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AGING Analysis Report
Aug 15, 2026
20 days ago · 100% complete
For AI assistants & researchers — machine-readable summary of this page

What this page is: Delvantic's full research page for FactSet Research Systems Inc. (FDS) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.

Our current read (analysis of 2026-09-04): Designation Watch · Gem Score +12 (−100…+100 Quality+Value blend) · Quality 76 · Value -30 · Sentiment 4 (timing only, not weighted)

Page map (sections in order; each card carries a stable reference-name attribute you can cite):

  • profile-header / price-overview — company profile, live quote, market cap
  • extended-analysisthe core: three AI lens reads with findings, scores, and the analyst memo
  • future-predictions — our forward price-band predictions
  • market-narrative / ai-findings / gpt-critique — narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)
  • Members-only sections (render as login gates for anonymous readers): price-history, income-trend, key-metrics, financials (statement tables), insider-trading. The analysis above is public; the raw data tables require a free account.

More for machine readers: site briefing at /llms.txt · any ticker resolves at delvantic.com/stock/TICKER · raw inputs are public-company filings and market data (via licensed data feeds); every model, score, lens read, and prediction on this page is Delvantic's own analysis.

FactSet Research Systems Inc.

FDS NYSE
Financial Services · Financial Data & Stock Exchanges
Norwalk, CT 06850, United States factset.com Updated Aug 15, 10:24am
Price
$283.49
Market Cap
$10.1B
Employees
12,886
Beta
0.69
Avg Volume
921,159
Last Dividend
$4.46
CEO
Mr. Sanoke Viswanathan

FactSet Research Systems Inc. is a financial technology and data company that provides integrated financial information, analytics, and workflow solutions to institutional clients worldwide. The company offers a digital platform that aggregates and connects market data, company financials, estimates, ownership, and alternative data, delivering them through customizable workstations, APIs, and data feeds. FactSet serves asset managers, wealth managers, investment banks, private equity firms, and corporate clients, helping them with research, portfolio analytics, risk management, trading workflows, and regulatory and reporting requirements. Its solutions include portfolio and risk analytics, quantitative research tools, content and data management, and AI-powered analytics embedded directly into client workflows. FactSet also operates enterprise solutions that integrate with clients’ internal systems, enabling firm-wide data consistency and decision support across front, middle, and back-office functions. Founded in 1978 and headquartered in Norwalk, Connecticut, FactSet plays a central role in supporting data-driven decision-making across global capital markets.

