Why has FactSet stock underperformed the market recently?

FactSet stock has significantly underperformed due to a 44.3% decline over the past 52 weeks, influenced by mixed Q4 earnings and declining operating margins.

What was FactSet's Q4 earnings performance?

In Q4, FactSet's revenue rose 6.2%, but adjusted operating margins decreased, and adjusted EPS fell short of analyst expectations.

What is the analyst consensus for FactSet (FDS)?

The consensus among 19 analysts covering FactSet is a 'Hold' rating, with a mean price target suggesting potential upside.

Home / Business and Economy / FactSet Stock Plummets Amidst Mixed Earnings

FactSet Stock Plummets Amidst Mixed Earnings

27 Nov

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Summary

FactSet stock has dropped 44.3% over the last year.
The company reported mixed Q4 earnings with revenue growth but declining margins.
Analysts maintain a 'Hold' consensus rating on FactSet shares.

FactSet Stock Plummets Amidst Mixed Earnings

FactSet Research Systems Inc. (FDS), a $10.2 billion market cap financial data and enterprise solutions provider, has experienced a significant downturn in its stock performance. Over the last 52 weeks, FDS shares have plummeted by 44.3%, a stark contrast to the S&P 500's 11% gain during the same period. This underperformance extended to year-to-date results, with FDS down 43.4% compared to the S&P 500's 14% return.

The recent decline was exacerbated by a mixed Q4 earnings release on September 18, which saw FDS shares drop 10.4%. While revenue climbed 6.2% year-over-year to $596.9 million, beating estimates, the company's adjusted operating margin contracted by 200 basis points, and adjusted earnings per share of $4.05 missed analyst expectations. These results dampened investor confidence in the financial technology firm.

Looking ahead, analysts project a modest 1.9% year-over-year EPS growth to $17.30 for fiscal 2026. The stock's outlook remains mixed, with a consensus 'Hold' rating from 19 analysts, comprising two 'Strong Buy,' 10 'Hold,' and seven 'Strong Sell' recommendations. However, UBS Group AG recently upgraded FDS to 'Buy' with a $425 price target, signaling a potential 53.3% upside from current levels.