FactSet Research (FDS) | News Based Sentiment Analysis

• On October 1st, FactSet reported fiscal fourth-quarter EPS of $4.05, missing estimates by $0.08, but still representing an 8.3% year-over-year increase. Revenue reached $596.90 million, exceeding estimates and growing 6.2% year-over-year – their best quarterly performance since 2022. This mixed performance highlights both challenges and continued growth within the company.
• Following the October 1st earnings announcement, FactSet’s stock reached a 52-week low of $272.50 on October 7th, 2025, after multiple analyst downgrades. Evercore ISI reduced its price target from $394.00 to $328.00, and the stock fell 2.6% that day, signaling investor concern.
• Insider trading revealed mixed confidence within the company. Director James J. Mcgonigle sold 2,925 shares on July 14th at $451.39, while Director Christopher Mcloughlin purchased 338 shares on September 23rd at $296.19. Director Barak Eilam also sold one share on October 3rd at $283.21.
• Despite recent declines, Trefis considers FactSet stock attractive as of October 10th, 2025, noting its current price of $287.61 is down from a high of $495.72 on November 14, 2024. Valuation multiples – a P/S ratio of 4.8, P/E ratio of 20.5, and P/FCF ratio of 18.9 – are currently in line with the broader market.
• FactSet’s financial performance over the last four quarters showed an Operating Income of $704 million (30.8% Operating Margin) and Operating Cash Flow of $677 million (29.6% OCF Margin). Net Income reached $533 million (23.3% Net Income Margin), with revenues growing 5.1% to $2.3 billion over the last 12 months.
• Short interest in FactSet decreased by 16.67% as of October 11th, 2025, suggesting an improvement in investor sentiment. Simultaneously, investors reacted positively to FactSet's integration of AI-Powered JumpStart, with the stock trading at $283.10, up $0.12 (0.04%) on October 11th.
• An analysis on October 10th, 2025, suggested an attractive entry price for FDS would be around $232, implying the stock is currently about 18% overvalued. This analysis also speculated the market may be accounting for factors related to generative AI not yet clear to retail investors.

The Investment Story: October was a volatile month for FactSet, marked by an earnings miss, analyst downgrades, and insider selling, but also tempered by positive signals like decreasing short interest and AI integration efforts. The stock experienced significant price fluctuations, ultimately ending the month near its 52-week low.

What It Means for Investors: The mixed results and negative sentiment suggest caution is warranted. While the company demonstrates solid profitability with margins of 30.8% (Operating) and 23.3% (Net Income), the current valuation, potentially 18% overvalued according to one analysis, and the impact of AI on future growth remain key concerns.

Looking Ahead: Investors should closely monitor FactSet’s ability to capitalize on AI integration, stabilize its stock price, and address concerns about valuation. Tracking insider activity and further analyst revisions will also be crucial in the coming months.

The Bottom Line: FactSet presents a complex investment picture. While the company maintains a strong financial foundation, near-term headwinds and valuation concerns require careful consideration. The success of its AI initiatives will likely be a key determinant of its future performance.