Runs with full report Generated: Aug 15, 2026 10:34am
Price Overview
Price at report time
$283.49
as of Aug 15, 10:42am (20d ago)
Change · Aug 15
-3.69 (-1.28%)
Day Range
$278.82 – $288.57
52-Week Range
$185.00 – $387.75
50-Day MA
$252.87
200-Day MA
$247.33
Volume
1,324,500.00
Right now · live
Log in to get the live feed
Members see the real-time price and the move since this report (over 20d).
Share Structure
Outstanding 35,777,453.00
Float 32,574,481.00
Free Float 91.0%
High free float — 91.0% of shares trade freely, ~9% held by insiders/institutions
Very liquid — most shares trade freely. Low insider ownership can mean less management alignment, but makes large position sizing straightforward.
Price History (1 Year)
Last updated: Aug 15, 2026 10:47am (20d ago)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Aug 15, 2026 10:46am (20d ago)
Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
TD Twelve Data statement HEX SEC filing
Industry comparison last run: Aug 15, 2026 10:32am
P/E Ratio (Price per dollar of earnings)
HEX
Stock Price / EPS (Diluted)
18.23
Stock Price: $283.49
EPS (Diluted): 15.55
P/B Ratio (Price vs net asset value)
HEX
Stock Price / Book Value Per Share
4.98
Stock Price: $283.49
Total Equity: $2.19B
Shares: 38,394,855
EV/EBITDA (Total value vs operating profit)
HEX
Enterprise Value / EBITDA
12.20
Market Cap: $10.08B
Total Debt: $1.37B
Cash: $337.65M
EBITDA: $965.96M
Enterprise Value (Takeover price (cap + debt - cash))
HEX
Market Cap + Total Debt - Cash
$11.8B
Market Cap: $10.08B
Total Debt: $1.37B
Cash: $337.65M
Gross Margin (Revenue left after direct costs)
HEX
Gross Profit / Revenue
52.7%
Gross Profit: $1.22B
Revenue: $2.32B
Operating Margin (Revenue left after all operations)
HEX
Operating Income / Revenue
32.2%
Operating Income: $748.30M
Revenue: $2.32B
Net Margin (Revenue left as actual profit)
HEX
Net Income / Revenue
25.7%
Net Income: $597.04M
Revenue: $2.32B
ROE (Profit from shareholder equity)
HEX
Net Income / Total Equity
27.3%
Net Income: $597.04M
Total Equity: $2.19B
ROIC (Profit from all invested capital)
HEX
NOPAT / Invested Capital
19.3%
Operating Income: $748.30M
Tax Rate: 17.2%
Equity: $2.19B
Total Debt: $1.37B
Cash: $337.65M
Current Ratio (Can it pay short-term bills)
HEX
Current Assets / Current Liabilities
1.40
Current Assets: $729.76M
Current Liabilities: $521.31M
Debt/Equity (Leverage — debt vs equity)
HEX
Total Debt / Total Equity
0.63
Short-Term Debt: $0.00
Long-Term Debt: $1.37B
Total Debt: $1.37B
Total Equity: $2.19B
Rev/Share (Top-line per share)
HEX
Revenue / Shares Outstanding
$60.47
Revenue: $2.32B
Shares: 38,394,855
Book Value/Share (Net assets per share)
HEX
(Total Assets - Total Liabilities) / Shares
$56.95
Total Equity: $2.19B
Shares: 38,394,855
FCF/Share (Real cash generated per share)
HEX
(Operating Cash Flow + CapEx) / Shares
$16.08
Operating CF: $726.26M
CapEx: -$108.81M
Shares: 38,394,855
CapEx is negative (outflow) — added to OCF to get FCF
Div Yield (Annual income from holding)
TD
Last Annual Dividend / Stock Price
1.6%
Last Dividend: $4.46
Stock Price: $283.49
Payout Ratio (Earnings paid out as dividends)
HEX
Dividends Paid / Net Income
26.8%
Dividends Paid: -$159.97M
Net Income: $597.04M
Industry Benchmarks
Last run: Aug 15, 2026 10:32am
Compares FDS against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Income Statement (Annual)
Last updated: Aug 15, 2026 10:46am (20d ago)
Metric 2021 2022 2023 2024 2025
Revenue $1.6B $1.8B $2.1B $2.2B $2.3B
Cost of Revenue $786.4M $871.1M $973.2M $1.0B $1.1B
Gross Profit $805.0M $972.8M $1.1B $1.2B $1.2B
Operating Expenses $331.0M $433.0M $457.1M $485.1M $475.7M
Operating Income $474.0M $539.8M $655.2M $706.0M $748.3M
Net Income $399.6M $396.9M $468.2M $537.1M $597.0M
EBITDA $583.1M $673.3M $813.9M $877.6M $966.0M
EPS $10.62 $10.43 $12.26 $14.11 $15.74
EPS (Diluted) $10.36 $10.25 $12.04 $13.91 $15.55
Balance Sheet (Annual)
Last updated: Aug 15, 2026 10:26am (20d ago)
Metric 2021 2022 2023 2024 2025
Cash & Equivalents $681.9M $503.3M $425.4M $423.0M $337.7M
Total Current Assets $933.6M $870.3M $770.1M $835.8M $729.8M
Total Assets $2.2B $4.0B $4.0B $4.1B $4.3B
Current Liabilities $315.7M $438.3M $484.3M $667.1M $521.3M
Long-Term Debt $574.5M $2.0B $1.6B $1.2B $1.4B
Total Liabilities $1.2B $2.7B $2.3B $2.1B $2.1B
Total Equity $1.0B $1.3B $1.6B $1.9B $2.2B
Retained Earnings $912.5M $1.2B $1.5B $1.9B $2.3B
Cash Flow (Annual)
Last updated: Aug 15, 2026 10:46am (20d ago)
Metric 2021 2022 2023 2024 2025
Operating Cash Flow $555.2M $538.3M $645.6M $700.3M $726.3M
Capital Expenditure -$61.3M -$51.2M -$60.8M -$85.7M -$108.8M
Free Cash Flow $493.9M $487.1M $584.8M $614.7M $617.5M
Acquisitions (net) -$58.1M -$2.0B -$23.6M $0 -$348.3M
Net Debt Issued / (Repaid) $0 $1.4B -$375.0M -$250.0M -$1.6M
Dividends Paid -$117.9M -$125.9M -$138.6M -$150.7M -$160.0M
Stock Buybacks -$264.7M -$18.6M -$176.7M -$235.2M -$300.5M
Net Change in Cash $96.3M -$178.6M -$77.8M -$2.5M -$71.3M
Growth Trends (YoY %)
Last updated: Aug 15, 2026 10:46am (20d ago)
Metric 2022 2023 2024 2025
Revenue Growth +15.9% +13.1% +5.6% +5.4%
Gross Profit Growth +20.8% +14.3% +7.1% +2.8%
Operating Income Growth +13.9% +21.4% +7.8% +6.0%
Net Income Growth -0.7% +18.0% +14.7% +11.2%
EBITDA Growth +15.5% +20.9% +7.8% +10.1%
Dividend History (Last 20)
Last updated: Aug 15, 2026 10:47am (20d ago)
Date Dividend Declaration Record Payment
2026-05-29 $1.16
2026-02-27 $1.10
2025-11-28 $1.10
2025-08-29 $1.10
2025-05-30 $1.10
2025-02-28 $1.04
2024-11-29 $1.04
2024-08-30 $1.04
2024-05-31 $1.04
2024-02-28 $0.98
2023-11-29 $0.98
2023-08-30 $0.98
2023-05-30 $0.98
2023-02-27 $0.89
2022-11-29 $0.89
2022-08-30 $0.89
2022-05-27 $0.89
2022-02-25 $0.82
2021-11-29 $0.82
2021-08-30 $0.82
0Company Classification 1Industry Landscape 2Company Momentum 3Forward Projection 4aDCF Valuation 4bEarnings Power Value 4cAnchored PE 4dReverse DCF 4eRevenue-Based DCF 4fAnchored P/S 4gScenario Analysis 4hDividend Discount Model 4iBook Value Analysis 4jInsider Activity 4fCash Flow Quality 4gDebt Maturity Risk 4hMacro Environment 4iSector Intelligence 4jRevenue Confidence 4kSensitivity Analysis 4lSector Demand Cycle 5AI Investigation 5bThesis Evaluation 6Valuation Synthesis
computed not applicable not yet run 11 computed · 6 not applicable · 7 not yet run
Risk : Reward — upside vs downside from this company's own quarters
Not computed yet
Why there is no ratio: Risk:reward has not been computed for this name yet — its report predates the mechanical valuation chain. It is added, at $0, the next time a report or the nightly touches this ticker.
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for FDS — it's generated by the pipeline (market-narrative step).
Growth Outlook
Analyzed 2026-08-17 16:35

The question every valuation on this page silently assumes: is this company likely to grow? Judged forward — the business, its category, the world — against what's already printed.

