Update shared on20 Sep 2025
Fair value Decreased 19%FactSet’s reduced analyst price target—from $428.38 to $346.44—reflects concerns over margin compression from ongoing investments, intensifying AI-driven competition, muted outlook guidance, and lingering uncertainty about growth reacceleration under the new CEO.
Analyst Commentary
- Bearish analysts cite concerns that FactSet's ongoing investment phase will suppress margins into fiscal 2026, with uncertainty over whether these investments will meaningfully reaccelerate growth or are needed just to maintain competitiveness.
- Weak outlook guidance and below-consensus margin forecasts have overshadowed positive Q4 organic annual subscription value results, pressuring share price targets downward.
- Rising competitive pressures, especially from AI-enabled peers, have contributed to a more cautious stance from analysts on FactSet’s growth and margin sustainability.
- The recent share price underperformance and de-rating have increased speculation about FactSet becoming a potential acquisition target, particularly among private equity buyers.
- Some bullish analysts see strategic opportunities under the new CEO, including a sharpened focus on wealth management and efforts to disrupt established players in institutional data, as potential future tailwinds.
What's in the News
- Issued fiscal 2026 guidance: GAAP revenues of $2,423–$2,448 million, diluted EPS of $14.55–$15.25, operating income of $720–$750 million, net income of $550–$577 million.
- Reaffirmed fiscal 2025 guidance: GAAP revenues of $2,305–$2,325 million, diluted EPS of $14.80–$15.40, net income of $567–$588 million, operating income of $744–$761 million.
- Completed share repurchases totaling 1.8% of shares ($300 million) under the September 2024 buyback, while launching a new $400 million buyback program.
- Amended bylaws to update director election procedures, including resignation requirements for directors not receiving majority support and changes for contested elections.
- Expanded product and client offerings with J.P. Morgan and Barclays analyst reports in AMR, exclusive integration of MarketAxess CP+ AI-powered bond pricing, and a partnership with Hebbia to bring FactSet data into its platform.
Valuation Changes
Summary of Valuation Changes for FactSet Research Systems
- The Consensus Analyst Price Target has significantly fallen from $428.38 to $346.44.
- The Future P/E for FactSet Research Systems has significantly fallen from 27.58x to 23.45x.
- The Consensus Revenue Growth forecasts for FactSet Research Systems has fallen from 5.7% per annum to 5.4% per annum.
Disclaimer
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