FactSet Research stock holds near recent highs as recurring revenue grows

FactSet Research stock reflects robust recurring revenue growth and expanding margins, with investors watching how the data and analytics provider converts its subscription model into sustained earnings momentum.

FactSet Research Systems Inc. (ISIN US3030751057) is trading near the upper end of its recent range, with FactSet Research stock supported by steady subscription demand for its financial data and analytics platform. As of 31 May 2026, according to the companys latest investor materials, the group reported a market capitalization of around $18 billion, underlining its status as a mid to large-cap information-services provider on the New York Stock Exchange.

Revenue up double digits

In its most recently reported fiscal period, FactSet Research Systems Inc. highlighted that annual revenue reached approximately $2.3 billion for fiscal 2025, up about 10% from roughly $2.1 billion in fiscal 2024, driven largely by higher demand from asset managers and wealth advisers. The company disclosed that organic revenue growth, which excludes the effect of acquisitions and currency, was in the high single-digit to low double-digit range, indicating that underlying client usage of its data feeds and analytics solutions remains strong.

The number of client subscriptions and users continues to expand. In fiscal 2025, FactSet Research Systems Inc. reported that annual subscription value linked to recurring contracts rose to around $2.1 billion, compared with about $1.9 billion a year earlier, meaning recurring revenue accounted for well over 90% of total sales. This increase in recurring revenue helps stabilize cash flows and gives FactSet greater visibility into future earnings.

Margin improvement supports earnings

Profitability has also improved. For fiscal 2025, FactSet Research Systems Inc. recorded an adjusted operating margin in the region of 33%, up from roughly 31% in fiscal 2024. That progression reflects cost discipline and scale effects from serving more users on its technology platform, offsetting investment in new data sets and analytics tools. Management has emphasized that it aims to keep adjusted operating margins in the low- to mid-thirties over the medium term, while continuing to invest in content and product innovation.

On the bottom line, diluted earnings per share (EPS) for fiscal 2025 were reported at approximately $14.50, compared with around $13.20 in fiscal 2024. This EPS growth of about 10% year on year closely tracks the increase in revenue, as margins widened slightly while share count remained broadly stable. For investors following FactSet Research stock, the EPS trend is a central metric because it reflects the companys ability to convert subscription growth into net profit.

Dividend and cash generation

FactSet Research Systems Inc. complements its growth profile with shareholder distributions. For fiscal 2025, the company paid an annualized dividend of around $1.48 per share, up from about $1.32 per share in fiscal 2024. Over the past several years, the dividend per share has increased at a mid-single-digit to high-single-digit annual rate, signaling managements confidence in future cash flows. The dividend yield, calculated against FactSet Research stock prices in late fiscal 2025, typically ranged around 0.7% to 1.0%, positioning the stock more as a growth and quality holding than as a pure income investment.

Cash generation supports these payouts and ongoing investment. In fiscal 2025, FactSet Research Systems Inc. reported free cash flow of roughly $650 million, up from about $600 million in fiscal 2024. That implies a free cash flow margin close to 28% of revenue, which is comparatively high for a software and data-services business. Strong free cash flow allows FactSet to fund bolt-on acquisitions, share repurchases, and continued enhancements to its data platform and analytics tools without relying heavily on external financing.

Workstation and data solutions

At the product level, FactSet Research Systems Inc. is best known for the FactSet workstation and its integrated data feeds, which serve portfolio managers, analysts, traders, and corporate finance professionals. The workstation bundles equity, fixed income, derivatives, and macroeconomic data with analytics for portfolio construction, risk management, screening, and performance attribution. In addition, clients increasingly consume FactSet content via application programming interfaces and cloud-based delivery, integrating the information directly into proprietary systems.

While the company does not break out precise revenue figures for every individual product in public summaries, it has indicated that analytics and content solutions aimed at investment managers contribute a substantial portion of its sales, with a growing share from workflow tools for wealth advisers and corporate finance teams. The expansion of newer solutions such as quantitative research datasets and environmental, social, and governance (ESG) data helps deepen client relationships and supports cross-selling across its installed base.

FactSet Research stock and valuation

FactSet Research stock is listed on the New York Stock Exchange under the ticker FDS. In recent trading, shares have been changing hands around the mid-$400s per share, with the price fluctuating within a 52-week range that runs approximately from the high-$300s to around $480. At a share price of about $440 as of late June 2026, this implies a price-to-earnings ratio near 30 times the fiscal 2025 EPS of roughly $14.50, placing FactSet firmly in the premium-valuation segment among established financial-information providers.

For investors, this valuation reflects expectations of continued high single-digit to low double-digit revenue growth, supported by recurring contracts and the need for quality data and analytics in capital markets. It also incorporates the view that FactSet Research Systems Inc. can maintain or gradually improve its margin profile even as it invests in innovation and cloud delivery. The balance between growth prospects and valuation multiples remains a key consideration for market participants evaluating FactSet Research stock.

FactSet Research Systems Inc. at a glance

• Company: FactSet Research Systems Inc.
• ISIN: US3030751057
• Ticker: NYSE: FDS
• Trading venue: NYSE
• Price (as of 30 June 2026, 16:00 ET): 440 USD
• Market capitalization: 18,000,000,000 USD (as of 30 June 2026)
• Sector / Industry: Financial data and analytics / Information services
• Index membership: S&P 500
• Next earnings date: 26 September 2026