FactSet Research Systems (FDS): Fresh Revenue Beat, Earnings Miss—What Do the Numbers Say About Its Valuation?

FactSet Research Systems (FDS) just released its latest quarterly results, reporting revenue growth that topped estimates, while earnings per share landed below expectations. Management emphasized the strength of its data and client services business.

See our latest analysis for FactSet Research Systems.

FactSet's share price has faced heavy pressure this year, sliding nearly 42% year-to-date, with its 1-year total shareholder return down 43%. There have been pockets of short-term rebound, such as a 4% share price gain over the last month. After a turbulent stretch, momentum remains mixed as investors weigh the company’s reliable revenue growth against lingering concerns over profitability and broader market sentiment.

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After a year marked by steep declines and mixed financial performance, is FactSet Research Systems now trading at a discount with upside potential, or has the market already considered all foreseeable growth?

Most Popular Narrative: 17% Undervalued

At $277.41, FactSet’s share price sits well below the $335.94 fair value proposed by the most widely followed narrative. This suggests significant upside if consensus expectations are accurate. The gap between market price and narrative value prompts a closer look at what is generating such optimism.

FactSet is integrating new acquisitions like Irwin and LiquidityBook, adding immediate cross-sell opportunities and expanding services across buy-side and banking workflows, which will support revenue growth. The launch of new GenAI products, including Pitch Creator and conversational API, is expected to provide additional services that drive adoption and increase ASV growth, positively impacting future revenue.

Read the complete narrative.

Wish you could see what is powering this bullish outlook? There is a bold vision for revenue, profit margins, and future earnings in the full narrative. Discover the aggressive benchmarks and concrete milestones FactSet aims to achieve, and get insight into the calculations behind this ambitious valuation.

Result: Fair Value of $335.94 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent technology cost increases and ongoing uncertainty in the asset management sector could easily disrupt FactSet’s path to higher margins and steady growth.

Find out about the key risks to this FactSet Research Systems narrative.

Build Your Own FactSet Research Systems Narrative

If you want to take a different perspective or dig deeper into the numbers yourself, you can easily craft your own narrative in just a few minutes. Do it your way.

A great starting point for your FactSet Research Systems research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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