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Factset Research (FDS)
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Factset Research (FDS) AI Stock Analysis

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FDS

Factset Research

(NYSE:FDS)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
$327.00
â–²(18.08% Upside)
FactSet's strong financial performance and reasonable valuation are offset by bearish technical indicators and challenges highlighted in the earnings call. The company's strategic investments and solid financial health provide a positive long-term outlook, but current market dynamics suggest caution in the short term.
Positive Factors
Revenue Growth
FactSet's consistent revenue growth and strong margins indicate robust demand for its services and effective cost management, supporting long-term financial health.
AI Investments
Strategic investments in AI enhance FactSet's product offerings, potentially increasing competitive advantage and driving future growth.
Cash Generation
Strong cash generation provides FactSet with the flexibility to invest in growth opportunities and maintain financial stability, supporting long-term sustainability.
Negative Factors
Longer Sales Cycles
Extended sales cycles may delay revenue realization and impact short-term growth, requiring FactSet to adapt its sales strategy for sustained success.
Pricing Pressures
Pricing pressures in key markets could compress margins, necessitating strategic adjustments to maintain profitability and competitive positioning.
Challenges in EMEA
Ongoing challenges in the EMEA region may hinder FactSet's growth, requiring targeted strategies to overcome regional market difficulties.

Factset Research (FDS) vs. SPDR S&P 500 ETF (SPY)

Factset Research Business Overview & Revenue Model

Company DescriptionFactSet Research Systems Inc., a financial data and analytics company, provides integrated financial information and analytical applications to the investment community in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company delivers insight and information through the workflow solutions of research, analytics and trading, content and technology solutions, and wealth. It serves portfolio managers, investment banks, asset managers, wealth advisors, corporate clients, and other financial services entities. FactSet Research Systems Inc. was founded in 1978 and is headquartered in Norwalk, Connecticut.
How the Company Makes MoneyFactSet generates revenue primarily through subscriptions to its financial data and analytics services. The company employs a recurring revenue model, where clients pay for access to its platforms and data feeds, often on a multi-year contract basis. Key revenue streams include subscription fees from its core products, as well as fees for additional services such as customized data solutions and consulting. FactSet also benefits from partnerships with other financial institutions and technology providers, enhancing its product offerings and market reach. The company continuously invests in technology development and data acquisition to improve its services, thereby driving customer retention and growth in its client base.

Factset Research Key Performance Indicators (KPIs)

Any
Any
Revenue by Geography
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Chart InsightsFactSet's revenue growth is robust in the United States, driven by strategic focus on enterprise solutions and digital capabilities, aligning with a 5% organic ASV growth in the Americas. However, EMEA and Asia Pacific face challenges, with slower growth due to pricing pressures and asset owner headwinds. Despite these regional hurdles, FactSet's overall performance remains strong, supported by client base expansion and strategic investments in technology and AI, which are expected to enhance future growth.
Data provided by:Main Street Data

Factset Research Earnings Call Summary

Earnings Call Date:Sep 18, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Dec 18, 2025
Earnings Call Sentiment Positive
The earnings call revealed strong performance in Q4 and FY 2025 with record-breaking organic ASV growth and significant investments in AI. However, challenges like prolonged sales cycles, pricing pressures in certain regions, and secular headwinds in EMEA pose potential obstacles. The company's strategic positioning and ongoing investments provide a positive long-term outlook, but current market dynamics call for cautious optimism.
Q4-2025 Updates
Positive Updates
Record Organic ASV Growth
Q4 organic ASV of $81.8 million was the largest quarter in the company's history, representing a sequential acceleration in growth to 5.7%.
Strong Fourth Quarter and Fiscal 2025 Performance
Annual revenue increased to $2.3 billion, with an adjusted operating margin of 36.3% and adjusted EPS of $16.98.
Growth in Wealth and Asset Management
Wealth delivered strong Q4 performance with continued organic growth at greater than 10%, fueled by 7-figure deals and competitive displacements.
Continued Investment in AI
Meaningful progress against a multiyear AI road map, with early success in investments in AI as trials converted into signed deals.
Negative Updates
Longer Sales Cycles and Client Budget Constraints
Clients are being strategic in technology investments, leading to longer sales cycles and rigorous scrutiny, impacting immediate growth expectations.
Pricing Pressures in Certain Markets
Faced pricing pressures in some APAC markets, offset by solution expansion and new client acquisition.
Challenges in EMEA
Mid-sized asset managers and asset owners in the EMEA region continue to face secular headwinds despite strategic wins.
Company Guidance
During FactSet's fourth-quarter earnings call for fiscal year 2025, the company provided guidance for fiscal 2026, highlighting several key metrics and strategic focuses. FactSet anticipates organic Annual Subscription Value (ASV) growth between $100 million and $150 million, translating to approximately 5% growth at the midpoint. The company projects GAAP revenues in the range of $2.42 billion to $2.45 billion, with an adjusted operating margin between 34% and 35.5%. Adjusted earnings per share (EPS) are expected to range from $16.90 to $17.60. FactSet plans to continue investing in AI, data expansion, and workflow integration, supported by a strong balance sheet with over $600 million in free cash flow. The guidance reflects a conservative approach amid longer sales cycles and rigorous client approval processes, but FactSet remains confident in its competitive positioning and market demand.

