Factset Research (FDS) AI Stock Analysis

Factset Research

(BMV:FDS)

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Positive Factors

Recurring Revenue and RetentionRetention above 95% and expanding enterprise relationships support predictable recurring revenue and durable customer relationships. Longer contracts can improve visibility, reinforce switching costs, and create a foundation for cross-selling additional data, analytics, and workflow products over multiple years.

Negative Factors

Operating Margin CompressionMargin compression indicates that infrastructure modernization, cybersecurity, resilience spending, and incentive costs are currently growing faster than operating leverage. Although these investments may support future capabilities, sustained pressure would reduce earnings conversion and limit the benefit of revenue growth.

Factset Research (FDS) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 11.62B
Dividend Yield: 1.21%
Average Volume (3M): 13
Price to Earnings (P/E): 22.5
Beta (1Y): -0.03
Revenue Growth: -4.23%
EPS Growth: -16.48%
Country: Mexico
Employees: 12,444
Sector: Financial
Sector Strength: 68
Industry: Financial - Data & Stock Exchanges

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 Midd...

Factset Research Earnings Call Summary

Earnings Call Date:Sep 29, 2026(Q4-2026)|% Change Since:18.66%|Next Earnings Date:Dec 16, 2026

Earnings Call SentimentPositive

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.

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 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.

Tech & Innovation - Risks related to the company’s reliance on technology and ability to make innovative products

Latest Risks Added

0 New Risks

Factset Research Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

MX:FDS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICE	83Outperform	$94.36B	22.94	14.08%	1.21%	13.51%	33.41%
SPGI	79Outperform	$135.25B	27.74	17.54%	0.83%	5.99%	22.20%
MORN	76Outperform	$8.39B	19.63	41.54%	0.88%	9.43%	30.27%
MCO	72Outperform	$85.15B	30.03	86.44%	0.82%	9.00%	31.83%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MSCI	66Neutral	$44.57B	33.16	-49.71%	1.28%	12.33%	19.69%

* Financial Sector Average

Performance Comparison

MX:FDS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:FDS	Factset Research	6037.51	1140.65	23.29%
ICE	Intercontinental Exchange Inc.	168.85	25.17	17.52%
SPGI	S&P Global	466.55	0.58	0.13%
MCO	Moody's	493.91	12.14	2.52%
MORN	Morningstar	226.19	15.20	7.21%
MSCI	MSCI Inc	623.38	50.50	8.82%

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.

Factset Research AI Stock Analysis