olivLaw · US equity research
FactSet Research Systems Inc. FDS
Services-Computer Programming, Data Processing, Etc. · SIC 7370 · Vertical: Services-Computer Programming, Data Processing, Etc. (SIC 7370)
FactSet provides financial data, analytics and AI-powered solutions to finance professionals worldwide. For fiscal 2026 it reported revenues of 2476.3 million USD, up 6.7%, and organic ASV growth of 7.0% shows that its subscription model remains solid as it shifts toward AI.
At the close of 04 Nov 2026, FactSet Research Systems Inc. (FDS) stock was 342.19 USD (+2.89% on the day), with market capitalisation 12.1 bn USD, P/E 23.5 on diluted EPS of 14.57 USD over the last 12 months, dividend yield 1.32%, beta 0.41, 52-week range 190.06–343.74 USD. Latest reported quarter (Q4 2026): revenue of 634.7 m USD (+6.3% YoY), net income of 121.1 m USD (−21.1% YoY), diluted EPS 3.40 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 65.9
- strong (55–70)
- Bollinger (20, 2)
- 276.09 – 350.14
- in the upper half of the band · %B 0.89 · band width 23.6%
- SMA 50 / 200
- 294.84 / 251.13
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 13.66 / 11.38
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +23.8% | −1.1% | +24.9 pp | — |
| 3 months | +23.1% | −0.5% | +23.5 pp | — |
| 6 months | +61.6% | +4.4% | +57.2 pp | — |
| Year to date | +17.9% | +12.3% | +5.6 pp | — |
| 1 year | +29.3% | +13.5% | +15.8 pp | −21.0% |
| 3 years | −22.9% | +76.4% | −99.3 pp | −11.3% |
| 5 years | −23.4% | +63.7% | −87.1 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q4 2026 · 31 Aug 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 568.7 m | 570.7 m | 585.5 m | 596.9 m | 607.6 m | 611.0 m | 622.9 m | 634.7 m |
| Cost of revenue | 258.8 m | 269.6 m | 280.7 m | 288.7 m | 287.9 m | 296.7 m | 312.2 m | 326.3 m |
| SG&A | 118.6 m | 115.6 m | 110.6 m | 130.9 m | 127.6 m | 129.3 m | 144.4 m | 151.8 m |
| Operating income | 191.3 m | 185.5 m | 194.2 m | 177.3 m | 192.1 m | 185.0 m | 166.3 m | 156.6 m |
| Depreciation & amortisation | 35.7 m | 38.4 m | 40.8 m | 42.7 m | 44.1 m | 43.7 m | 45.9 m | 47.1 m |
| Interest expense | 14.4 m | 13.9 m | 15.1 m | 12.9 m | 13.4 m | 13.1 m | 13.8 m | 14.4 m |
| Pre-tax income | 179.7 m | 172.3 m | 179.9 m | 189.0 m | 190.1 m | 161.1 m | 154.1 m | 144.4 m |
| Income tax | 29.7 m | 27.5 m | 31.4 m | 35.3 m | 37.5 m | 28.1 m | 27.4 m | 23.2 m |
| Net income | 150.0 m | 144.9 m | 148.5 m | 153.6 m | 152.6 m | 133.1 m | 126.7 m | 121.1 m |
| Diluted EPS | 3.89 | 3.76 | 3.87 | 4.02 ≈ | 4.06 | 3.59 | 3.50 | 3.40 ≈ |
| Operating cash flow | 86.4 m | 174.0 m ≈ | 253.8 m ≈ | 212.1 m | 121.3 m | 211.7 m ≈ | 284.5 m ≈ | 204.7 m |
| Capex | 25.9 m | 23.7 m ≈ | 25.2 m ≈ | 34.0 m | 30.8 m | 26.0 m ≈ | 30.5 m ≈ | 27.4 m |
| Dividends paid | 39.2 m | 39.6 m ≈ | 39.5 m ≈ | 41.6 m | 41.4 m | 41.0 m ≈ | 40.3 m ≈ | 41.5 m |
| Share repurchases | 48.8 m | 64.4 m ≈ | 80.7 m ≈ | 106.6 m | 139.9 m | 163.0 m ≈ | 203.1 m ≈ | 138.0 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 22 percentile of its own 32-quarter history (min 13.9, median 32.3, max 44.5; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.4 bn | 1.5 bn | 1.6 bn | 1.8 bn | 2.1 bn | 2.2 bn | 2.3 bn | 2.5 bn |
| Revenue YoY | +6.3% | +4.1% | +6.5% | +15.9% | +13.1% | +5.6% | +5.4% | +6.7% |
