FactSet Research Systems (FDS) should see modest quarter-on-quarter growth in annual subscription value, or ASV, in fiscal Q1 followed by a stronger rise in fiscal Q2 given the company's reaffirmed confidence in an acceleration for the second half of fiscal 2025, RBC Capital Markets said Thursday in a note.

RBC said it expects a modest increase of only $2.5 million in fiscal Q1 ASV due to "tight budgets, the potential for higher erosion, and lower price realization."

The investment bank sees about 71% of the fiscal year's ASV growth to be generated in the second half of fiscal 2025 driven by factors including FactSet's asset management budgets opening up. The company is also rolling out new products such as PM Hub, Advisor and Banker Dashboards and CRM Wealth Management.

With the company's wealth unit being the largest contributor to ASV growth in 2024 fiscal Q4, RBC added that it expects "wealth momentum to be sustained given the strong market position and differentiated leading product suite."

FactSet is expected to grow $29.7 million ASV in 2025 fiscal Q2, $17.5 million in fiscal Q3 and $64.1 million in fiscal Q4, RBC said, noting that Q2 and Q4 are historically the strongest sales quarters.