FactSet's AI-Driven Growth, Leadership Shift Mark Strong 2025 Fiscal Year

TL;DR

**FDS is a solid buy, leveraging AI and strong client retention to dominate financial data, even with a CEO change.**

AI Summary

FactSet Research Systems Inc. (FDS) reported a strong fiscal year ended August 31, 2025, with revenues primarily driven by subscriptions to its multi-asset class data and solutions. The company serves approximately 9,000 clients and over 237,000 investment professionals globally. FactSet's strategic outlook emphasizes expanding data offerings, deepening client workflow integration, and innovating with AI, as evidenced by its 'FactSet AI Blueprint' generating usage and commercial transactions. The Americas segment contributed 65% of total revenues, EMEA 25%, and Asia Pacific 10%. Annual Subscription Value (ASV) retention was greater than 95%, with client retention at 91%. A significant leadership transition occurred on September 8, 2025, with Sanoke Viswanathan succeeding F. Philip Snow as CEO. The company relies on a hybrid cloud strategy with two redundant U.S. data centers and multiple cloud providers, though one supplier provided the majority of cloud computing support for fiscal 2025. Two data suppliers each represented more than 10% of total data costs during fiscal 2025.

Why It Matters

FactSet's continued investment in AI and its robust ASV retention rate of over 95% signal strong competitive positioning against rivals like Bloomberg and Refinitiv. For investors, this indicates a stable, growing revenue stream and a commitment to innovation that could drive future market share gains in the financial information services industry. Employees benefit from a company at the forefront of technological advancement, particularly in AI, which could lead to new opportunities. Customers gain access to more sophisticated, efficient, and integrated financial intelligence tools, enhancing their investment workflows and decision-making capabilities.

Risk Assessment

Risk Level: medium — FactSet's reliance on a limited number of third-party data suppliers (two representing over 10% of total data costs) and a single primary cloud computing provider for fiscal 2025 presents concentration risks. While the company states it seeks alternative sources, disruptions or changes in terms with these key partners could materially impact operations and costs, as detailed in the 'Third-Party Content' and 'Data Centers and Cloud Computing' sections.

Analyst Insight

Investors should consider FactSet's consistent ASV retention and strategic AI investments as indicators of long-term growth potential. Monitor the integration of new CEO Sanoke Viswanathan and the company's progress in diversifying its key data and cloud suppliers to mitigate identified concentration risks.

Revenue Breakdown

Key Numbers

• $17.51B — Market Value of Common Stock (as of February 28, 2025, held by non-affiliates)
• 37,456,326 — Shares Outstanding (as of October 15, 2025)
• 65% — Americas Segment Revenue (percentage of total revenues during fiscal 2025)
• 25% — EMEA Segment Revenue (percentage of total revenues during fiscal 2025)
• 10% — Asia Pacific Segment Revenue (percentage of total revenues during fiscal 2025)
• 8,996 — Number of Clients (as of August 31, 2025)
• 237,324 — Number of Users (as of August 31, 2025)
• 95% — Annual ASV Retention (for the year ended August 31, 2025)
• 91% — Annual Client Retention (for the year ended August 31, 2025)
• 82% — Buy-side Organic ASV (as of August 31, 2025)

Key Players & Entities

• FACTSET RESEARCH SYSTEMS INC. (company) — registrant
• Sanoke Viswanathan (person) — Chief Executive Officer
• F. Philip Snow (person) — former Chief Executive Officer
• New York Stock Exchange LLC (regulator) — exchange where FDS is listed
• The Nasdaq Stock Market (regulator) — exchange where FDS is listed
• Bloomberg (company) — competitor
• Refinitiv (company) — competitor
• CUSIP Global Services (company) — exclusive issuer of CUSIP and CINS identifiers
• S&P 500 (company) — index FactSet is a member of
• Delaware (regulator) — state of incorporation

FAQ

Risk Factors

• Reliance on Key Suppliers [medium — operational]: FactSet relies on a hybrid cloud strategy and one supplier provided the majority of cloud computing support in fiscal 2025. Additionally, two data suppliers each represented more than 10% of total data costs during fiscal 2025. Disruptions from these key suppliers could materially impact operations.
• Competition in Financial Data and Analytics [medium — market]: The market for financial data and analytics is highly competitive. FactSet faces competition from established players and emerging fintech companies, which could impact market share and pricing power.
• Cybersecurity Threats [high — regulatory]: FactSet's operations are subject to cybersecurity risks, including unauthorized access, data breaches, and other security incidents. The company's reliance on technology and data necessitates robust security measures to protect sensitive client and company information.
• Client Workflow Integration [medium — operational]: FactSet's business model is deeply integrated into client workflows. Any failure to adapt to evolving client needs or integrate new technologies, such as AI, could lead to client attrition.

