FactSet Research Systems Inc. stock research
FY2025 Q4
FactSet Research Systems (FDS) Gross Margin — Quarter Ended Aug 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. However, gross margin weakened as cost of revenue grew faster than revenue.
Gross margin takeaway
Quarter ended Aug 31, 2025 · FY2025 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. However, gross margin weakened as cost of revenue grew faster than revenue.
- The primary observable margin driver was the relative growth of cost of revenue, which outpaced revenue growth, leading to a lower gross margin.
- Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was also lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.6%
Gross profit
$308.2M
Revenue
$596.9M
Cost of revenue
$288.7M
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-2.4 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 |
|---|---|---|---|---|
| Nov 30, 2024 | $568.7M | $309.9M | $258.8M | 54.5% |
| Feb 28, 2025 | $570.7M | $301.1M | $269.6M | 52.8% |
| May 31, 2025 | $585.5M | $304.8M | $280.7M | 52.1% |
| Aug 31, 2025 | $596.9M | $308.2M | $288.7M | 51.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 31, 2025
-0.4 pts
Year-over-year change
Aug 31, 2024
-2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable margin driver was the relative growth of cost of revenue, which outpaced revenue growth, leading to a lower gross margin.
Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was also lower.
Monitor the trend of cost of revenue growth relative to revenue growth.