Holding Mid-single-digit recurring revenue growth continues on a sticky subscription base, but earnings power is currently going backwards on AI/cloud investment and seat-level budget pressure — a stable, not expanding, business. conf 7/10
Inline with category Category growing · Company revenue +6.8% matched-quarter YoY (5.4% recent, 5.5% multi-year CAGR) against category median 6.6% and 8.9% industry 3-yr CAGR — FDS is tracking at or modestly below the category, with part of its growth acquisition-assisted rather than organic seat/ASV expansion.
Next 2 quarters
Holding
Backlog-like subscription visibility plus price escalators make mid-single-digit revenue growth near-certain for the next two prints; EPS stays roughly flat as investment spend and acquired-asset amortization offset it. No mechanism visible for near-term acceleration or contraction.
≈ inline with expectations
Year 1
Holding
Full-year organic ASV growth is running in the mid-single digits with the decelerating quarterly trend intact; adjacency wins (wealth, private markets, feeds) roughly offset workstation softness. Margin guidance is the swing factor, and current run-rate says operating income does not outgrow revenue this year.
≈ inline with expectations
Years 2–3
Holding
The subscription annuity and category growth support ~4-6% revenue compounding, but earnings power expansion requires the current investment cycle to end and seat-based demand to stop eroding. With AI intermediation shifting the unit of demand and competitive pressure from both scale-IP owners and cheap data pipes, the honest structural read is flat-to-modestly-growing earnings power, not durable compounding.
≈ inline with expectations
The creme: each rung's call measured against what's already printed (vs analyst estimates · vs guidance / FY consensus · vs price-implied growth) — expectations in print are already in the price, so only the variant margin can pay. Hover a rung's chip for the margin read.
Growth drivers
65 Recurring subscription base with high retention — Nearly all revenue is annual subscription value with contractual escalators and client retention in the high-80s/90s%; this makes the mid-single-digit revenue line (+6.8% matched-quarter YoY) structurally durable rather than order-dependent, and it is why the revenue series shows very low volatility (0.0012) with all years positive.
45 Steady, still-growing category — Financial data & exchanges category median recent growth 6.6% and 8.9% 3-yr industry revenue CAGR; data consumption per institutional workflow keeps rising (private markets, risk, regulatory, wealth). FDS grows roughly with the tide rather than against it.
41 Adjacency expansion beyond the core workstation — Wealth management platforms, private-markets/deal-making data, feeds/API and CRM-adjacent tooling (acquired capabilities) are the incremental ASV engines, shifting mix away from headcount-linked terminal seats toward enterprise data delivery that scales with client AUM/data needs, not analyst count.
35 Pricing power on mission-critical workflow — Embedded portfolio analytics, performance attribution and reporting are audit-trail workflows with prohibitive switching costs, supporting annual price increases that alone deliver low-single-digit growth before any unit expansion.
Growth risks
68 Earnings power contracting while revenue grows — Operating income -4.8% and net income -7.0% on +6.8% revenue in the matched quarters — negative operating leverage from cloud migration, AI build-out and acquired lower-margin revenue. Until this inflects, revenue growth does not translate into earnings growth, which is what the structural rung is really about.
60 Buy-side seat and budget compression — Client base is consolidating asset managers under fee pressure with flat-to-down analyst headcount; workstation counts are the most exposed line, and vendor-consolidation reviews cap net new ASV even when retention holds. This is the mechanism behind the 'decelerating' quarterly trend flag.
53 Competitive encirclement and data commoditization — Bloomberg (terminal bundling), MSCI/S&P/LSEG (index + analytics scale) above, and cheap cloud-native feeds plus open-source/LLM-assisted tooling below. FDS is neither the cheapest pipe nor the owner of proprietary must-have index/ratings IP, so its differentiation rests on workflow integration alone.
42 AI intermediation of the research seat — If agents do junior-analyst work, the unit of demand shifts from seats to data/API consumption — a mix FDS can serve but at lower revenue per client unless it wins the agent-layer standard. Its AI products are early and unproven as monetized ASV.
The world's demand for institutional financial data keeps rising, but the value is migrating to two poles: proprietary IP/index-and-ratings franchises and cheap programmatic data plumbing. FDS sits in the middle as a workflow integrator — a strong position while human analysts drive research, a contested one if AI agents become the consumer of data. Macro headwinds (10y 4.63, flat-ish curve) keep asset-manager fee pressure and headcount discipline in place, capping seat growth, while deal-making and private-markets recovery would help the newer adjacencies. Net: a steady, defensible, slow-compounding business in a category that grows a bit faster than it does.
Growth position composite -17
ShrinkingStallingHoldingGrowingAccelerating
50Next 2 quarters · Holding
50Year 1 · Holding
50Years 2–3 · Holding
-17Composite (−100…+100)
A research prediction, not advice. Forward-graded: each rung is scored against the prints that follow it. Not an input to the GEM designation — track record first.
Claude Reading
Independent analyst synthesis · claude-opus-4-7 · generated 2026-08-15 10:45:57
Verdict Fairly valued near $283 — margin compression from 26% to 20% net in two quarters undermines the synthesis upside case; wait for Q1FY27 print, add below $255 if franchise intact.

Looking at the raw quarterly tape first: revenue went $562.2M → $568.7M → $570.7M → $585.5M → $596.9M → $607.6M → $611.0M → $622.9M. That's clean sequential growth, but the YoY rates tell the real story: Q1FY26 (Nov'25) was +6.8%, Q2 +7.1%, Q3 +7.4%, and Q4 (May'26) at $622.9M vs $585.5M is +6.4%. Growth is stabilizing in the mid-6s, not decelerating meaningfully. What IS decelerating — sharply — is margin. Net margin went from 26.4% (Nov'24) to 25.7% → 25.4% → 25.1% → 21.8% → 20.3%. That's a 610bp compression in two quarters. Net income in the latest quarter ($126.7M) is actually *below* the year-ago quarter ($148.5M) — earnings YoY is negative ~15%, not the +11.2% the momentum table cites (which is stale, using older comps). This is the single most important fact in the file and no prior model flags it explicitly.

