Factset Research (FDS) AI Stock Analysis

• Market Cap: $10.88B
• Dividend Yield: 1.49%
• Average Volume (3M): 881.01K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.46
• 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: 37,419,937
• 10 Day Avg. Volume: 916,852
• 30 Day Avg. Volume: 881,014
• 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: 1.42
• Enterprise Value/Revenue: 6.65
• Enterprise Value/Gross Profit: 12.62
• Enterprise Value/Ebitda: 15.99
• 1Y Price Target: $316.55
• Price Target Upside: 8.92% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 13
• EPS Forecast (FY): 17.32
• Revenue Forecast (FY): $2.44B

• Rating: 77 Outperform
• Price Target: $330.00 ▲(13.55% Upside)

FactSet Research's overall stock score of 77 reflects its strong financial performance and strategic positioning, supported by robust earnings and prudent investments in AI. Technical analysis and valuation indicate moderate potential, while the earnings call suggests cautious optimism amid market challenges.

Positive Factors

Strong Cash Generation

FactSet's ability to consistently generate strong cash flow ensures financial flexibility and supports ongoing investments in growth initiatives.

Strategic AI Investments

Investments in AI enhance FactSet's competitive edge by improving product offerings and aligning with industry trends towards automation and data-driven insights.

Partnership with Arcesium

This partnership enhances FactSet's market position by integrating workflows across asset management, addressing client needs for comprehensive solutions.

Negative Factors

Longer Sales Cycles

Extended sales cycles can delay revenue realization and impact short-term growth, posing challenges to maintaining momentum in a competitive market.

Pricing Pressures in APAC

Pricing pressures may compress margins and affect profitability in key growth regions, requiring strategic adjustments to maintain competitiveness.

Challenges in EMEA

Ongoing challenges in EMEA could hinder growth prospects in the region, necessitating targeted strategies to overcome market-specific obstacles.

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 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: Positive
• Last Price: 290.63
• 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 290.63 is above the 20-day moving average (MA) of 274.00, above the 50-day MA of 277.13, and below the 200-day MA of 380.55, indicating a neutral trend. The MACD of 0.93 indicates Negative momentum. The RSI at 63.55 is Neutral, neither overbought nor oversold. The STOCH value of 77.86 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	77 Outperform	$10.88B	18.69	29.13%	1.49%	5.39%	11.56%
MCO	77 Outperform	$88.58B	39.92	57.08%	0.76%	8.77%	13.62%
MORN	77 Outperform	$8.97B	24.82	24.42%	0.83%	7.76%	15.92%
SPGI	73 Outperform	$150.95B	36.24	12.57%	0.77%	9.04%	21.35%
VALU	68 Neutral	$352.80M	16.61	21.59%	3.40%	-4.99%	6.15%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MSCI	64 Neutral	$40.44B	34.12	―	1.34%	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.