FactSet Research Systems Inc. stock research
FY2025 Q2
FactSet Research Systems (FDS) Gross Margin — Quarter Ended Feb 28, 2025
Revenue increased compared to both the previous quarter and the same quarter last year. However, gross profit declined from the prior quarter and gross margin weakened, as cost of revenue rose more than revenue.
Gross margin takeaway
Quarter ended Feb 28, 2025 · FY2025 Q2
Revenue increased compared to both the previous quarter and the same quarter last year. However, gross profit declined from the prior quarter and gross margin weakened, as cost of revenue rose more than revenue.
- The most observable driver is the increase in cost of revenue, which outpaced revenue growth, leading to margin compression.
- Compared to the prior quarter, gross margin weakened, while versus the same quarter last year it was slightly lower. Revenue was higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
52.8%
Gross profit
$301.1M
Revenue
$570.7M
Cost of revenue
$269.6M
Quarter-over-quarter change
-1.7 pts
Year-over-year change
-0.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| May 31, 2024 | $552.7M | $305.7M | $247.0M | 55.3% |
| Aug 31, 2024 | $562.2M | $304.0M | $258.2M | 54.1% |
| Nov 30, 2024 | $568.7M | $309.9M | $258.8M | 54.5% |
| Feb 28, 2025 | $570.7M | $301.1M | $269.6M | 52.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 30, 2024
-1.7 pts
Year-over-year change
Feb 29, 2024
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the increase in cost of revenue, which outpaced revenue growth, leading to margin compression.
Compared to the prior quarter, gross margin weakened, while versus the same quarter last year it was slightly lower. Revenue was higher in both comparisons.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.