FactSet Research Systems Inc. (FDS)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
FactSet Research Systems Inc. (FDS) trades at $198.33 with AI Score 54/100 (Hold). FactSet Research Systems Inc. provides integrated financial information and analytical applications to the global investment community. Market cap: 8B, Sector: Financial services.
Last analyzed: Feb 8, 2026FactSet Research Systems Inc. (FDS) Financial Services Profile
FactSet delivers indispensable financial data and analytics, empowering investment professionals globally with research, trading, and wealth management solutions. Its robust platform, high profit margins, and consistent dividend yield make it a compelling choice for investors seeking stability and growth in the financial data sector.
Investment Thesis
FactSet presents a notable research candidate due to its established market position, consistent profitability, and attractive dividend yield of 2.09%. The company's high profit margin of 25.4% and gross margin of 52.3% demonstrate its operational efficiency and pricing power. FactSet's beta of 0.73 indicates lower volatility compared to the overall market, making it a relatively stable investment. Growth catalysts include expanding its content and technology solutions and increasing its presence in the Asia Pacific region. With a P/E ratio of 12.93, FactSet appears reasonably valued compared to its peers, offering potential for capital appreciation as the company continues to execute its growth strategy.
Based on FMP financials and quantitative analysis
Key Highlights
- Market capitalization of $7.76 billion, reflecting its significant presence in the financial data and analytics market.
- P/E ratio of 12.93, suggesting a potentially undervalued stock compared to its earnings.
- Profit margin of 25.4%, indicating strong profitability and efficient operations.
- Gross margin of 52.3%, showcasing the company's ability to maintain healthy pricing and cost control.
- Dividend yield of 2.09%, providing a consistent income stream for investors.
Competitors & Peers
Strengths
- Integrated financial data and analytics platform.
- Strong brand reputation and client relationships.
- Global reach and extensive data coverage.
- High profit margins and consistent profitability.
Weaknesses
- Reliance on the financial services industry.
- Potential for disruption from new technologies.
- Vulnerability to economic downturns.
- Complex product offerings may require significant training.
Catalysts
- Ongoing: Continued expansion of content and technology solutions.
- Ongoing: Increasing adoption of wealth management solutions.
- Upcoming: Potential strategic acquisitions to expand product portfolio.
- Ongoing: Leveraging artificial intelligence to enhance data processing.
Risks
- Potential: Economic downturns and market volatility impacting client spending.
- Potential: Increasing competition from established players and new entrants.
- Ongoing: Cybersecurity risks and data breaches.
- Potential: Changes in regulatory landscape affecting financial data providers.
Growth Opportunities
- Expanding Content and Technology Solutions: FactSet can drive growth by continuously enhancing its content and technology offerings. This includes incorporating alternative data sources, developing advanced analytics tools, and leveraging artificial intelligence to provide deeper insights. The market for alternative data is estimated to reach billions of dollars, presenting a significant opportunity for FactSet to capture a larger share by offering differentiated and value-added solutions. Timeline: Ongoing.
- Increasing Presence in Asia Pacific: The Asia Pacific region represents a significant growth opportunity for FactSet. As the financial markets in Asia continue to develop, the demand for high-quality financial data and analytics is expected to increase. FactSet can expand its presence in the region by establishing strategic partnerships, tailoring its solutions to local market needs, and investing in sales and marketing efforts. This expansion could contribute significantly to revenue growth over the next 3-5 years.
- Strategic Acquisitions: FactSet can pursue strategic acquisitions to expand its product portfolio, enter new markets, and gain access to new technologies. By acquiring complementary businesses, FactSet can enhance its competitive position and accelerate its growth trajectory. Identifying and integrating suitable acquisition targets will be crucial for realizing the full potential of this growth strategy. Timeline: Ongoing.
- Enhancing Wealth Management Solutions: The wealth management industry is undergoing significant transformation, driven by increasing demand for personalized advice and digital solutions. FactSet can capitalize on this trend by enhancing its wealth management solutions to provide advisors with the tools and insights they need to serve their clients effectively. This includes developing integrated platforms, offering advanced portfolio analytics, and providing access to a wide range of investment research. Timeline: Ongoing.
- Leveraging Artificial Intelligence: FactSet can leverage artificial intelligence (AI) and machine learning (ML) to enhance its data processing capabilities, improve its analytics tools, and personalize its client experience. By incorporating AI and ML into its platform, FactSet can provide its clients with more timely, accurate, and actionable insights. The market for AI in financial services is growing rapidly, presenting a significant opportunity for FactSet to gain a competitive advantage. Timeline: Ongoing.
Opportunities
- Expanding into new markets and geographies.
- Developing new products and services.
- Leveraging artificial intelligence and machine learning.
- Acquiring complementary businesses.
Threats
- Increasing competition from established players and new entrants.
- Changing regulatory landscape.
- Economic downturns and market volatility.
- Cybersecurity risks and data breaches.
Competitive Advantages
- High switching costs due to integration into client workflows.
- Proprietary data and analytics platform.
- Strong brand reputation and long-standing client relationships.
- Global reach and extensive data coverage.
- Expertise in financial data and analytics.
About FDS
Founded in 1978, 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 initial focus was on delivering accurate and timely financial data, a need that was underserved at the time. Over the years, FactSet has expanded its offerings to include a comprehensive suite of tools and services, catering to a diverse range of financial professionals. FactSet's core offerings are delivered through workflow solutions spanning research, analytics, trading, content, and technology. These solutions empower portfolio managers, investment bankers, asset managers, wealth advisors, corporate clients, and other financial services entities to make informed decisions. FactSet operates across the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions, serving a global clientele. The company distinguishes itself through its commitment to data accuracy, innovative technology, and exceptional client service, fostering long-term relationships with its users. Its headquarters are located in Norwalk, Connecticut.
