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FactSet Research Systems Inc (FDS) Stock

FactSet Research Systems Inc Stock Details, Movements and Public Alerts

FactSet Research Systems (FDS): The $15B Financial Data Platform Powering Investment Decisions

When portfolio managers analyze earnings revisions, quants build factor models, or bankers prepare M&A presentations, FactSet's integrated platform provides the data, analytics, and workflow tools that power institutional investment processes. CEO Phil Snow, a 27-year FactSet veteran who became CEO in 2015, has transformed the company from a desktop terminal provider into a comprehensive analytics platform processing 200M+ data feeds daily. The 2022 CUSIP acquisition added critical security identification infrastructure while Truvalue Labs enhanced ESG analytics capabilities. Trading at 26x forward earnings after significant compression from 2021 peaks, FactSet offers defensive financial infrastructure exposure with 95%+ retention rates, 15%+ operating margins, and steady mid-single-digit growth from wallet share expansion and new client wins.

52-Week Range

$491.19 - $249.51

-40.55% from high · +17.04% from low

Avg Daily Volume

703,791

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

18.76

Near market average

Forward P/E

16.84

Earnings expected to grow

PEG Ratio

1.67

Reasonably valued

Price to Book

4.99

EV/EBITDA

12.54

EPS (TTM)

$15.59

Price to Sales

4.76

Beta

0.74

Less volatile than market

How is FDS valued relative to its earnings and growth?
FactSet Research Systems Inc trades at a P/E ratio of 18.76, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 16.84 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.67 indicates reasonable value when growth is considered.
What is FDS's risk profile compared to the market?
With a beta of 0.74, FactSet Research Systems Inc is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 4.99 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

25.70%

Operating Margin

29.70%

EBITDA

$905.99M

Return on Equity

29.10%

Return on Assets

11.20%

Revenue Growth (YoY)

6.20%

Earnings Growth (YoY)

72.80%

How profitable and efficient is FDS's business model?
FactSet Research Systems Inc achieves a profit margin of 25.70%, meaning it retains $25.70 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 29.70% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 29.10% and ROA at 11.20%, the company generates strong returns on invested capital.
What are FDS's recent growth trends?
FactSet Research Systems Inc's revenue grew by 6.20% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 72.80% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against FINANCIAL DATA & STOCK EXCHANGES industry averages for proper context.

Dividend Information

Dividend Per Share

$4.28

Dividend Yield

1.47%

Ex-Dividend Date

Nov 28, 2025

Dividend Date

Dec 18, 2025

What dividend income can investors expect from FDS?
FactSet Research Systems Inc offers a dividend yield of 1.47%, paying $4.28 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Nov 28, 2025.
How reliable is FDS's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - FactSet Research Systems Inc pays $4.28 per share in dividends against earnings of $15.59 per share, resulting in a payout ratio of 27.45%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Dec 18, 2025.

Company Size & Market

Market Cap

$11.1B

Revenue (TTM)

$2.32B

Revenue/Share (TTM)

$61.22

Shares Outstanding

37.42M

Book Value/Share

$58.08

Asset Type

Common Stock

What is FDS's market capitalization and position?
FactSet Research Systems Inc has a market capitalization of $11.1B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 37.42M shares outstanding, the company's ownership is relatively concentrated. As a participant in the FINANCIAL DATA & STOCK EXCHANGES industry, it competes with other firms in this sector.
How does FDS's price compare to its book value?
FactSet Research Systems Inc's book value per share is $58.08, while the current stock price is $292.03, resulting in a price-to-book (P/B) ratio of 5.03. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$333.19

14.09% upside potential

Analyst Recommendations

Strong Buy

0

Buy

3

Hold

10

Sell

5

Strong Sell

1

How reliable are analyst predictions for FDS?
19 analysts cover FDS with 16% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $333.19 implies 14.1% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on FDS?
Current analyst recommendations:03 Buy, 10 Hold, 5 Sell, 1 Strong Sell. The bearish sentiment indicates concerns, but contrarian investors sometimes find opportunities when Wall Street is negative.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:27 AM

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FactSet Research Systems (FDS) Stock Analysis 2025: Financial Data Guide

The Financial Data Workstation

FactSet originated in 1978 when Howard Wille and Chuck Snyder recognized that investment professionals needed integrated access to company fundamentals, earnings estimates, and market data. CEO Phil Snow, who joined as an analyst in 1996 and became CEO in 2015, has stewarded the company through financial industry transformation—from desktop terminals to cloud platforms, from fundamental data to alternative data, from buy-side focus to sell-side and wealth expansion. Today's FactSet processes 200M+ data feeds daily, serves 8,000+ institutional clients, and employs 12,000+ professionals globally.

The product portfolio spans content (fundamental data, estimates, ownership, fixed income, alternatives), analytics (portfolio analysis, risk models, quantitative tools), and workflow solutions (trading, CRM, reporting). Integration differentiates FactSet from point solutions—clients access unified platforms combining multiple data sources with analytical tools rather than stitching together disparate systems. The CUSIP Global Services acquisition added security identification infrastructure that underpins financial markets, creating regulatory moat revenue that competitors cannot replicate. CEO Phil Snow's strategy emphasizes this integration and content breadth as sustainable competitive advantages.