So what's happening? Revenue keeps growing ~6%, but incremental margins have gone sharply negative. Either FactSet is investing heavily (AI buildout, likely) or facing genuine cost pressure / pricing weakness on renewals. Op margin at the annual level was 32.2% for FY25; the recent quarterly net margins imply operating margin has fallen into the mid-20s. The narrative layer's "anchored compounder at 10% discount to DCF" assumes stable margins — that assumption is currently being violated in real time. The synthesis composite fair value of $310 and signal-adjusted $316 (+11.6% upside) is built on trailing metrics that don't reflect the margin cliff. If I re-run a rough earnings power on annualized recent quarterly NI (~$520M vs the trailing $597M), the P/E on run-rate is closer to 19.4x, not 18.2x, and if margins keep sliding it's 21-22x forward — no longer cheap for a 6% grower.

The Market Forces model ("structural decline, margin expansion masks share loss") looks directionally right but got the margin direction wrong — margins are now *contracting*, not expanding. The thesis evaluator's -4 score and "growth upside capped" framing seems closer to reality than the synthesis's "slight upside." Pre-flight's claim of "consistent margins above 50%" is gross margin only; the operating margin trajectory is what matters and it's rolling over. A contrarian bull would argue: (a) the margin compression is discretionary AI investment that will pay off in ARR acceleration in FY27, (b) $617M FCF on a $10B market cap is a 6.1% FCF yield, respectable for durable subscription revenue, (c) debt/equity 0.63 and ROIC 19% remain healthy, and (d) the stock is already 27% off its 52w high, so bad news is partly priced. That's a coherent case — but it requires believing management is spending wisely on AI, which is unverified.

I dissent partially from the synthesis "+11.6% upside" verdict. The composite is anchored to trailing fundamentals that have visibly deteriorated in the last two prints. Fair value on run-rate earnings and a fair 18-19x multiple for a 6% grower with margin uncertainty is closer to $270-285 — roughly where it trades. I'd call this fairly valued, not undervalued, with negative skew until Q1FY27 shows whether the margin drop stabilizes. The bull case at $310+ requires margins to recover to 24%+ by mid-FY27; the bear case at $230 requires margins to keep sliding toward 18%. Balance sheet is fine, FCF conversion is intact ($617M FCF vs $597M NI = 103%, contradicting Market Forces' "earnings-to-cash flow divergence" claim — that signal looks wrong). I'd wait for the next print. No position here; if it drops to $250 on another weak margin quarter, that becomes an interesting entry because the franchise durability is real even if growth is capped.

GPT Reading
Independent reading · gpt-5.4 · generated 2026-08-15 10:46:11
Verdict Undervalued at $283 — a high-quality, cash-generative data franchise trading like a no-growth utility; fair value is closer to $315-$330 if margins stabilize above 23%.

What stands out is not a broken business but a very steady one that the data-driven summaries occasionally overdramatize. Revenue has climbed from $1.59B in 2021 to $2.32B in 2025, a 9.9% four-year CAGR off the annual figures, while net income rose from $399.6M to $597.0M, with 2025 net margin at 25.7%. That is not “structural decline”; it is a mature subscription-like franchise still compounding at a respectable mid-single to high-single rate with excellent incremental economics. The quarterly cadence is also better than the more bearish labels imply: the last four reported quarters were $568.7M, $570.7M, $585.5M, and $596.9M in 2025, then $607.6M, $611.0M, and $622.9M in the current year-to-date. That is slow, yes, but consistently upward. On a trailing basis from the quarterly data, revenue is about $2.44B and net income about $566.0M, implying some recent margin slippage but still a very healthy ~23% trailing net margin.

The key issue is valuation versus growth, and here I think the stock is closer to modestly undervalued than merely fair. At $10.08B market cap and $617.5M of free cash flow in the latest fiscal year, the equity trades around 16.3x FCF, while the stated P/E is 18.2x and EV/EBITDA 12.2x. For a business with 52.7% gross margin, 32.2% operating margin, 19.3% ROIC, and recurring demand embedded in professional workflows, those are not demanding multiples. Even if you haircut growth to 5-6% revenue and assume limited margin expansion, you are still looking at a company converting roughly 84% of operating cash flow to free cash flow ($617.5M on $726.3M OCF) and earning well above its cost of capital. The balance sheet is also manageable rather than pristine: $1.37B debt against $337.7M cash is meaningful, but with $726M of operating cash generation it is not a strain. This looks like a durable quality compounder that has been derated into a more ordinary multiple.

The one real blemish in the raw numbers is margins. Annual operating income improved from $706.0M to $748.3M in 2025, but recent quarterly net margins have come off materially from the 25-26% range through most of fiscal 2025 to 21.8% and then 20.3% in the last two quarters. On the quarterly run-rate, net income of $126.7M on $622.9M revenue is a clear deterioration versus $148.5M on $585.5M a year earlier despite higher sales. That deserves attention because a low-growth information-services company depends on margin stability to justify a premium. But I read this as pressure on a still-elite margin structure, not an impairment of the model. The business can absorb some reinvestment or pricing friction and still produce returns most companies would envy.

The best argument against my read is that the market is correctly discounting a business whose best days are behind it. Revenue growth has moderated into the 5% range, free cash flow growth over the longer window is far weaker than earnings growth, and recent profits are moving the wrong way despite higher revenue. If AI lowers search, summarization, and modeling frictions across financial workflows, part of FactSet’s value proposition could be commoditized faster than its current customer stickiness suggests. Add formidable competitors with broader ecosystems, and the bear case is that today’s 18x earnings multiple is not cheap for a company that may be heading toward low-single-digit growth with mild margin compression. If the latest quarter’s 20.3% net margin is closer to the new normal than a temporary dip, then the apparent discount is smaller than it looks.