What They Do
- Provides integrated financial information to investment professionals.
- Offers analytical applications for portfolio management.
- Delivers research and trading workflow solutions.
- Provides content and technology solutions for financial analysis.
- Offers wealth management solutions for advisors.
- Serves portfolio managers, investment banks, and asset managers.
- Caters to wealth advisors and corporate clients.
- Empowers financial services entities with data-driven insights.
Business Model
- Subscription-based revenue model, providing recurring income.
- Sells access to its integrated financial data and analytics platform.
- Offers customized solutions tailored to specific client needs.
- Generates revenue through long-term contracts with financial institutions.
Industry Context
FactSet operates in the financial data and stock exchange industry, which is experiencing growth driven by increasing demand for sophisticated analytics and data-driven insights. The market is competitive, with key players vying for market share. FactSet differentiates itself through its integrated solutions, global reach, and commitment to client service. The industry is also being shaped by technological advancements, such as artificial intelligence and machine learning, which are enabling more efficient data processing and analysis. FactSet's focus on innovation and its ability to adapt to changing market dynamics position it well for continued success.
Key Customers
- Portfolio managers seeking investment insights.
- Investment banks requiring data for analysis and trading.
- Asset managers needing tools for portfolio construction.
- Wealth advisors providing financial advice to clients.
- Corporate clients requiring financial data for strategic decision-making.
Financials
Chart & Info
FactSet Research Systems Inc. (FDS) stock price: $198.33 (+2.06, +1.05%)
Latest News
-
Duos Technologies Q4 Loss Narrows, Revenue Rises
MT Newswires · Mar 31, 2026
-
Stocks Surge on Signs the US and Iran Seek to End War
Barchart · Mar 31, 2026
-
These Stocks Are Today’s Movers: CoreWeave, Microsoft, McCormick, Constellation, Biogen, Marvell, and More
Barrons.com · Mar 31, 2026
-
Trump Signals Iran Exit, S&P 500 Heads For Worst Month Since September 2022: What's Moving The Market On Tuesday?
benzinga · Mar 31, 2026
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FDS.
Price Targets
Consensus target: $248.67
MoonshotScore
What does this score mean?
The MoonshotScore rates FDS's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Duos Technologies Q4 Loss Narrows, Revenue Rises
Stocks Surge on Signs the US and Iran Seek to End War
These Stocks Are Today’s Movers: CoreWeave, Microsoft, McCormick, Constellation, Biogen, Marvell, and More
Trump Signals Iran Exit, S&P 500 Heads For Worst Month Since September 2022: What's Moving The Market On Tuesday?
Latest FactSet Research Systems Inc. Analysis
FactSet Research Systems Inc. Stock: Key Questions Answered
What does FactSet Research Systems Inc. do?
FactSet Research Systems Inc. is a leading provider of integrated financial information and analytical applications to the global investment community. The company delivers insight and information through workflow solutions spanning research, analytics, trading, content, and technology. FactSet serves a diverse clientele, including portfolio managers, investment banks, asset managers, wealth advisors, and corporate clients, empowering them with the data and tools they need to make informed investment decisions. Its comprehensive platform and global reach position FactSet as a key enabler in the financial services ecosystem.
Is FDS stock worth researching?
FDS stock presents a notable research candidate given its established market position, consistent profitability, and attractive dividend yield. The company's high profit margin and gross margin demonstrate its operational efficiency. While the P/E ratio suggests a reasonable valuation, potential investors may want to evaluate the risks associated with the financial services industry, including economic downturns and increasing competition. However, FactSet's growth catalysts, such as expanding its content and technology solutions and increasing its presence in Asia Pacific, could drive future growth and enhance shareholder value.
What are the main risks for FDS?
FactSet faces several key risks, including economic downturns and market volatility, which could negatively impact client spending and demand for its services. Increasing competition from established players and new entrants poses a threat to its market share. Cybersecurity risks and data breaches are also a significant concern, as a breach could damage its reputation and result in financial losses. Additionally, changes in the regulatory landscape could affect financial data providers and increase compliance costs. These risks should be carefully considered before investing in FDS.
What are the key factors to evaluate for FDS?
FactSet Research Systems Inc. (FDS) currently holds an AI score of 54/100, indicating moderate score. The stock trades at a P/E of 12.4x, below the S&P 500 average (~20-25x), potentially signaling value. Analysts target $248.67 (+25% from $198.33). Key strength: Integrated financial data and analytics platform.. Primary risk to monitor: Potential: Economic downturns and market volatility impacting client spending.. This is not financial advice.
How frequently does FDS data refresh on this page?
FDS prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven FDS's recent stock price performance?
Recent price movement in FactSet Research Systems Inc. (FDS) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. The current analyst target of $248.67 implies 25% upside from here. Notable catalyst: Integrated financial data and analytics platform.. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Should investors consider FDS overvalued or undervalued right now?
Determining whether FactSet Research Systems Inc. (FDS) is overvalued or undervalued requires examining multiple metrics. Its P/E ratio is 12.4. Analysts target $248.67 (+25% from current price), suggesting analysts see upside potential. Compare valuation ratios (P/E, P/S, EV/EBITDA) against sector peers for a comprehensive view.
What research should beginners do before buying FDS?
Before investing in FactSet Research Systems Inc. (FDS), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Stock data pending update, which may affect valuation metrics.
- Future growth opportunities are subject to market conditions and execution risks.