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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 a consensus rating of "Reduce" from fourteen research firms, with five analysts rating the stock as a sell. The company's Q4 earnings missed estimates, with EPS of $4.05 per share, falling short of the Zacks Consensus Estimate of $4.15 per share. Despite a 6.2% year-over-year revenue growth, concerns about AI disruption and margin compression have led to a downgrade in analyst forecasts. Additionally, the stock's valuation has been deemed "attractive" but growth outlook has become more uncertain.

1.c. Company Highlights

2. FactSet's Strong Q4 and Fiscal 2025 Results Drive Growth

FactSet reported strong fourth quarter and fiscal 2025 results, with revenue reaching $2.3 billion, while adjusted operating margin was 36.3% and adjusted EPS grew to $16.98, all meeting or exceeding guidance. The company's organic ASV growth of 5.7% in Q4, reaching $81.8 million, was the largest quarterly increase in company history. Full-year organic ASV growth was $127 million, near the top end of guidance. With actual EPS coming in at $4.05 relative to estimates at $4.13, the results demonstrate a solid performance.

Publication Date: Sep -20

📋 Highlights
  • Q4 Organic ASV Growth:: Surpassed 5.7% to $81.8M, highest quarterly increase in company history.
  • Full-Year Organic ASV Growth:: Reached $127M, near top of guidance, driven by Wealth Solutions (>10% Q4 growth).
  • Financial Performance:: Revenue hit $2.3B; adjusted operating margin at 36.3%; adjusted EPS rose to $16.98.
  • AI & Data Investments:: Free cash flow exceeded $600M, supporting AI roadmap and portfolio lifecycle solutions.
  • 2026 Guidance:: Organic ASV growth of $100M–$150M (5% midpoint), with adjusted EPS guidance of $16.90–$17.60.

Segment-wise Performance

The key drivers of success include continued strong growth in Wealth Solutions (over 10% in Q4) fueled by 7-figure deals and market share gains from legacy providers, 4% year-over-year organic ASV growth in Dealmaker driven by client confidence in FactSet's AI roadmap, and a record quarterly ASV increase in Institutional Buy Side driven by demand for data, analytics, and AI-powered solutions. Partnerships and CGS also saw 8% growth in fiscal 2025, reflecting improved retention, high issuance activity, and demand for proprietary data.

Investment in AI and Data

FactSet's investments in AI and data, including real-time feeds, benchmarks, and aftermarket research, are resonating with clients. The company maintains a strong financial position with free cash flow exceeding $600 million and is committed to its internal research notes offering for institutional buy-side clients, featuring AI-powered workflows. As Helen Shan, CFO, emphasized, "FactSet's pricing discipline remains strong, with price realization stabilizing in 2023."

Valuation and Outlook

With a P/E Ratio of 18.29, P/B Ratio of 4.99, and EV/EBITDA of 13.64, FactSet's valuation appears reasonable. The company anticipates organic ASV growth of $100 million to $150 million (5% growth at the midpoint) in fiscal 2026. GAAP revenues are projected between $2.42 billion and $2.45 billion, with a GAAP operating margin range of 29.5% to 31% and an adjusted operating margin of 34% to 35.5%. Analysts estimate next year's revenue growth at 5.3%, indicating a positive outlook.

Growth Drivers and Strategy

FactSet expects continued growth driven by its differentiated data, AI capabilities, and client focus. The company is investing heavily in AI, with a focus on data, workflows, and AI capabilities, which is currently impacting margins but is expected to drive top-line growth. With a strong product suite and internal innovation, FactSet is well-positioned to become the leading AI-powered financial intelligence platform.

3. NewsRoom

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FactSet Tapped by Amazon for Cloud-Ready Market Intelligence

Dec -04

Source: globenewswire.com

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FactSet and Arcesium Debut Tech To Unite Front, Middle, and Back Office Workflows for Asset Owners and Managers

Dec -03

Source: globenewswire.com

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Capital Fund Management S.A. Invests $5.83 Million in FactSet Research Systems Inc. $FDS

Dec -01

Source: defenseworld.net

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Best Dividend Aristocrats For December 2025

Nov -29

Source: seekingalpha.com

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FactSet Schedules First Quarter 2026 Earnings Call

Nov -20

Source: globenewswire.com

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Acadian Asset Management LLC Acquires Shares of 8,947 FactSet Research Systems Inc. $FDS

Nov -14

Source: defenseworld.net

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Baron Asset Fund Q3 2025 Performance Review

Nov -13

Source: seekingalpha.com

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FactSet Declares Dividend

Nov -06

Source: globenewswire.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
Unum

A-Score: 6.8/10

Value: 7.4

Growth: 5.7

Quality: 6.4

Yield: 5.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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Markel

A-Score: 6.4/10

Value: 7.0

Growth: 7.2

Quality: 7.1

Yield: 0.0

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Zions Bank

A-Score: 6.3/10

Value: 6.7

Growth: 7.0

Quality: 5.8

Yield: 6.0

Momentum: 7.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
FactSet Research Systems

A-Score: 4.9/10

Value: 3.8

Growth: 6.3

Quality: 7.2

Yield: 3.0

Momentum: 0.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Morningstar

A-Score: 4.7/10

Value: 2.9

Growth: 7.7

Quality: 7.2

Yield: 1.0

Momentum: 1.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Dun & Bradstreet Holdings

A-Score: 4.7/10

Value: 6.5

Growth: 4.6

Quality: 3.6

Yield: 2.0

Momentum: 2.0

Volatility: 9.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

290.63$

Current Price

290.63$

Potential

-0.00%

Expected Cash-Flows