What would change my mind is straightforward. If quarterly revenue falls below a 4-5% year-over-year growth band while net margin stays around 20-22%, I would stop treating this as an underappreciated compounder and view it as a no-growth utility that deserves closer to 14-16x earnings. Likewise, if free cash flow drops materially below $600M despite revenue growth, the quality case weakens. On the other hand, if FactSet can show revenue sustaining above $620M-$630M quarterly with margins recovering back toward 24-25%, the current price will look too low for the durability on offer.

Grok Reading
Independent reading · grok-4.5 · generated 2026-08-15 10:46:58
Verdict Fairly valued near $283; quality FCF compounder but 5% growth and recent NI margin drop to 20% cap upside vs ~$310 models

FactSet’s numbers describe a high-quality franchise that has already matured into low-single-digit growth territory and is now showing clear margin pressure. Annual revenue climbed from $1.59B in FY2021 to $2.32B in FY2025, a respectable mid-single-digit path that matches the 5.5% revenue CAGR and the latest 5.4% year-over-year print. Free cash flow of $617.5M on that base (roughly 27% of sales, after only $109M of capex) and a 27% ROE / 19% ROIC confirm the business still converts subscriptions into cash at an elite rate. Yet the quarterly sequence tells a sharper story: revenue rose from $585.5M to $622.9M year-over-year, while net income fell from $148.5M to $126.7M and net margin compressed from the mid-25% range that prevailed for six straight quarters down to 20.3%. Operating leverage that previously lifted earnings CAGR to 12.9% has flipped; the most recent two quarters are delivering higher sales and lower profits. At 18.2× trailing earnings, 4.7× sales and 12.2× EV/EBITDA, the market is already pricing a mid-single-digit grower with a durable moat, not a re-acceleration story. The 6.1% FCF yield looks attractive on paper, but FCF itself has compounded at only 2.8%, so the cash-generation edge is less dynamic than the earnings history suggests.

The balance sheet is serviceable rather than fortress-like—$1.37B of debt against $338M cash and $2.19B of equity leaves a 0.63 debt-to-equity ratio and a current ratio of 1.4—while the 1.6% dividend (27% payout) is comfortably covered. Nothing here is broken; the franchise remains sticky and highly profitable on an annual basis (53% gross, 32% operating, 26% net). What stands out is the absence of any acceleration and the sudden appearance of cost pressure exactly when competitive and AI narratives are loudest. The stock’s roughly 27% drawdown from its 52-week high has simply brought the multiple into line with a 5% grower whose incremental margins are no longer expanding.

The strongest counter-argument is that the recent margin dip is temporary investment (AI productization, sales capacity, or mix) and that the underlying 27% ROE, $617M of annual FCF, and high switching costs still justify a re-rating toward the $310–316 composite fair-value range, implying 10–12% upside. A bull would also note that private-markets data and workflow upsell remain early, that the 18× P/E sits below the broader market, and that sell-side models still treat the moat as under-appreciated. I weigh those points less heavily because the earnings decline is already visible in two consecutive quarters, FCF growth has lagged for years, and the competitive set (Bloomberg, LSEG/Refinitiv) is not standing still on generative AI. Paying 18× for mid-single-digit revenue growth and currently shrinking net income is not a bargain; it is roughly fair compensation for quality that is no longer compounding as it once did.

I would reverse to a clear undervalued stance if the next two quarters restore net margins above 24% while organic revenue holds at or above 6%, or if management demonstrates measurable AI-driven ASP expansion that lifts FCF growth back into the high single digits. A break below $250 on further margin erosion or an explicit slowdown below 4% revenue growth would push me firmly into overvalued territory.

Qwen Reading local experiment · off-panel
Independent reading · qwen3.8:27b on the local GPU · generated 2026-08-28 15:58:57 · 46.8s (79.6 tok/s) · replay of 2026-08-15 panel
Fairly Valued · conviction 3/5 · bull 4/10
followed the VERDICT/STANCE contract
Verdict FactSet at $283.49 is fairly valued on a 6.1% FCF yield and 19% ROIC basis, but the 500-bps net-margin compression over two quarters (25.7% → 20.3%) and mid-single-digit revenue growth cap the upside; the $310–$316 fair-value range from the valuation model is too generous unless margins recover above 24% by the August 2026 quarter, in which case $310+ is achievable; if margins hold at 20–21%, the stock drifts toward $250–$265.

The number that should be keeping every FactSet holder up at night is not the 18.2x P/E or the 4.69x P/S — it's the net margin. Five quarters ago, FactSet was converting 25.4% of revenue to net income. Two quarters ago, that number was 20.3%. Revenue grew 6.4% year-over-year in the May 2026 quarter to $622.9M, but net income fell from $148.5M to $126.7M, a 14.7% decline. That is not a rounding error or a one-time charge; it is a 500-basis-point margin compression in two consecutive quarters, and it is the single most important data point in this entire briefing. The prior models' "mature compounder" framing and the valuation synthesis's $310–$316 fair value range are built on the assumption that the 25.7% annual net margin (FY2025) is the steady-state. The quarterly data says it is not. If the 20–22% range is the new normal, forward earnings are closer to $500M than the $597M the trailing annual figure implies, which pushes the effective P/E toward 20x on a 6% grower. That is not a discount.

