Financial data firm FactSet beats profit estimate on analytical tools demand

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By Ateev Bhandari

(Reuters) -FactSet beat analysts’ estimate for second-quarter profit on Thursday, as robust demand for its financial data and analytics services drove subscription growth at the company.

Demand for market analytical tools has risen as investors try to navigate shifting interest-rate expectations and rising uncertainty over the economic impact of the Trump administration’s trade, immigration and fiscal policies.

The company’s organic annual subscription value — which indicates the revenue potential for the next 12 months from subscription services — rose 4.1% to $2.28 billion during the quarter.

But that, according to Raymond James analysts, marked FactSet’s lowest ASV growth rate since the first fiscal quarter of 2020 and the eighth consecutive quarter of deceleration.

Shares of the Norwalk, Connecticut-based company fell nearly 1.5% to $431.92.

According to analysts, FactSet also faces intense competition in the financial data and analytics market, where it competes with Bloomberg, London Stock Exchange Group and S&P Global, among others — companies with deeply entrenched client bases and broader product ecosystems.

On an adjusted basis, FactSet posted a per-share profit of $4.28 during the quarter ended February 28, compared with $4.22 a year earlier and analysts’ average estimate of $4.16, according to data compiled by LSEG.

Its revenue rose 4.5% to $570.7 million.

Last month, FactSet acquired trade management platform LiquidityBook, which offers global broker-market connectivity for hedge funds, asset managers and sell-side firms, for $246.5 million in cash.

During the second quarter, the financial data company also launched Pitch Creator, an artificial intelligence-powered presentation creator tool for junior bankers.

(Reporting by Ateev Bhandari in Bengaluru; Editing by Shilpi Majumdar)