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FactSet Stock Jumps 58% in 6 Months: Here's What You Should Know
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Key Takeaways
FactSet shares gained 57.8% in six months, outperforming the industry and the S&P 500 Composite.
FDS beat earnings estimates in the past three fiscal quarters as OCF and FCF grew consistently.
FactSet expanded partnerships with RepRisk, Google Cloud and TIFIN.AI to bolster AI and investing solutions.
FactSet (FDS - Free Report) stock has gained 57.8% over the past six months, outperforming both the industry’s and the Zacks S&P 500 Composite's 12.6% rally.
6-Month Share Price Performance
Image Source: Zacks Investment Research
Let us delve deeper into the factors that have contributed to the company’s outperformance.
Repeated Earnings Beat
Over the past three fiscal quarters, FactSet has reported earnings beats, a highly impressive feat for investors. In the first quarter of fiscal 2026, the company’s earnings per share of $4.51 outpaced the consensus estimate by 2.7%.
On a similar note, FactSet’s earnings of $4.46 and $4.53 per share during the second and third quarters of fiscal 2026 beat the consensus estimate by 2.1% and 2%, respectively. Consistent earnings beats signal the market that the company holds pricing power or structural market share gains that mitigate macroeconomic headwinds.
Image Source: Zacks Investment Research
It drives multiple expansions of the price-to-earnings and price-to-sales ratios beyond numerical growth in earnings. FactSet’s valuation ratios have moved along an expanding trajectory over the past six months.
P/E TTM, Price/Sales TTM
Image Source: Zacks Investment Research
FCF & OCF Show Similar Trend
Operating cash flow (OCF) and free cash flow (FCF) grew consistently over the past three fiscal quarters. A parallel rise in these metrics implies that the company’s CapEx remained stable relative to cash generation. FactSet stock’s lofty growth over the past six months, alongside a consistent cash flow expansion, suggests that the market is rewarding high-quality and cash-driven growth rather than accounting gains.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Investors perceive this cash flow expansion across OCF and FCF as an indication of share buybacks and dividend payments, which are vital factors that lead to investing in these shares. Over the past three fiscal quarters, FactSet’s share repurchases amounted to nearly $950 million and dividend payments close to $250 million, which not only boost shareholder morale by raising the bottom line but also appeal to income-seeking investors.
Strategic Partnerships Shift Market Perception
FactSet entered three major partnership agreements in June and July 2026. In July, the company expanded its partnership with RepRisk to solidify a sustainable investing solution suite for clients. In June, FactSet partnered with Google Cloud to create a generation of AI-backed solutions for the financial industry.
The company expanded Wealth Management Workflow AI capabilities leveraging a partnership with TIFIN.AI. These partnerships shift the narrative and strengthen the company’s market perception, leading investors to expect substantial growth in revenues and margins in the upcoming quarters.
View the Zacks #1 Rank List
Image: Bigstock
FactSet Stock Jumps 58% in 6 Months: Here's What You Should Know
Key Takeaways
FactSet (FDS - Free Report) stock has gained 57.8% over the past six months, outperforming both the industry’s and the Zacks S&P 500 Composite's 12.6% rally.
6-Month Share Price Performance
Let us delve deeper into the factors that have contributed to the company’s outperformance.
Repeated Earnings Beat
Over the past three fiscal quarters, FactSet has reported earnings beats, a highly impressive feat for investors. In the first quarter of fiscal 2026, the company’s earnings per share of $4.51 outpaced the consensus estimate by 2.7%.
On a similar note, FactSet’s earnings of $4.46 and $4.53 per share during the second and third quarters of fiscal 2026 beat the consensus estimate by 2.1% and 2%, respectively. Consistent earnings beats signal the market that the company holds pricing power or structural market share gains that mitigate macroeconomic headwinds.
It drives multiple expansions of the price-to-earnings and price-to-sales ratios beyond numerical growth in earnings. FactSet’s valuation ratios have moved along an expanding trajectory over the past six months.
P/E TTM, Price/Sales TTM
FCF & OCF Show Similar Trend
Operating cash flow (OCF) and free cash flow (FCF) grew consistently over the past three fiscal quarters. A parallel rise in these metrics implies that the company’s CapEx remained stable relative to cash generation. FactSet stock’s lofty growth over the past six months, alongside a consistent cash flow expansion, suggests that the market is rewarding high-quality and cash-driven growth rather than accounting gains.
Investors perceive this cash flow expansion across OCF and FCF as an indication of share buybacks and dividend payments, which are vital factors that lead to investing in these shares. Over the past three fiscal quarters, FactSet’s share repurchases amounted to nearly $950 million and dividend payments close to $250 million, which not only boost shareholder morale by raising the bottom line but also appeal to income-seeking investors.
Strategic Partnerships Shift Market Perception
FactSet entered three major partnership agreements in June and July 2026. In July, the company expanded its partnership with RepRisk to solidify a sustainable investing solution suite for clients. In June, FactSet partnered with Google Cloud to create a generation of AI-backed solutions for the financial industry.
The company expanded Wealth Management Workflow AI capabilities leveraging a partnership with TIFIN.AI. These partnerships shift the narrative and strengthen the company’s market perception, leading investors to expect substantial growth in revenues and margins in the upcoming quarters.
Zacks Rank & Stocks to Consider
FactSet currently carries a Zacks Rank #3 (Hold).
Some higher-ranked stocks in the broader Zacks Business Services sector are Gartner (IT - Free Report) and Coursera (COUR - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Gartner has a long-term earnings growth expectation of 21%. IT delivered a trailing four-quarter earnings surprise of 13.5%, on average.
Coursera has a long-term earnings growth expectation of 49.6%. COUR delivered a trailing four-quarter earnings surprise of 10.9%, on average.