FactSet
FDS
$262.93
-5.82%
FactSet Research Systems is a leading provider of financial data, analytics, and portfolio management solutions to the global investment community, serving buy-side and sell-side firms, asset managers, and corporate clients. The company aggregates data from exchanges, brokers, and other sources into its workstations, offering essential tools for investment research, portfolio analytics, and risk management. With over 12,000 employees and a market cap of roughly $14 billion, FactSet is a niche player in the financial data industry, competing with giants like Bloomberg and Refinitiv. The current investor narrative centers on FactSet's resilience amid market volatility, its strategic acquisitions (e.g., CUSIP Global Services), and the impact of AI-driven disruption on financial data providers, as the stock has experienced significant price swings over the past year.…
FDS
FactSet
$262.93
Related headlines
Investment Opinion: Should I buy FDS Today?
Based on the analysis, I rate FactSet as a Hold. The stock is recovering but remains below its 52-week high, and the average analyst target of $259.06 implies a -14.2% downside from the current price. The consensus recommendation is 'hold', reflecting a lack of conviction among analysts.
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FDS 12-Month Price Forecast
The AI assessment is neutral with medium confidence. FactSet's fundamentals are solid, but the growth rate is modest and the valuation is not compelling. The stock's recovery is encouraging, but the wide analyst target range and AI disruption risks create uncertainty. I would upgrade to bullish if revenue growth accelerates above 8% and the company demonstrates successful AI integration; downgrade to bearish if client churn increases or revenue growth falls below 5%.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on FactSet's 12-month outlook, with a consensus price target around $261.19 and implied upside of -0.7% versus the current price.
Average Target
$261.19
0 analysts
Implied Upside
-0.7%
vs. current price
Analyst Count
—
covering this stock
Price Range
$210 - $340
Analyst target range
The target price range is $210.00 (low) to $340.00 (high), with an average of $259.06. The high target of $340.00 implies a 12.6% upside from the current price, while the low target of $210.00 implies a 30.5% downside, reflecting a wide spread of 62% between the low and high targets, which signals high uncertainty about FactSet's future. The high target likely assumes successful integration of acquisitions and continued demand for data analytics, while the low target may price in competitive pressures from AI and potential client losses. The recent ratings actions show no major upgrades or downgrades, with most firms maintaining their previous stances, indicating a lack of conviction in either direction. Given the neutral consensus and the wide target range, investors should expect continued volatility and limited upside potential in the near term.
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Bulls vs Bears: FDS Investment Factors
FactSet presents a mixed picture: strong profitability, steady revenue growth, and a recovering stock price are countered by a high PEG ratio, AI disruption fears, and a wide analyst target range. Currently, the bearish evidence is slightly stronger due to valuation concerns and the stock's underperformance relative to the market. The most critical tension is whether FactSet can accelerate growth to justify its forward PE, or if AI-driven competition will erode its market share and force a de-rating. If the company successfully integrates acquisitions and demonstrates resilience against AI, the stock could re-rate higher; otherwise, it may face continued pressure.
Bullish
- Recovering from 52-week low: FDS has rebounded 63% from its 52-week low of $185.00 to $301.96, with a 33.7% gain over the past six months. This recovery suggests improving investor sentiment and a potential bottoming out after a significant drawdown.
- Steady revenue growth acceleration: Revenue growth accelerated from 5.7% YoY in Q4 FY2025 to 6.4% in Q3 FY2026, with quarterly revenue reaching $622.9 million. This consistent growth, driven by a subscription-based model, provides a stable foundation for future earnings.
- Strong profitability and margins: Operating margin stands at 32.2% and net margin at 25.7%, reflecting efficient cost management. ROE is a robust 27.3%, indicating strong returns on shareholder equity.
- Attractive forward valuation: The forward PE of 15.3x is significantly lower than the trailing PE of 23.7x, implying the market expects substantial earnings growth. This suggests the stock may be undervalued relative to its future earnings potential.
Bearish
- Significant year-over-year decline: Despite the recent recovery, FDS is still down 18.3% over the past year, underperforming the S&P 500's +18.65% gain. This indicates persistent negative sentiment and potential structural concerns.
- High valuation relative to growth: The PEG ratio of 2.05 suggests the stock is expensive relative to its growth rate. With revenue growth in the single digits, the market may be overpaying for future earnings, especially given the forward PE implies over 50% EPS growth.
- Wide analyst target range: Analyst targets range from $210 to $340, a 62% spread, reflecting high uncertainty. The average target of $259.06 is 14.2% below the current price, suggesting limited upside or potential downside.
- AI disruption threat: The financial data industry faces disruption from AI-driven alternatives that could reduce demand for traditional data providers. Recent news highlights 'AI-phobia' hammering sectors like software and asset management, posing a long-term risk to FDS's business model.
FDS Technical Analysis
FactSet's stock has been in a strong recovery phase over the past six months, with a 6-month price change of +33.7%, yet it remains down 18.3% over the past year. The current price of $301.96 sits at 80% of its 52-week range (low of $185.00, high of $377.07), indicating a rebound from the lows but still well below the highs. This positioning suggests the stock is recovering from a significant drawdown (max drawdown of -52.8%) but has not fully regained its prior highs, reflecting lingering bearish sentiment despite improving momentum.
