Factset Research (FDS) AI Stock Analysis

• Market Cap: $10.93B
• Dividend Yield: 1.49%
• Average Volume (3M): 849.92K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.45
• Revenue Growth: 5.88%
• EPS Growth: 12.18%
• Country: US
• Employees: 12,598
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 4.51
• Shares Outstanding: 37,419,937
• 10 Day Avg. Volume: 855,915
• 30 Day Avg. Volume: 849,917
• PEG Ratio: 2.05
• Price to Book (P/B): 6.48
• Price to Sales (P/S): 6.10
• P/FCF Ratio: 22.93
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 4.94
• Enterprise Value/Gross Profit: 9.44
• Enterprise Value/Ebitda: 11.84
• 1Y Price Target: $295.82
• Price Target Upside: 1.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): 17.5
• Revenue Forecast (FY): $2.45B

• Rating: 78 Outperform
• Price Target: $312.00 ▲(6.80% Upside)

Factset Research's overall stock score is driven by its strong financial performance and positive earnings call sentiment. The company's robust profitability and strategic advancements in AI and client engagement are significant strengths. However, technical analysis indicates a bearish trend, and rising expenses pose a potential risk.

Positive Factors

Strong Profitability

FactSet's robust profitability metrics indicate strong operational efficiency and effective cost management, supporting long-term financial health.

Recurring Revenue Model

The subscription-based revenue model ensures steady cash flow and financial stability, reducing vulnerability to market fluctuations.

AI Product Adoption

Strong AI adoption reflects FactSet's innovative capabilities and positions it well for future growth in data analytics and client engagement.

Negative Factors

Rising Operating Expenses

Increased expenses, driven by personnel and technology costs, may pressure margins and require careful management to sustain profitability.

Slight Margin Decline

Margin compression due to growth investments could impact short-term profitability, necessitating strategic cost control measures.

Limited New Client Growth

Stagnant client growth may signal market saturation or increased competition, potentially limiting future revenue expansion.

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 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 Money

FactSet generates revenue primarily through subscription fees for its software and data services. The company offers various pricing models based on the level of access and the specific products utilized by clients, which include asset managers, hedge funds, private equity firms, and financial institutions. Key revenue streams include data feeds, analytics software, and customized solutions tailored to client needs. Additionally, FactSet benefits from long-term contracts with its customers, leading to predictable recurring revenues. Significant partnerships with financial data providers and integration with third-party platforms further enhance its offerings and contribute to its earnings.

Factset Research Financial Statement Overview

Summary

Factset Research demonstrates strong financial performance with consistent revenue growth and healthy profitability. The company maintains robust EBIT and EBITDA margins, indicating efficient operations. However, slight declines in gross and net profit margins suggest potential cost pressures.

Income Statement

Factset Research demonstrates strong financial performance with consistent revenue growth, evidenced by a 1.68% increase in TTM revenue. The company maintains healthy profitability with a gross profit margin of 52.26% and a net profit margin of 25.40% in TTM. EBIT and EBITDA margins are robust at 24.70% and 38.99%, respectively, indicating efficient operations. However, slight declines in gross and net profit margins compared to previous periods suggest potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.72 in TTM, indicating prudent leverage. Return on equity remains strong at 27.99%, showcasing effective use of shareholder funds. The equity ratio stands at 51.37%, highlighting a solid capital structure. Despite improvements, the company should monitor its debt levels to maintain financial flexibility.

Cash Flow

Factset Research exhibits strong cash flow generation with a 4.85% growth in free cash flow in TTM. The operating cash flow to net income ratio is 1.66, indicating efficient cash conversion. The free cash flow to net income ratio of 0.85 suggests a healthy cash flow relative to earnings. Continued focus on cash flow management will support future growth initiatives.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.32B	2.20B	2.09B	1.84B	1.59B
Gross Profit	1.22B	1.19B	1.11B	972.79M	805.04M
EBITDA	965.96M	872.88M	788.00M	610.36M	581.08M
Net Income	597.04M	537.13M	468.17M	396.92M	399.59M
Balance Sheet
Total Assets	4.30B	4.06B	3.96B	4.01B	2.22B
Cash, Cash Equivalents and Short-Term Investments	355.10M	492.60M	457.65M	536.49M	717.85M
Total Debt	1.56B	1.57B	1.84B	2.22B	866.25M
Total Liabilities	2.12B	2.14B	2.34B	2.68B	1.21B
Stockholders Equity	2.19B	1.91B	1.62B	1.33B	1.02B
Cash Flow
Free Cash Flow	617.45M	614.66M	584.79M	487.12M	493.90M
Operating Cash Flow	726.26M	700.34M	645.57M	538.28M	555.23M
Investing Cash Flow	-392.77M	-144.32M	-95.39M	-2.03B	-135.99M
Financing Cash Flow	-407.82M	-560.85M	-632.02M	1.34B	-322.71M

Factset Research Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 292.13
• 50DMA: Positive
• 100DMA: Negative
• 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 292.13 is above the 20-day moving average (MA) of 286.76, above the 50-day MA of 279.06, and below the 200-day MA of 369.69, indicating a neutral trend. The MACD of 3.27 indicates Negative momentum. The RSI at 56.40 is Neutral, neither overbought nor oversold. The STOCH value of 60.18 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
FDS	78 Outperform	$10.93B	18.58	28.83%	1.49%	5.88%	12.18%
MCO	77 Outperform	$92.78B	41.81	57.08%	0.73%	8.77%	13.62%
MORN	76 Outperform	$9.01B	24.91	24.42%	0.84%	7.76%	15.92%
SPGI	73 Outperform	$160.32B	38.49	12.57%	0.73%	9.04%	21.35%
VALU	73 Outperform	$357.46M	16.86	21.02%	3.31%	-3.75%	-4.34%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MSCI	62 Neutral	$43.96B	37.08	―	1.24%	9.02%	3.45%

Factset Research Corporate Events

FactSet Updates Bylaws Amid Strong Financial Results

On September 16, 2025, FactSet announced the resignation of James J. McGonigle from its Board of Directors, effective December 1, 2025, with no disagreements cited. The same day, FactSet’s Board updated the company’s bylaws to enhance procedural mechanics for director elections. FactSet reported strong financial results for the fourth quarter and fiscal year 2025, with a notable increase in GAAP revenues and operating margins, driven by growth in institutional and wealth client segments. The company also provided guidance for fiscal 2026, projecting continued growth and emphasizing its strategic focus on AI and data-driven innovation.