of a headwind for us. Although looking at the pipeline for Q4, it looks like, you know, we'll do better than we did in Q4 of last year or for the year. So that'll be a good. Good tailwind.

Speaker Change: We're partnered with many important firms in this space to provide solutions there but.

Speaker Change: Certainly at least in this quarter was a bit of a headwind for us although looking at the pipeline for Q4 it looks like.

Speaker Change: We will do better than we did.

Speaker Change: In Q4 of last year of the year, so that'll be a good.

Goran Skoko: Goran, do you want to add anything? Yeah, I think the quarter is a little bit of an outlier from that perspective. You know, obviously, as Phil said, it is a competitive space. But you know, looking ahead, you know, we do not see a similar quarter in our future. You know, we are, you know, investing in liquidity book will certainly help us close the OMS and post trade compliance gap. And we are building the, you know, total portfolio solutions have made, you know, significant, you know, progress there as well. So we do expect, you know, that this will remain a competitive areas for us, but expect improvement in the future.

Gordon: Good tailwind Gordon do you want to add anything.

Gordon: The quarter is a little bit of an outlier from that perspective, you know obviously as Joe said it is a competitive space.

Speaker Change: But looking ahead, we do not see a similar quarter.

Speaker Change: Our future.

Speaker Change: We are.

Speaker Change: Investing in.

Speaker Change: As liquidity book will certainly help us.

Speaker Change: Crs and post trade compliance gap.

Speaker Change: And we are building.

Speaker Change: Total portfolio solutions.

Speaker Change: No.

Speaker Change: Significant progress there as well so we do expect.

Speaker Change: But this will remain a competitive area for us, but I expect improvements in the future.

Speaker Change: Okay.

Unknown Attendee: Thank you.

Owen Lau: Our next question comes from Owen Lau with Oppenheimer. Your line is Good morning and thank you for taking my question. So the adjusted operating margin for the first three quarter, it's about 37.2% based on my math. It implies. 4Q margin has to go down to around 34.6%. point of the four-year guidance. So it's any expense or invest.

Speaker Change: Thank you. Our next question comes from Owen Lau with Oppenheimer. Your line is open.

Owen Lau: Good morning, and thank you for taking my question. So the adjusted operating margin for the first three quarter. It's about 37, 2% based on my math it implies that the fiscal <unk> margin has to go down to around 34, 6% to hit the midpoint of your full year guidance. So is there any.

Speaker Change: Expands our investment we should be aware of for your fourth quarter or it will for historical pattern and they were more likely to land at the high end of your full year margin guidance. Thanks a lot.

Helen Shan: be aware of for your fourth quarter, or it will follow historical pattern, and it will more likely to land at the high.

Helen Shan: Hey, Owen, it's Helen. Thank you for that question. And your numbers are correct. So as you know, as we start off the year, we we talked about that we're executing our investment plan across our what we call our three pillars, which is expansion and data, embedding deeper in our client workflows and accelerating through our Gen AI roadmap. So the pace of investments has picked up over the course of the year. And so for the rest of the year, we pretty much remain on track to deliver the margin within our guidance range of 36 to 37 on the adjusted basis.

Speaker Change: Hey, Alan it's Helen Thank you for that question and your numbers are.

Speaker Change: Correct. So as you know as we started off the year, we talked about that we are executing our investment plan across our what we call our three pillars, which is expansion in data and <unk>.

Speaker Change: Getting deeper in our client workflows and accelerating our <unk> roadmap. So the pace of investments has picked up over the course of the year and so for the rest of the year, we pretty much we remain on track to deliver the margin within our guidance range of 36 to 37 on an adjusted basis.

Helen Shan: The spend that we see picking up will be on the expertise that we've brought in to work on new solutions like in Gen AI, the investments that we're actually using to support the integration of the acquisitions, as you may recall, both of our acquisitions are slightly diluted. And and then the technology costs, which are increasing, as we expected. So at this point, right now, we feel pretty comfortable that we will be in the in the range that we've discussed, and we'll continue on that path.

Speaker Change: <unk> that we see picking up will be on the expertise that we brought in to work on new solutions like in Gen II.

Speaker Change: The investments that we're actually using to support the integration of the acquisitions as you may recall, both of our acquisitions are slightly dilutive and and then the technology costs, which are increasing as we expected.

Speaker Change: At this point right now we feel pretty comfortable that we will be in the in the range that we've discussed and we'll continue on that path.

Unknown Attendee: All right, thanks a lot. You bet. Thank you.

Speaker Change: Alright, Thanks, a lot.

Speaker Change: You bet. Thank you.

Andrew Nicholas: Our next question comes from Andrew Nicholas.

Speaker Change: Thank you. Our next question comes from Andrew Nicholas with William Blair. Your line is open.

