AnalystConsensusTarget updated the narrative for FDS

The analyst fair value estimate for FactSet Research Systems was modestly reduced from $339.25 to $338.13. Analysts cite ongoing margin pressures and increased investment needs, which are offsetting stronger subscription performance and continued confidence in the company's long-term positioning.

Analyst Commentary

Recent analyst commentary on FactSet Research Systems presents a divided outlook, with both bullish signals and cautions shaping the consensus.

• Bullish analysts contend FactSet's business model is resilient. They view its franchise and client relationships as "sticky" and underappreciated by the market given current share price levels.
• There is recognition of FactSet's ability to quickly integrate artificial intelligence technologies, which demonstrates adaptability in an evolving competitive landscape.
• Several analysts point to organic subscription value growth exceeding expectations, suggesting underlying demand for FactSet's solutions remains strong despite broader uncertainty.
• Some believe recent share price underperformance may have already priced in much of the downside risk. This could create potential upside if management can execute on new strategic initiatives, particularly under new leadership.

• Bearish analysts highlight ongoing margin pressures stemming from increased investment and warn that these expenditures could dampen profitability well into fiscal 2026.
• Concerns persist about competitive threats posed by artificial intelligence advancements. Some suggest that rising competition could further compress margins.
• There is significant uncertainty around how long FactSet's elevated investment phase will last, and whether it will meaningfully accelerate the company's growth rate or merely help it maintain its current competitive position.
• Several valuation targets across the Street have been revised downward, reflecting skepticism regarding near-term improvement in financial performance and the impact of the company's strategic direction.

What's in the News

• FactSet has announced the general availability of IntelligentCross' JumpStart functionality within the Portware execution management system, making FactSet the first competitor to offer direct buy-side integration. The integration leverages artificial intelligence to enhance order matching and price stability in US equities. (Product-Related Announcements)
• The company has provided fiscal 2026 earnings guidance, expecting GAAP revenues between $2,423 million and $2,448 million, GAAP diluted EPS of $14.55 to $15.25, operating income of $720 million to $750 million, and net income of $550 million to $577 million. (Corporate Guidance, New/Confirmed)
• FactSet repurchased 258,672 shares for $106.17 million between June and August 2025, completing a larger buyback program totaling 683,911 shares for $300 million. (Buyback Tranche Update)
• The Board amended and restated its company bylaws to clarify procedural mechanics for director elections and implement a plurality voting standard for contested director elections. (Changes in Company Bylaws/Rules)
• FactSet announced new partnerships and integrations, including the addition of J.P. Morgan and Barclays analyst reports to its aftermarket research offering, and a partnership with Hebbia, enabling direct access to FactSet's data within the Hebbia platform. (Client Announcements)

Valuation Changes

• Fair Value: The analyst fair value estimate decreased modestly from $339.25 to $338.13.
• Discount Rate: The applied discount rate declined slightly, moving from 8.48% to 8.40%.
• Revenue Growth: Projected long-term revenue growth was virtually unchanged, increasing marginally from 5.39% to 5.39%.
• Net Profit Margin: The future profit margin estimate edged down, dropping from 25.37% to 25.35%.
• Future P/E: The forward price-to-earnings ratio estimate fell from 23.24x to 22.51x.