FactSet - A good play

In my opinion, FactSet is extremely undervalued, and hasn’t been this low in value since 2009. It has steady subscription growth, strong cash flow, and deeply embedded products make it a solid long-term play. FactSet sells financial data and analytics to institutional investors, asset managers, wealth firms, and corporates. Its product is embedded in client workflows, which makes switching painful and churn low. Most revenue is subscription-based, which gives the business strong visibility and predictability. That model has worked for a long time. FactSet has now grown revenue every year for over four decades. Recent Earnings (FY 2025) In its most recent fiscal year (ended August 31, 2025), FactSet reported: • Revenue of $2.32B, up about 5% year over year • Organic Annual Subscription Value (ASV) growth of ~5.7% • Net income of ~$597M, up ~11% • GAAP EPS of $15.55, up nearly 12% • Continued strong free cash flow, alongside dividends and share buybacks Guidance for FY 2026 calls for 4–6% organic ASV growth and revenue of roughly $2.42–2.45B. Nothing aggressive — but very consistent with how the company has historically performed. FactSet’s strength is its MOAT. Once firms rely on its data and tools, replacing it is disruptive and costly. That creates durable revenue even when markets slow down. It’s also why FactSet tends to hold up better than cyclical financial names during rough periods. Look how it did in 2008. Margins have come under some pressure due to higher compensation and technology investments, but those costs are largely intentional — tied to product expansion and AI-related capabilities. Importantly, FactSet owns and curates much of its own data, which puts it in a better position than many peers when it comes to monetizing AI tools without giving away the core asset.