Update shared on 17 Nov 2025
Fair value Decreased 0.56%Analysts have slightly lowered their price target for FactSet Research Systems, now expecting $335.94 per share compared to $337.81 previously. The change is attributed to continued investment-related margin pressures and evolving competitive dynamics, as highlighted in recent research notes.
Analyst Commentary
Recent research reflects a mix of optimism and caution surrounding FactSet Research Systems. Analysts have offered varied perspectives on the company's current valuation, growth potential, and execution risks as competitive dynamics and ongoing investments shape the outlook.
Bullish Takeaways- Bullish analysts highlight the company's "sticky franchise," noting that the stability and long-term nature of FactSet's client relationships are underappreciated by the market at current share levels.
- Several believe the stock has sufficiently priced in downside risk following share underperformance year to date, suggesting the risk-reward profile could be attractive at these levels.
- FactSet's recent integration of artificial intelligence and its swift adaptation to new technological trends indicate an ability to respond effectively to industry change.
- The expertise of new leadership and a strategic shift toward growth areas such as wealth management are seen as potential catalysts for improved execution and future upside.
- Bearish analysts express concern that ongoing investments are likely to pressure FactSet's margins in the near term, impacting profitability into fiscal 2026.
- Some point to uncertainty over how long the current investment phase will last and question whether these efforts will drive meaningful revenue acceleration, versus simply maintaining the company's current competitive position.
- There is caution around FactSet's guidance for the coming fiscal year, which is seen as conservative and below market expectations.
- Competitive pressures, especially regarding artificial intelligence, are cited as headwinds that could limit FactSet's ability to expand margins and grow market share.
What's in the News
- Macrobond announced a strategic integration with FactSet, enabling Macrobond users to directly access FactSet's equity, ETF, fundamentals, consensus estimates, and market aggregates data within the Macrobond platform (Client Announcements).
- FactSet launched the general availability of IntelligentCross' JumpStart functionality within the Portware EMS, making it the first among competitors to offer direct buy-side integration for Jefferies' liquidity and leveraging AI for improved execution in US equities (Product-Related Announcements).
- FactSet issued fiscal 2026 earnings guidance, projecting GAAP revenues between $2,423 million and $2,448 million, diluted EPS from $14.55 to $15.25, operating income from $720 million to $750 million, and net income from $550 million to $577 million (Corporate Guidance).
- The company completed major share buybacks, repurchasing a total of 682,308 shares for $299.48 million since September 2024 (Buyback Tranche Update).
- FactSet amended and restated its bylaws to clarify director election procedures, including resignation processes for incumbent directors not receiving majority votes and a carve out for contested elections (Changes in Company Bylaws/Rules).
Valuation Changes
- Consensus Analyst Price Target: Decreased slightly from $337.81 to $335.94 per share.
- Discount Rate: Increased marginally from 8.41% to 8.48%.
- Revenue Growth: Essentially unchanged, moving fractionally from 5.39% to 5.39%.
- Net Profit Margin: Remained stable, inching up from 25.36% to 25.36%.
- Future P/E: Dropped modestly from 21.86x to 21.78x.
Disclaimer
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