Helen Shan: This is William Blair, your line is open. Hi, good morning. Thanks for taking my question. Appreciate all the commentary on the on the monetization of Gen AI and success on the top line. I just wanted to ask about progress from a internal efficiency perspective. Helen, I think you mentioned briefly some internal efficiency initiatives. Just curious, how much of that is Gen AI related? And if we're thinking about kind of the increased investment there. How much of that could potentially be offset and over what time frame from cost savings from the same technologies?

Andrew Nicholas: Hi, good morning, Thanks for taking my question.

Speaker Change: I appreciate all the commentary on the on the monetization of jet AI and success on the top line I just wanted to ask about progress from a internal efficiency perspective, Helen I think you mentioned <unk>.

Speaker Change: Some internal efficiency initiatives, just curious how much of that is gen AI related and if we're thinking about kind of the increased investment there how much of that could potentially be offset and over what timeframe.

Speaker Change: From cost savings from the same set of technologies. Thank you.

Phil Snow: Thank Yeah, this is Phil. I'll start and then I'm sure Helen has some additional comments. So, yeah, we're certainly very focused now on using AI internally. Our initial strategy really was to focus on building the foundation, the capabilities, educating our workforce, and delivering product to the marketplace. So we feel good about that. But we're now in a very good place to apply that same strategy internally. So we're looking at, you know, obviously developers giving them tools to, you know, produce code more efficiently. We're looking at, you know, all of our client-facing employees who spend a lot of time doing administrative tasks, getting ready for meetings, and so on.

Phil Snow: Great. Yes. This is Phil I'll start and then I'm sure Helen has some additional comments. So yeah. We're certainly very focused now on using AI internally our initial.

Speaker Change: Strategy really was to focus on building the foundation the capabilities educating our workforce.

Speaker Change: Delivering product to the marketplace. So we feel good about that but we're now in a very good place to apply that same strategy internally. So we're looking at.

Speaker Change: Honestly developers, giving them tools too.

Speaker Change: Produce code more efficiently.

Speaker Change: Looking at all of our client facing.

Speaker Change: Employees, who spend a lot of time doing administrative tasks getting ready for meetings and so on.

Phil Snow: So there's lots of things we can do to help them be more productive and spend more of their time really on sort of the prospecting, selling, and the fun part of the job. So those are some of the areas that we're focused on. And I think just sort of getting organized around that internally and thinking about how that affects the algorithm for the next three years is going to be an important piece of, I think, how we think about the company and how you should think about it. Thank you.

Speaker Change: So theres lots of things, we can do to help them be more productive and spend more of that time really on sort of the prospecting selling in the fund part of the job.

Speaker Change: And then there's obviously efficiencies that we can go through collecting data we've been masters of that for decades are just further automating the collection of data so that certainly helps with that.

Speaker Change: So those are some of the areas that we're focused on and I think just sort of getting organized around that internally.

Speaker Change: I'm thinking about how that affects the algorithm for the next three years is going to be an important piece of I think how we think about the company and how you should think about it.

Speaker Change: Yes, that's exactly right Phil touched on all of the real high points.

Speaker Change: It's interesting and as you might guess the questions that I like to always ask when we're investing is what's the ROI.

Speaker Change: The challenge when you're right now as we're investing in <unk> is that direct.

Speaker Change: Direct result between investing and the reduction, but I think what we look at is the overall.

Speaker Change: Either increasing in output or being able to see more flat growth in expense going forward and I think thats really honestly the right way to go. So currently some of the examples that we've done is internally our cost with events coverage, which more than doubled from 7015 thousand we've seen a 10%.

Speaker Change: Improvement on output.

Speaker Change: From our engineering to do the coding assistance.

Speaker Change: Our Street account has expanded and another just as an example of AI generated fund descriptions with.

Speaker Change: We've been able to get those projects done in a third of the time.

Speaker Change: And that means that we're just not only faster, but higher quality and those are just examples it's very hard to get our eye on but you can see how that ends up benefiting now the outcome that we look at for example, if I look at head count growth. If you take out the acquisitions, we are essentially flat to down in terms of head count and so that is.

Speaker Change: Where I think we'll see some of these benefits flow through very much on the things that.

Speaker Change: <unk> talked about in sales and engineering and in product looking at the day in the life. We have over 50 opportunities that we've prioritized. So we'll see more of that come through going forward.

Speaker Change: Thank you.

Surinder Thind: Our next question comes from Surinder Thind with Jeffreys. Your line is Thank you. Just a big picture question here around the margins and kind of the trade-off of growth versus Marginterics. We think over the next one, two, three years.

Speaker Change: Thank you. Our next question comes from surrenders than with Jefferies. Your line is open.

Speaker Change: Thank you.

Speaker Change: Big picture question here around the margins and kind of the trade offs of gross versus margins here.

Speaker Change: Over the next one to three years.

