Factset Research (FDS) AI Stock Analysis

• Market Cap: $16.81B
• Dividend Yield: 0.99%
• Average Volume (3M): 368.30K
• Price to Earnings (P/E): 32.1
• Beta (1Y): 0.61
• Revenue Growth: 5.07%
• EPS Growth: 4.19%
• Country: US
• Employees: 12,598
• Sector: Financial
• Sector Strength: 80
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 4.27
• Shares Outstanding: 37,806,774
• 10 Day Avg. Volume: 272,690
• 30 Day Avg. Volume: 368,301
• PEG Ratio: -19.79
• Price to Book (P/B): 7.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.48
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 14.97
• Enterprise Value/Ebitda: 5.23
• 1Y Price Target: $437.27
• Price Target Upside: -2.35% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 14

• Rating: 77 Outperform
• Price Target: $499.00 ▲(11.43%Upside)

FactSet's overall stock score reflects strong financial performance and a positive outlook from recent earnings, supported by strategic initiatives in AI and enterprise solutions. However, relatively high valuation and bearish technical indicators temper the score.

Positive Factors

Earnings and Guidance

FactSet reported F3Q ASV above consensus and reiterated its 2H-weighted guidance, citing strong visibility into its robust and diverse pipeline.

Innovation and Market Position

FactSet is leveraging AI externally to deliver innovative solutions that streamline workflows for clients, and internally to improve cost efficiency.

Market Share

FactSet seems to be winning market share from competitors like Refinitiv, especially in Wealth.

Negative Factors

Competitive Pressure

Budget pressures facing much of FactSet’s end market and improved competition from Refinitiv are likely limiting revenue and ASV growth upside.

Leadership Uncertainty

The leadership transition at FactSet could create uncertainty as the market awaits the new CEO's strategic goals.

Market Volatility

Volatility has increased, raising the risk that FactSet Research might miss its financial estimates and guidance could be conservative.

Factset Research Business Overview & Revenue Model

Company Description

FactSet Research Systems Inc. (FDS) is a leading provider of integrated financial information, analytical applications, and industry services for the global investment community. It operates primarily within the financial data and software sector, offering solutions that support investment professionals in making informed decisions. FactSet delivers a comprehensive suite of tools and resources including data feeds, portfolio analytics, market analytics, and research management solutions tailored to institutions such as asset managers, investment banks, and other financial entities.

How the Company Makes Money

FactSet makes money primarily through the subscription-based sale of its financial data and analytics solutions. Revenue streams include fees from its various service offerings, such as data feeds, desktop analytics, and enterprise solutions, which are used by investment professionals to analyze financial markets and manage investment portfolios. The company also capitalizes on its ability to integrate with third-party applications, enhancing its value proposition. Additionally, FactSet's strategic partnerships with other financial data providers and technology firms further bolster its revenue by expanding its product offerings and customer reach.

Factset Research Financial Statement Overview

Summary

FactSet exhibits solid financial health with consistent revenue growth and robust profitability. The company maintains strong cash generation capabilities, though rising debt levels and pressures on cash flow growth require attention. Overall, the financial position remains sound.

Income Statement

Factset Research has shown consistent revenue growth with a 3.81% increase in revenue from 2024 to TTM, alongside maintaining strong gross and net profit margins of 53.34% and 23.31%, respectively, in TTM. The EBIT and EBITDA margins remain robust at 30.56% and 28.98%, indicating operational efficiency. However, the slight decline in EBIT from 2024 and the decrease in EBITDA suggest emerging cost pressures.

Balance Sheet

The company's debt-to-equity ratio stands at 0.75 in TTM, indicating a moderate level of leverage. Return on equity is high at 24.73%, reflecting strong profitability. The equity ratio is healthy at 49.67%, showcasing a stable financial position. However, the increase in total debt compared to equity from previous years indicates a rising leverage trend.

Cash Flow

Operating cash flow is strong with a cash flow to net income ratio of 1.27, and free cash flow remains positive with a slight decline in growth. The free cash flow to net income ratio is 1.08, signaling efficient cash generation relative to net income. Nevertheless, the decrease in free cash flow compared to 2024 suggests a need for careful monitoring of cash reserves.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	2.29B	2.20B	2.09B	1.84B	1.59B	1.49B
Gross Profit	1.22B	1.19B	1.11B	972.79M	805.04M	798.66M
EBITDA	838.09M	831.16M	788.00M	610.36M	581.08M	540.38M
Net Income	532.92M	537.13M	468.17M	396.92M	399.59M	372.94M
Balance Sheet
Total Assets	4.34B	4.06B	3.95B	4.01B	2.22B	2.08B
Cash, Cash Equivalents and Short-Term Investments	356.36M	492.60M	457.65M	536.49M	717.85M	605.18M
Total Debt	1.62B	1.57B	1.84B	2.22B	866.25M	875.68M
Total Liabilities	2.18B	2.14B	2.34B	2.68B	1.21B	1.19B
Stockholders Equity	2.16B	1.91B	1.62B	1.33B	1.02B	898.17M
Cash Flow
Free Cash Flow	576.52M	614.66M	584.79M	487.12M	493.90M	428.20M
Operating Cash Flow	677.32M	700.34M	645.57M	538.28M	555.23M	505.84M
Investing Cash Flow	-409.03M	-144.32M	-95.39M	-2.03B	-135.99M	-73.63M
Financing Cash Flow	-357.27M	-560.85M	-632.02M	1.34B	-322.71M	-218.07M

Factset Research Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 447.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDS, the sentiment is Positive. The current price of 447.81 is above the 20-day moving average (MA) of 435.59, above the 50-day MA of 442.93, and below the 200-day MA of 454.56, indicating a neutral trend. The MACD of 2.25 indicates Negative momentum. The RSI at 57.74 is Neutral, neither overbought nor oversold. The STOCH value of 78.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDS.

Factset Research Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPGI	80 Outperform	$161.44B	41.33	11.68%	0.73%	12.98%	42.72%
FDS	77 Outperform	$16.81B	32.09	26.35%	0.99%	5.07%	4.19%
MORN	77 Outperform	$12.83B	34.10	25.68%	0.60%	10.11%	79.71%
MCO	75 Outperform	$89.77B	43.11	57.90%	0.75%	15.95%	26.38%
MSCI	68 Neutral	$44.95B	39.95	-117.99%	1.24%	11.67%	-0.89%
Sector *	67 Neutral	$16.81B	11.85	9.77%	3.76%	12.07%	-8.35%
DNB	62 Neutral	$4.07B	―	-0.64%	2.19%	2.52%	42.27%

Factset Research Corporate Events

FactSet Announces CEO Transition with New Appointment

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.

The most recent analyst rating on (FDS) stock is a Hold with a $435.00 price target. To see the full list of analyst forecasts on Factset Research stock, see the FDS Stock Forecast page.