| Net income | 352.8 m | 372.9 m | 399.6 m | 396.9 m | 468.2 m | 537.1 m | 597.0 m | 533.5 m |
| Net income YoY | +32.1% | +5.7% | +7.1% | −0.7% | +18.0% | +14.7% | +11.2% | −10.6% |
| Diluted EPS | 9.08 | 9.65 | 10.36 | 10.25 | 12.04 | 13.91 | 15.55 | 14.57 |
| Diluted EPS YoY | +33.9% | +6.3% | +7.4% | −1.1% | +17.5% | +15.5% | +11.8% | −6.3% |
| net % | 24.6% | 25.0% | 25.1% | 21.5% | 22.4% | 24.4% | 25.7% | 21.5% |
| Free cash flow | 367.8 m | 428.2 m | 493.9 m | 487.1 m | 584.8 m | 614.7 m | 617.5 m | 707.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 Aug 2026
- Cash
- 233.3 m USD
- Financial debt
- 1.4 bn USD
- Net debt
- 1.1 bn USD
- Equity
- 2.0 bn USD
- Total assets
- 4.1 bn USD
- Debt / equity
- 0.68x
- Current ratio
- 0.60x
- ROE
- 25.5%
- ROA
- 12.6%
- FCF margin
- 28.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.6 bn | 1.8 bn | 2.1 bn | 2.2 bn | 2.3 bn | 2.5 bn | SEC (XBRL)· 20 Oct 2026verified |
| Cost of revenue | 786.4 m | 871.1 m | 973.2 m | 1.0 bn | 1.1 bn | 1.2 bn | SEC (XBRL)· 20 Oct 2026verified |
| Gross profit | 805.0 m ≈ | 972.8 m ≈ | 1.1 bn ≈ | 1.2 bn ≈ | 1.2 bn ≈ | 1.3 bn ≈ | SEC (XBRL)· 20 Oct 2026derived |
| Research & development | 250.1 m | 255.1 m | 267.4 m | 265.2 m | 300.7 m | 346.1 m | SEC (XBRL)· 20 Oct 2026verified |
| SG&A | 331.0 m | 433.0 m | 483.1 m | 489.8 m | 475.7 m | 553.2 m | SEC (XBRL)· 20 Oct 2026verified |
| Operating income | 474.0 m | 475.5 m | 629.2 m | 701.3 m | 748.3 m | 700.0 m | SEC (XBRL)· 20 Oct 2026verified |
| Depreciation & amortisation | 64.5 m | 86.7 m | 105.4 m | 125.2 m | 157.7 m | 180.8 m | SEC (XBRL)· 20 Oct 2026verified |
| EBITDA | 538.5 m ≈ | 562.2 m ≈ | 734.6 m ≈ | 826.5 m ≈ | 906.0 m ≈ | 880.8 m ≈ | SEC (XBRL)· 20 Oct 2026derived |
| Interest expense | 8.1 m | 35.7 m | 66.3 m | 65.8 m | 56.3 m | 54.7 m | SEC (XBRL)· 20 Oct 2026verified |
| Pre-tax income | 467.6 m | 443.6 m | 584.0 m | 651.5 m | 721.0 m | 649.7 m | SEC (XBRL)· 20 Oct 2026verified |
| Income tax | 68.0 m | 46.7 m | 115.8 m | 114.4 m | 123.9 m | 116.2 m | SEC (XBRL)· 20 Oct 2026verified |
| Net income | 399.6 m | 396.9 m | 468.2 m | 537.1 m | 597.0 m | 533.5 m | SEC (XBRL)· 20 Oct 2026verified |
| Diluted EPS | 10.36 | 10.25 | 12.04 | 13.91 | 15.55 | 14.57 | SEC (XBRL)· 20 Oct 2026verified |
| Weighted average diluted shares | 38.6 m | 38.7 m | 38.9 m | 38.6 m | 38.4 m | 36.6 m | SEC (XBRL)· 20 Oct 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 681.9 m | 503.3 m | 425.4 m | 423.0 m | 337.7 m | 233.3 m | SEC (XBRL)· 20 Oct 2026verified |
| Receivables | 151.2 m | 204.1 m | 237.7 m | 228.1 m | 270.7 m | 298.6 m | SEC (XBRL)· 20 Oct 2026verified |
| Current assets | 933.6 m | 870.3 m | 770.1 m | 835.8 m | 729.8 m | 651.9 m | SEC (XBRL)· 20 Oct 2026verified |
| Property, plant & equipment, net | 131.4 m | 80.8 m | 86.1 m | 82.5 m | 85.2 m | 79.2 m | SEC (XBRL)· 20 Oct 2026verified |
| Goodwill | 754.2 m | 965.8 m | 1.0 bn | 1.0 bn | 1.3 bn | 1.3 bn | SEC (XBRL)· 20 Oct 2026verified |
| Intangibles (excl. goodwill) | 135.0 m | 1.9 bn | 1.9 bn | 1.8 bn | 1.9 bn | 1.8 bn | SEC (XBRL)· 20 Oct 2026verified |
| Total assets | 2.2 bn | 4.0 bn | 4.0 bn | 4.1 bn | 4.3 bn | 4.1 bn | SEC (XBRL)· 20 Oct 2026verified |
