Factset Research (FDS)
NYSE:FDS
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Factset Research
(NYSE:FDS)
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Rating:77Outperform
Price Target:
$279.00
â–²(19.88% Upside)
Action:Reiterated
Date:04/08/26
The score is driven primarily by strong financial performance (durable profitability and robust free cash flow, with improved leverage) and a constructive earnings update with raised FY2026 guidance. Valuation is supportive (moderate P/E and dividend), while mixed technical signals—extended short-term momentum but weak longer-term trend positioning—temper the overall rating.
Positive Factors
Strong cash generation
FactSet generates robust operating cash flow (up from ~$555M in 2021 to ~$799M TTM) and consistently high free cash flow (~$585M–$683M). Durable cash conversion (85%–91% of net income) supports buybacks, reinvestment in products, and financial flexibility over the medium term.
Negative Factors
Sizable remaining debt
Although leverage improved materially versus 2022–2023, FactSet still carries meaningful debt (~$1.55B TTM). That level creates ongoing interest and refinancing sensitivity, reducing flexibility for large strategic moves and increasing the importance of steady cash generation if growth softens.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
FactSet generates robust operating cash flow (up from ~$555M in 2021 to ~$799M TTM) and consistently high free cash flow (~$585M–$683M). Durable cash conversion (85%–91% of net income) supports buybacks, reinvestment in products, and financial flexibility over the medium term.
Read all positive factors
Factset Research Key Performance Indicators (KPIs)
Any
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.
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.
Data provided by:
The Fly
The FlyFactset Research (FDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.62B
Dividend Yield1.49%
Average Volume (3M)864.03K
Price to Earnings (P/E)15.2
Beta (1Y)0.55
Revenue Growth6.51%
EPS Growth9.85%
CountryUS
Employees12,598
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)15.67
Shares Outstanding36,431,126
10 Day Avg. Volume940,299
30 Day Avg. Volume864,029
Financial Highlights & Ratios
PEG Ratio2.05
Price to Book (P/B)6.48
Price to Sales (P/S)6.10
P/FCF Ratio22.93
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue4.26
Enterprise Value/Gross Profit8.20
Enterprise Value/Ebitda10.92
Forecast
1Y Price Target
$249.44Price Target Upside7.18% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)17.7
Revenue Forecast (FY)$2.46B
Factset Research Business Overview & Revenue Model
Company Description
FactSet Research Systems Inc. is a financial intelligence firm providing a comprehensive suite of integrated data and analytical software. The company serves the global investment community, with its operations spanning the Americas, Europe, the M...
How the Company Makes Money
FactSet primarily makes money by selling subscription-based access to its software and data platform, typically under multi-user, term contracts with financial institutions. Revenue is generated mainly from (1) workstation and platform subscriptio...
Factset Research Earnings Call Summary
Earnings Call Date:Mar 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 01, 2026
Earnings Call Sentiment Positive
The call presented a strong set of operational and commercial positives: accelerating organic ASV growth across geographies and client types, revenue and EPS growth, multiple notable client wins and product traction (MCP Server/API growth), meaningful early productivity gains from AI, and a raised fiscal outlook. Lowlights are primarily execution and timing-related (margin compression driven by deliberate investments, a higher tax rate, regional softness in parts of EMEA, and some client-count churn). Management communicated clear strategies to convert productivity gains into funding for growth and to evolve pricing/packaging for an AI-driven market. Overall, highlights substantially outweigh the lowlights, although there are execution risks tied to investment pacing and industry-wide AI-driven shifts in client economics.Positive Updates
ASV Growth and Scale
Organic ASV accelerated to 6.7% year over year, increasing $38 million to $2.45 billion; ASV retention remained strong at over 95%; 86% of top 200 clients now use five or more solutions (up from 78% three years ago).
Negative Updates
Operating Margin Compression Due to Investments
Adjusted operating margin was 35% in Q2, down from 36.2% in Q1 and 37.3% a year ago; management attributes the decline to year-over-year compensation increases, accelerated technology/cloud and AI spending, and higher professional fees tied to strategic projects.
Read all updates
Q2-2026 Updates
Positive
Negative
ASV Growth and Scale
Organic ASV accelerated to 6.7% year over year, increasing $38 million to $2.45 billion; ASV retention remained strong at over 95%; 86% of top 200 clients now use five or more solutions (up from 78% three years ago).
