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Reasons Why You Should Retain FactSet Stock in Your Portfolio
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Key Takeaways
FDS shares have risen 10.3% in a month. Fiscal Q2 2026 earnings are expected to increase 2.1% year over year.
FDS expands capabilities via LiquidityBook buyout and LogoIntern with Pitch Creator to automate banking tasks.
FDS faces rising expenses, with operating costs up 10% y/y in fiscal Q1 2026, pressuring margins and growth.
Shares of FactSet Research Systems (FDS - Free Report) have risen 10.3% over the past month compared with the industry’s 13% growth. In the same time frame, the Zacks S&P 500 Composite has declined 3.4%.
The company’s second-quarter fiscal 2026 earnings are expected to increase 2.1% year over year. Earnings for fiscal 2026 and 2027 are projected to rise 2.5% and 8.9%, respectively, year over year. Revenues are expected to increase 5.4% in fiscal 2026 and 5.2% in fiscal 2027.
Factors That Bode Well for FDS
FactSet strengthens its leadership position by providing integrated financial information, analytical applications and industry-leading services for the global investment community. A growing customer base and strong global presence enable FDS to deliver extensive data, sophisticated analytics and flexible technology. The company supports rising demand from both buy-side and sell-side clients by integrating datasets and analytics across asset classes with client data through tools and resources that include company and industry analyses, full screening tools, portfolio analysis, risk profiles, alpha testing, portfolio optimization and research management solutions.
FDS remains focused on expanding its digital platform and use of technology to fast-track product creation and content collection. FactSet has also made several acquisitions over the years to expedite growth. The 2025 acquisition of LiquidityBook, a cloud-native trading solutions provider with its modern and scalable order management, pre-trade compliance and investment book of record, enhances FDS’ ability to serve the integrated workflow requirements of clients across the portfolio life cycle.
Moreover, recently acquired LogoIntern, a banking workflow tool coupled with FDS' new Pitch Creator solution, improves junior bankers' productivity by automating tasks related to manipulating presentation logos.
The company is also driving growth through multiple strategic partnerships. FactSet partnered with Irwin to integrate Irwin's investor relations customer relationship management platform with FDS' Workstation, creating a unified solution for investment relations professionals. The recent collaboration with Coin Metrics enables FDS to integrate digital asset data into solutions, empowering financial professionals to monitor digital assets, analyze portfolios and stay informed about market trends.
FDS’s commitment to rewarding its shareholders through dividends and share repurchases is commendable. In fiscal 2025, 2024 and 2023, the company repurchased shares worth $300.4 million, $235 million and $177 million, respectively, while paying out $160 million, $151 million and $139 million in dividends, respectively.
A Key Risk to Watchfor FDS
FactSet faces growing cost pressures as operating expenses continue to trend upward, weighing on margins and near-term earnings growth. The company’s total operating costs increased 6.4% in 2023, 3% in 2024 and 4.8% in 2025. Costs witnessed a 10% year-over-year jump in the first quarter of fiscal 2026. This indicates that FDS requires a stronger cost control strategy to prevent expense growth from outpacing revenues and eroding profitability.
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Reasons Why You Should Retain FactSet Stock in Your Portfolio
Key Takeaways
Shares of FactSet Research Systems (FDS - Free Report) have risen 10.3% over the past month compared with the industry’s 13% growth. In the same time frame, the Zacks S&P 500 Composite has declined 3.4%.
The company’s second-quarter fiscal 2026 earnings are expected to increase 2.1% year over year. Earnings for fiscal 2026 and 2027 are projected to rise 2.5% and 8.9%, respectively, year over year. Revenues are expected to increase 5.4% in fiscal 2026 and 5.2% in fiscal 2027.
Factors That Bode Well for FDS
FactSet strengthens its leadership position by providing integrated financial information, analytical applications and industry-leading services for the global investment community. A growing customer base and strong global presence enable FDS to deliver extensive data, sophisticated analytics and flexible technology. The company supports rising demand from both buy-side and sell-side clients by integrating datasets and analytics across asset classes with client data through tools and resources that include company and industry analyses, full screening tools, portfolio analysis, risk profiles, alpha testing, portfolio optimization and research management solutions.
FactSet Research Systems Inc. Revenue (TTM)
FactSet Research Systems Inc. revenue-ttm | FactSet Research Systems Inc. Quote
FDS remains focused on expanding its digital platform and use of technology to fast-track product creation and content collection. FactSet has also made several acquisitions over the years to expedite growth. The 2025 acquisition of LiquidityBook, a cloud-native trading solutions provider with its modern and scalable order management, pre-trade compliance and investment book of record, enhances FDS’ ability to serve the integrated workflow requirements of clients across the portfolio life cycle.
Moreover, recently acquired LogoIntern, a banking workflow tool coupled with FDS' new Pitch Creator solution, improves junior bankers' productivity by automating tasks related to manipulating presentation logos.
The company is also driving growth through multiple strategic partnerships. FactSet partnered with Irwin to integrate Irwin's investor relations customer relationship management platform with FDS' Workstation, creating a unified solution for investment relations professionals. The recent collaboration with Coin Metrics enables FDS to integrate digital asset data into solutions, empowering financial professionals to monitor digital assets, analyze portfolios and stay informed about market trends.
FDS’s commitment to rewarding its shareholders through dividends and share repurchases is commendable. In fiscal 2025, 2024 and 2023, the company repurchased shares worth $300.4 million, $235 million and $177 million, respectively, while paying out $160 million, $151 million and $139 million in dividends, respectively.
A Key Risk to Watch for FDS
FactSet faces growing cost pressures as operating expenses continue to trend upward, weighing on margins and near-term earnings growth. The company’s total operating costs increased 6.4% in 2023, 3% in 2024 and 4.8% in 2025. Costs witnessed a 10% year-over-year jump in the first quarter of fiscal 2026. This indicates that FDS requires a stronger cost control strategy to prevent expense growth from outpacing revenues and eroding profitability.
FDS Zacks Rank
FDS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
A couple of better-ranked stocksin the broader Zacks Business Services sector are Coherent Corp. (COHR - Free Report) and Deluxe (DLX - Free Report) .
Coherent carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 29.9%.
COHR delivered a trailing four-quarter earnings surprise of 7.7% on average.
Deluxe also has a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 12%.
DLX delivered a trailing four-quarter average earnings surprise of 15.6%.