| Accounts payable | 85.8 m | 108.4 m | 121.8 m | 178.3 m | 135.3 m | 136.1 m | SEC (XBRL)· 20 Oct 2026verified |
| Short-term debt | — | — | 0 | 124.8 m | 0 | 499.4 m | SEC (XBRL)· 20 Oct 2026verified |
| Long-term debt | 574.5 m | 2.0 bn | 1.6 bn | 1.2 bn | 1.4 bn | 870.6 m | SEC (XBRL)· 20 Oct 2026verified |
| Current liabilities | 315.7 m | 438.3 m | 484.3 m | 667.1 m | 521.3 m | 1.1 bn | SEC (XBRL)· 20 Oct 2026verified |
| Total liabilities | 1.2 bn | 2.7 bn | 2.3 bn | 2.1 bn | 2.1 bn | 2.1 bn | SEC (XBRL)· 20 Oct 2026verified |
| Equity | 1.0 bn † | 1.3 bn † | 1.6 bn † | 1.9 bn † | 2.2 bn † | 2.0 bn † | SEC (XBRL)· 20 Oct 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 555.2 m | 538.3 m | 645.6 m | 700.3 m | 726.3 m | 822.2 m | SEC (XBRL)· 20 Oct 2026verified |
| Capex | 61.3 m | 51.2 m | 60.8 m | 85.7 m | 108.8 m | 114.7 m | SEC (XBRL)· 20 Oct 2026verified |
| Free cash flow | 493.9 m ≈ | 487.1 m ≈ | 584.8 m ≈ | 614.7 m ≈ | 617.5 m ≈ | 707.5 m ≈ | SEC (XBRL)· 20 Oct 2026derived |
| Investing cash flow | -136.0 m | -2.0 bn | -95.4 m | -144.3 m | -392.8 m | -132.5 m | SEC (XBRL)· 20 Oct 2026verified |
| Financing cash flow | -322.7 m | 1.3 bn | -632.0 m | -560.9 m | -407.8 m | -799.4 m | SEC (XBRL)· 20 Oct 2026verified |
| Dividends paid | 117.9 m | 125.9 m | 138.6 m | 150.7 m | 160.0 m | 164.2 m | SEC (XBRL)· 20 Oct 2026verified |
| Share repurchases | 264.7 m | 18.6 m | 176.7 m | 235.2 m | 300.5 m | 644.0 m | SEC (XBRL)· 20 Oct 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 53 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 12.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet21
- Valuation64
- Quality68
- Growth30
- Returns100
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 11.47 – 692.43 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)273.28 – 446.63 (Mid 339.63)WACC 8.9% · starting FCFF 752.4 m USD · terminal value share of EV 74%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 6.2%
- Peers: EV/Sales11.47 – 547.00 (Mid 55.93)15 companies used · median multiple 1.3x · quartiles 0.6x – 8.2xAPP, CDLX, DOCN, FLUT, GMM, GOOGL, NIQ, PPLI, RXT, RZLV, SIFY, TBLA, TEAD, WB, ZIP
- Peers: EV/EBITDA94.41 – 692.43 (Mid 311.56)8 companies used · median multiple 13.8x · quartiles 5.1x – 29.0xAPP, DOCN, FLUT, GMM, NIQ, TBLA, WB, ZIP
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 53/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 50.6% | 27 (on a fixed band) | 11% |
| EBIT margin · Quality | 28.3% | 89 (vs peers) | 9% |
| FCF margin · Quality | 28.6% | 100 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 5.9% | 24 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | 6.7% | 43 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | 1.3x | 42 (vs peers) | 6% |
| Current ratio · Balance sheet | 0.6x | 0 (on a fixed band) | 6% |
| EV/Sales · Valuation | 5.3x | 38 (vs peers) | 17% |
| FCF yield · Valuation | 5.9% | 100 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 6.7% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet21/100 · 2/2 factors with a value
- Growth30/100 · 2/2 factors with a value
- Quality68/100 · 3/3 factors with a value
- Returns100/100 · 1/1 factors with a value
- Valuation64/100 · 2/2 factors with a value
Memo
FACTSET RESEARCH SYSTEMS INC (FDS). Latest full fiscal year: 2026; data up to 2026-08-31.