Helen Shan: Is the idea that kind of expenses, we should see more operating leverage, I guess that we're near peak investment, I guess, near fiscal 4Q, and then it kind of scales normally or below normal at that point? Thanks for that question. Now, as we said, based on our current outlook, we anticipate that our margin is going to land comfortably within this guidance range. And as noted that we did have some dilution from our recent acquisitions, but we've essentially, as we talked about on Investor Day, part of this will be self-funding our investments through lower hiring is one piece, and we'll continue on the efficiency front as well.

Speaker Change: Yes.

Speaker Change: Kind of expenses, we should see more operating leverage I guess.

Speaker Change: We're near peak investment I guess near cadence in fiscal <unk>, and then it kind of scales normally or below normal at that point in time.

Speaker Change: Sure. Thanks for that question.

Speaker Change: We said based on our current outlook, we anticipate that our margin is going to land comfortably within this guidance range.

Speaker Change: And as noted that we did have some dilution from our recent acquisitions, but we've essentially as we talked about on Investor day part of this will be self funding our investments through lower.

Speaker Change: Lower hiring is one piece.

Speaker Change: And we will continue on the efficiency front.

Helen Shan: Now, so we're not looking at this point to talk more around what we've talked about already in terms of our long-term outlook, but I can say that, just as I answered before, some of the points that we're starting to see in 2025, we would expect that to continue going into the next couple of years. Thank you.

Speaker Change: As well now so we're not looking at this point to talk more around.

Speaker Change: What we've talked about already in terms of a longer term outlook, but I can say that just as I answered before some of the points that we're starting to see in 'twenty five we would expect that to continue going into <unk>.

Speaker Change: The next couple of years.

Craig Huber: Our next question comes from Craig Huber with Huber Research Partners. Your line is open. Good morning, thank you for taking my question. On the cost side, Helen, it looked to us like your costs adjusted, it was a one-time item. Overall, it was up about 10 to 11.

Speaker Change: Thank you. Our next question comes from Craig Huber with Huber Research Partners. Your line is open.

Speaker Change: Good morning, Thank you for taking my question.

Speaker Change: The cost side, Helen it looked to us like your costs adjusted for onetime items.

Speaker Change: <unk> was up about 10% to 11% year over year. If you take out the acquisitions was it up more like 300 basis points lowered Mastercard, roughly 8%, maybe and while you're answering that question can you touch on please.

Helen Shan: And while you're answering that question, can you touch on, please... Investments you guys are making, your sales. Is that up significantly all this year or is it more like flat-ish? How should we think about that? Great, thank you for that. I think I caught most of that. But part of the increase of impacting our margin, as you know, was bonus accruals compensation, where last year, we knew we were coming in at a different level. And therefore we adjusted our bonus as a result of that. But if you so that is the biggest piece of that delta.

Speaker Change: The investments you guys are making your sales forces is that up significant all the shoes are more like flattish how should we think about that.

Speaker Change: Great. Thanks. Thank you for that I think I caught most of that but part of the increase of impacting our margin. As you know was as bonus accruals compensation, where last year. We knew we were coming in at a different level and therefore, we adjusted our bonus as a result of that but.

Speaker Change: But if so that is the biggest piece of that delta.

Helen Shan: And then I don't know if you call that one time, but that makes a big difference. In terms of investment, our tech expenses continue to be higher, they are up 21%. Part of that is the amortization of internal use software. And part of that's just spend as it relates to the cloud. I will say, though, other expenses, which is like facilities, is lower 20 basis points as a perspective of relative to market relative to revenue as a third party. So we're really trying to manage our third party costs. As we try to go through the additional need of investments on this on the tech spend.

Speaker Change: I don't know that you called out one time, but that makes a big difference.

Speaker Change: In terms of investments our tech expenses continued to be higher they are up 21% part of that is the amortization of internal use software and part of that's just spend as it relates to.

Speaker Change: To the cloud I will say, though other expenses, which is like facilities is lower 20 basis points as a as a perspective of our relative to relative to revenue as this third party. So we're really trying to manage our third party costs.

Speaker Change: As we try to go through the additional need of investments on this on the AD Tech spend.

Helen Shan: So what about the Salesforce part? Oh, yeah, sorry. No, I would say from a Salesforce perspective, we're relatively flat, there are areas that we are investing more in and on the on the more on the product specialty side. But overall, I would say from a Salesforce perspective, relatively flat. Great, thank you. Thank you.

Speaker Change: So shall we go to the sales force part of it.

Speaker Change: Sorry no.

Speaker Change: I'd say from a salesforce perspective, we're relatively flat there are areas that we are investing more in enough on the on the more on the product specialty side, but overall I would say from a salesforce perspective relatively flat.

Speaker Change: Great. Thank you.

Speaker Change: You.

Toni Kaplan: Our next question comes from Toni Kaplan with Morgan Stanley. Your line is open. Thanks so much.

Speaker Change: Thank you. Our next question comes from Toni Kaplan with Morgan Stanley. Your line is open.

