FactSet Research Systems Inc. (FDS), based in Norwalk, Connecticut, is an integral player in the investment sector, providing a comprehensive digital platform along with enterprise solutions aimed at enhancing portfolio analytics, data management, and reporting processes.
With a market capitalization around $10.9 billion, FactSet comfortably fits into the “large-cap” category, indicating its position among major market players valued at $10 billion or higher. The company offers a robust array of services, including customizable desktop and mobile platforms, data feeds, cloud-based solutions, and application programming interfaces (APIs), which have become crucial tools for investors and financial institutions alike.
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Despite its strong foundation and standing within the industry, FactSet has faced significant headwinds recently. The company’s stock has seen a substantial decline of 42.2% from its 52-week peak of $499.87 reached in November 2024. Over the past three months, FDS shares have decreased by 32%, while the Dow Jones Industrial Average ($DOWI) has risen by 9.8% in the same timeframe, illustrating a notable disconnect between FactSet’s performance and broader market trends.
The challenges for FactSet are not newfound, as its stock price tumbled by 38.4% over the last 52 weeks, and in 2025, it has plummeted 39.8%. In comparison, the Dow Jones Industrial Average saw a 10.2% rise over the same yearly interval and an 8.9% increase year-to-date (YTD).
FDS has been notably stuck in a bearish trend, consistently underperforming against its 50-day moving average since January and the 200-day moving average since March this year, momentarily surpassing these benchmarks in May, but failing to sustain recovery—signifying enduring weakness in market sentiment.
The downward spiral was exacerbated after the release of its Q4 2025 earnings report on September 18, leading to an intra-day slump of 10.4% in FDS stock, further compounded by a 4% drop the following day.
Although the company reported a revenue increase of 6.2% year over year (YoY), amounting to $596.9 million—exceeding analyst predictions of $592.8 million—its organic revenue saw a modest growth of 4.5% to $587.3 million. The growth was primarily fueled by demand from institutional buy-side and wealth management clients. However, earnings per share (EPS) rose only 8.3% to $4.05, missing expectations that called for $4.13.
Furthermore, FactSet’s outlook for the upcoming fiscal year has incited additional investor concerns. For fiscal 2026, the company foresees adjusted EPS ranging from $16.90 to $17.60, which falls short of the consensus estimate of $18.27. The anticipated revenue of between $2.42 billion and $2.45 billion, along with expectations of organic annual subscription value (ASV) growth between $100 million and $150 million, has not instilled confidence among market analysts.
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