FactSet Research Systems Inc.

ticker: FDS step: 01 generated: 2026-05-13 source: quick-research

FactSet Research Systems Inc. (FDS) — Business Overview

Note: FactSet's fiscal year ends August 31.

Business Description

FactSet is a financial data and analytics platform serving investment professionals — portfolio managers, equity researchers, investment bankers, and risk managers — with integrated data feeds, analytics tools, and workflow automation. Founded in 1978, the company has achieved 46 consecutive years of revenue growth through a subscription-based model with extremely high switching costs. FY2025 revenue was $2.322B (+5.4%); organic ASV $2.37B (+5.7%). The company is navigating significant AI disruption risk — stock declined ~54.5% from March 2025 highs as AI-native competitors and Bloomberg/LSEG/Refinitiv AI features threatened the traditional financial data platform moat.

Revenue Model

Almost entirely subscription-based: Annual Subscription Value (ASV) is the key metric — contractual annual recurring revenue from financial professionals paying for platform access. ASV grows through (1) pricing increases (historically CPI+ for renewing clients), (2) net new user adds, and (3) upsell to premium data modules. Revenue persistence is exceptional — once a research analyst builds their workflow in FactSet (models, watchlists, screeners, report templates), switching to Bloomberg or Refinitiv requires rebuilding everything and retraining entire teams. Professional services (implementation, consulting) is ~5–10% of revenue.

Products & Services

• FactSet Workstation — core platform: integrated data (fundamentals, pricing, estimates, news), analytics, charting, portfolio analytics for buy/sell-side professionals
• Cobalt — private markets data platform (PE fund performance, portfolio company data); growing segment targeting PE funds
• CUSIP Global Services — operator of the CUSIP numbering system (universal security identifier for all US securities); regulatory/financial industry utility; very sticky revenue
• Vermilion Reporting Suite — client reporting and data distribution automation for wealth managers and asset managers
• Portware / LiquidityBook — execution management system (EMS) for trading desks; cloud-native (LiquidityBook acquired Feb 2025)
• GenAI Tools — AI-assisted research tools embedded in the workstation; competitive response to Bloomberg/LSEG AI initiatives
• Data Feeds & APIs — institutional data distribution for quant funds, fintech developers, data science teams

Customer Base & Go-to-Market

Buy-side investment managers (largest segment), sell-side research analysts, investment banks (Barclays multiyear deal Jan 2026), hedge funds, private equity firms, wealth management firms, and corporations. Sold through direct enterprise sales with multi-year contracts. Pricing is per-user-per-year; enterprise deals include volume discounts.

Competitive Position

FactSet competes directly with Bloomberg (dominant in sell-side/trading desks), LSEG/Refinitiv (Eikon/Workspace), and S&P Market Intelligence. FactSet historically occupied the buy-side/investment management sweet spot where Bloomberg was less dominant — but AI is eroding this positioning. The key moat: CUSIP operator status (regulatory utility), workflow lock-in, and 46-year data history that AI models cannot easily replicate or replace. The Barclays multiyear win suggests sell-side penetration is possible alongside buy-side strength.

Key Facts

• Founded: 1978 (Norwalk, Connecticut)
• Headquarters: Norwalk, Connecticut (and other locations)
• Employees: ~12,000
• Exchange: NASDAQ
• Sector / Industry: Financials / Financial Data & Analytics
• Market Cap: ~$10–13B (at ~$250–330/share post-selloff)

ticker: FDS step: 04 generated: 2026-05-13 source: quick-research

FactSet Research Systems Inc. (FDS) — Financial Snapshot

Note: FactSet's fiscal year ends August 31.

Income Statement Summary

FY2025 (ending Aug 31, 2025): Revenue $2.322B (+5.4%); GAAP diluted EPS $15.55 (+11.8%); GAAP operating margin 32.2%; Organic ASV $2,370.9M (+5.7% YoY). 46th consecutive year of revenue growth. Key metrics: Q1 FY2026 (Sept–Nov 2025) showed net margin strength. Barclays multiyear platform deal announced January 2026. Stock declined ~54.5% from March 2025 highs due to AI disruption concerns. Recent acquisitions: LiquidityBook (Feb 2025, cloud-native EMS), LogoIntern (March 2025, productivity tools). FY2025 guidance delivered: GAAP revenues $2,285–2,305M achieved; adj. diluted EPS $16.80–17.40 range.

Cash Flow & Balance Sheet

FactSet's subscription model generates highly predictable cash flows; capital allocation historically included buybacks + dividends + acquisitions. Recent acquisitions expanding into execution management (LiquidityBook) and productivity tools (LogoIntern) reflect the AI-era pivot — adding workflow capabilities beyond pure data access.

Key Ratios (approximate)

• P/E: ~17–22x (GAAP EPS $15.55; stock ~$270–340 post-selloff)
• Revenue Growth (FY2025): +5.4%; 3-year CAGR: ~11%
• Operating Margin: 32.2%
• ASV Growth: 5.7% organic (decelerating from prior ~8–10%)

Growth Profile

FactSet had 13% revenue growth in FY2023 (driven by Cobalt/CUSIP revenue and organic ASV gains) that decelerated to 5–6% in FY2024–2025. ASV growth at 5.7% reflects: (1) lower price increases as CPI decelerated (historically CPI-linked pricing); (2) buy-side client budget pressure; (3) AI disruption concerns dampening expansion sales. The 46-year revenue streak is unbroken but investors question whether AI (Bloomberg AI, LLMs replacing equity research workflows) will structurally impair future growth.

Forward Estimates

• FY2026 (ending Aug 2026): Revenue ~$2.4–2.5B; adj. EPS ~$17–18 (5–8% growth)
• Analyst consensus PT: $292.40 avg (range $195 BofA Underperform to $425 bull); Hold consensus
• Current price: ~$270–330 (post -54.5% selloff)
• BofA Underperform at $195 — most bearish analyst
• Key metric to watch: ASV organic growth rate — recovering or decelerating?