Toni Kaplan: And Phil, congrats on your retirement. I wanted to ask the offensive Gen AI question. You mentioned, you know, 10 signed deals and 45 opportunities. On the signed deals, are these customers you already had that want to adopt Pitch Creator? Or are these new banks that want to have sort of a full FactSet product and are adopting and Pitch Creator was like the driver for that? And, you know, what else is out in the marketplace like it at this point? I know you were sort of first, but has anything, any other products come up to this point?

Toni Kaplan: Thanks, so much and so congrats on your retirement.

Speaker Change: Wanted to ask.

Speaker Change: Want to ask the Sanchez Gen. AI question, you mentioned 10, Cheyenne some 45 opportunities.

Speaker Change: On the signed deals are these customers you already had that want to adopt pitch creator or are these new banks that want to have sort of a false access product and and are adopting and pitch creator was like the driver for that.

Speaker Change: And.

Speaker Change: What else is out in the marketplace like it at this point I know you were sort of first.

Speaker Change: But it has anything any other products come up to this point thanks.

Goran Skoko: Thanks.

Speaker Change: Yeah.

Goran Skoko: Hi, Toni, it's Goran. So, you know, it's a bit of a mix, you know, I would say most of the current deals are with existing clients. Uh, you know, where they have adopted Pitch Creator as part of the overall solutions. We do have deals in the pipeline. Don't forget that Pitch Creator has been out there less than, you know, about four or five months. So we do have, you know, some selling activity where Pitch Creator is significant contributor in the sentiment of those deals that are currently in the pipeline. So we expect it. to contribute to winning new business in addition to, you know, cross selling and upselling of the existing business.

Gordon: Hi, Toni it's Gordon.

Speaker Change: It's a bit of a mix I would say most of the current deals are existing clients.

Gordon: Were they have adapted pitch creator as part of the overall solutions to have deals in the pipeline don't forget the creator has been out there last time.

Gordon: About four or five months.

Gordon: So we do have.

Gordon: Some selling activity for pitch creator is significant contributor and.

Speaker Change: In the sentiment.

Speaker Change: Those deals that are currently in the pipeline should be expected.

Speaker Change: To contribute to winning new business in addition to cross selling and up selling of the.

Speaker Change: Your existing business.

Goran Skoko: I hope that that helps. Thank you.

Speaker Change: Hope that helps.

Speaker Change: Thanks.

Jeff Silber: Our next question comes from Jeff Silber with BMO Capital Markets. Your line is open.

Speaker Change: Thank you. Our next question comes from Jeff Silber with BMO capital markets. Your line is open.

Ryan: Hey, this is Ryan on for Jeff. Just going back to your guidance, it implies a pretty broad range of outcomes in the final quarter of the year. Just wondering how you can help us understand some of the swing factors or the macro impact that might be driving that. I think you mentioned a lot of that is pipeline from institutional buy side. Thank you. Yes, thank you.

Speaker Change: Hey, this is Ryan on for Jeff just going back to your guidance. It implies a pretty broad range of outcomes in the final quarter of the year. Just wondering how you can help us understand some of the swing factors or the macro impact that might be driving that I think you mentioned a lot of that is pipeline from institutional buy side. Thank you.

Phil Snow: So as Goran mentioned, it's a very broad portfolio of opportunities. We're not really relying on any big swing deal, I think, or there's nothing left in terms of a potential big negative out there. So it's really just execution on a broad portfolio. We're, you know, we're well ahead again of where we were this time last year. There's just a lot of deals to close. So, you know, I believe barring, you know, any really disruptive thing in the markets, it looks like we're in a good position to execute that within the range. But we, I think, just wanted to leave it sort of the way it was, just given the number of deals that we have to close in the next two and a half months.

Speaker Change: Yes. Thank you so sort of as Gordon mentioned, it's a very broad portfolio of opportunities, we're not really relying on any big swing deal.

Speaker Change: Or there's nothing left in terms of a potential big negative out there.

Speaker Change: So it's really just execution on a broad portfolio.

Speaker Change: We're well ahead again of where we were this time last year, there's just a lot with a lot of deals to close.

Speaker Change: No.

Speaker Change: I believe barring any.

Speaker Change: Really disruptive thing in the markets.

Speaker Change: Looks like we're in a good position to execute that within that range, but we I think just just wanted to leave it sort of the way it was.

Speaker Change: Just just given the number of deals that we have to close in the next two and a half months.

Helen Shan: Yeah, our guidance range is obviously, you know, designed to reflect the potential variability of outcomes. And so we really want to make sure that we're, we're doing that. And that's why we're leaving it as is. Thank you.

Speaker Change: Yes, our guidance ranges, obviously designed to reflect the potential variability of outcomes.

Speaker Change: And so we really wanted to make sure that we're doing that and that's why we're leaving it as is.

Manav Patnaik: Our next question comes from Manav Patnaik with Barclays.

Speaker Change: Thank you. Our next question comes from Manav Patnaik with Barclays. Your line is open.