Figures computed from the financial statements: revenue 2.5 bn USD in 2026; YoY growth 6.7%; net margin 21.5%; ROE 25.5%; net debt/EBITDA 1.3x.
The estimated value range is 94.41–547.00 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 311.56 USD, the price of 342.19 USD leaves a potential of -9.0% (value / price − 1) and a margin of safety of -9.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 53/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EBIT margin: 28.3%
- FCF margin: 28.6%
- FCF yield: 5.9%
- Shareholder yield (distributions): 6.7%
What contradicts it
- Gross margin: 50.6%
- Revenue CAGR 3Y: 5.9%
- Current ratio: 0.6x
Versus the vertical median
Services-Computer Programming, Data Processing, Etc. (SIC 7370) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| GOOGLAlphabet Inc. | 3,552.1 bn | 15.1 | 44.3% | 50.0% | +15.1% | −10% / +118% |
| APPAppLovin Corporation | 90.0 bn | 18.3 | 210.1% | 65.9% | +70.0% | −55% / +625% |
| FLUTFlutter Entertainment plc | 14.2 bn | — | -14.3% | -7.1% | +16.6% | −61% / −48% |
| FDSFactset Research Systems Inc | 12.1 bn | 23.5 | 25.5% | 21.5% | +6.7% | +29% / −23% |
| DOCNDigitalOcean Holdings, Inc. | 9.9 bn | 281.3 | 5.1% | 3.1% | +15.5% | +89% / +184% |
| SOGPSound Group Inc. | 8.8 bn | 350.3 | 70.4% | 7.1% | +59.4% | −21% / +265% |
| NIQNIQ Global Intelligence plc | 6.0 bn | — | -65.3% | -8.0% | +5.7% | +29% / unavailable |
| SIFYSify Technologies Ltd | 5.8 bn | — | -4.1% | -2.0% | +9.0% | +20% / +53% |
| DVDoubleVerify Holdings, Inc. | 2.1 bn | 34.0 | 5.8% | 8.2% | +13.9% | +29% / −59% |
| BZKanzhun Limited | 1.7 bn | 41.6 | 16.0% | 33.1% | +17.3% | −21% / +6% |
| WBWeibo Corporation | 1.6 bn | 3.8 | 12.1% | 25.6% | +0.1% | −35% / −36% |
| DJTTrump Media & Technology Group Corp. | 1.2 bn | — | -78.9% | -28,867.7% | +1.8% | −61% / −74% |
| HSTMHealthstream Inc | 949.7 m | 45.4 | 6.0% | 6.6% | +4.3% | +29% / +30% |
| NXDRNextdoor Holdings, Inc | 934.4 m | — | -7.2% | -11.1% | +4.2% | unavailable / unavailable |
| TBLATaboola.com Ltd. | 921.2 m | 7.0 | 14.3% | 6.8% | +8.3% | −33% / −21% |
| CEVACeva, Inc. | 788.9 m | — | -3.6% | -9.5% | +2.5% | +30% / +29% |
| RXTRackspace Technology, Inc. | 716.2 m | — | — | -5.9% | −1.9% | +165% / +123% |
| NEXNNexxen International Ltd. | 513.3 m | 22.2 | 5.0% | 6.9% | −0.2% | +41% / +151% |
| HUYAHUYA Inc. | 470.7 m | — | -1.9% | -1.7% | +11.6% | −27% / −38% |
| RZLVRezolve AI plc | 460.8 m | — | -98.7% | -216.7% | +2,224.2% | −55% / −87% |
| ZIPZiprecruiter, Inc. | 321.9 m | 12.9 | — | 6.2% | −5.3% | −5% / −66% |
| MFMindForge Inc. | 172.5 m | — | -167.2% | -222.9% | −49.9% | −83% / unavailable |
| GOAIEva Live Inc | 31.8 m | — | -58.5% | -39.3% | +82.6% | unavailable / unavailable |
| HOLOMicroCloud Hologram Inc. | 27.2 m | — | -2.3% | -12.4% | +38.6% | −66% / −100% |
| TEADTeads Holding Co. | 27.0 m | — | -196.2% | -43.3% | +46.1% | −61% / −93% |
1- and 3-year price returns: for FDS from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 213.00 Total return -37% · Per year -37% | 376.32 Total return 11% · Per year 11% | 566.51 Total return 67% · Per year 67% |
| 3 years | 212.54 Total return -35% · Per year -13% | 421.97 Total return 28% · Per year 9% | 696.63 Total return 109% · Per year 28% |
| 5 years | 212.09 Total return -33% · Per year -8% | 473.16 Total return 46% · Per year 8% | 856.64 Total return 161% · Per year 21% |
- Exit P/E± 105.49
- Net margin± 73.84
- Annual revenue growth± 59.82
- Annual dilution± 6.21
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
FactSet provides financial data, analytics and AI-powered solutions to finance professionals worldwide. For fiscal 2026 it reported revenues of 2476.3 million USD, up 6.7%, and organic ASV growth of 7.0% shows that its subscription model remains solid as it shifts toward AI.
SWOT
Strengths
- The platform is embedded in professionals' daily workflows, which raises switching costs for clients. The company has a broad client base and a high rate of ASV retention.
