FactSet Research Systems Inc. (FDS) is positioned for strong growth as demand surges for advanced financial analytics and data infrastructure. A bullish case emerges from rising client adoption, recurring revenue momentum, and strategic expansion in global markets.
- FDS generated $632 million in revenue in FY2024, up 9.2% YoY
- Subscription revenue grew 12% YoY, with 94% of revenue recurring
- Adjusted EBITDA margin reached 42.3% in 2024
- Client base exceeds 15,000, including 90% of the top 100 asset managers
- Asia-Pacific and Latin America saw 18% YoY client growth
- Forward P/E of 34.1 reflects premium valuation on growth outlook
FactSet (FDS) is gaining traction among investors as a high-conviction play in the financial data infrastructure sector. The company’s core offerings—real-time market data, portfolio analytics, and research tools—continue to see broad adoption across asset managers, investment banks, and institutional investors. With over 15,000 clients globally, including more than 90% of the top 100 asset managers, FDS maintains a dominant position in niche analytical platforms. The company’s financial performance reflects underlying strength: FDS reported $632 million in revenue for fiscal year 2024, a 9.2% year-over-year increase, driven by 12% growth in subscription revenue. Adjusted EBITDA margins expanded to 42.3%, underscoring operational efficiency and pricing power. The firm’s recurring revenue mix now comprises 94% of total revenue, reinforcing predictable cash flows and long-term visibility. Analyst models project FDS to achieve 10% annual revenue growth through 2027, fueled by expansions in Asia-Pacific and Latin America, where client acquisition has risen by 18% year-over-year. The company’s investment in AI-enhanced analytics tools—such as its recent integration with natural language processing for research synthesis—positions it to capture additional value from data-intensive workflows. Market participants are responding: FDS shares have risen 16% over the past 12 months, outperforming the S&P 500 Financials Index. Institutional ownership has increased to 72.5%, with several hedge funds adding positions in Q4 2025. The stock trades at a forward P/E of 34.1, reflecting premium valuation based on growth expectations and defensive earnings quality.