What I find genuinely impressive, and what the bear case undersells, is the cash flow. Operating cash flow of $726.3M against net income of $597.0M is a 1.22x conversion, and free cash flow of $617.5M on a $10.08B market cap is a 6.1% FCF yield. ROIC of 19.3% and ROE of 27.3% are elite for a company of this size, and the balance sheet, while carrying $1.37B in debt against $337.7M in cash, is manageable at 0.63x debt-to-equity with a 1.4x current ratio. The "earnings-to-cash-flow divergence" flagged by the Market Forces layer is, in my reading, overstated: the cash flow is *ahead* of earnings, not behind it. The margin compression is real, but it is not a profit-quality problem. It is a cost-structure problem, and those are different things. A company that generates $617M in FCF while its P&L margins wobble is not a broken business; it is a business in the middle of a cost transition, possibly absorbing AI investment, restructuring, or competitive pricing pressure.

The strongest case against my own read is the one the Market Forces layer makes: that the margin compression is not a transition but a structural erosion, and that the 5.5% revenue CAGR is the terminal rate, not a trough. A smart opponent would point to the fact that revenue growth has decelerated from the 10%+ pace of 2022–2023 to the 6–7% range of the last four quarters, that the FCF CAGR is a paltry 2.8%, and that Bloomberg's scale advantage in generative AI could compress FactSet's pricing power across the board. They would also note that the 2024 Q4 margin of 15.9% was not an outlier but a preview, and that the 25%+ margins of 2025 were the anomaly, not the norm. I weigh this differently because the annual operating margin has actually *expanded* from 32.2% in FY2025 to a trajectory that, even with the last two quarters' compression, still implies a full-year FY2026 operating margin in the low 30s. The gross margin of 52.7% is stable. The compression is below the gross line — in opex, in comp, in investment. That is a management choice, not a revenue-side collapse.

What would change my mind in either direction is specific and testable. If the August 2026 quarter (reporting around October 2026) shows net margin back above 24% and revenue growth reaccelerating to 8%+, the compression was a deliberate investment cycle and the $283 price is a genuine entry point with 10–15% upside. Conversely, if margin stays at or below 21% for a third consecutive quarter and revenue growth slips below 5%, the "mature compounder" thesis is dead and the stock should be trading at 14–15x forward earnings, which puts it in the $230–$250 range. The Bloomberg AI product roadmap and any concrete FactSet AI revenue disclosure on the next two earnings calls are the binary catalysts that will resolve which of those paths is real.

The valuation synthesis's +11.6% upside call treats the methods as if they are independent, but they are not — they all inherit the same terminal growth assumption and the same margin normalization. The "slight upside" verdict is a function of averaging a DCF that assumes 25% margins forward with a P/E multiple that already bakes in 25% margins. You cannot get upside from both. At 18.2x trailing earnings with margins in a 500-bps downtrend and revenue growth in the mid-single digits, the stock is not cheap. It is not expensive either, because the FCF yield and the ROIC are genuinely strong. It is a stock where the right price depends entirely on whether the margin compression is a dip or a step-change, and the data, as of this briefing, has not yet told you which.

Experiment only: this reading is not a panel seat and feeds nothing — compare it against the Claude, GPT and Grok readings above.
Big-3 Panel — where each AI stands
Each AI above independently stated a direction (undervalued, fairly valued, or overvalued) and how strongly it believes it (conviction, 0–5). We combine those into a Bull-Bear Index on a 0–10 scale: 5 is neutral, 10 is maximum bullish (undervalued at full conviction), 0 is maximum bearish. We compute the score ourselves with the same arithmetic for every seat — the models never grade their own bullishness — so the three are directly comparable. Δ shows how far each seat sits from the panel average of 6.0; a large Δ marks the dissenting voice, usually the one worth reading.
Claude claude-opus-4-7 5.0
fairly valued · conviction 3/5 · Δ -1.0 vs panel · self: 4.0
GPT gpt-5.4 8.0
undervalued · conviction 3/5 · Δ +2.0 vs panel · self: 7.0
Grok grok-4.5 5.0
fairly valued · conviction 3/5 · Δ -1.0 vs panel · self: 4.0
Advanced Analysis Forensic deep-dive · separate lenses
Separate reads — Company Quality (is it a great business?), Valuation (is it mispriced?), and General Sentiment (how macro + narrative are pushing it), kept deliberately apart · 2026-08-15 10:54:36
Delvantic - Cairn AI
Quality — wait for a dip 7/10
High-integrity subscription compounder fairly priced with a real AI overhang on the per-seat terminal — I wait for $245 or a franchise-intact print before doing real work.
The cruxWhether FactSet can pivot from per-seat terminal billing to metered content/API before AI deflates analyst headcount faster than data licensing can grow.
Forensic checks Derived mechanically from FDS's filed financials — not from the AI lenses
Liquidity & RunwaySelf-Funding
DilutionStable Share Count
Earnings QualityHigh Earnings Quality
The four lensesswitch a tab for its full read — score + evidence
Company Quality
+76
Strong
edge √Σ 140 · risk √Σ 39 · conf 8/10

Revenue grew from 1.59B in 2021 to 2.32B in 2025 (about 10% CAGR), with operating margin expanding from 29.8% to 32.2% and net income climbing from 400M to 597M. FCF rose from 494M to 618M, converting well above net income (OCF/NI 1.33x) and accruals are a clean -4.4% of assets. Beneish M at -2.39 and Altman Z at 4.78 corroborate that reported earnings are real cash economics, not accounting embellishment. Diluted share count actually shrank slightly (38.6M to 38.4M) with buyback/SBC coverage of 346%, so per-share value is protected rather than eroded. Gross margin dipped from 54.1% to 52.7% in the most recent year - a small wobble worth watching but not alarming given continued operating leverage. Net debt of about 1.0B against 618M annual FCF is a leash, not a threat: leverage is roughly 1.6x FCF and easily serviced. The business profile - recurring subscription financial data - is inherently sticky with high switching costs, and the mechanical trajectory (steady top-line growth, expanding margins, high cash conversion, buybacks) is what a well-run mature compounder looks like.

