Factset Research (FDS) AI Stock Analysis

• Market Cap: $10.69B
• Dividend Yield: 1.5%
• Average Volume (3M): 898.13K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.54
• Revenue Growth: 5.39%
• EPS Growth: 11.56%
• Country: US
• Employees: 12,598
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 4.05
• Shares Outstanding: 37,456,326
• 10 Day Avg. Volume: 734,337
• 30 Day Avg. Volume: 898,127
• 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: 1.45
• Enterprise Value/Revenue: 6.65
• Enterprise Value/Gross Profit: 12.62
• Enterprise Value/Ebitda: 15.99
• 1Y Price Target: $337.92
• Price Target Upside: 18.44% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 15

• Rating: 71 Outperform
• Price Target: $327.00 ▲(14.62% Upside)

FactSet's strong financial performance and reasonable valuation are offset by bearish technical indicators and challenges highlighted in the earnings call. The company's strategic investments and solid financial health provide a positive long-term outlook, but current market dynamics suggest caution in the short term.

Positive Factors

Revenue Growth

FactSet's consistent revenue growth and strong margins indicate robust demand for its services and effective cost management, supporting long-term financial health.

AI Investments

Strategic investments in AI enhance FactSet's product offerings, potentially increasing competitive advantage and driving future growth.

Cash Generation

Strong cash generation provides FactSet with the flexibility to invest in growth opportunities and maintain financial stability, supporting long-term sustainability.

Negative Factors

Longer Sales Cycles

Extended sales cycles may delay revenue realization and impact short-term growth, requiring FactSet to adapt its sales strategy for sustained success.

Pricing Pressures

Pricing pressures in key markets could compress margins, necessitating strategic adjustments to maintain profitability and competitive positioning.

Challenges in EMEA

Ongoing challenges in the EMEA region may hinder FactSet's growth, requiring targeted strategies to overcome regional market difficulties.

Factset Research Business Overview & Revenue Model

Company Description

FactSet Research Systems Inc. (FDS) is a global provider of integrated financial information and analytical applications for investment professionals. Founded in 1978, the company serves a diverse client base, including investment managers, investment banks, and corporations, primarily in the financial services sector. FactSet's core products include a comprehensive suite of financial data, analytics, and software solutions that enhance investment decision-making, risk management, and performance evaluation. Its offerings encompass data feeds, portfolio management systems, research management solutions, and a robust analytics platform that provides insights into market trends and company performance.

How the Company Makes Money

FactSet generates revenue primarily through subscriptions to its financial data and analytics services. The company employs a recurring revenue model, where clients pay for access to its platforms and data feeds, often on a multi-year contract basis. Key revenue streams include subscription fees from its core products, as well as fees for additional services such as customized data solutions and consulting. FactSet also benefits from partnerships with other financial institutions and technology providers, enhancing its product offerings and market reach. The company continuously invests in technology development and data acquisition to improve its services, thereby driving customer retention and growth in its client base.

Factset Research Financial Statement Overview

Summary

FactSet Research exhibits strong financial health with consistent revenue and profit growth, efficient operational management, and a stable capital structure. Minor fluctuations in margins and leverage are noted, but the overall trajectory remains positive.

Income Statement

Factset Research has demonstrated consistent revenue growth, with a notable increase of 1.52% in the latest year. The company maintains strong profitability, evidenced by a gross profit margin of 52.72% and a net profit margin of 25.72%. EBIT and EBITDA margins are robust at 32.23%, indicating efficient operational management. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.71, showing a manageable level of leverage. Return on equity is strong at 27.31%, indicating effective use of shareholder funds. The equity ratio stands at 50.79%, suggesting a stable capital structure. However, the decrease in debt-to-equity ratio from previous years highlights improved financial stability.

Cash Flow

Cash flow analysis reveals healthy cash generation, with a free cash flow growth rate of 7.1%. The operating cash flow to net income ratio is 1.39, indicating strong cash conversion. The free cash flow to net income ratio of 0.85 suggests efficient cash management. The consistent growth in free cash flow over the years underscores the company's ability to generate cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.32B	2.32B	2.20B	2.09B	1.84B	1.59B
Gross Profit	1.22B	1.22B	1.19B	1.11B	972.79M	805.04M
EBITDA	965.86M	965.96M	872.88M	788.00M	610.36M	581.08M
Net Income	597.04M	597.04M	537.13M	468.17M	396.92M	399.59M
Balance Sheet
Total Assets	4.30B	4.30B	4.06B	3.96B	4.01B	2.22B
Cash, Cash Equivalents and Short-Term Investments	337.65M	337.65M	492.60M	457.65M	536.49M	717.85M
Total Debt	1.56B	1.56B	1.57B	1.84B	2.22B	866.25M
Total Liabilities	2.12B	2.12B	2.14B	2.34B	2.68B	1.21B
Stockholders Equity	2.19B	2.19B	1.91B	1.62B	1.33B	1.02B
Cash Flow
Free Cash Flow	617.45M	617.45M	614.66M	584.79M	487.12M	493.90M
Operating Cash Flow	726.26M	726.26M	700.34M	645.57M	538.28M	555.23M
Investing Cash Flow	-392.77M	-392.77M	-144.32M	-95.39M	-2.03B	-135.99M
Financing Cash Flow	-407.82M	-407.82M	-560.85M	-632.02M	1.34B	-322.71M

Factset Research Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 285.30
• 50DMA: Negative
• 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 Negative. The current price of 285.3 is above the 20-day moving average (MA) of 284.73, below the 50-day MA of 324.38, and below the 200-day MA of 409.11, indicating a neutral trend. The MACD of -9.28 indicates Negative momentum. The RSI at 38.58 is Neutral, neither overbought nor oversold. The STOCH value of 56.18 is Neutral, 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
MCO	78 Outperform	$87.56B	39.46	57.08%	0.78%	8.77%	13.62%
FDS	71 Outperform	$10.69B	18.34	29.13%	1.50%	5.39%	11.56%
MSCI	71 Outperform	$41.95B	35.93	―	1.29%	10.48%	0.98%
VALU	70 Neutral	$369.35M	17.39	21.59%	3.25%	-4.99%	6.15%
SPGI	69 Neutral	$149.43B	37.62	11.76%	0.77%	10.72%	23.30%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MORN	63 Neutral	$9.26B	23.36	26.51%	0.83%	8.23%	64.35%

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.