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Factset Research
(NYSE:FDS)
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Rating:75Outperform
Price Target:
$259.00
â–²(11.29% Upside)
Action:Reiterated
Date:07/01/26
The score is driven primarily by strong financial performance (durable margins, excellent cash conversion, and improving leverage) and a positive earnings-call outlook (reaffirmed guidance with accelerating ASV and strong retention/AI adoption). These strengths are tempered by a mixed technical backdrop (below key moving averages with negative MACD) and near-term profitability pressure from investment-led margin compression and higher technology/token costs.
Positive Factors
Strong cash generation
FactSet’s consistently high free cash flow and operating cash that exceed net income provide durable financial flexibility. Strong cash conversion funds R&D, strategic AI investments, sustained dividends and buybacks, and cushions execution risk without needing disruptive external financing.
Negative Factors
Near-term margin compression
Targeted investments and higher non‑compensation spend have trimmed operating margins materially. If productivity gains from these investments take longer than expected, margin recovery may lag, pressuring adjusted operating profit and limiting reinvestment or shareholder returns in the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
FactSet’s consistently high free cash flow and operating cash that exceed net income provide durable financial flexibility. Strong cash conversion funds R&D, strategic AI investments, sustained dividends and buybacks, and cushions execution risk without needing disruptive external financing.
Read all positive factors
Factset Research Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breakdown of revenue across regions (e.g., US, EMEA, APAC); reveals where FactSet is strongest, the company’s exposure to regional economic cycles and currency moves, and where international expansion could drive future growth.
Breakdown of revenue across regions (e.g., US, EMEA, APAC); reveals where FactSet is strongest, the company’s exposure to regional economic cycles and currency moves, and where international expansion could drive future growth.
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The Fly
The FlyFactset Research (FDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.89B
Dividend Yield1.49%
Average Volume (3M)899.84K
Price to Earnings (P/E)16.4
Beta (1Y)0.53
Revenue Growth6.62%
EPS Growth8.75%
CountryUS
Employees12,598
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)15.27
Shares Outstanding35,565,544
10 Day Avg. Volume946,591
30 Day Avg. Volume899,835
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 Cap1.08
Enterprise Value/Revenue3.94
Enterprise Value/Gross Profit7.66
Enterprise Value/Ebitda10.66
Forecast
1Y Price Target
$251.36Price Target Upside8.01% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)17.69
Revenue Forecast (FY)$2.46B
Factset Research Business Overview & Revenue Model
Company Description
FactSet Research Systems Inc. is a financial intelligence firm providing a comprehensive suite of integrated data and analytical software. The company serves the global investment community, with its operations spanning the Americas, Europe, the M...
How the Company Makes Money
FactSet primarily makes money by selling subscription-based access to its software and data platform, typically under multi-user, term contracts with financial institutions. Revenue is generated mainly from (1) workstation and platform subscriptio...
Factset Research Earnings Call Summary
Earnings Call Date:Jul 01, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 17, 2026
Earnings Call Sentiment Positive
The call presents a largely positive picture: FactSet delivered accelerating ASV growth (7.1%), revenue and EPS expansion, strong cash flow, significant AI adoption and client wins, and meaningful productivity gains driven by AI and MCP traction. Offsetting these positives are near-term margin compression (down ~300 bps) from targeted investments, higher token and technology costs, an FX hedging loss (~60 bps), and workforce restructuring (notably ~10% reduction in technology headcount). Management reaffirmed guidance and expects margin improvement as productivity initiatives scale. Overall, the strengths (accelerating growth, AI-led expansion, cash generation, client retention/expansion, and partnerships) outweigh the temporary cost and execution headwinds.Positive Updates
ASV Growth and Acceleration
Annual Subscription Value (ASV) grew 7.1% organically to $2.48 billion, an increase of ~$35 million during the quarter and the highest ASV growth rate since Q1 2024.
Negative Updates
Adjusted Operating Margin Compression
Adjusted operating margin was 34% in Q3, down ~300 basis points year-over-year (from ~37% a year ago) and down 100 bps versus Q2 (35%), reflecting targeted investments, performance-related compensation and higher non-compensation spend.
