FactSet Research Systems Inc. (FDS) AI Stock Analysis

FactSet Research Systems Inc. is a financial data and analytics firm that provides integrated financial information and analytical applications to the investment community across the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Founded in 1978 and based in Norwalk, Connecticut, the company provides workflow solutions that encompass research, analytics and trading, content and technology solutions, and wealth management tools. FactSet serves portfolio managers, investment banks, asset managers, wealth advisors, corporate clients, and other financial institutions, supporting investment decisions, portfolio optimization, and financial strategy execution.

Between FY2021 and FY2026, FactSet generated a 5-year revenue compound annual growth rate of 9.2%. Annual revenue expanded from $1.84B in FY2022 to $2.48B in FY2026, with revenue growth of 6.7% in FY2026 following 5.4% growth in FY2025. Gross margin stood at 50.6% in FY2026, down from 52.7% in FY2025, while operating margin fell to 28.3% from 32.2%. Net income decreased to $533.5M in FY2026 from $597.0M in FY2025, though EPS rose to $18.02. In the latest quarter ended August 31, 2026, quarterly revenue grew 6.3% year-over-year, while quarterly earnings declined 15.2%.

As of August 31, 2026, FactSet held $265.3M in cash and short-term investments alongside total debt of $1.54B, resulting in net debt of $1.28B. Total assets were $4.14B against shareholders' equity of $2.00B, with a debt-to-equity ratio of 0.77 and a current ratio of 0.60. In FY2026, operating cash flow reached $822.2M, supporting capital expenditures of $114.7M and free cash flow of $707.5M. The company directed $644.0M to share buybacks and paid $164.2M in dividends during the year.

FactSet carries a trailing P/E of 20.7x, higher than the 14.2x median of its S&P 500 Financial Services peers. Its forward P/E is 13.9x compared to the peer median of 12.2x, while its price-to-sales ratio of 4.3x sits above the peer median of 3.1x. Its EV-to-EBITDA ratio of 11.7x trades below the peer median of 15.7x. The stock gained 10.5% over the past year, trailing the S&P 500 (SPY) return of 16.8%, and declined 23.3% over five years against an 83.0% rise for SPY.

FactSet pays a forward annual dividend of $4.64 per share, translating to a dividend yield of 1.54%. Dividends are distributed quarterly and represent a payout ratio of 25.1%. The company has paid consecutive dividends for 28 years and delivered a 5-year annualized dividend growth rate of 7.5%, with the last ex-dividend date on August 31, 2026.

Wall Street analysts cover FactSet with 3 Strong Buy, 0 Buy, 9 Hold, 2 Sell, and 4 Strong Sell ratings. The mean price target is $280.00, representing a 7.2% decline from the last close of $301.67. For the fiscal year ending August 31, 2027, consensus estimates project EPS of $19.62 on revenue of $2.62B. For the following fiscal year, 17 analysts project EPS of $21.70 on revenue of $2.78B. FactSet beat EPS estimates in each of the last 4 quarters.

This page is an AI-written research summary of FactSet Research Systems Inc. (FDS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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