FactSet: Prone To Lose Market Share

Louis Gerard1.61K FollowersFollow5ShareSavePlay(9min)CommentsSummaryFactSet Research Systems is rated Sell due to competitive pressures, margin compression, and weak product differentiation versus peers like Bloomberg and Refinitiv.FDS's recent earnings showed 6.2% Y/Y revenue growth but margin pressure from heavy AI/cloud investments, with guidance reflecting only 0–2.5% EPS growth.Despite a compressed P/E of 16.98 and a strong FCF yield of 5.9%, FDS trails peers in EBITDA margin and faces organic growth challenges as clients cut headcount.FDS's weakest product interface, inferior sales experience, and vulnerability to low-cost rivals undermine its premium positioning and long-term revenue prospects. utah778/iStock via Getty Images Introduction FactSet Research Systems Inc. (NYSE: FDS) has been one of the biggest losers in 2025, dropping around 39% YTD, while it was initially one of the best compounders on the market. As a previous user of FactSetThis article was written byLouis Gerard1.61K FollowersFollowAs a detail-oriented investor with a strong foundation in finance and business writing, I focus on analyzing undervalued and disliked companies or industries that have strong fundamentals and good cash flows. I have a particular interest in sectors such as Oil&Gas and consumer goods. Basically, anything that has been unloved for unjustified reasons that could offer substantial returns. Energy Transfer is one of those companies that I came across when no one wanted to touch it and now I can't resolve myself to sell it. I will always focus more on long-term value investing but I can sometimes lose myself in possible deal arbitrage such as with Microsoft/ Activision Blizzard, Spirit Airlines/Jetblue (that one still hurts), and Nippon/U.S. Steel (perfect exit at $50.19). I tend to shun businesses that I can't understand either high-tech or certain consumer goods such as fashion (give me a Levi's jeans). I don't understand why anyone would invest in cryptocurrencies as well.

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