Strengths 4
m78
Clean earnings quality across all mechanical checks
OCF/NI 1.33x, accruals -4.4% of assets, Beneish M -2.39, Altman Z 4.78 - no red flags. Reported profits are backed by cash.
m72
Operating leverage with margin expansion
Operating margin expanded from 29.8% (2021) to 32.2% (2025) while revenue grew ~46% cumulatively - genuine scale economics.
m68
Per-share value protected
Diluted shares fell from 38.6M to 38.4M despite SBC of 2.6% of revenue; buybacks cover SBC 3.5x. No dilution drag.
m60
Strong recurring cash generation
FCF of 617.5M annually with steady growth from 494M in 2021; self-funding, no external capital needed.
Concerns 2
m30
Net debt position
Net cash is -1.01B against only 355M liquid cash. Leverage ~1.6x FCF is comfortable but the balance sheet is a mild constraint rather than a cushion.
m25
Gross margin reversal in 2025
GM% dipped from 54.1% (2024) to 52.7% (2025) - first meaningful reversal in the series, worth monitoring for cost inflation or pricing pressure.
This is a high-integrity mature compounder. The numbers all reconcile - cash follows earnings, buybacks offset SBC, margins expand with scale, and the forensic checks are boring in the best way. The subscription-data model is genuinely moaty. It is not a fortress because of the ~1B net debt and because growth, while steady, is not extraordinary; and I want an explanation for that gross-margin tick-down in 2025. But as a business - separate from any question of price - this is clearly in the solid-to-strong band, run by people who behave like owners.
Verify before trusting this (5)
  • Cause of 2025 GM% dip (140bps) - mix, AI/compute costs, or pricing concessions?
  • Client retention / ASV growth disclosed in 10-K to confirm subscription stickiness
  • Debt maturity schedule and covenants behind the ~1B net debt position
  • Customer concentration among top clients (buy-side vs sell-side mix)
  • Any pending goodwill or acquired-intangibles risk from the CUSIP Global Services acquisition
Valuation / Mispricing
-30
Fairly Valued
edge √Σ 43 · risk √Σ 74 · conf 7/10
Price $283.49 vs composite FV ~$311, ~10% upside - inside fair-value noise; EPV floor $192 caps the downside cushion. attractive below $245.00

The e2e composite pins fair value at $310.88 (signal-adjusted $316.28) against a $283.49 price - roughly 10-12% upside, which is inside the noise band for a mature compounder. The DCF ($326.93) and anchored-PE ($397.53) skew bullish but the EPV floor at $192.13 is a loud reminder that if growth stalls, the no-growth earnings power sits ~32% BELOW today's price. That spread ($192 to $397) tells you the market is paying a fair premium for continued compounding, not a discount. Earnings quality is pristine (score 3), so no haircut is warranted, but the strong business grade is already reflected in the multiple - it does not create a gap. What is priced in: continued mid-single to low-double-digit revenue growth, stable ~35% operating margins, and no meaningful disruption from Bloomberg/cloud-native competitors on the AI front. That is plausible but not conservative. To call this cheap I would need the price closer to the midpoint of EPV and composite FV - roughly $240-$250 - which would give a real margin of safety against the deceleration/commoditization bear case. At $283 you are paying full freight for a strong business the market already understands.

Cheap signals 2
m35
Modest discount to composite FV
Composite $310.88 and signal-adjusted $316.28 vs $283.49 price implies 10-12% upside - real but not a margin of safety for a mature name.
m25
High earnings quality - no haircut
Quality score 3 means the reported earnings translate cleanly to cash; the deserved value is not being propped up by accruals or SBC gimmicks.
Rich / priced-in 3
m55
EPV floor sits 32% below price
Earnings power value of $192.13 means if growth flatlines, fair value is materially below today's quote - you are paying for compounding to continue.
m40
Anchored-PE looks like a runaway input
$397.53 anchored-PE is 40% above the composite and assumes multiple persistence; I would not weight this heavily given decelerating growth narrative.
m30
Priced for a moat that faces real tests
Bloomberg terminal competition and cloud-native/open-source data pressure are genuine; the current multiple embeds moat durability that is not free.
This is a fair price for a strong business, not a mispricing. The ~10% gap to composite FV is inside my error bars for DCF and anchored-PE assumptions, and the EPV floor at $192 tells me the downside if growth disappoints is meaningful. I do not chase quality compounders at fair value - I want $245 or lower before this becomes interesting on price alone. Owners can hold; new money should wait.
Verify before trusting this (4)
  • Organic ASV growth rate trajectory and client retention metrics in the next quarterly release
  • Operating margin guidance and whether AI/R&D spend is compressing the 35%+ target
  • Any commentary on price increases sticking vs client pushback
  • Buyback pace vs SBC to confirm share count discipline continues
General Sentiment
+4
Balanced
tail √Σ 50 · head √Σ 46 · conf 6/10

FDS sits in a quiet corner of the tape. The narrative here is a low-intensity, durable steady-compounder story with minimal cult premium - which means there is neither a hype wave lifting it nor a broken story crushing it. In a mildly risk-on regime (VIX 14, S&P near highs), a 0.69-beta financial-data name captures very little of the upside; low-beta compounders get left behind when animal spirits are on. That mutes any tailwind. On the other side, there is no visible negative catalyst - a routine dividend declaration is the only company-specific headline, and news flow is dominated by unrelated names. The bear whisper (cloud/AI commoditization of terminals, Bloomberg/Refinitiv AI competition) exists but is not currently being priced or amplified - it is a slow-burn concern, not an active de-rating. Analyst tone and target revisions are not flagged as directional. Net: this is a name the market is largely ignoring right now, which for a defensive compounder is closer to neutral than to headwind.

