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1. Company Snapshot

1.a. Company Description

FactSet Research Systems Inc., a financial data and analytics company, provides integrated financial information and analytical applications to the investment community in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.The company delivers insight and information through the workflow solutions of research, analytics and trading, content and technology solutions, and wealth.It serves portfolio managers, investment banks, asset managers, wealth advisors, corporate clients, and other financial services entities.


FactSet Research Systems Inc.was founded in 1978 and is headquartered in Norwalk, Connecticut.

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1.b. Last Insights on FDS

FactSet Research Systems Inc.'s recent performance was negatively impacted by rising operating costs, which threaten margins and near-term growth. Despite this, the company demonstrates resilient fundamentals, including 95% client retention and 5.9% ASV growth. AI disruption fears have driven the stock's forward P/E to 11.5, but FactSet is actively integrating AI to enhance services. A 'Strong Buy' rating is warranted due to historically low valuation multiples. The company also benefits from partnerships, rising ASV, and a strong liquidity position.

1.c. Company Highlights

2. FactSet Accelerates ASV Growth, AI Momentum Drives Earnings

FactSet reported Q2 fiscal 2026 revenue of $611 million, up 7.1% YoY, with a 6.8% organic ASV acceleration to $2.45 billion. Adjusted operating margin held steady at 35%, and adjusted diluted EPS rose to $4.46, 4% higher year‑over‑year. CEO Sanoke Viswanathan highlighted the company’s “foundational strengths”—connected data, embedded workflows, best‑in‑class service, and broad distribution—as key drivers of this performance. The stock trades at a P/E of 14.01 and a P/B of 3.87, reflecting modest valuation multiples for a data‑centric tech firm.

Publication Date: Apr -09

📋 Highlights
  • Accelerated ASV Growth: Achieved 6.7% growth to $2.45 billion, driven by client expansion and pricing increases.
  • Strong Financial Outcomes: Adjusted operating margin at 35%, EPS rose 4% to $4.46, with revenue up 7.1% to $611 million YoY.
  • Strategic AI Integration: Over 120 clients actively use MCP Server, part of AI stack solutions, with 500+ basis points of productivity improvements captured.
  • Client Retention & Expansion: Net Promoter Score improved by five points, 98 net new clients added, total users exceeding 241,000.
  • Market Positioning in AI: Leverage five data differentiation factors (depth, cohesiveness, etc.) to build AI-enabled infrastructure for institutional finance.

Client Expansion

FactSet added 98 net new clients in Q2, bringing total corporate users to 9,101 and expanding the user base to over 241,000. The growth was fueled by strong expansion within existing accounts, including a major global investment bank’s renewal and an Australian private equity fund’s adoption of FactSet’s private capital data assets.

AI Adoption

Over 120 clients are actively engaged with FactSet’s MCP Server, launched in December, underscoring the company’s early traction in AI solutions. The open architecture and partnerships with AI natives such as Anthropic enable FactSet to embed AI across its data and workflow stack, positioning it as a leading provider for AI‑enabled institutional finance.

Product Wins

FactSet expanded its Portware trading platform usage with Capital Group and secured new wins with large asset managers. Its LiquidityBook order‑management solution is gaining momentum among hedge funds and institutional buy‑side clients, while integrations with premier research firms like JPMorgan, Barclays, and Kepler further deepen the platform’s value proposition.

Margin Drivers

The 35% adjusted operating margin reflects strategic investments in technology infrastructure, professional services, and product development, while cost‑saving initiatives capture over 50% of the targeted 100 basis‑point productivity improvement. These efficiencies, coupled with higher pricing capture in the Americas, sustain margin strength.

Future Outlook

FactSet has raised its fiscal 2026 ASV, revenue, and EPS outlooks, citing sustained momentum across client types and geographies. A five‑point Net Promoter Score lift among investment banking users is expected to fuel ASV retention and expansion, while the company’s focus on AI, data depth, and workflow integration continues to drive demand.

Valuation Snapshot

At a P/E of 14.01 and a P/B of 3.87, FactSet trades at modest multiples that reflect its high‑growth profile and strong cash‑flow generation (Free Cash Flow Yield of 8.26%). With a dividend yield of 1.97% and a robust ROE of 27.22%, the company offers a balanced blend of growth and income for investors.

3. NewsRoom

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FDS vs. VRSK: Which Stock Should Value Investors Buy Now?

Apr -29

Source: zacks.com

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WM's Earnings Surpass Estimates in Q1, Revenues Rise Y/Y

Apr -29

Source: zacks.com

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FactSet and J.P. Morgan Expand Collaboration with Launch of Whole Portfolio Distribution, Transforming Portfolio Analytics

Apr -29

Source: globenewswire.com

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Factset Research Systems: Don't Just Consume Data, Provide It

Apr -24

Source: seekingalpha.com

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Buy These 3 Stocks for Solid Sales Growth As Markets Hit Record Highs

Apr -21

Source: zacks.com

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Argo Wealth Advisory LLC Makes New Investment in FactSet Research Systems Inc. $FDS

Apr -17

Source: defenseworld.net

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A Look at FactSet Research Systems Inc (FDS) After 3.2% Gain -- GF Value $499.19 vs Price $230.75

Apr -15

Source: gurufocus.com

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The Market Is Too Harsh On FactSet Research Systems

Apr -13

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Integrated Financial Information & Analytical Applications

Expected Growth: 5.0%

FactSet's Integrated Financial Information & Analytical Applications' 5.0% growth is driven by increasing demand for data-driven investment decisions, expansion into new markets, and strategic partnerships. The company's ability to provide accurate and timely financial data, coupled with its advanced analytics capabilities, has attracted a growing client base of institutional investors, asset managers, and wealth management firms.

7. Detailed Products

FactSet Workstation

A comprehensive platform that provides access to financial data, analytics, and workflow tools for investment professionals.

FactSet Estimates

A database of consensus estimates and detailed forecasts from leading analysts, providing insights into company performance and market trends.

FactSet Ownership

A database of institutional ownership and mutual fund holdings, providing insights into investor behavior and market trends.

FactSet Supply Chain

A database of supply chain relationships, providing insights into company operations, risk management, and supply chain optimization.

FactSet People

A database of executive and director profiles, providing insights into company leadership, governance, and board composition.

FactSet Data Feeds

A suite of data feeds providing access to financial data, news, and analytics, integrated into client workflows and applications.

FactSet Analytics

A suite of analytics tools providing insights into company performance, industry trends, and market sentiment.

8. FactSet Research Systems Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

FactSet Research Systems Inc. faces moderate threat from substitutes due to the availability of alternative financial data providers, but its strong brand reputation and diversified product offerings mitigate this threat.

Bargaining Power Of Customers

FactSet Research Systems Inc. has a diverse customer base, which reduces the bargaining power of individual customers, and its products are often essential to customers' operations, making it difficult for them to negotiate prices.

Bargaining Power Of Suppliers

FactSet Research Systems Inc. has a diversified supplier base, and its suppliers are not concentrated, reducing their bargaining power. The company's strong financial position also gives it negotiating power over its suppliers.

Threat Of New Entrants

The financial data and analytics industry has high barriers to entry, including significant capital requirements and the need for specialized expertise, making it difficult for new entrants to compete with FactSet Research Systems Inc.

Intensity Of Rivalry

The financial data and analytics industry is highly competitive, with several established players competing for market share, and FactSet Research Systems Inc. must continually innovate and invest in its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.17%
Debt Cost 4.50%
Equity Weight 46.83%
Equity Cost 7.59%
WACC 5.95%
Leverage 113.53%

11. Quality Control: FactSet Research Systems Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Markel

A-Score: 6.4/10

Value: 6.7

Growth: 7.2

Quality: 6.8

Yield: 0.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Zions Bank

A-Score: 5.9/10

Value: 7.0

Growth: 6.9

Quality: 6.2

Yield: 6.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Unum

A-Score: 5.8/10

Value: 5.7

Growth: 5.6

Quality: 5.1

Yield: 5.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Dun & Bradstreet Holdings

A-Score: 4.8/10

Value: 6.9

Growth: 4.6

Quality: 3.8

Yield: 2.0

Momentum: 2.5

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Morningstar

A-Score: 4.8/10

Value: 2.7

Growth: 7.6

Quality: 7.2

Yield: 1.0

Momentum: 1.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
FactSet Research Systems

A-Score: 4.7/10

Value: 3.6

Growth: 6.3

Quality: 7.3

Yield: 3.0

Momentum: 0.5

Volatility: 7.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

232.32$

Current Price

232.32$

Potential

-0.00%

Expected Cash-Flows