Phil Snow: Your line is Hi, this is Brendan on from Manav. I just want to ask on the, you guys highlighting the just increased focus on data solutions, and just want to see, you know, why, what, why is it? Why do you feel like there's more momentum there now? And is there something about your, you know, the product you're offering or you go to market that's, that's changed? That's, that's giving you more confidence? Yeah, so it looks like it's returning to historical levels, or at least it's on that path, which is fantastic as a growth driver for the company.

Speaker Change: Hi, This is brendon on for Manav, just wanted to ask on the.

Speaker Change: You guys highlighting just the increased focus on data solutions and just wanted to see why why is it why does it feel like there's more momentum there now and is there something about your <unk>.

Speaker Change: You're offering or your go to market. That's that's changed that's giving you more confidence.

Speaker Change: Yes.

Speaker Change: It looks like it's returning to historical levels at least that's on that path, which is fantastic as a growth driver for the company, we certainly broadened suite of offerings. So we've added.

Phil Snow: We've certainly broadened that suite of offerings, so we've added some very good real-time pricing, corporate actions, and reference data capabilities. So FactSet is delivering data now to more workflows than we might have historically. Historically, we were really focused on quant workflows, going into a lot of other performance systems. But I think that the broader suite of stuff we're doing now for clients, including some of these new data areas, is really helping. And I think we also, organizationally... If you remember, a year or two ago, we moved the CTS business, which was a vertical, into the data part of our business, and the thinking there was, you know, we just want one factory for data, and the feeds that we're delivering to our clients, our partners, and even our own engineers, we wanted to have more consistency there.

Speaker Change: Very good real time.

Speaker Change: And corporate actions and reference data capabilities. So factset is delivering.

Speaker Change: Delivering data now to more workflows than we might have historically historically, we were really focused on quantum workflows going into a lot of other performance systems.

Speaker Change: But I think that that.

Speaker Change: The broader suite of stuff, we're doing now for clients, including some of these new data areas.

Speaker Change: It's really helping and I think we also organizationally.

Speaker Change: If you remember a year or two ago, we moved the Cts business, which was a vertical into the data.

Speaker Change: Out of our business and the thinking there was.

Speaker Change: We just won a factory for data and the feeds that we're delivering to our clients our partners and even our own engineers. We wanted to have more consistency. There. So I do think there was a bit of a blip.

Phil Snow: So I do think there was a bit of a blip there just due to that big change internally, but I think we're in good shape now, and a lot of that's settled out.

Speaker Change: Just due to that big change internally, but I think we're in a good shape there on a lot of that settled out.

Goran Skoko: Just to add to what Phil said, you know, I think additionally, I think we're refocused the team on data sales within the sales organization. I think that's paying dividends. Phil already mentioned improvements or some, you know, products to be really, you know, are investing in and have high hopes for in terms of our real time exchange data feed business, as well as, you know, price reference data, those are starting to contribute. And, you know, we expect, you know, significant contribution, contribution from them. And also in the current environment, I think there is more and more demand for, for data in general.

Speaker Change: And then just just to add to what Phil said, you know I think Additionally, I think we are very focused the team on data sales fit into.

Speaker Change: Our sales organization I think that's paying dividends.

Speaker Change: You already mentioned improvements or some products to be really are investing and have high hopes for in terms of our real time exchange data feed business as well as enterprise reference data is also starting to contribute and we expect a significant contribution contra.

Speaker Change: <unk> and all signs are current.

Speaker Change: The environment I think there is more and more demand for data in general So all of that is driving an improvement in that.

Goran Skoko: So all of that is driving, you know, improvement in that, in that part of the business.

Speaker Change: And that part of the business.

David Motemaden: Thank you. Our next question comes from David Motemaden with Evercore ISI. Your line is open.

Speaker Change: Thank you. Our next question comes from David Modem maiden with Evercore ISI. Your line is open.

Phil Snow: Thanks, good morning, and Phil, congrats on your retirement. Thank you. contribution from Gen AI this year? Are we tracking in line with that? And As in terms of the traction you're getting there, do you think that's something that we should see accelerate? Yeah, we're definitely tracking towards that. We talked a little bit earlier about Pitch Creator, but that's just one of the SKUs we have. So I think we have multiple SKUs now that are sort of getting into seven figures. We're monetizing, you know, these solutions across sort of six different speech fronts. I think the buy side has been a bit slower than the sell side to adopt some of this stuff.

David Modem: Thanks, Good morning, and Phil Congrats on your retirement.

Speaker Change: Thank you.

Speaker Change: Just.

Speaker Change: I just wanted to just level set for where we are in terms of the 30 to 50 basis points ASB contribution from Gen. AI. This year are we.

Speaker Change: Racking in line with that.

Speaker Change: And.

Speaker Change: As in terms of the traction you're getting there do you think that's something that we should see accelerate and add more to ASB from that 30 to 50 basis points in the next year or two.

