FACTSET RESEARCH SYSTEMS INC (FDS)

Price—Loading quote

AI: Undervalued

Price checkThe shares look undervalued, provided modest growth survives the artificial intelligence shift.

At the August 14 close of $283.49, FactSet traded at about 18.7 times trailing earnings of $15.17 a share and 16.2 times the midpoint of management’s adjusted 2026 earnings guidance. Trailing free cash flow—cash left after running and investing in the business—was about $708 million, or $19.80 a share, a 7.0% yield. In an illustrative model using a 10% required return and a 15-times ending cash-flow multiple, the price needs only about 2.5% yearly cash growth. That gap supports Undervalued, though the estimate is model-sensitive.

Big pictureSteady subscriptions soften market cycles, though client budgets still matter.

Revenue climbed from $1.49 billion in 2020 to $2.32 billion in 2025, while operating cash rose from $506 million to $726 million; neither series fell during the supplied six-year history. In the May 2026 quarter, revenue grew 6.4%, and revenue excluding acquired or sold operations grew 7.0%, led by institutional investors and wealth managers. More than 95% of annual subscription value was retained, and enterprise renewals lengthened 30% on average. Client layoffs, market-driven asset declines, or weaker dealmaking can still reduce seats and data budgets, but subscriptions cushion sudden cycles.

Business strengthCash generation is strong, but buybacks now compete with a near-term debt maturity.

At May 31, FactSet had $288 million of cash and $1.390 billion of debt, leaving $1.102 billion of net debt—about 1.2 times a broad trailing cash-profit measure. A $500 million March 2027 maturity pushed current liabilities above current assets, although roughly $980 million of the bank line remained undrawn. Nine-month buybacks of $506 million plus $123 million of dividends exceeded $530 million of free cash flow, yet shares fell 5.0%. Stock compensation of $61.5 million was more than offset; repurchases averaged $219.21, below the observed price.

What could change the storyFaster subscription growth would confirm upside, while weak margins would erase the discount.

The bull case is 7.1% growth in annual subscription value—the next 12 months of current subscription revenue—plus more than 90% of the largest 50 clients already using at least four artificial intelligence products. The bear case is that adjusted operating margin, recurring operating profit as a share of revenue, fell 2.8 percentage points to 34.0%. Management also retained full-year subscription-growth guidance of $130 million to $160 million despite May’s year-over-year increase reaching $165 million. Growth above $160 million with margins near 35.5% would strengthen the thesis; below $130 million or retention under 95% would weaken it.

$283.49 price considered

AI: News

Subscription growth acceleratedSubscriptions accelerated and earnings beat forecasts, but unchanged guidance kept expectations restrained.

On July 1, FactSet reported May-quarter revenue of $622.9 million, up 6.4%, and adjusted earnings of $4.53 a share, above the reported $4.45 analyst estimate. Organic annual subscription value, meaning the next year’s revenue from current subscriptions excluding deals and currency, rose 7.1%. Management nevertheless repeated full-year adjusted earnings guidance of $17.25 to $17.75. Shares fell nearly 3% before the open but finished 6.7% higher; the reversal shows a mixed reaction, so the closing gain cannot be assigned solely to earnings.

Artificial intelligence distribution pushNew artificial intelligence tools could protect FactSet’s data franchise as client workflows change.

On June 26, FactSet put Portfolio Analytics MCP, a standardized connector for artificial-intelligence systems, into limited release so clients could call approved portfolio results from conversational tools. On June 30, it announced a Google Cloud partnership covering Gemini-powered Workstation agents, Gemini Enterprise connections, and jointly developed finance workflows. Shares rose 11.0% on June 26; reporting linked the move to the product and earnings anticipation, but timing does not prove attribution. Commercial terms were undisclosed, so adoption and subscription growth must validate the value.

Revenue

2018

2019

2020

2021

2022

2023

2024

2025

Net income

2018

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2018

2019

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2018

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$2.32B	$2.20B	$2.09B	$1.84B	$1.59B	$1.49B	$1.44B	$1.35B	$1.22B	$1.13B	$1.01B	$920.3M	$858.1M	$805.8M	$726.5M	$641.1M	$622.0M
Research & development	$300.7M	$265.2M	$267.4M	$255.1M	$250.1M	$224.0M	$214.7M	$217.1M	$215.0M	—	—	—	—	—	—	—	—
Operating expenses	—	—	—	—	—	—	—	$983.9M	$869.0M	$777.4M	$674.9M	$618.1M	$588.7M	$532.8M	$488.2M	$419.4M	$411.0M
Operating income	$748.3M	$701.3M	$629.2M	$475.5M	$474.0M	$439.7M	$438.0M	$366.2M	$352.1M	$349.7M	$331.9M	$302.2M	$269.4M	$273.0M	$238.3M	$221.6M	$211.0M
EBITDAderived	$906.0M	$826.5M	$734.6M	$562.2M	$538.5M	$497.3M	$498.5M	$423.5M	$400.4M	$387.7M	$363.3M	$336.7M	$305.2M	$306.8M	$275.2M	$259.0M	$245.4M
Net income	$597.0M	$537.1M	$468.2M	$396.9M	$399.6M	$372.9M	$352.8M	$267.1M	$258.3M	$338.8M	$241.1M	$211.5M	$198.6M	$188.8M	$171.0M	$150.2M	$144.9M
Basic EPSper diluted share	$15.74	$14.11	$12.26	$10.48	$10.56	$9.83	$9.25	$6.90	$6.55	$8.29	$5.80	$4.98	$4.53	$4.22	$3.72	$3.22	$3.07
Diluted EPSper diluted share	$15.55	$13.91	$12.04	$10.25	$10.36	$9.65	$9.08	$6.78	$6.51	$8.19	$5.71	$4.92	$4.45	$4.12	$3.61	$3.13	$2.97

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys4$328.4K disclosed value

Sells (SEC code S)49$39.42M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jan 12, 2026Form 4	Frank MalcolmDirector	SellCommon Stock	1.5K	$296.17	$452.3K	879
Jan 12, 2026Form 4	Frank MalcolmDirector	SellCommon Stock	1.0K	$295.02	$308.3K	2.4K
Jan 8, 2026Form 4	SIEGEL LAURIEDirector	SellCommon Stock	588	$296.67	$174.4K	1.0K
Jan 8, 2026Form 4	SIEGEL LAURIEDirector	SellCommon Stock	2.0K	$296.12	$587.5K	1.6K
Nov 6, 2025Form 4	Skoko GoranEVP, Chief Revenue Officer	BuyCommon Stock	500	$252.93	$126.5K	9.2K

Review ownership filings at SEC.gov ↗

FACTSET RESEARCH SYSTEMS INC (FDS)

Financial charts

Financial statements

Insider buys & sells