FactSet Research Gears Up For Q3 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

FactSet Research is scheduled to release Q3 earnings on June 23, with analysts anticipating EPS of $4.30, down from $4.37 year-over-year, but projecting revenue of $580.9 million, up from $552.71 million. The company recently appointed Sanoke Viswanathan as CEO, effective September 2025, while analyst ratings show mixed sentiment, including a reiterated Sector Perform rating from RBC Capital and downgrades from Wells Fargo and Morgan Stanley with lowered price targets.

Analysis

FactSet Research Systems (FDS) is approaching its third-quarter earnings release on June 23, with analysts anticipating a mixed financial performance. Expectations point to quarterly earnings per share (EPS) of $4.30, a decrease from $4.37 in the corresponding period last year, signaling potential margin pressure or increased investment. Conversely, projected quarterly revenue of $580.9 million represents an increase from $552.71 million year-over-year, indicating continued top-line growth. This financial outlook is set against a backdrop of a significant leadership transition, with Sanoke Viswanathan appointed as the new CEO, effective early September 2025, succeeding Phil Snow. The company's stock recently closed at $425.04, showing a minor 0.3% increase. Recent analyst sentiment, as reflected in the provided data, is predominantly cautious. While RBC Capital reiterated a Sector Perform rating with a $503 price target on June 3, 2025, several other analysts have tempered their outlooks in March 2025: BMO Capital maintained a Market Perform but cut its price target from $498 to $466; UBS maintained a Neutral rating while reducing its target from $525 to $480; Wells Fargo downgraded the stock to Underweight, lowering its target from $450 to $402; and Morgan Stanley maintained an Underweight rating, cutting its target from $409 to $390. This pattern of price target reductions and downgrades contributes to a moderately negative sentiment surrounding the stock.

Key Decisions for Investors

• Investors should closely scrutinize FactSet's upcoming Q3 earnings on June 23, particularly the reported EPS against the expected $4.30 and revenue figures relative to the $580.9 million projection, as well as any forward guidance provided by management.
• The scheduled CEO transition in September 2025 warrants attention, as changes in leadership can influence long-term strategy and operational performance; monitor for any early communications regarding Mr. Viswanathan's strategic vision.
• Given the recent spate of analyst downgrades and price target reductions from firms like Wells Fargo and Morgan Stanley, alongside more neutral stances from RBC and BMO, investors should carefully weigh the current stock price of $425.04 against these varied targets and the underlying reasons for the cautious analyst sentiment.
• Consider the contrasting signals of expected year-over-year revenue growth against a decline in EPS, and evaluate if the market has adequately priced in these factors and the recent analyst actions before adjusting positions.