Read all updates
Q3-2026 Updates
Positive
Negative
ASV Growth and Acceleration
Annual Subscription Value (ASV) grew 7.1% organically to $2.48 billion, an increase of ~$35 million during the quarter and the highest ASV growth rate since Q1 2024.
Read all positive updates
Company Guidance
FactSet reaffirmed its previously issued guidance for ASV, revenue, adjusted operating margin and EPS, citing strong Q3 results (ASV >$2.48B, +7.1% organic and +250 bps vs FY25; revenue $622.9M, +6.4% / +7% like‑for‑like; adjusted operating income $211.8M, 34% margin, ~300 bps lower YoY; adjusted diluted EPS $4.53, +6.1%) and said it is tracking toward the high end of the revenue and EPS ranges; management noted supportive metrics for that guidance including >95% ASV retention, average contract term extended ~30% with the majority of Q3 renewals as enterprise or 3+ year deals, AI contributions (over 10% of ASV growth from AI SKUs this quarter, >90% of top‑50 clients using 4+ AI solutions and ASP growth 50% higher among AI users), a robust pipeline and bookings ahead of last year, free cash flow of $254M (+11% YoY), gross/net leverage of 1.5x/1.2x, and active capital returns (~926k shares repurchased for $203M in Q3; >$625M returned YTD).Factset Research Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
73
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.44B | 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 | 900.38M | 965.96M | 872.88M | 788.00M | 610.36M | 583.14M |
| Net Income | 565.97M | 597.04M | 537.13M | 468.17M | 396.92M | 399.59M |
Balance Sheet | ||||||
| Total Assets | 4.19B | 4.30B | 4.06B | 3.96B | 4.01B | 2.22B |
| Cash, Cash Equivalents and Short-Term Investments | 304.24M | 355.10M | 492.60M | 457.65M | 536.49M | 717.85M |
| Total Debt | 1.57B | 1.56B | 1.57B | 1.84B | 2.22B | 866.25M |
| Total Liabilities | 2.16B | 2.12B | 2.14B | 2.34B | 2.68B | 1.21B |
| Stockholders Equity | 2.03B | 2.19B | 1.91B | 1.62B | 1.33B | 1.02B |
Cash Flow | ||||||
| Free Cash Flow | 708.31M | 617.45M | 614.66M | 584.79M | 487.12M | 493.90M |
| Operating Cash Flow | 829.59M | 726.26M | 700.34M | 645.57M | 538.28M | 555.23M |
| Investing Cash Flow | -92.75M | -392.77M | -144.32M | -95.39M | -2.03B | -135.99M |
| Financing Cash Flow | -812.24M | -407.82M | -560.85M | -632.02M | 1.34B | -322.71M |
Factset Research Technical Analysis
Positive
232.73
Price Trends
230.52
Positive
220.88
Positive
249.00
Positive
Market Momentum
0.79
Negative
60.01
Neutral
79.68
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 232.73 is below the 20-day moving average (MA) of 235.31, above the 50-day MA of 230.52, and below the 200-day MA of 249.00, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 60.01 is Neutral, neither overbought nor oversold. The STOCH value of 79.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $130.21B | 27.82 | 14.80% | 0.73% | 8.54% | 24.07% | |
77 Outperform | $43.91B | 34.66 | -64.13% | 1.24% | 10.86% | 20.25% | |
76 Outperform | $85.69B | 35.04 | 66.74% | 0.73% | 8.95% | 20.40% | |
75 Outperform | $8.89B | 16.38 | 27.22% | 1.49% | 6.62% | 8.75% | |
73 Outperform | $366.20M | 16.67 | 21.16% | 3.31% | -5.24% | 2.40% | |
68 Neutral | $6.31B | 16.81 | 30.01% | 0.84% | 8.39% | 10.06% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
FDS
Factset Research
250.09
-190.29
-43.21%
SPGI
S&P Global
439.89
-57.41
-11.54%
MCO
Moody's
490.51
-7.69
-1.54%
MORN
Morningstar
165.94
-136.29
-45.09%
MSCI
MSCI
603.11
23.21
4.00%
VALU
Value Line
39.01
1.79
4.81%
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...
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.