One-glance verdict
Undervalued
$460.45 our estimate vs market $263.02
Wall Street consensus: $255.06 (-44.6% lower than our fair-value estimate)
43% below our estimate, below the bear case
Fundamentals snapshot
FactSet Research Systems Inc.
FDS · NYQ · Financial Services · Financial Data & Stock Exchanges
Current price
$263.02
52-week range
$185.00 - $404.09
Market cap
$9.35B
Balance sheet
Watch
13.29x Strong cushion
Net debt $1.27B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 5.0% last year.
- Reward Returns 27.0% on equity, ahead of 25% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Insider ownership is only 0.4% (peer median: 3.6%).
What this company does
FactSet Research Systems Inc.
FactSet provides financial data and analysis software to investment professionals, like the people who manage large retirement funds or advise on company mergers. The company makes almost all its money from subscriptions for its services, which creates predictable recurring revenue (a steady stream of income that is likely to continue). This is important because having a reliable income stream makes it easier for the company to plan for the future and invest in growth.
How the company got here
FactSet was started in 1978 by two Wall Street analysts, Howard Wille and Chuck Snyder, who saw an opportunity to deliver financial information using the era's new computer technology. Initially, they provided data to clients who could then download it into the first-ever spreadsheet program, a major innovation at the time. The company grew by expanding its data offerings, launching its own software, and opening offices in Europe and Asia. It became a publicly traded company in 1996 and has since made numerous acquisitions to add new capabilities in areas like client reporting, trading, and risk analysis.
What it actually does
FactSet provides a digital platform with financial data and software for people who work in the investment industry, like asset managers, bankers, and wealth advisors. Think of it as a one-stop shop for financial professionals to research companies, analyze market trends, and manage their investment portfolios. They get access to vast databases of information on companies, markets, and economies all integrated into a single online system. The company makes money primarily by selling subscriptions to access its platform and tools.
Americas
This is FactSet's largest business segment, serving clients across North and South America. It provides the company's full suite of products, including its core workstation, data feeds, and analytics tools to financial professionals. Customers are primarily on the "buy-side," which includes firms that manage money like mutual funds and hedge funds, and the "sell-side," which includes investment banks and brokers. This segment generates the majority of the company's revenue through subscriptions for its services.
EMEA (Europe, Middle East, and Africa)
The EMEA segment offers the same range of financial data and software solutions to clients in Europe, the Middle East, and Africa. Just like in the Americas, customers are investment professionals who use FactSet's tools for research, analysis, and portfolio management. This part of the business also operates on a subscription model, where clients pay recurring fees for access to the platform. It represents a significant, but smaller, portion of FactSet's overall business compared to the Americas.
Asia Pacific
This segment covers clients throughout Asia and the Pacific region, providing them with FactSet's integrated data and analytics platform. The customers are similar to those in other regions: investment managers, bankers, and other financial professionals who need reliable data and powerful software to do their jobs. While it's the smallest of the three geographic segments, it is a key area for the company's global growth strategy. Revenue here also comes from subscriptions to their products and services.
What management is betting on now
FactSet is heavily focused on integrating artificial intelligence (AI) into its products to help financial professionals find information and analyze data more efficiently. The company is also pushing to expand its business with wealth managers and investment bankers, diversifying beyond its traditional customer base of asset managers. Another key priority is offering more flexible ways for clients to access their data, such as through data feeds and APIs (Application Programming Interfaces, which are ways for different software programs to talk to each other). They are also making strategic acquisitions to bring new technologies and capabilities into their platform.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$137.20M
FY2025 Q1
$60.50M
FY2025 Q2
$150.22M
FY2025 Q3
$228.60M
FY2025 Q4
$178.13M
FY2026 Q1
$90.44M
FY2026 Q2
$185.69M
FY2026 Q3
$254.04M
Revenue
$622.92M
Net income
$126.72M
Diluted EPS
3.50
Operating cash flow
$284.52M
Free cash flow
$254.04M
Fetching…
Sources
Revenue
$611.02M
Net income
$133.06M
Diluted EPS
3.59
Operating cash flow
$211.69M
Free cash flow
$185.69M
Fetching…
Sources
Revenue
$607.62M
Net income
$152.58M
Diluted EPS
4.06
Operating cash flow
$121.28M
Free cash flow
$90.44M
Fetching…
Sources
Revenue
$596.90M
Net income
$153.62M
Diluted EPS
4.03
Operating cash flow
$212.10M
Free cash flow
$178.13M
Fetching…
Sources
Revenue
$585.52M
Net income
$148.54M
Diluted EPS
3.87
Operating cash flow
$253.83M
Free cash flow
$228.60M
Fetching…
Sources
Revenue
$570.66M
Net income
$144.86M
Diluted EPS
3.76
Operating cash flow
$173.96M
Free cash flow
$150.22M
Fetching…
Sources
Revenue
$568.67M
Net income
$150.02M
Diluted EPS
3.89
Operating cash flow
$86.37M
Free cash flow
$60.50M
Fetching…
Sources
Revenue
$562.19M
Net income
$89.50M
Diluted EPS
2.33
Operating cash flow
$163.16M
Free cash flow
$137.20M
Fetching…
Sources
Is it cheap or expensive?
Fair value $460.45 vs current price $263.02
Wall Street consensus is the average analyst price target: $255.06 (-44.6% lower than our fair-value estimate).
Our most-likely fair value is $460.45 a share — about 75.1% above today's price of $263.02, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $1.3B. Interest coverage 13.3x.
Net debt
$1.27B
Interest coverage
13.29x
FactSet Research Systems Inc.'s profit covers its interest bill about 13.3 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
FDS
BASELINE
FactSet Research Systems Inc.
Total debt $1.57B Interest coverage 13.29x This is the baseline the peer rows are being compared against.
Total debt $15.75B Interest coverage 21.52x +62% vs FDS Carries about 1.6x more debt cushion than FDS.
Total debt $7.62B Interest coverage 12.32x -7% vs FDS Has roughly the same debt cushion as FDS.
Total debt $6.54B Interest coverage 8.16x -39% vs FDS Carries about 1.6x less debt cushion than FDS.
Total debt $4.62B Interest coverage 7.86x -41% vs FDS Carries about 1.7x less debt cushion than FDS.
Total debt $1.90B Interest coverage 12.60x -5% vs FDS Has roughly the same debt cushion as FDS.
What you should know
The case for and against FDS
3 Rewards
1 Risk
Rewards
-
Revenue grew 5.0% last year.
-
Returns 27.0% on equity, ahead of 25% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Insider ownership is only 0.4% (peer median: 3.6%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.33x
Forward P/E
13.35x
P/B
4.63x
P/S
3.84x
EV/EBITDA
11.39x
PEG ratio
1.30x
Profitability
How much profit each dollar creates
Gross margin
51.4%
Operating margin
30.5%
Net margin
23.2%
ROE
27.0%
ROA
11.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.77x
Current ratio
0.68x
Quick ratio
0.56x
Total debt
$1.57B
Total cash
$304.24M
Growth
How the business has been compounding
Revenue TTM
$2.44B
Revenue 5Y CAGR
9.9%
EPS TTM
15.18
EPS 5Y CAGR
14.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$829.59M
Free CF TTM
$617.45M
FCF margin
25.3%
Dividend
Shareholder payout
Yield
1.7%
Payout ratio
29.4%
Last ex-div date
2026-05-29