Factset Research (FDS)
NYSE:FDS
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Factset Research
(NYSE:FDS)
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Rating:77Outperform
Price Target:
$258.00
â–²(10.86% Upside)
Action:ReiteratedDate: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
High ASV retention & multi-product adoption
Very high ASV retention and deepening usage among top clients indicate durable subscription revenue and strong product stickiness. Multi-product penetration increases switching costs and expansion potential, supporting predictable recurring revenues and higher lifetime value over several years.
Negative Factors
Meaningful outstanding debt
Substantial legacy debt creates ongoing interest and refinancing risk, constraining capital allocation flexibility. If revenue growth slows, servicing meaningful debt could limit investment optionality or force trade-offs between buybacks, M&A and product spend across the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High ASV retention & multi-product adoption
Very high ASV retention and deepening usage among top clients indicate durable subscription revenue and strong product stickiness. Multi-product penetration increases switching costs and expansion potential, supporting predictable recurring revenues and higher lifetime value over several years.
Read all positive factors
Factset Research (FDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.46B
Dividend Yield1.49%
Average Volume (3M)1.01M
Price to Earnings (P/E)15.0
Beta (1Y)0.60
Revenue Growth6.51%
EPS Growth9.85%
CountryUS
Employees12,598
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)4.46
Shares Outstanding36,431,126
10 Day Avg. Volume1,026,786
30 Day Avg. Volume1,013,143
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 Cap1.15
Enterprise Value/Revenue4.06
Enterprise Value/Gross Profit7.82
Enterprise Value/Ebitda10.41
Forecast
1Y Price Target
$246.64Price Target Upside5.98% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)17.74
Revenue Forecast (FY)$2.46B
Factset Research Business Overview & Revenue Model
Company Description
FactSet 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 co...
How the Company Makes Money
FactSet makes money primarily by selling subscriptions to its financial information and analytics platform and related services. The core revenue stream is recurring subscription revenue from users and enterprises that license FactSet workstations...
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 Earnings Call Summary
Earnings Call Date:Mar 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 19, 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
211.03
Positive
245.63
Negative
292.27
Negative
Market Momentum
4.28
Negative
60.77
Neutral
91.46
Negative
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 above the 20-day moving average (MA) of 216.48, above the 50-day MA of 211.03, and below the 200-day MA of 292.27, indicating a neutral trend. The MACD of 4.28 indicates Negative momentum. The RSI at 60.77 is Neutral, neither overbought nor oversold. The STOCH value of 91.46 is Negative, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $128.22B | 22.66 | 13.84% | 0.73% | 8.54% | 24.07% | |
77 Outperform | $8.46B | 15.04 | 27.22% | 1.49% | 6.51% | 9.85% | |
77 Outperform | $43.54B | 24.33 | -74.96% | 1.24% | 10.86% | 20.25% | |
76 Outperform | $80.38B | 29.17 | 66.74% | 0.73% | 8.95% | 20.40% | |
73 Outperform | $324.24M | 14.89 | 21.16% | 3.31% | -5.24% | 2.40% | |
69 Neutral | $7.23B | 24.33 | 25.12% | 0.84% | 7.49% | 3.80% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
FDS
Factset Research
232.32
-193.71
-45.47%
SPGI
S&P Global
433.19
-62.93
-12.68%
MCO
Moody's
460.11
10.55
2.35%
MORN
Morningstar
187.60
-94.63
-33.53%
MSCI
MSCI
598.13
60.27
11.21%
VALU
Value Line
34.54
-4.96
-12.55%
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...
Business Operations and StrategyExecutive/Board Changes
FactSet Elevates AI Leadership with New C-Suite Roles
Positive
Mar 4, 2026
On March 4, 2026, FactSet Research Systems Inc. announced leadership changes effective March 2, 2026, with former Chief Technology Officer Kate Stepp appointed as Chief AI Officer and technology veteran Bob Stolte named Chief Technology Officer. S...
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.