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what it is
FactSet sells financial data, research tools, and analytics that help pros make and publish stock decisions.
how it gets paid
Last year Factset Research made $2.3B in revenue. Research & analytics was the main engine at $0.82B, or 36% of sales.
why it's growing
Revenue grew 5.4% last year. Revenue rose 7% to $608 million, but adjusted operating margin narrowed by 140 basis points to 36.2%, as technology costs jumped 23% to support ai.
what just happened
FactSet beat with $608M in revenue, while adjusted operating margin still slipped to 36.2%.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
100/100 earnings predictability — you can trust these numbers
14.7x trailing p/e — the market's not buying it — or you found a deal
1.8% dividend yield — cash in your pocket every quarter
26.5% return on capital — every dollar works hard here
xvary composite: 75/100 — average
What they do
FactSet sells financial data, research tools, and analytics that help pros make and publish stock decisions.
Your team does not just use FactSet. It lives inside it. The company has about 12,800 employees behind the platform, and clients pay for data feeds, screens, and models that are already wired into daily work. Switching costs (the pain of changing vendors) are the business here. That is how 100% earnings predictability sits next to a 30% stock drop.
How they make money
$2.3B
annual revenue · their business grew +5.4% last year
Research & analytics
$0.82B
+5.0%
Wealth management solutions
$0.58B
+10.0%
Trading solutions
$0.46B
+7.0%
Content & data feeds
$0.28B
+4.0%
Other services
$0.16B
+1.0%
The products that matter
core data and analytics subscriptions
Annual Subscription Value
$2.3B revenue engine · 5.9% organic growth
this is the core business: a $2.3B revenue base that grew organically by 5.9% last year. If this slows, everything else gets harder to defend.
core
wealth management and trading tools
Wealth Management & Trading Solutions
10% growth last quarter
this part of the business grew 10% last quarter, faster than the company average. That's where the incremental growth story lives right now.
growth
embedded data infrastructure partnerships
Infrastructure & Platform Partnerships
multi-year deals with Barclays and Arcesium
the numbers here are thin, so we won't pretend otherwise. What you do have are multi-year partnerships with Barclays and Arcesium that suggest FactSet wants to be more than a seat-license vendor.
strategy bet
Key numbers
39.0%
operating margin
That means 39 cents of every sales dollar stayed after operating costs. Most firms would take half that.
26.5%
return on capital
You get 26.5 cents of profit for each dollar tied up in the business. That is why the cash keeps coming back.
14.7x
trailing p/e
You pay 14.7 years of last year's earnings. That is not cheap, but it is not panic pricing either.
1.8%
dividend yield
You collect $1.80 a year for every $100 you own. That will not make you rich, but it pays rent while you wait.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 2 — safer than 80% of stocks
- price stability 85 / 100
- long-term debt $1.4B (13% of capital)
- net profit margin 28.8% — keeps 29 cents of every dollar in revenue
- return on equity 31% — $0.31 profit for every $1 investors have put in
B++ with risk rank and net profit margin standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in FDS 3 years ago → it's now worth $5,910.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
FactSet beat with $608M in revenue, while adjusted operating margin still slipped to 36.2%.
Organic ASV grew 5.9%, with wealth management up 10% and trading solutions across all regions. Revenue climbed 7%, but technology costs pressed margins lower.
$608M
revenue
$4.51
eps
36.2%
operating margin
the number that mattered
36.2% was the tell. Demand held up, but costs moved faster than margins.
-
factset shares have fallen roughly 30% over the past year despite improving fundamentals, as investors weigh near-term margin pressure against steady top-line growth.
-
the company’s november-quarter delivered organic annual subscription value (asv) growth of 5.9%.
-
this marked an acceleration, driven by strength in wealth management (up 10%) and trading solutions across all regions.
-
revenue rose 7% to $608 million, but adjusted operating margin narrowed by 140 basis points to 36.2%, as technology costs jumped 23% to support ai infrastructure and cloud migration.
-
the spending funds a strategic pivot from data vendor to infrastructure partner.a multi-year agreement with barclays, announced in january, positions factset as a co-creator of market data solutions rather than a seat-license provider. a december deal with arcesium creates an integrated platform spanning front-office analytics through middle-office operations.
source: company earnings report, 2026
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What could go wrong
the #1 risk is AI and cloud spending outrunning subscription growth.
med
margin compression from technology investment
adjusted operating margin fell to 36.2%, down 140 basis points, while technology costs jumped 23%. Spending is fine. Spending without operating leverage is the problem.
if margin keeps sliding while revenue stays near 5–7% growth, the multiple probably stays under pressure.
med
ASV growth stalling in the mid-single digits
organic ASV growth was 5.9%. That's good enough to look stable, not good enough to bail out a strategy reset if customers slow seat adds or budgets tighten.
this is a recurring-revenue business, so even a modest slowdown can matter more than a one-quarter EPS miss.
low
partnership strategy that stays strategic
Barclays and Arcesium make the story more interesting, but the snapshot data does not yet show what those deals contribute financially. That means execution gets the benefit of the doubt until it doesn't.
if the partnerships fail to lift growth or retention, investors may treat them as expensive experiments.
FactSet can absorb spending. What it can't absorb forever is 5.9% subscription growth paired with a 36.2% margin that keeps drifting lower.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
organic ASV growth
5.9% is the number holding the story together. If that moves up, the spending looks smarter. If it slips, the market will notice fast.
risk
operating margin trajectory
36.2% is still strong. The issue is direction. One more quarter of cost growth outrunning revenue and the patience trade gets harder.
calendar
next earnings report
you want three things at once: revenue growth, ASV growth, and evidence that the extra tech spend is flattening out.
trend
wealth and trading mix shift
wealth management grew 10% last quarter. If that remains the fastest-growing unit, it can gradually change the company's growth profile from here.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak: they think the setup looks better than the chart.
risk profile
safer than most
stability score 2 — historically less risky than roughly 80% of stocks. Not risk-free. Just more predictable than average.
chart momentum
average
technical score 3 — the stock is not in a dramatic trend right now. That's consistent with a business the market is still debating.
earnings predictability
100 / 100
management tends to deliver what it signals. You rarely get chaos here. The debate is about growth and margins, not whether the numbers are real.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 363 buyers vs. 416 sellers in 3q2025. total institutional holdings: 35.9M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$214
$417
$249
current price
$316
target midpoint · +27% from current · 3-5yr high: $650 (+160% · 28% ann'l return)
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