Business Model & Competitive Position

FactSet generates revenue through annual subscriptions typically structured as multi-year contracts with 3-5% annual escalators. Revenue breaks down across client types: buy-side institutions (asset managers, hedge funds, pension funds) represent 60%+ of revenue, sell-side firms (investment banks, broker-dealers) contribute 20%+, and wealth management/corporates provide the remainder. Geographic mix approximates 60% Americas, 25% EMEA, and 15% Asia-Pacific, with international representing the faster growth opportunity.

Competitive advantages derive from integration, switching costs, and content depth. Clients embed FactSet into investment processes over years, creating workflow dependency that makes switching costly and disruptive. The 95%+ retention rate reflects this stickiness. Content aggregation across 100+ data suppliers provides one-stop shopping convenience while proprietary content (FactSet Fundamentals, StreetAccount news) creates unique value. However, FactSet competes against larger platforms (Bloomberg Terminal, S&P Global) with deeper resources and emerging alternatives (web-based tools, API-first platforms) targeting specific workflows.

Financial Performance

  • •Revenue: $2.2B+ annually growing 6-8% through ASV expansion and new client wins
  • •ASV (Annual Subscription Value): $2.3B+ representing forward revenue visibility with 95%+ retention
  • •Margins: 35%+ operating margins with incremental margins expanding through scale
  • •FCF Conversion: 85%+ free cash flow conversion enabling acquisitions and buybacks
  • •Dividend: $3.60/share annually (1.2% yield) with 25 consecutive years of increases
  • •Valuation: 26x forward P/E compressed from 40x+ peaks; 7x revenue

Growth Catalysts

  • •Wealth Management Expansion: Advisor-focused products targeting $2T+ RIA market with scaled solutions
  • •CUSIP Revenue Growth: Security identification services benefiting from new issuance and regulatory requirements
  • •ESG/Alternative Data: Truvalue Labs and sustainability analytics addressing institutional mandates
  • •International Penetration: EMEA and APAC representing underpenetrated markets with expansion opportunity
  • •Private Markets: Private company data and valuation tools addressing growing allocation to alternatives

Risks & Challenges

  • •Bloomberg Dominance: Bloomberg Terminal's 30%+ market share and brand create formidable competitive barrier
  • •Client Consolidation: Asset manager M&A reduces client count and creates pricing pressure on renewals
  • •Fee Compression: Investment management fee pressure flows through to data vendor budgets
  • •Technology Disruption: API-first platforms and open-source tools targeting specific use cases
  • •Cyclical Headwinds: Hiring freezes and cost-cutting at financial institutions during downturns

Competitive Landscape

Bloomberg Terminal dominates financial data with 30%+ market share and ubiquitous brand recognition. S&P Global (Market Intelligence platform) and LSEG (Refinitiv acquisition) represent scaled competitors with broader product portfolios. Morningstar targets investment research with retail and advisor focus. Specialized providers including MSCI (indexes, ESG), ICE (fixed income data), and Moody's Analytics compete in specific segments. FactSet differentiates through integration and mid-market positioning—comprehensive enough for sophisticated institutions, accessible enough for smaller firms.

CEO Phil Snow's strategy acknowledges Bloomberg's terminal dominance while targeting opportunities in workflow automation, wealth management, and content depth. The CUSIP acquisition created infrastructure-level positioning that Bloomberg lacks. FactSet's open architecture—enabling integration with third-party systems rather than forcing proprietary ecosystems—appeals to clients seeking flexibility. However, competing against Bloomberg's resources and S&P Global's scale requires continued innovation and service excellence.

Who Is This Stock Suitable For?

Perfect For

  • ✓Quality investors seeking financial data infrastructure exposure
  • ✓Dividend growth investors valuing 25-year increase streak
  • ✓Defensive investors wanting recurring revenue subscription model
  • ✓Long-term holders comfortable with premium quality valuation

Less Suitable For

  • ✗Value investors seeking discounted entry points
  • ✗Growth investors requiring double-digit revenue acceleration
  • ✗Those concerned about Bloomberg competitive dominance
  • ✗Investors uncomfortable with financial services client concentration

Investment Thesis

FactSet offers defensive exposure to financial data infrastructure with 95%+ client retention and subscription-based recurring revenue. CEO Phil Snow's integration strategy and CUSIP acquisition create sustainable advantages against point solutions while avoiding direct Bloomberg Terminal competition. The 35%+ operating margins with expansion potential and 25-year dividend growth streak reflect business model quality that justifies premium valuation for long-term compounders.

The investment debate centers on growth trajectory and competitive positioning. Bulls argue that wealth management expansion, CUSIP integration, and international penetration support 8%+ revenue growth sustaining premium multiples. Bears cite Bloomberg dominance, client consolidation, and technology disruption limiting growth potential. The 26x forward P/E (down from 40x+ peaks) provides more reasonable entry point, though hardly cheap. For quality-focused portfolios seeking financial infrastructure exposure, FactSet merits consideration at current levels with patience for mid-single-digit growth compounding.

Conclusion

FactSet is a HOLD for quality-focused investors seeking financial data exposure with defensive characteristics. The 95%+ retention and subscription model provide downside protection while wealth management expansion offers growth optionality. The 26x forward P/E represents fair value for quality assets after significant compression. Accumulate on weakness below $380 (23x P/E) for more attractive entry; current levels offer reasonable long-term compounding potential.
Bull Case
$520 (25% upside) - Wealth expansion accelerates, margins expand to 38%+, multiple recovers
Base Case
$440 (6% upside) - Steady 6-7% growth, margins hold, dividend grows 8-10%
Bear Case
$340 (18% downside) - Client consolidation accelerates, growth slows to 4%, multiple compresses

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