Speaker Change: Yes, we're definitely tracking towards that we talked a little bit earlier about pitch creative but thats just one of the Skus. We have so I think we have multiple skus now that are sort of getting into seven figures.

Speaker Change: Sizing these solutions across six different beach fronts.

Speaker Change: I think the buy side has been a bit slower than the sell side to adopt some of this stuff but.

Phil Snow: But, you know, we're hoping that changes for our portfolio commentary product, which we're very bullish about. We've just released the fixed income part of that. So we had equity to begin with and risk, but a lot of firms are waiting for us to have fixed income as well. So now that that's out, we're optimistic that we'll do more there next year. So I certainly do anticipate that, you know, this momentum will continue to build. And we're, you know, we focus on a few workflows in this last fiscal year, but the team's done a great job of identifying sort of three or four other areas for us to start building out.

Speaker Change: We're hoping.

Speaker Change: That changes for our portfolio commentary product, which we're very bullish about we've just released the fixed income part of that so we had equity to begin with and risk, but a lot of firms are waiting for us to have fixed income as well so now that that's out.

Speaker Change: We're optimistic that we'll do more of that next year. So I certainly do anticipate that.

Speaker Change: This momentum will continue to build.

Speaker Change: And where we focus on a few workflows.

Speaker Change: Last fiscal year, but the team has done a great job of identifying sort of three or four other areas for us to start building out like everyone. We're now focused on Gen. Psych workflows, So just going from the foundation and the capabilities to essentially creating.

Phil Snow: And like everyone, we're now focused on agentic workflows. So, you know, just going from the foundation and the capabilities to essentially creating agents that can, you know, interact with each other and with employees. That's an exciting evolution that we're in the middle of.

Speaker Change: <unk> that can.

Speaker Change: Interact with each other and with employees, that's an exciting evolution that we are in the middle aisle.

Speaker Change: Yeah.

Unknown Attendee: Great, thank you. Thank you.

Speaker Change: Great. Thank you.

Speaker Change: Yes.

Scott Wurtzel: Our next question comes from Scott Wurtzel with Wolf Research. Your line is open. Hey, good morning. Thank you for taking my question.

Speaker Change: Thank you. Our next question comes from Scott <unk> with Wolfe Research. Your line is open.

Speaker Change: Hey, good morning. Thank you for taking my question I'm wondering if you can talk a little bit about the CUSIP collaboration with omni that you announced in just the opportunity there and the overall demand for identifiers, among DC and piggyback companies. Thanks.

Phil Snow: I'm wondering if you can talk a little bit about the Q-SIP collaboration with Omni that you announced and just the opportunity there and the overall demand for identifiers among VC and PEFAC companies. Yeah, so, you know, we're excited about, you know, being, you know, the gold standard for private market identifiers with Q-SIP, we're working very hard in the ecosystem to sort of identify partners that are interested in doing work with us. And JP Morgan, you know, is one of those firms. So I think on these, you know, one of the things we're excited about in terms of building out Q-SIP.

Speaker Change: Yes so.

Speaker Change: We're excited about.

Speaker Change: Being.

Speaker Change: The gold standard for private market identifiers with Q cell.

Speaker Change: Working very hard in the ecosystem, so sort of identify partners that are interested in doing work with us.

Speaker Change: J P Morgan.

Speaker Change: One of those so I think on these one of the things we're excited about in terms of.

Phil Snow: So we've also spent a lot of time working, you know, with different firms on private credit. I think that's probably the one where we're furthest ahead. So we feel like we're building some good momentum here. Thanks.

Speaker Change: Building out <unk>. So we've also spent a lot of time.

Speaker Change: Working with different funds on private credit I think that's probably the one way with furthest ahead.

Speaker Change: So we feel like we've been building some good momentum here.

Speaker Change: Yes.

Speaker Change: Thanks.

Russell Quelch: Thank you.

Helen Shan: Our next question comes from Russell Quelch with Rothschild and Redburn. Your line is open. Hey Phil, hey Helen. I think in your opening remarks, Helen, you mentioned the new liquidity you have to support growth. So will that be deployed organic or inorganically? And what are the main areas that you think you might deploy that additional capital to drive improving returns from next year? Thanks for that question, Russell. So yeah, correct. We, we have ample liquidity, which is one of the benefits of sitting in this seat, and not worrying about as markets are really quite volatile, where we'll be.

Speaker Change: Thank you. Our next question comes from Russell Quilt with Rothschild and Redburn. Your line is open.

Speaker Change: Hi, Joe Hi, Helen.

Speaker Change: I think in your opinion remote selling you mentioned the new liquidity you have to support growth.

Speaker Change: Be deployed okay.

Speaker Change: Nick or Inorganically and what are the main areas.

Speaker Change: You might deploy additional capital to drive improving returns from next year.

Speaker Change: Thanks for that question Russell so.

Speaker Change: We have ample liquidity, which is one of the benefits of sitting in the seat and not worrying about as markets are really quite volatile where we'll be.

