Factset Research Systems Inc (NYSE:FDS) stock fell 0.89% (As on March 21, 11:23:30 AM UTC-4, Source: Google Finance) after the company beats earnings expectations for the second quarter of FY25. Organic revenues grew 4.0% year over year to $568.0 million during the second quarter of fiscal 2025. Growth in GAAP and Organic revenues this quarter was driven by wealth and institutional buy-side clients. Annual Subscription Value (“ASV”) was $2,306.1 million at February 28, 2025, compared with $2,185.6 million at February 29, 2024. Organic ASV was $2,276.2 million at February 28, 2025, up 4.1% or $90.7 million year over year. Organic ASV increased $19.6 million over the last three months. Adjusted operating margin decreased to 37.3% compared with 38.3% in the prior year period, mainly due to higher technology related expenses offset by lapping of the prior year’s lower bonus accrual. Net cash provided by operating activities was $174.0 million for the second quarter of fiscal 2025. Free cash flow increased to $150.2 million for the second quarter of fiscal 2025, compared with $121.9 million for the prior year period, an increase of 23.3%, primarily due to higher net cash provided by operating activities.

Moreover, Americas revenues for the quarter increased to $369.7 million compared with $352.6 million in the second quarter of last year. The Americas quarterly organic revenues growth rate was 4.0% over the prior year period. EMEA revenues were $143.4 million compared with $139.2 million in the second quarter of fiscal 2024. The EMEA quarterly organic revenues growth rate was 3.1% over the prior year period. Asia Pacific revenues were $57.6 million compared with $54.1 million in the second quarter of fiscal 2024. The Asia Pacific quarterly organic revenues growth rate was 6.8% over the prior year period.

FDS in the second quarter of FY25 has reported the adjusted earnings per share of $4.28, beating the analysts’ estimates for the adjusted earnings per share of $4.19, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 4.5 percent to $570.7 million in the second quarter of FY25, which matches the analysts’ estimates for revenue of $570.7 million. Client count as of February 28, 2025 was 8,645, a net increase of 396 clients in the past three months, mainly due to corporates, which now includes clients from the Irwin acquisition.

For fiscal 2025, the company expects Adjusted diluted EPS to be in the range of $16.80 to $17.40, Organic ASV to grow in the range of $100 million to $130 million and GAAP revenues to be in the range of $2,305 million to $2,325 million.