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Factset Research
(NYSE:FDS)
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Rating:73Outperform
Price Target:
$301.00
â–²(1.66% Upside)
Action:Reiterated
Date:10/01/26
The score is driven primarily by strong underlying fundamentals (high margins and returns, solid cash generation despite recent softening) and an upbeat earnings outlook supported by record ASV growth, strong retention, and AI/MCP momentum. Offsetting these positives, technical indicators show weaker near-term momentum with the stock below key short-term moving averages, keeping the overall score in the low-to-mid 70s despite reasonable valuation support.
Positive Factors
Recurring Revenue and Retention
High retention and longer-duration enterprise agreements make revenue more predictable and deepen client relationships. Contract expansion through data feeds, APIs, and additional modules can support durable wallet-share gains while reducing reliance on frequent new-client wins.
Negative Factors
Margin Pressure
The margin decline shows that infrastructure modernization, cybersecurity, resilience, and compensation investments are currently absorbing part of the benefit from revenue growth. If these costs persist longer than expected, earnings expansion and cash available for capital allocation could remain constrained.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue and Retention
High retention and longer-duration enterprise agreements make revenue more predictable and deepen client relationships. Contract expansion through data feeds, APIs, and additional modules can support durable wallet-share gains while reducing reliance on frequent new-client wins.
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.
Data provided by:
The Fly
Factset Research (FDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.73B
Dividend Yield1.5%
Average Volume (3M)817.97K
Price to Earnings (P/E)20.6
Beta (1Y)0.53
Revenue Growth6.65%
EPS Growth-7.20%
CountryUS
Employees12,694
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)14.62
Shares Outstanding35,565,544
10 Day Avg. Volume664,623
30 Day Avg. Volume817,968
Financial Highlights & Ratios
PEG Ratio-3.04
Price to Book (P/B)5.71
Price to Sales (P/S)4.62
P/FCF Ratio16.16
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue5.02
Enterprise Value/Gross Profit9.91
Enterprise Value/Ebitda13.57
Forecast
1Y Price Target
$279.45Price Target Upside-5.62% Downside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)19.76
Revenue Forecast (FY)$2.62B
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 subscriptions to its financial data, analytics, and workflow software. Revenue is largely recurring and tied to long-term client relationships, with clients paying for access to FactSet’s platform and speci...
Factset Research Earnings Call Summary
Earnings Call Date:Sep 30, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Dec 17, 2026
Earnings Call Sentiment Positive
The call was strongly positive overall. FactSet reported record ASV performance, broad-based growth, significant competitive wins, accelerating MCP and AI adoption, productivity improvements, strong free cash flow and substantial shareholder returns. The main negatives were lower operating margins, restructuring-related costs and head count reductions, a lower fiscal 2027 ASV growth range, and tax and interest expense headwinds. Management nevertheless projected margin improvement and high single-digit EPS growth for fiscal 2027.Positive Updates
Record Organic ASV Performance
Fiscal 2026 organic ASV grew 7%, or $168 million, to $2.56 billion, exceeding the high end of guidance. Q4 generated $86 million of organic ASV, the largest quarter in FactSet's history, and Q4 ASV growth accelerated more than 125 basis points versus the comparable rate in 2025.
Negative Updates
Full-Year Operating Margin Decline
Fiscal 2026 adjusted operating margin was 34.5%, approximately 180 basis points below fiscal 2025. Management attributed the compression to structural investments, including infrastructure modernization, cybersecurity and resilience, as well as the timing of accelerating ASV growth because revenue is recognized over time while performance-based incentive compensation is expensed upfront.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Organic ASV Performance
Fiscal 2026 organic ASV grew 7%, or $168 million, to $2.56 billion, exceeding the high end of guidance. Q4 generated $86 million of organic ASV, the largest quarter in FactSet's history, and Q4 ASV growth accelerated more than 125 basis points versus the comparable rate in 2025.