Helen Shan: And as we noted that we slightly increased our share buyback from three to 400, which is well within, I think, when you think about as a percentage of our market cap. So I think we will continue, as we've talked about in the past, our commitment on shareholder return. And we'll take advantage of any market dislocations as it relates to share buyback. And, and of course, we've done a fair amount of acquisitions this year, and that will continue to be where our focus will be, in terms of adding inorganic growth as well. But right now, as you might guess, we have lots of irons in the fire, and we'll, we'll continue on that path.

Speaker Change: As we noted that we slightly increased our share buyback from three to 400, which is well within I think when you think about as a percentage of our market cap. So I think we will continue as we've talked about in the past.

Speaker Change: Our commitment on shareholder return and we will.

Speaker Change: Take advantage of any market dislocations as it relates to share buyback and of course, we've done a fair amount of acquisitions. This year and that will continue to be where our focus will be.

Speaker Change: In terms of adding inorganic growth as well, but.

Speaker Change: Now as you might guess, we have lots of irons in the fire Angola will continue on that path.

Unknown Attendee: Okay, thank you.

Speaker Change: Okay. Thank you.

Unknown Attendee: Thank you.

Janee: Our next question comes from Jason Haas with Wells Fargo, your line is open. This is Janee on for Jason Haas. In a previous answer, you mentioned that two areas driving growth are Americas and EMEA, but EMEA organic ASV has been decelerating. So what gives you confidence in this region, given the buy side headwinds there? Thank you.

Speaker Change: Thank you. Our next question comes from Jason Haas with Wells Fargo. Your line is open.

Speaker Change: Good morning. This is <unk> on for Jason Haas.

Speaker Change: In a previous answer you mentioned that two areas driving growth in our Americas, and EMEA, but EMEA.

Speaker Change: EMEA organic AFC has been decelerating. So what gives you confidence in this region given the buy side headwinds there. Thank you.

Goran Skoko: Hi, it's Goran. So, you know, I think we have, you know, our expectations for Q4 based on everything we see and the momentum in EMEA is that we will see a re-acceleration. Our retention is trending much better in EMEA year over year. And, you know, just the strength of the pipeline and diversity of that pipeline in EMEA is, you know, gives us a lot of confidence in Q4.

Gregg: Hi, it's Gregg.

Gregg: So thanks.

Gregg: Our expectations for Q.

Gregg: Q4 based on everything we see in.

Gregg: The momentum in EMEA is taboo <unk> exploration.

Gregg: Our retention is trending much better in EMEA year over year.

Gregg: Just the strength of the pipeline and the diversity of that pipeline in EMEA.

Gregg: Yes.

Gregg: There's a lot of confidence in.

Goran Skoko: I mean, you're right that this region has seen more challenges when it comes to buy side in general and more cost pressure, but at the same time, just based Robert Robie, Kent Kramm, Wenting Zhu, Kent Kramm, Robert Robie, Kent Kramm, Goran, sorry, we lost you there for a moment. Yeah, so I'm not I'm not sure what, what you're able to, you know, to hear. But basically, yeah, I think reinforcing what Phil said is the breadth of the pipeline and, you know, diversity is what gives us confidence and we see improvement in Q4 and EMEA. Thank you.

Gregg: In Q4, I mean, you are right that this region has seen more challenges when it comes to.

Gregg: Biosciences general and more more cost pressure, but at the same time just based on.

Gregg: So that's growing so hopefully.

Gregg: Im just looking here as well as the pipeline so it looks very broad based as well so across.

Gregg: Our seats.

Gregg: <unk> offerings.

Gregg: And our.

Gregg: Feed offerings it looks like a good portfolio of stuff for EMEA in Q4, and just as we get back on here. The other piece as we think about the acceleration because you are right as it relates to Q3 keep in mind, our annual price increase was lower this year than last year in terms of what we're contractually going out with.

Gregg: So that headwind sort of goes away when we get into Q4, when we start to compare apples to apples.

Gregg: Go ahead, sorry, we got we lost you there for a moment.

Gregg: Yes, so I'm not sure if we broke through April.

Gregg: Basically yes.

Fred: Reinforcing what <unk> said as Fred.

Gregg: Of the pipeline and the diversity is what gives us confidence and we see improvement in Q4 in EMEA.

Unknown Attendee: As a reminder, to ask a question, please press star 1.

Speaker Change: Thank you as a reminder, Jack a question. Please press star one one.

George Tong: Our next question comes from George Tong with Goldman Sachs. Your line is open. Hey, thanks. Good morning.

Speaker Change: Our next question comes from George Tong with Goldman Sachs. Your line is open.

Helen Shan: I'd also like to extend my congrats to Phil on your retirement. Thanks for watching. Yes. So earlier, Helen, you talked about EMEA and APAC pricing contributions decelerating a little bit because of lower CPI increases. Can you elaborate on the pricing environment more broadly in the international regions? And if you're seeing any competitive changes that might also be affecting your pricing? Sure, happy to talk about it. Thanks, George. So yeah, there are two ways for us to capture pricing, as you know, one is the annual price increase, which is contractual. And that is impacted by CPI, as you noted.