- Its data range is extensive and is complemented by mapping and standardisation capabilities that are useful both to human users and to AI systems.
- The company generates solid operating cash flow and has a long history of dividend increases and share repurchases.
Weaknesses
- Operating margins fell in fiscal 2026 because of staff costs, restructuring and one-time expenses, showing how sensitive profitability is to costs.
- Reliance on one main cloud service provider and a few content suppliers may limit control over service continuity.
- AI costs are variable and hard to forecast, and moving from subscription to consumption pricing is not assured to be accepted by clients.
Opportunities
- If AI adoption continues, the company could convert more of its existing client base into higher-value contracts.
- Expansion in wealth management and in individual user segments could increase the number of paying users.
- The MCP and API offerings could make it easier for clients to plug FactSet data into their automated systems.
Threats
- Cyber-attacks, including those using generative and agentic AI, could damage client confidence and create legal liability.
- Large competitors with substantial resources could speed up their AI launches, which could reduce FactSet's market share.
- If clients move to AI-generated alternatives or reduce their licence numbers, demand for current products could decline.
Risks
- Cybersecurity and client datahigh
The company handles sensitive client data, including portfolio information, and a security incident could lead to client losses and litigation.
- Service interruptionshigh
Dependence on data centres and one main cloud provider could lead to service losses, affecting reputation and client retention.
- Returns on AI investmentmedium
Costs of developing and operating AI are high, and if adoption or monetisation is slower, the investments might not be recovered in the expected timeframe.
- Availability of computing resourcesmedium
A shortage or rising cost of computing capacity and power could weigh on margins and on the pace of product expansion.
- Staff costs and restructuringmedium
Headcount reduction and restructuring generated one-time costs, and wage pressures could continue to weigh on profitability.
Investment thesis
What would need to be true (bull case)
- Growth in organic ASV and revenue, combined with AI momentum, suggests the subscription model remains solid. If margins stabilise, profitability could recover gradually.
- The high retention rate and deep integration into client workflows could support predictable recurring revenue over the medium term.
- Cash generation and the policy of returning capital to shareholders provide a solid financial base for continued investment.
What would break the thesis
- Operating margins fell materially in fiscal 2026, and if AI and staff costs stay high, profitability could remain under pressure.
- Competition from large groups with their own resources and from vertical AI providers could limit growth and pricing power.
- Cybersecurity and service-interruption risks could generate unexpected costs and could weigh on client confidence.
What to watch
- Adoption of consumption-based pricing for AI solutions and its effect on marginsnext 10-K
- Staff cost trends and the effect of restructuring on profitabilityQ1 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
FactSet is a global data and AI solutions provider to financial markets, with a platform combining expansive data, sophisticated analytics and flexible technologies. Its clients include asset managers, investment banks, wealth managers, hedge funds and other market participants, and as of 31 August 2026 it had more than 9,200 clients and over 260,000 active users. Revenues come mainly from subscriptions to its hosted platform, and the company also offers managed services that act as an extension of clients' internal teams.
