FactSet Research Systems (NYSE:FDS) Posts Earnings Results

FactSet Research Systems (NYSE:FDS) announced its quarterly earnings results on Wednesday. The business services provider reported $4.53 earnings per share for the quarter, beating analysts’ consensus estimates of $4.44 by $0.09, FiscalAI reports. FactSet Research Systems had a net margin of 23.21% and a return on equity of 30.68%. The business had revenue of $622.92 million during the quarter, compared to analysts’ expectations of $617.91 million. During the same period last year, the business earned $4.27 earnings per share. The business’s revenue for the quarter was up 6.4% on a year-over-year basis. FactSet Research Systems updated its FY 2026 guidance to 17.250-17.750 EPS.

Here are the key takeaways from FactSet Research Systems’ conference call:

• FactSet posted strong Q3 results, with organic ASV growth accelerating to 7.1% and adjusted diluted EPS rising 6.1% year over year to $4.53. Management called it the fifth consecutive quarter of acceleration in organic ASV growth.
• AI is becoming a major growth driver, with over 90% of top 50 clients now using four or more FactSet AI solutions and more than 10% of quarterly ASV growth coming directly from AI SKUs. Management said AI-related deals are also supporting higher retention, expansion, and longer enterprise contract terms.
• Commercial execution appears to be improving, as the company cited better pipeline conversion, higher win rates, and broad-based strength across client types and regions. Several large client wins and renewals also showed existing customers expanding their relationship with FactSet.
• Margins were pressured in the quarter, with adjusted operating margin at 34% versus 35% in Q2 and nearly 37% a year ago due to targeted investments, performance-based compensation, and higher technology spending. Management said it still sees a clear path to margin improvement in future quarters.
• FactSet continued returning capital aggressively, buying back about 926,000 shares for $203 million in the quarter and lifting its dividend for the 27th straight year. Free cash flow rose 11% to $254 million, and leverage remained conservative.

FactSet Research Systems Price Performance

Shares of NYSE FDS opened at $250.55 on Friday. The company has a current ratio of 0.68, a quick ratio of 1.43 and a debt-to-equity ratio of 0.44. FactSet Research Systems has a twelve month low of $185.00 and a twelve month high of $453.41. The stock has a 50 day moving average of $231.16 and a two-hundred day moving average of $237.73. The stock has a market cap of $9.13 billion, a P/E ratio of 16.51, a P/E/G ratio of 2.06 and a beta of 0.72.

FactSet Research Systems Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Friday, May 29th were given a dividend of $1.16 per share. This represents a $4.64 dividend on an annualized basis and a dividend yield of 1.9%. This is an increase from FactSet Research Systems’s previous quarterly dividend of $1.10. The ex-dividend date was Friday, May 29th. FactSet Research Systems’s payout ratio is presently 30.57%.

Institutional Trading of FactSet Research Systems

Hedge funds have recently added to or reduced their stakes in the stock. BOKF NA raised its position in FactSet Research Systems by 5,100.0% during the 3rd quarter. BOKF NA now owns 104 shares of the business services provider’s stock worth $30,000 after buying an additional 102 shares during the last quarter. Litman Gregory Wealth Management LLC acquired a new position in FactSet Research Systems during the 4th quarter worth approximately $32,000. Geneos Wealth Management Inc. raised its stake in shares of FactSet Research Systems by 188.2% during the 1st quarter. Geneos Wealth Management Inc. now owns 98 shares of the business services provider’s stock worth $45,000 after buying an additional 64 shares in the last quarter. Los Angeles Capital Management LLC acquired a new stake in shares of FactSet Research Systems in the 4th quarter valued at approximately $48,000. Finally, MUFG Securities EMEA plc acquired a new stake in FactSet Research Systems in the second quarter valued at $50,000. 91.24% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of analysts have issued reports on FDS shares. Wolfe Research boosted their target price on FactSet Research Systems from $225.00 to $240.00 and gave the company an “underperform” rating in a research report on Wednesday. Jefferies Financial Group boosted their price objective on FactSet Research Systems from $225.00 to $253.00 and gave the company a “hold” rating in a report on Thursday. BMO Capital Markets raised their price target on shares of FactSet Research Systems from $257.00 to $275.00 and gave the company a “market perform” rating in a research report on Thursday. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $240.00 target price on shares of FactSet Research Systems in a report on Thursday. Finally, Deutsche Bank Aktiengesellschaft lifted their price objective on FactSet Research Systems from $275.00 to $280.00 and gave the company a “hold” rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, nine have issued a Hold rating and seven have given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Reduce” and an average price target of $252.57.

Key FactSet Research Systems News

Here are the key news stories impacting FactSet Research Systems this week:

• Positive Sentiment: FactSet reported fiscal Q3 earnings and revenue above Wall Street estimates, with EPS of $4.53 and revenue of $622.9 million, while organic growth and stronger cash flow suggested underlying business momentum. Article Title
• Positive Sentiment: Management said AI demand is helping reshape contracts and product usage, driving ASV gains and wider enterprise deals, while also indicating the company is tracking toward the high end of its FY2026 revenue and EPS ranges. Article Title
• Positive Sentiment: Several analysts raised price targets after the results, including Jefferies to $253, Deutsche Bank to $280, UBS to $340, and BMO to $275, reinforcing the view that the stock still has room to run despite the recent move higher. Article Title
• Neutral Sentiment: Analyst opinions remain mixed: RBC reiterated “sector perform,” Morgan Stanley kept an “equal weight” stance, and Bank of America maintained an “underperform” rating even after a modest target increase, signaling that sentiment is not uniformly bullish. Article Title
• Negative Sentiment: Some coverage highlighted lower margins and flat guidance as potential headwinds, suggesting investors are still concerned that cost pressure could limit the upside from the earnings beat. Article Title

FactSet Research Systems Company Profile

FactSet Research Systems Inc operates as a global provider of integrated financial data and analytics to the investment community. Founded in 1978 and headquartered in Norwalk, Connecticut, the company offers a unified platform that aggregates content from thousands of sources, delivering real-time and historical market data, company fundamentals, estimates, fixed-income information and proprietary analytics to portfolio managers, research analysts, investment bankers and risk officers.

The company’s core products include the FactSet Workstation, an application offering customizable screening, charting, portfolio analysis and news; APIs and data feeds for seamless integration into proprietary systems; and cloud-based solutions for thematic research and quantitative strategies.