Read all positive updates
Company Guidance
FactSet raised its fiscal 2026 outlook, now expecting ASV growth of $130–$160 million (≈5.4%–6.7%, a $20M midpoint uplift), GAAP revenue of $2,150–$2,470 million (a $25M midpoint increase), GAAP EPS of $14.85–$15.35 (+$0.20 at the midpoint) and adjusted EPS of $17.25–$17.75 (+$0.25 at the midpoint); it maintained its GAAP and adjusted operating margin guidance ranges (Q2 adjusted operating margin was 35%) and left the effective tax rate unchanged, citing strong H1 momentum after Q2 ASV of $2.45 billion (6.7% YoY).Factset Research Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.40B | 2.32B | 2.20B | 2.09B | 1.84B | 1.59B |
| Gross Profit | 1.25B | 1.22B | 1.19B | 1.11B | 972.79M | 805.04M |
| EBITDA | 936.88M | 965.96M | 872.88M | 788.00M | 610.36M | 581.08M |
| Net Income | 587.79M | 597.04M | 537.13M | 468.17M | 396.92M | 399.59M |
Balance Sheet | ||||||
| Total Assets | 4.22B | 4.30B | 4.06B | 3.96B | 4.01B | 2.22B |
| Cash, Cash Equivalents and Short-Term Investments | 285.27M | 355.10M | 492.60M | 457.65M | 536.49M | 717.85M |
| Total Debt | 1.55B | 1.56B | 1.57B | 1.84B | 2.22B | 866.25M |
| Total Liabilities | 2.09B | 2.12B | 2.14B | 2.34B | 2.68B | 1.21B |
| Stockholders Equity | 2.13B | 2.19B | 1.91B | 1.62B | 1.33B | 1.02B |
Cash Flow | ||||||
| Free Cash Flow | 682.87M | 617.45M | 614.66M | 584.79M | 487.12M | 493.90M |
| Operating Cash Flow | 798.90M | 726.26M | 700.34M | 645.57M | 538.28M | 555.23M |
| Investing Cash Flow | -76.55M | -392.77M | -144.32M | -95.39M | -2.03B | -135.99M |
| Financing Cash Flow | -748.93M | -407.82M | -560.85M | -632.02M | 1.34B | -322.71M |
Factset Research Technical Analysis
Neutral
232.73
Price Trends
229.82
Positive
223.83
Positive
257.75
Negative
Market Momentum
6.02
Positive
52.30
Neutral
21.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDS, the sentiment is Neutral. The current price of 232.73 is below the 20-day moving average (MA) of 239.54, above the 50-day MA of 229.82, and below the 200-day MA of 257.75, indicating a neutral trend. The MACD of 6.02 indicates Positive momentum. The RSI at 52.30 is Neutral, neither overbought nor oversold. The STOCH value of 21.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FDS.
Factset Research Risk Analysis
Factset Research disclosed 29 risk factors in its most recent earnings report. Factset Research reported the most risks in the "Tech & Innovation" 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.62B | 15.15 | 27.22% | 1.49% | 6.51% | 9.85% | |
77 Outperform | $43.27B | 33.28 | -64.13% | 1.24% | 10.86% | 20.25% | |
76 Outperform | $77.19B | 31.74 | 66.74% | 0.73% | 8.95% | 20.40% | |
73 Outperform | $122.35B | 26.07 | 14.80% | 0.73% | 8.54% | 24.07% | |
73 Outperform | $323.58M | 14.54 | 21.16% | 3.31% | -5.24% | 2.40% | |
71 Outperform | $6.74B | 17.01 | 30.01% | 0.84% | 8.39% | 10.06% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
FDS
Factset Research
241.16
-173.07
-41.78%
SPGI
S&P Global
418.91
-81.89
-16.35%
MCO
Moody's
447.85
-25.11
-5.31%
MORN
Morningstar
175.22
-123.93
-41.43%
MSCI
MSCI
599.12
59.29
10.98%
VALU
Value Line
34.06
-2.54
-6.94%
Factset Research Corporate Events
Business Operations and StrategyExecutive/Board Changes
FactSet Appoints Joshua Warren as New Chief Financial Officer
Positive
Apr 8, 2026
On April 8, 2026, FactSet announced a chief financial officer transition in which current CFO Helen Shan will step down from her role effective April 13, 2026 and move into a transitional position. Shan will remain with the company for a period du...
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.