FactSet Research Systems Inc. (FDS) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

FactSet Research Systems Inc. (FDS) Financial Services Profile

FactSet Research Systems Inc. delivers financial data and analytics to investment professionals globally, offering integrated solutions across research, trading, and wealth management. Its established position and comprehensive data offerings cater to a diverse clientele, including portfolio managers, investment banks, and asset managers.

What Is the Investment Thesis for FDS?

With a P/E ratio of 17.22 and a healthy profit margin of 24.5%, the company demonstrates financial stability. A dividend yield of 1.97% offers investors a steady income stream. Key growth catalysts include expansion into emerging markets and continued innovation in its analytics and trading solutions. Potential risks include increased competition from larger financial data providers and the impact of economic downturns on client spending. The company's beta of 0.72 suggests lower volatility compared to the overall market.

Based on FMP financials and quantitative analysis

FDS Key Highlights

FactSet's profit margin stands at 24.5%, reflecting efficient operations and strong pricing power within its niche.

• The company's dividend yield is 1.97%, offering a consistent return for investors.
• FactSet maintains a beta of 0.72, indicating lower volatility compared to the broader market.
• With a P/E ratio of 17.22, FactSet's valuation is attractive compared to some of its peers in the financial data sector.
• FactSet's gross margin of 51.9% showcases its ability to maintain profitability while delivering comprehensive data solutions.

Who Are FDS's Competitors?

FDS is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are FDS's Key Strengths?

Comprehensive suite of financial data and analytics solutions.

• Strong brand reputation and long-standing client relationships.
• Global reach and established presence in major financial markets.
• Recurring revenue model with high client retention rates.

What Are FDS's Weaknesses?

Dependence on the financial services industry, making it vulnerable to economic downturns.

• Potential for disruption from new technologies and alternative data providers.
• Complexity of its platform, which may require extensive training for new users.
• Relatively high cost compared to some competitors.

What Could Drive FDS Stock Higher?

FDS catalyst: Launch of new AI-powered analytics platform in Q3 2026, expected to drive increased client engagement.

• Expansion of ESG data offerings to meet growing demand from investors.
• Strategic partnerships with technology providers to enhance data integration and accessibility.

What Are the Key Risks for FDS?

Economic downturn could reduce client spending on financial data and analytics.

• Increased competition from larger financial data providers with greater resources.
• Cybersecurity risks and data breaches could damage FactSet's reputation.
• Regulatory changes could impact the financial services industry and FactSet's operations.

What Are the Growth Opportunities for FDS?

• Expansion into Emerging Markets: FactSet has the opportunity to expand its presence in emerging markets, where demand for financial data and analytics is growing rapidly. By tailoring its solutions to the specific needs of these markets, FactSet can capture a significant share of the market. This expansion could increase revenue by 15% over the next three years.
• Enhancement of Analytics and Trading Solutions: FactSet can further enhance its analytics and trading solutions to provide clients with more powerful tools for investment decision-making. By incorporating artificial intelligence and machine learning technologies, FactSet can offer predictive analytics and personalized insights. This enhancement could attract new clients and increase revenue by 10% annually.
• Strategic Acquisitions: FactSet can pursue strategic acquisitions to expand its product offerings and geographic reach. By acquiring companies with complementary technologies or market access, FactSet can accelerate its growth and strengthen its competitive position. Potential acquisition targets include smaller data providers or analytics firms.
• Development of New Data Products: FactSet can develop new data products to meet the evolving needs of its clients. This could include alternative data sets, ESG data, or specialized industry data. By offering unique and valuable data, FactSet can differentiate itself from competitors and attract new clients. The market for alternative data is projected to reach $3 billion by 2028.
• Strengthening Partnerships: FactSet can strengthen its partnerships with other technology providers and financial institutions to expand its distribution channels and reach new clients. By integrating its solutions with other platforms, FactSet can make its data and analytics more accessible to a wider audience. This partnership strategy could increase revenue by 8% annually.

What Are FDS's Competitive Advantages?

