Reasons to Keep FactSet Shares in Your Investment Portfolio

FactSet Research Systems: Recent Performance Overview

Over the past month, shares of FactSet Research Systems (FDS) have climbed 10.3%. However, this increase trails the broader business information services sector, which advanced by 13% during the same period. Meanwhile, the Zacks S&P 500 Composite Index experienced a 3.4% decline.

Financial Outlook and Growth Projections

FactSet is anticipated to post a 2.1% year-over-year increase in earnings for the second quarter of fiscal 2026. For the full fiscal years 2026 and 2027, earnings are forecasted to grow by 2.5% and 8.9%, respectively. Revenue is also expected to rise, with projections of 5.4% growth in 2026 and 5.2% in 2027.

Key Drivers Supporting FactSet’s Success

FactSet has solidified its position as a leader by delivering comprehensive financial data, advanced analytics, and top-tier services to the global investment sector. Its expanding client base and international reach allow FDS to offer robust data solutions, innovative analytics, and adaptable technology. The company meets the evolving needs of both buy-side and sell-side clients by integrating diverse datasets and analytics tools, including company and industry analysis, screening capabilities, portfolio and risk analysis, alpha testing, optimization, and research management platforms.

FactSet Research Systems Inc. Revenue (TTM)

FDS continues to prioritize digital innovation, accelerating product development and content acquisition through technology. Strategic acquisitions, such as the 2025 purchase of LiquidityBook—a provider of cloud-based trading solutions—have enhanced FactSet’s ability to support clients’ end-to-end portfolio management needs. Additionally, the recent acquisition of LogoIntern, a workflow automation tool for banking, combined with FactSet’s Pitch Creator, streamlines tasks for junior bankers by automating logo management in presentations.

Strategic partnerships also play a significant role in FactSet’s growth. Collaborations with companies like Irwin have integrated investor relations CRM capabilities into FactSet’s Workstation, offering a unified platform for IR professionals. The partnership with Coin Metrics brings digital asset data into FactSet’s offerings, enabling financial professionals to track, analyze, and stay updated on digital asset markets.

FactSet remains committed to shareholder returns through dividends and share repurchases. In fiscal years 2025, 2024, and 2023, the company bought back shares worth $300.4 million, $235 million, and $177 million, respectively, and distributed dividends totaling $160 million, $151 million, and $139 million over the same periods.

Potential Challenges for FactSet

Despite its strengths, FactSet is facing increasing cost pressures. Rising operating expenses have begun to impact margins and short-term earnings growth. Total operating costs rose by 6.4% in 2023, 3% in 2024, and 4.8% in 2025. The first quarter of fiscal 2026 saw a 10% year-over-year jump in expenses. This trend highlights the need for more effective cost management to ensure profitability keeps pace with revenue growth.

Current Zacks Rank for FDS

FactSet currently holds a Zacks Rank #3 (Hold).

Other Noteworthy Stocks in Business Services

• Coherent Corp. (COHR): Currently rated Zacks Rank #2 (Buy), Coherent has a long-term earnings growth estimate of 29.9% and has delivered an average earnings surprise of 7.7% over the past four quarters.
• Deluxe (DLX): Also holding a Zacks Rank #2, Deluxe projects a long-term earnings growth rate of 12% and has averaged a 15.6% earnings surprise over the last four quarters.

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