Beta
0.71
0.71x market volatility
Max Drawdown
-51.5%
Largest decline past year
52-Week Range
$185-$371
Price range past year
Annual Return
-27.3%
Cumulative gain past year
| Period | FDS Return | S&P 500 |
|---|---|---|
| 1m | -7.1% | -1.6% |
| 3m | +9.0% | +2.2% |
| 6m | +27.9% | +14.4% |
| 1y | -27.3% | +16.2% |
| ytd | -7.7% | +11.1% |
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FDS Fundamental Analysis
FactSet's revenue growth has been steady but moderate, with the most recent quarter (Q3 FY2026, ended May 31, 2026) reporting revenue of $622.9 million, a 6.4% year-over-year increase. This growth is consistent with the prior quarters: Q2 FY2026 revenue was $611.0 million, Q1 FY2026 was $607.6 million, and Q4 FY2025 was $596.9 million, indicating a gradual acceleration from 5.7% YoY in Q4 FY2025 to 6.4% in Q3 FY2026. Revenue is diversified across regions, with the Americas contributing $407.2 million (65%), EMEA $151.9 million (24%), and Asia Pacific $63.7 million (10%) in the most recent quarter. The company's subscription-based model provides recurring revenue, but growth remains in the single digits, reflecting a mature market and competition from AI-driven alternatives.
Quarterly Revenue
$622918000.0B
2026-05
Revenue YoY Growth
+6.4%
YoY Comparison
Gross Margin
49.9%
Latest Quarter
Free Cash Flow
$708307000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is FDS Overvalued?
FactSet is profitable, so the PE ratio is the primary valuation metric. The trailing PE is 23.7x, while the forward PE is 15.3x, indicating the market expects significant earnings growth (the forward PE is based on estimated EPS of $27.39 for the next fiscal year, versus trailing EPS of $12.73). This gap implies a forward earnings growth rate of over 50%, which seems aggressive given the company's historical growth; the PEG ratio of 2.05 suggests the stock is not cheap relative to its growth rate. Compared to the industry average (from valuation data), FactSet's PE is at a premium, but the forward PE is lower, reflecting optimism about future earnings. Historically, FactSet's PE has ranged from 15x to 64x over the past five years, with the current trailing PE of 23.7x near the lower end of that range, suggesting the stock is trading at a discount to its own historical valuation, possibly due to concerns about AI disruption and slowing growth.
PE
23.7x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 15x~48x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
15.9x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks include a moderate debt-to-equity ratio of 0.71, which could become burdensome if interest rates stay elevated, as evidenced by rising interest expenses in recent quarters. The company's reliance on single-digit revenue growth (6.4% YoY) makes it vulnerable to any slowdown in client spending, and its high payout ratio of 26.8% limits flexibility for reinvestment. Additionally, the wide gap between trailing and forward PE (23.7x vs 15.3x) implies aggressive earnings growth expectations that may not materialize, leading to potential earnings disappointments.
FAQ
The key risks are: 1) AI disruption - new AI-driven data platforms could replace traditional financial data providers, threatening FDS's market share. 2) Valuation risk - with a PEG of 2.05, the stock is expensive relative to its growth, and any earnings miss could lead to a sharp selloff. 3) Macroeconomic risk - a prolonged high-interest-rate environment could pressure client budgets and reduce demand. 4) Company-specific risk - the wide analyst target range (from $210 to $340) reflects uncertainty about the company's future, and any negative news could trigger a decline. The most severe risk is AI disruption, which could cause a permanent loss of market share.
The 12-month forecast for FDS is mixed. In the base case (50% probability), the stock is expected to trade around $259, the analyst average target, implying a -14% downside. In the bull case (25% probability), the stock could reach $340, a 12.6% upside, if the company successfully integrates AI and accelerates growth. In the bear case (25% probability), the stock could fall to $210 or lower, a -30% downside, if AI disruption or a recession hits. The most likely scenario is the base case, where the stock remains range-bound as the market awaits clearer evidence on growth and competitive positioning.
FDS is trading at a trailing PE of 23.7x, which is below its historical average of around 30x, suggesting it is undervalued relative to its own history. However, the forward PE of 15.3x implies a significant earnings growth expectation of over 50%, which seems aggressive given the company's single-digit revenue growth. Compared to the industry average, FDS's PE is at a premium, but the PEG ratio of 2.05 indicates the stock is overvalued relative to its growth rate. The market is pricing in a strong earnings recovery, but if that fails to materialize, the stock could be vulnerable to a de-rating.
FDS is a hold for most investors. The stock has recovered significantly from its lows, but the average analyst target of $259.06 is below the current price of $301.96, implying limited upside. The forward PE of 15.3x suggests the market expects strong earnings growth, but the PEG ratio of 2.05 indicates the stock is not cheap. The biggest downside risk is AI disruption, which could erode its competitive advantage. For investors with a long-term horizon and a focus on dividends, FDS may be a reasonable addition, but for those seeking growth, better opportunities may exist elsewhere.
FDS is more suitable for long-term investment due to its stable, recurring revenue model and low beta of 0.711, which provides downside protection. The stock has a dividend yield of 1.1%, offering some income, and its payout ratio of 26.8% is sustainable. However, the stock's high volatility (as seen in its -52.8% max drawdown) makes it risky for short-term trading. For long-term investors, a minimum holding period of 3-5 years is recommended to ride out market cycles and benefit from potential growth in the financial data industry. Short-term traders may find opportunities in the stock's price swings, but the wide analyst target range suggests uncertainty.