Read all positive updates
Company Guidance
For FY '27, FactSet expects another strong year with organic ASV growth of 5% to 6.5%, reported revenue growth of 5% to 6% and approximately 100 basis points higher growth on a like-for-like basis; it has not factored in any acceleration for FY '27, expects margin improvement of between 25 and 75 basis points, and expects EPS growth to improve to the high single digits despite an approximately 2% headwind from a higher assumed tax rate and incremental interest expense, estimated at between $0.30 and $0.40 of earnings per share, with $500 million of notes carrying a 2.9% interest rate maturing in March 2027; free cash flow per share should compound over time, while Q1 '27 free cash flow will reflect similar temporary impacts from productivity investments.Factset Research Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | Aug 2026 | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.48B | 2.32B | 2.20B | 2.09B | 1.84B |
| Gross Profit | 1.25B | 1.22B | 1.19B | 1.11B | 972.79M |
| EBITDA | 913.05M | 965.96M | 872.88M | 788.00M | 610.36M |
| Net Income | 533.48M | 597.04M | 537.13M | 468.17M | 396.92M |
Balance Sheet | |||||
| Total Assets | 4.14B | 4.30B | 4.06B | 3.96B | 4.01B |
| Cash, Cash Equivalents and Short-Term Investments | 265.33M | 355.10M | 492.60M | 457.65M | 536.49M |
| Total Debt | 1.54B | 1.56B | 1.57B | 1.84B | 2.22B |
| Total Liabilities | 2.14B | 2.12B | 2.14B | 2.34B | 2.68B |
| Stockholders Equity | 2.00B | 2.19B | 1.91B | 1.62B | 1.33B |
Cash Flow | |||||
| Free Cash Flow | 707.48M | 617.45M | 614.66M | 584.79M | 487.12M |
| Operating Cash Flow | 822.20M | 726.26M | 700.34M | 645.57M | 538.28M |
| Investing Cash Flow | -132.50M | -392.77M | -144.32M | -95.39M | -2.03B |
| Financing Cash Flow | -799.45M | -407.82M | -560.85M | -632.02M | 1.34B |
Factset Research Technical Analysis
Positive
296.08
Price Trends
285.43
Positive
266.64
Positive
247.36
Positive
Market Momentum
4.22
Negative
62.81
Neutral
83.96
Negative
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 296.08 is above the 20-day moving average (MA) of 279.66, above the 50-day MA of 285.43, and above the 200-day MA of 247.36, indicating a bullish trend. The MACD of 4.22 indicates Negative momentum. The RSI at 62.81 is Neutral, neither overbought nor oversold. The STOCH value of 83.96 is Negative, 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $84.01B | 30.68 | 79.69% | 0.83% | 11.67% | 33.94% | |
79 Outperform | $126.66B | 26.15 | 15.47% | 0.90% | 9.67% | 26.18% | |
76 Outperform | $90.70B | 22.72 | 13.81% | 1.26% | 12.60% | 35.84% | |
73 Outperform | $10.73B | 20.63 | 25.61% | 1.50% | 6.65% | -7.20% | |
73 Outperform | $7.78B | 19.54 | 35.29% | 0.96% | 9.33% | 12.16% | |
69 Neutral | $41.37B | 31.30 | -54.14% | 1.40% | 11.62% | 21.00% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
FDS
Factset Research
301.67
16.37
5.74%
ICE
Intercontinental Exchange
161.56
8.31
5.42%
SPGI
S&P Global
429.64
-18.11
-4.04%
MCO
Moody's
485.07
14.69
3.12%
MORN
Morningstar
207.37
-8.47
-3.92%
MSCI
MSCI
569.08
39.98
7.56%
Factset Research Corporate Events
Business Operations and StrategyExecutive/Board ChangesDividendsFinancial DisclosuresShareholder Meetings
FactSet Research Updates Corporate Governance and Board Powers
Positive
Sep 30, 2026
On September 24, 2026, FactSet’s Board amended the company’s by-laws to expand the ability to delegate board powers to committees, tighten advance notice procedures for shareholder meetings and clarify provisions on officer appointment...
Business Operations and StrategyExecutive/Board Changes
FactSet appoints Marcel Prins to board of directors
Positive
Sep 25, 2026
On September 23, 2026, FactSet’s Board of Directors appointed Marcel Prins as a non-employee director, a move formally announced in a press release dated September 25, 2026. Prins will join under the company’s existing director compens...
Business Operations and StrategyPrivate Placements and Financing
FactSet Research Expands Credit Facilities, Boosts Liquidity
Positive
Aug 31, 2026
On August 28, 2026, FactSet Research Systems Inc. amended its existing senior unsecured credit facilities, originally established in April 2025, with a group of lenders and PNC Bank as administrative agent. The term loan’s final maturity was...
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.