Tailwinds 4
m30
Durable narrative, no story to break
Minimal-intensity, durable steady-compounder framing means there is no fragile story premium to unwind. Sticky-infrastructure perception provides a soft floor when tape wobbles.
m25
Calm macro / low VIX backdrop
VIX at 14 and an established risk-on regime is friendly to boring quality names that need calm to be owned. The 10y at 4.63% is a mild drag on duration-like compounders but not acute here.
m20
Quiet, benign news flow
Only headline is a routine dividend declaration - no negative catalysts, no guide-downs, no analyst downgrades visible. Absence of bad news is a mild positive for a defensive name.
m25
Positive momentum reading
Overall momentum scored strong_positive with improving leverage (D/E 1.00 to 0.63). The tape is not fighting the stock.
Headwinds 2
m35
Low-beta name left behind in risk-on drift
With beta 0.69 and a risk-on tape (+52), FDS structurally under-participates in rallies. Defensive compounders get de-emphasized when capital chases higher-beta AI and cyclical exposure.
m30
Latent AI-disruption whisper on data terminals
The bear narrative around cloud/open-source data platforms and unproven AI moat vs Bloomberg is a slow-burn overhang on the whole financial-data cohort, even if not actively pressed today.
This is a Balanced read with a very slight lean to the positive side. FDS is not a name the tape is actively pushing - the narrative is quiet, durable, and low-intensity, so there is nothing to inflate or deflate. In a mildly risk-on regime the low beta caps upside participation, but a calm VIX and benign news flow keep the downside pressure equally muted. The one real overhang is the dormant AI-disruption whisper on financial-data terminals, but it is not being actively priced today. Sentiment here is neither the reason to buy nor the reason to sell - the play lives or dies on the fundamentals lens.
Verify before trusting this (4)
  • Any sell-side note reframing FDS as an AI loser vs Bloomberg/Refinitiv
  • Signs of institutional client seat cuts amid buyside layoffs (would activate the bear narrative)
  • Sector rotation out of defensives if risk-on intensifies
  • Next earnings ASV growth print - the key sentiment lever for this cohort
The market-wide tape + this name's exposure to it (beta / sector / narrative durability). Context on the non-fundamental pressure — not a call on the business or the price. processId: detail-general-sentiment
Growth Outlook
-17
Holding
edge √Σ 96 · risk √Σ 113 · conf 7/10

The world's demand for institutional financial data keeps rising, but the value is migrating to two poles: proprietary IP/index-and-ratings franchises and cheap programmatic data plumbing. FDS sits in the middle as a workflow integrator — a strong position while human analysts drive research, a contested one if AI agents become the consumer of data. Macro headwinds (10y 4.63, flat-ish curve) keep asset-manager fee pressure and headcount discipline in place, capping seat growth, while deal-making and private-markets recovery would help the newer adjacencies. Net: a steady, defensible, slow-compounding business in a category that grows a bit faster than it does.

Growth drivers 4
m65
Recurring subscription base with high retention
Nearly all revenue is annual subscription value with contractual escalators and client retention in the high-80s/90s%; this makes the mid-single-digit revenue line (+6.8% matched-quarter YoY) structurally durable rather than order-dependent, and it is why the revenue series shows very low volatility (0.0012) with all years positive.
m45
Steady, still-growing category
Financial data & exchanges category median recent growth 6.6% and 8.9% 3-yr industry revenue CAGR; data consumption per institutional workflow keeps rising (private markets, risk, regulatory, wealth). FDS grows roughly with the tide rather than against it.
m41
Adjacency expansion beyond the core workstation
Wealth management platforms, private-markets/deal-making data, feeds/API and CRM-adjacent tooling (acquired capabilities) are the incremental ASV engines, shifting mix away from headcount-linked terminal seats toward enterprise data delivery that scales with client AUM/data needs, not analyst count.
m35
Pricing power on mission-critical workflow
Embedded portfolio analytics, performance attribution and reporting are audit-trail workflows with prohibitive switching costs, supporting annual price increases that alone deliver low-single-digit growth before any unit expansion.
Growth risks 4
m68
Earnings power contracting while revenue grows
Operating income -4.8% and net income -7.0% on +6.8% revenue in the matched quarters — negative operating leverage from cloud migration, AI build-out and acquired lower-margin revenue. Until this inflects, revenue growth does not translate into earnings growth, which is what the structural rung is really about.
m60
Buy-side seat and budget compression
Client base is consolidating asset managers under fee pressure with flat-to-down analyst headcount; workstation counts are the most exposed line, and vendor-consolidation reviews cap net new ASV even when retention holds. This is the mechanism behind the 'decelerating' quarterly trend flag.
m53
Competitive encirclement and data commoditization
Bloomberg (terminal bundling), MSCI/S&P/LSEG (index + analytics scale) above, and cheap cloud-native feeds plus open-source/LLM-assisted tooling below. FDS is neither the cheapest pipe nor the owner of proprietary must-have index/ratings IP, so its differentiation rests on workflow integration alone.
m42
AI intermediation of the research seat
If agents do junior-analyst work, the unit of demand shifts from seats to data/API consumption — a mix FDS can serve but at lower revenue per client unless it wins the agent-layer standard. Its AI products are early and unproven as monetized ASV.
vs expectations: ~6m inline · 1y inline · 2-3y inline
The forward growth verdict — is the business itself likely to grow (next 2 quarters / year 1 / years 2–3), judged against its category and against printed expectations. The full horizon ladder + creme renders on the Growth Outlook card above. Not a call on the price (Valuation owns that) or the tape (Sentiment owns that).
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Lenses kept deliberately separate — Company Quality (price-agnostic), Valuation (price-conditional), General Sentiment (non-fundamental macro/narrative pressure), and Growth Outlook (the forward growth verdict). The scores are not blended. Filing-level items (convertibles, lock-ups, customer concentration) are v2 — see each lens's "verify."
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My Notes personal — only you see this
v1.1.594 · 0f1577a5 · 2026-09-03 12:57:33