Factset Research Financial Statement Overview

Summary
FactSet Research exhibits strong financial health with consistent revenue and profit growth, efficient operational management, and a stable capital structure. Minor fluctuations in margins and leverage are noted, but the overall trajectory remains positive.
Income Statement
85
Very Positive
Factset Research has demonstrated consistent revenue growth, with a notable increase of 1.52% in the latest year. The company maintains strong profitability, evidenced by a gross profit margin of 52.72% and a net profit margin of 25.72%. EBIT and EBITDA margins are robust at 32.23%, indicating efficient operational management. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.
Balance Sheet
78
Positive
The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.71, showing a manageable level of leverage. Return on equity is strong at 27.31%, indicating effective use of shareholder funds. The equity ratio stands at 50.79%, suggesting a stable capital structure. However, the decrease in debt-to-equity ratio from previous years highlights improved financial stability.
Cash Flow
82
Very Positive
Cash flow analysis reveals healthy cash generation, with a free cash flow growth rate of 7.1%. The operating cash flow to net income ratio is 1.39, indicating strong cash conversion. The free cash flow to net income ratio of 0.85 suggests efficient cash management. The consistent growth in free cash flow over the years underscores the company's ability to generate cash.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.32B2.32B2.20B2.09B1.84B1.59B
Gross Profit1.22B1.22B1.19B1.11B972.79M805.04M
EBITDA890.80M748.30M872.88M788.00M610.36M581.08M
Net Income597.04M597.04M537.13M468.17M396.92M399.59M
Balance Sheet
Total Assets4.30B4.30B4.06B3.96B4.01B2.22B
Cash, Cash Equivalents and Short-Term Investments337.65M337.65M492.60M457.65M536.49M717.85M
Total Debt1.56B1.56B1.57B1.84B2.22B866.25M
Total Liabilities2.12B2.12B2.14B2.34B2.68B1.21B
Stockholders Equity2.19B2.19B1.91B1.62B1.33B1.02B
Cash Flow
Free Cash Flow617.45M617.45M614.66M584.79M487.12M493.90M
Operating Cash Flow726.26M726.26M700.34M645.57M538.28M555.23M
Investing Cash Flow-392.77M-392.77M-144.32M-95.39M-2.03B-135.99M
Financing Cash Flow-407.82M-407.82M-560.85M-632.02M1.34B-322.71M

Factset Research Technical Analysis

Technical Analysis Sentiment
Negative
Last Price276.93
Price Trends
50DMA
351.05
Negative
100DMA
395.13
Negative
200DMA
421.53
Negative
Market Momentum
MACD
-23.65
Positive
RSI
22.31
Positive
STOCH
16.38
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDS, the sentiment is Negative. The current price of 276.93 is below the 20-day moving average (MA) of 306.70, below the 50-day MA of 351.05, and below the 200-day MA of 421.53, indicating a bearish trend. The MACD of -23.65 indicates Positive momentum. The RSI at 22.31 is Positive, neither overbought nor oversold. The STOCH value of 16.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FDS.

Factset Research Risk Analysis

Factset Research disclosed 30 risk factors in its most recent earnings report. Factset Research reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Factset Research Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$10.40B17.6929.13%1.55%5.39%11.56%
71
Outperform
$86.73B41.2255.18%0.75%11.47%16.14%
71
Outperform
$43.70B37.11-117.99%1.23%10.48%0.98%
70
Neutral
$370.11M17.2521.59%3.18%-4.99%6.15%
69
Neutral
$146.04B36.8811.76%0.79%10.72%23.30%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
66
Neutral
$9.43B24.0626.51%0.80%8.23%64.35%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FDS
Factset Research
276.93
-175.48
-38.79%
SPGI
S&P Global
481.22
-33.44
-6.50%
MCO
Moody's
488.43
20.90
4.47%
MORN
Morningstar
226.25
-106.87
-32.08%
MSCI
MSCI
569.11
-20.53
-3.48%
VALU
Value Line
38.95
-5.36
-12.10%

Factset Research Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
FactSet Announces CEO Transition with New Appointment
Positive
Jun 3, 2025

On June 3, 2025, FactSet announced the retirement of its CEO, F. Philip Snow, effective upon the appointment of his successor, Sanoke Viswanathan, who will start on September 1, 2025. Snow will remain as a special advisor to ensure a smooth transition. Viswanathan, a seasoned leader from JPMorgan Chase, is expected to drive FactSet’s growth with his expertise in strategy, innovation, and operations, particularly in banking and wealth management. His appointment is seen as a strategic move to strengthen FactSet’s position in the financial services industry and continue its momentum in data-driven finance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 23, 2025