Speaker Change: Hey, Thanks, Good morning, I would also like to extend my congrats to fill in your retirement.

Gregg: Thanks Roger.

Gregg: Yes, so earlier, how long you talked about EMEA and <unk>.

Gregg: Pricing contributions decelerating, a little bit because of lower CPI increases can you elaborate on the pricing environment more broadly in the international regions and if youre seeing any competitive changes that might also be affecting your pricing there.

Gregg: Sure happy to talk about thanks, Thanks, George so.

Gregg: So yes, there are two ways for us to capture pricing as you know one of the annual price increase which is contractual and that has impacted by CPI. As you noted and then the other is captured at the product level, so increased rate cards or higher price realization versus the rate card can help us there. So what we've seen this.

Helen Shan: And then the other is captured at the product level. So increased rate cards or higher price realization versus the rate card can help us there. So what we've seen this year, I mean, we adjust our prices. In fact, we raised selectively rate cards in January, and we see a lot of that come through in renewals and new business. But the solid increases thus far have been in more corporate and hedge funds. We did raise our price, for example, on street account, which has been received well in terms of the value that clients see from it.

Gregg: This year I mean, we adjust our prices in fact, we raised selectively rate cards in January.

Gregg: And we see a lot of that come through in renewals and new business.

Gregg: But the solid increases thus far has been in more corporate and hedge funds. We did raise our price for example on street account, which has been.

Gregg: Received well in terms of the value that clients see from it.

Helen Shan: I have mentioned in the past, as you may recall, that new business price realization was under pressure. And so we took greater discounts, in favor of volume. And so that sort of worked out for us. I have to say that we stabilize that. So right now, we don't see that continuing in terms of total discounts. We're seeing improvement on wealth and in asset management. In terms of our price realization, we're flat on banking. And as noted, as you might guess, we've seen some pressure on asset and asset owners. So the guidance we have does did incorporate the lower inflation rate, but right now, I would say there's not a huge difference across in the outside of the Americas.

Gregg: I have mentioned in the past as you may recall that new business price realization.

Gregg: It was up.

Gregg: Under pressure and so we.

Gregg: We took greater discounts and davor.

Gregg: Volume and so that sort of worked out for us I have to say.

Gregg: Hey that we stabilize that so right now we don't see that.

Gregg: Continuing in terms of total discounts, we're seeing improvement on wealth and asset management in terms of our price realizations were flat on banking.

Gregg: And as noted as you might guess, we are seeing some pressure on asset and asset owners.

Gregg: So the guidance range, we have does that incorporate the lower inflation rate, but right now I would say, there's not a huge difference across in the outside of the Americas globally that was kind of following the same piece that we tend to look much more along on a firm type basis.

Helen Shan: Globally, they're kind of following the same piece.

Helen Shan: So we tend to look much more along on a firm type All right, very helpful, thank you.

Gregg: Got it very helpful. Thank you.

Phil Snow: Well, I think that's our last question, so let's wrap up. Thanks to everyone for being here today. As we head into the fourth quarter, we're seeing strong momentum, visibility into our pipeline, and confidence in delivering on our full-year targets. Our enterprise partner status is resonating, and we're focused on execution, solving our clients' workflow challenges, and driving long-term growth.

Gregg: Thank you well I think thats, our last questions. So, let's wrap up thanks to everyone for being here today.

Speaker Change: As we head into the fourth quarter, we are seeing strong momentum visibility into our pipeline and confidence in delivering on our full year targets are enterprise partner status is resonating and we're focused on execution solving our clients' workflow challenges and driving long term growth to finish this will be my last earnings call as the CEO of Factset.

Phil Snow: To finish, this will be my last earnings call as the CEO of FactSet. It has been an honor to serve in this role for over the past decade, and I'm proud of what we've achieved together over the past 30 years and feel confident in the company's future prospects. I look forward to welcoming Sunoka board in September and working closely with them to ensure a seamless transition. And to our clients, partners, shareholders, and all the FactSetters around the world, thank you all for your trust and support.

Speaker Change: It's been an honor to serve in this role for over over the past decade, and I'm proud of what we've achieved together over the past 30 years and feel confident in the company's future prospects I look forward to welcoming Sunoco board in September and working closely with them to ensure a seamless transition and to our clients partners shareholders and all of the Factset does around the world.

Speaker Change: Thank you all for your trust and support operator that ends today's call.

Unknown Attendee: Operator, that ends today's call. Thank you for your participation. This does conclude the program. You may now disconnect. Everyone, have a great day. Thanks for watching!

Speaker Change: Yes.

Speaker Change: Thank you for your participation. This does conclude the program you may now disconnect everyone have a great day.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Yes.

Speaker Change: Okay.