Strategic Moves and Mixed Signals: A Look at FactSet’s Current Position

FactSet Research Systems is navigating its business expansion through a dual focus on strategic alliances and artificial intelligence integration. However, the company's path forward is viewed with caution by market analysts, and its stock performance tells a story of recent recovery against a backdrop of annual decline. This analysis examines where the financial data provider stands following a challenging period.

Institutional investors showed varied conviction in FactSet during the third quarter of 2025. Two Sigma Investments and Citadel Advisors significantly increased their holdings, whereas Morgan Stanley opted to reduce its position. Insider transactions over the preceding six months included 4 purchases and 14 sales.

The company's financial results for the fourth fiscal quarter of 2025, released on September 17, presented a mixed outcome. Revenue reached $596.9 million, surpassing estimates. Adjusted earnings per share came in at $4.05, which fell short of expectations. Furthermore, FactSet's guidance for fiscal year 2026 lagged behind market forecasts. Upcoming quarterly reports will be critical in assessing whether the firm's strategic initiatives can sustainably accelerate operational growth.

Analyst Sentiment and Price Targets

Market experts remain divided in their assessment of FactSet. On December 5, 2025, Wells Fargo analyst Jason Haas reaffirmed an "Underweight" rating and lowered his price target from $296 to $260.

A consolidated view of Wall Street opinions reveals a lack of consensus:
* Based on 15 analysts, MarketBeat reports an average price target of $346.50 alongside a "Reduce" recommendation.
* GuruFocus cites an average target of $340.46, drawing from 16 ratings.
* The consensus target on Investing.com stands at $334.

Should investors sell immediately? Or is it worth buying FactSet Research?

Stock Valuation and Recent Trading

Shares of FactSet closed at $286.58 on Friday, December 5, 2025, marking a daily gain of 2.7%. While the stock has recovered more than 11% since the start of the month, it remains down approximately 39% year-to-date.

Interpretations of the company's valuation differ. Simply Wall St. calculates a fair value of $335.94 but notes that the current price-to-earnings ratio of 17.5x is above its considered fair level of 14.1x. GuruFocus projects a one-year "GF Value" of $524.98.

Partnerships and AI Integration Drive Strategy

A key strategic partnership with Arcesium was announced in early December 2025. The collaboration aims to build a cloud-based platform for investment managers, designed to unify front-, middle-, and back-office processes. By combining FactSet's analytical tools with Arcesium's settlement and accounting technology, the solution seeks to reduce data fragmentation for clients.

Concurrently, FactSet has integrated its market intelligence directly into Amazon QuickSight. This move is intended to streamline AI-powered research for customers using AWS platforms by eliminating the need for manual data uploads. Both strategic steps are focused on embedding FactSet's data and analytics more deeply into essential client workflows.