FactSet Research Systems Inc. (FDS)

FairStock Score: 62/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach FactSet as a quality data franchise selling analytical tools into financial markets. The economics are attractive: at the $323.39 close on 2026-10-26, FairStock calculates a 21.30 P/E, 5.69 P/B, 27.03% ROE, 11.08% ROCE, and a 6.2% free-cash-flow yield on $707.5M of trailing FCF. The balance sheet looks sound by the Altman Z-score of 4.34, and the Piotroski F-score of 6/9 is acceptable. The high ROE hints at a competitive advantage, but the modest ROCE and recent profit pressure keep me from calling the moat wide. In fiscal Q3 2026, the quarter ended 2026-05-31, revenue was $622.9M and net income $126.7M. For FY2026, revenue was $2.5B and net income $533.5M, or $14.57 per diluted share, versus FY2025 revenue of $2.3B and net income of $597.0M, or $15.55 per diluted share. So sales grew but earnings fell. Valuation is the sticking point for a Graham-style buyer: the Graham Number is $138.66, leaving a negative margin of safety of -138.94%, and P/B is high. The FairStock Score of 62/100 and Lynch stalwart label fit a steady but not cheap business. The 1.63% dividend yield and 0.71 beta add defensiveness. I would want evidence that profit pressure is temporary before paying 21 times earnings while earnings are declining.

In plain English: FactSet sells financial data and analytical tools to financial firms. It earns strong returns and cash, but profits recently slipped while sales rose. At $323.39, the shares look priced for solid performance rather than a bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-05-31) · fiscal Q2 2026 10-Q (period ended 2026-02-28) · fiscal Q1 2026 10-Q (period ended 2025-11-30) · fiscal Q3 2025 10-Q (period ended 2025-05-31) · FY2026 10-K (period ended 2026-08-31) · FY2025 10-K (period ended 2025-08-31) · FY2024 10-K (period ended 2024-08-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer