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With a market cap of $17.6 billion, FactSet Research Systems Inc. (FDS) is a leading provider of financial data and analytics. Headquartered in Norwalk, Connecticut, FactSet delivers comprehensive research, technology-driven solutions, and expert insights to empower investment professionals, asset managers, and corporate clients in making informed decisions and navigating dynamic financial markets worldwide.
Shares of FactSet Research have significantly lagged behind the broader market over the past 52 weeks. FDS has declined 1.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 17.5%. Moreover, on a YTD basis, the stock is down 5.5%, compared to SPX’s 1.3% gains.
Looking further, FDS underperformed compared to the iShares U.S. Financials ETF’s (IYF) impressive surge of almost 28.2% over the past 52 weeks and 4.5% return on a YTD basis.
FactSet Research has underperformed the broader market and its peers over the past year due to cautious growth expectations, competitive pressures, and investor concerns over its ability to accelerate revenue expansion.
However, on Dec. 19, FactSet stock rose over 3% after its Q1 earnings beat expectations. The company reported adjusted EPS of $4.37, exceeding the $4.30 estimate and up 6.1% year-over-year. Revenue grew 4.9% to $568.7 million, surpassing the $565.4 million forecast. For fiscal 2025, FactSet expects adjusted EPS between $16.80 and $17.40.
For the current fiscal year, ending in August 2025, analysts expect FDS’ EPS to increase 4.6% year over year to $17.21. Moreover, the company’s earnings surprise history is robust. It surpassed the consensus estimates in each of the last four quarters.
Among the 18 analysts covering FDS stock, the consensus rating is a “Hold.” That’s based on one “Strong Buy” rating, 11 “Holds,” and six “Strong Sells.”
On Feb. 11, Wells Fargo lowered FactSet’s price target to $500 from $503 but maintained an “Equal-Weight” rating, citing its LiquidityBook acquisition as a boost to cloud-native OMS and IBOR capabilities.
The mean price target is $473.14, representing a premium of 4.3% to FDS’ current price levels. The Street-high price target of $525 suggests an upside potential of 15.7%.