• High switching costs due to the integration of FactSet's data into client workflows.
• Extensive data library and proprietary analytics tools.
• Strong brand reputation and long-standing relationships with key clients.
• Global reach and established presence in major financial markets.

What Does FDS Do?

Founded in 1978 and headquartered in Norwalk, Connecticut, FactSet Research Systems Inc. has evolved into a leading provider of integrated financial information and analytical applications for the global investment community. The company's journey began with a focus on delivering high-quality, accurate financial data, and it has since expanded its offerings to include a comprehensive suite of workflow solutions. These solutions encompass research, analytics, trading, content and technology solutions, and wealth management tools. FactSet serves a diverse range of clients, including portfolio managers, investment banks, asset managers, wealth advisors, corporate clients, and other financial services entities across the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions. FactSet's commitment to innovation and client service has solidified its position as a key player in the financial data and analytics landscape, competing with major firms by offering specialized and integrated solutions.

What Products and Services Does FDS Offer?

• Provide financial data and analytics to investment professionals.
• Offer research, analytics, and trading workflow solutions.
• Deliver content and technology solutions for financial institutions.
• Provide wealth management tools and solutions.
• Serve portfolio managers, investment banks, and asset managers.
• Cater to corporate clients and other financial services entities.

How Does FDS Make Money?

• Subscription-based revenue model for access to its data and analytics platforms.
• Customized solutions and services tailored to specific client needs.
• Partnerships with other technology providers and financial institutions.
• Global sales and support network to serve clients in multiple regions.

What Industry Does FDS Operate In?

FactSet operates within the financial data and stock exchange industry, a sector characterized by increasing demand for sophisticated analytics and real-time data. The industry is driven by the growing complexity of financial markets and the need for investment professionals to make informed decisions. FactSet competes with established players by offering specialized and integrated solutions. The market is experiencing growth driven by technological advancements and the globalization of financial markets.

Who Are FDS's Key Customers?

• Portfolio managers at hedge funds and mutual funds.
• Investment bankers at large financial institutions.
• Asset managers overseeing institutional and retail investments.
• Wealth advisors providing financial planning services.
• Corporate clients needing financial data for strategic decision-making.

Over the past six months, FactSet Research Systems Inc. insiders filed 2 SEC Form 4 transactions — 0 sales and 2 purchases. On net that is roughly 11K shares acquired (about $1.9M) — insiders putting money in tends to read as conviction.

Quarterly Financial Performance: FactSet Research Systems Inc.

Revenue for FactSet Research Systems Inc. came in at $622.9M during Q3 FY2026, a 1.9% improvement versus the preceding quarter. The company recorded net income of $126.7M, with diluted EPS of $3.43. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Financial Services company. Across the four most recent quarters, FDS averaged $3.78 in diluted EPS.

FDS Valuation & Market Position

With a $9.35B market cap, FactSet Research Systems Inc. sits in the mid-cap segment of the market. Analyst price targets span from $210.00 to $304.00, with a consensus of $255.17. At the current price of $262.93, that implies roughly 3% downside from the consensus target. Relative to its peer group, FDS's quantitative score of 84/100 is roughly in line with the peer average of 75/100.

Return on equity for FactSet Research Systems Inc. stands at 26.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 13.5%, showing how much profit it generates from its asset base. FDS trades at a trailing price-to-earnings ratio of 17.22, roughly in line with the Financial Services sector average of ~17.50x. Its free cash flow yield is 7.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.68 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 6.3%, the inverse of the P/E and a quick read on earnings relative to price.

FactSet Research Systems Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 4.70 places it in the safe zone, indicating low near-term bankruptcy risk.

FactSet Research Systems Inc. has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 1.7% above estimates on average.

Company Profile

FactSet Research Systems Inc. operates in the Financial - Data & Stock Exchanges industry within the Financial Services sector. It is headquartered in Norwalk, US. The company is led by CEO Sanoke Viswanathan. FDS has traded publicly since 1996.

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Latest FactSet Research Systems Inc. Analysis

FactSet Research Systems Inc. Financial Services Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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