Factset Research (FDS) AI Stock Analysis

• Market Cap: $14.79B
• Dividend Yield: 1.08%
• Average Volume (3M): 343.61K
• Price to Earnings (P/E): 28.2
• Beta (1Y): 0.60
• Revenue Growth: 5.07%
• EPS Growth: 4.19%
• Country: US
• Employees: 12,598
• Sector: Financial
• Sector Strength: 68
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 4.27
• Shares Outstanding: 37,806,774
• 10 Day Avg. Volume: 385,163
• 30 Day Avg. Volume: 343,611
• PEG Ratio: 1.99
• Price to Book (P/B): 8.41
• Price to Sales (P/S): 7.30
• P/FCF Ratio: 26.18
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 8.23
• Enterprise Value/Gross Profit: 15.43
• Enterprise Value/Ebitda: 21.20
• 1Y Price Target: $433.67
• Price Target Upside: 9.47% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 12

• Rating: 73 Outperform
• Price Target: $490.00 ▲(23.69%Upside)

FactSet's strong financial performance and positive earnings call insights are the primary drivers of its score. Technical analysis and valuation present moderate concerns due to mixed indicators and high P/E ratio. Strategic focus on AI and technology investments supports a positive outlook despite regional challenges.

Positive Factors

Innovation

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

Sales Pipeline

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

Valuation

Analyst upgrades shares of FactSet to Market Perform from Underperform, seeing limited further downside risk to FactSet’s valuation multiple.

Negative Factors

Margins

Guidance implies a decline in margins in F4Q, as FactSet ramps up its tech-related expenses.

Market Competition

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

Market Conditions

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, robust profitability, and stable leverage. Strong cash generation capabilities are noted, though rising debt levels and slight pressures on cash flow growth require attention.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 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	887.82M	872.88M	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	3.96B	4.01B	2.22B	2.08B
Cash, Cash Equivalents and Short-Term Investments	364.05M	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: Negative
• Last Price: 396.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 396.16 is below the 20-day moving average (MA) of 424.73, below the 50-day MA of 433.96, and below the 200-day MA of 451.54, indicating a bearish trend. The MACD of -10.55 indicates Positive momentum. The RSI at 27.48 is Positive, neither overbought nor oversold. The STOCH value of 18.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FDS.

Factset Research Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPGI	81 Outperform	$166.59B	41.94	11.76%	0.69%	10.72%	23.30%
MCO	79 Outperform	$89.93B	42.60	55.18%	0.71%	11.47%	16.14%
FDS	73 Outperform	$14.79B	28.25	26.35%	1.08%	5.07%	4.19%
MSCI	70 Outperform	$43.12B	36.93	-117.99%	1.22%	10.48%	0.98%
MORN	68 Neutral	$11.49B	28.99	26.51%	0.65%	8.23%	64.35%
Sector *	67 Neutral	¥764.30B	11.15	7.42%	3.21%	7.66%	14.08%
DNB	63 Neutral	$4.07B	―	-0.64%	2.20%	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.