FactSet Research Systems (NYSE:FDS) Announces Earnings Results, Beats Estimates By $0.09 EPS

FactSet Research Systems (NYSE:FDS) issued its quarterly earnings results on Wednesday. The business services provider reported $4.53 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.44 by $0.09, FiscalAI reports. FactSet Research Systems had a return on equity of 30.25% and a net margin of 24.48%.The company had revenue of $622.92 million for the quarter, compared to the consensus estimate of $617.91 million. During the same quarter in the prior year, the business posted $4.27 earnings per share. FactSet Research Systems’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 Trading Up 6.3%

Shares of FDS stock opened at $244.62 on Thursday. FactSet Research Systems has a fifty-two week low of $185.00 and a fifty-two week high of $453.41. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.43 and a current ratio of 1.43. The stock’s fifty day moving average is $230.97 and its two-hundred day moving average is $238.02. The firm has a market capitalization of $8.91 billion, a P/E ratio of 15.73, a PEG ratio of 1.92 and a beta of 0.72.

FactSet Research Systems Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Friday, May 29th were issued a $1.16 dividend. This represents a $4.64 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date was Friday, May 29th. This is an increase from FactSet Research Systems’s previous quarterly dividend of $1.10. FactSet Research Systems’s payout ratio is 29.84%.

Wall Street Analysts Forecast Growth

FDS has been the topic of a number of research analyst reports. Weiss Ratings reissued a “sell (d+)” rating on shares of FactSet Research Systems in a research note on Wednesday, June 24th. The Goldman Sachs Group downgraded shares of FactSet Research Systems from a “sell” rating to an “underweight” rating in a report on Thursday, June 18th. Royal Bank Of Canada dropped their target price on shares of FactSet Research Systems from $243.00 to $240.00 and set a “sector perform” rating on the stock in a research report on Wednesday, May 27th. Wolfe Research set a $240.00 target price on shares of FactSet Research Systems in a research note on Wednesday. Finally, Wells Fargo & Company upped their price target on shares of FactSet Research Systems from $195.00 to $200.00 and gave the stock an “underweight” rating in a research report on Wednesday, April 1st. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, eight have given a Hold rating and seven have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Reduce” and a consensus target price of $263.85.

Institutional Investors Weigh In On FactSet Research Systems

Hedge funds have recently modified their holdings of the business. CIBC Private Wealth Group LLC grew its stake in FactSet Research Systems by 6.1% during the 4th quarter. CIBC Private Wealth Group LLC now owns 1,443 shares of the business services provider’s stock valued at $419,000 after acquiring an additional 83 shares in the last quarter. Laird Norton Wetherby Wealth Management LLC lifted its stake in FactSet Research Systems by 118.9% in the 3rd quarter. Laird Norton Wetherby Wealth Management LLC now owns 1,460 shares of the business services provider’s stock worth $418,000 after purchasing an additional 793 shares in the last quarter. Caitlin John LLC boosted its holdings in shares of FactSet Research Systems by 2,928.2% during the 4th quarter. Caitlin John LLC now owns 1,181 shares of the business services provider’s stock worth $343,000 after purchasing an additional 1,142 shares during the last quarter. QSV Equity Investors LLC boosted its holdings in shares of FactSet Research Systems by 14.9% during the 4th quarter. QSV Equity Investors LLC now owns 1,011 shares of the business services provider’s stock worth $293,000 after purchasing an additional 131 shares during the last quarter. Finally, Caxton Associates LLP purchased a new stake in shares of FactSet Research Systems in the third quarter valued at approximately $248,000. 91.24% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting FactSet Research Systems

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

• Positive Sentiment: FactSet reported Q3 EPS of $4.53 versus consensus of $4.44 and revenue of $622.9 million versus $617.9 million expected, showing solid organic demand and continued ASV growth. Article link
• Positive Sentiment: The company said it is tracking toward the high end of its FY2026 revenue and EPS guidance ranges, which suggests management is confident in second-half execution. Article link
• Positive Sentiment: FactSet is deepening its AI push through a strategic partnership with Google Cloud, which could support future product differentiation and growth. Article link

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.