The FactSet platform includes configurable desktop and mobile workstations, data solutions, cloud-based applications, APIs and MCP servers, with AI embedded to speed up data discovery and automate routine workflows. The company also runs CUSIP Global Services, through which it issues CUSIP and CINS identifiers globally on behalf of the American Bankers Association.
Its strategy for fiscal 2026 rests on three pillars: expanding data and delivery capabilities, transforming client workflows with AI, and strengthening commercial capabilities through longer enterprise agreements that combine subscription minimums with consumption-based pricing.
Segments
Americas
The Americas is the largest segment, generating 65% of total revenues in fiscal 2026. It also accounts for most of total ASV, and the organic ASV increase in this segment was driven mainly by data solutions and workstations.
EMEA
EMEA represents 24% of total revenues in fiscal 2026 and serves clients across Europe, the Middle East and Africa. Organic ASV growth in the region came mainly from data solutions, while headcount was reduced there over the year.
Asia Pacific
Asia Pacific represents 11% of total revenues and had the fastest organic ASV growth among the segments, driven by data solutions, workstations and middle office solutions. Most of the company's employees are based in this region, so the cost structure is sensitive to staffing decisions.
Market context
The financial data market is competitive, with large well-capitalised companies as well as niche providers, market data suppliers, news providers and technology firms offering vertical AI solutions. Demand for financial data integrated with workflows and AI appears to be growing, which supports the expansion of the FactSet offering.
The market is also shaped by demand for computing resources and data centre capacity, which has grown fast because of AI and has led to higher costs and tighter availability. This could weigh on margins and on the pace of new product launches if such resources become more expensive.
Trends
- AI adoption in workflowstailwind
Clients are increasingly integrating AI tools into research, reporting and analysis processes, and FactSet reported that ASV added from AI solutions in fiscal 2026 more than doubled year over year. If this adoption continues, it could support revenue growth over the medium term.
- AI costs and consumption pricingheadwind
Costs for model licensing, inference and token consumption can rise quickly with usage. If consumption-based pricing is not accepted by clients, margins could come under pressure.
- Longer enterprise contractsmixed
Moving clients to longer platform agreements with subscription minimums may stabilise recurring revenue, and average renewal contract length increased during the latest quarter. The effect, however, depends on how quickly the new terms are accepted.
- Pressure on staff costsmixed
Restructuring and headcount reduction affected both one-time costs and margin levels. If the staffing savings materialise, they could offset wage and variable compensation pressures.
Competitive position
Competition includes Bloomberg L.P., S&P, London Stock Exchange Group, BlackRock, MSCI Inc. and Morningstar Inc., as well as clients' in-house teams building their own solutions. Many of these competitors offer similar products, so differentiation through data, workflows and service is essential.
FactSet's advantage comes from being embedded in professionals' workflows and from holding sensitive client data, including portfolio holdings. If vertical AI providers or data producers expand their offerings, competitive pressure could increase.
- Bloomberg L.P.
Major provider of market data and terminals for finance professionals and a direct competitor in the workstation segment.
- S&P GlobalSPGI
Provider of data, indices and analytics with a strong presence in credit and market data.
- London Stock Exchange Group
Financial group with data and analytics divisions competing in market data and index products.
- MSCI Inc.MSCI
Provider of indices, risk analytics and investor data active in the same institutional client segment.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Is FactSet Stock Underperforming the Nasdaq?Yahoo Finance — News · 22 Sept 2026 · EN
The latest news item in our archive is from 22 Sept 2026; the newest SEC filing is from 26 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Proxy statement26 Oct 2026
- Annual report20 Oct 2026
- Current report30 Sept 2026Results of operations · Amendments to articles or bylaws · Financial statements and exhibits
- Current report25 Sept 2026Departure or appointment of officers · Financial statements and exhibits
- Current report31 Aug 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Quarterly report01 Jul 2026
- Current report01 Jul 2026Results of operations · Financial statements and exhibits
- Current report08 Apr 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report02 Apr 2026
- Current report31 Mar 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-08-31 · SEC / FactSet Research Systems Inc. · 20 Oct 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / FactSet Research Systems Inc. · 30 Sept 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.