Industry Context

FactSet operates in the highly competitive financial data and analytics sector, serving a global base of investment professionals. The industry is characterized by increasing demand for integrated solutions, AI-powered insights, and flexible technology platforms. Key trends include the expansion of data sources, the need for sophisticated analytics to manage complex portfolios, and the integration of AI to automate workflows and enhance decision-making.

Regulatory Implications

FactSet's operations are subject to data privacy regulations and cybersecurity standards globally. Compliance with these regulations is crucial to maintain client trust and avoid penalties. The company's reliance on cloud infrastructure and data suppliers also necessitates careful oversight of third-party compliance and security.

What Investors Should Do

1. Monitor CEO Transition Impact
2. Assess AI Strategy Execution
3. Evaluate Supplier Concentration Risk
4. Analyze ASV and Client Retention

Key Dates

• 1978-01-01: FactSet Founded — Marks the origin of the company, establishing its long-standing presence in the financial data industry.
• 1996-06-01: FactSet Publicly Traded — Indicates the company's transition to a public entity, allowing for broader investment and capital raising.
• 2021-12-01: FactSet Joins S&P 500 — A significant milestone reflecting the company's market capitalization and importance within the U.S. equity market.
• 2025-08-31: Fiscal Year End — The reporting period for the 10-K, providing the latest financial and operational performance data.
• 2025-09-08: CEO Transition — Sanoke Viswanathan succeeded F. Philip Snow as CEO, a key leadership change that investors will monitor for strategic direction.

Glossary

Annual Subscription Value (ASV)

The annualized revenue from all active subscriptions at a given point in time. It excludes any one-time revenue and is a key metric for recurring revenue businesses. (ASV retention greater than 95% indicates strong customer loyalty and predictable future revenue streams for FactSet.)

CUSIP Global Services (CGS)

A business unit that supports security master files used by the investment industry for critical functions. (This specialized service contributes to FactSet's diverse revenue streams and its role as a foundational provider in the financial ecosystem.)

Hybrid Cloud Strategy

A computing environment that combines on-premises infrastructure (private cloud) with public cloud services. (FactSet's reliance on this strategy, with a significant portion of support from one supplier, highlights potential operational risks.)

Application Programming Interfaces (APIs)

A set of rules and protocols that allows different software applications to communicate with each other. (FactSet's offering of APIs demonstrates its commitment to an open and flexible technology platform, enabling deeper integration with client systems.)

Year-Over-Year Comparison

While specific comparative figures are not detailed in this excerpt, the fiscal year ended August 31, 2025, shows continued strength with high client and ASV retention rates. The company's strategic focus on AI and expanding data offerings suggests ongoing innovation. A key development is the recent CEO transition, which will be a point of comparison for future performance against the backdrop of the previous leadership.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 Par Value FDS New York Stock Exchange L
• $10,000 — ient count includes clients with ASV of $10,000 and above and our user count does not r

Filing Documents

• fds-20250831.htm (10-K) — 2206KB
• ex1013retirementagreementa.htm (EX-10.13) — 115KB
• fds-202508x31xexx21.htm (EX-21) — 30KB
• fds-202508x31xexx23.htm (EX-23) — 2KB
• fds-20250831xexx311.htm (EX-31.1) — 10KB
• fds-20250831xexx312.htm (EX-31.2) — 10KB
• fds-20250831xexx321.htm (EX-32.1) — 4KB
• fds-20250831xexx322.htm (EX-32.2) — 4KB
• fds-20250831_g1.jpg (GRAPHIC) — 575KB
• fds-20250831_g2.jpg (GRAPHIC) — 127KB
• 0001628280-25-045769.txt ( ) — 13070KB
• fds-20250831.xsd (EX-101.SCH) — 56KB
• fds-20250831_cal.xml (EX-101.CAL) — 114KB
• fds-20250831_def.xml (EX-101.DEF) — 322KB
• fds-20250831_lab.xml (EX-101.LAB) — 842KB
• fds-20250831_pre.xml (EX-101.PRE) — 620KB
• fds-20250831_htm.xml (XML) — 1863KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 14 Item 1B. Unresolved Staff Comments 23 Item 1C . Cybersecurity 23 Item 2.

Properties

Properties 25 Item 3.

Legal Proceedings

Legal Proceedings 26 Item 4. Mine Safety Disclosures 26 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 27 Item 6. Reserved 28 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 47 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 49 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 93 Item 9A.

Controls and Procedures

Controls and Procedures 93 Item 9B. Other Information 95 PART III Item 10. Directors, Executive Officers and Corporate Governance 96 Item 11.

Executive Compensation

Executive Compensation 96 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 96 Item 13. Certain Relationships and Related Transactions, and Director Independence 96 Item 14. Principal Accounting Fees and Services 96 PART IV Item 15. Exhibits, Financial Statement Schedules 97 Item 16. Form 10-K Summary 99

SIGNATURES

SIGNATURES 100 3 Table of Contents Special Note Regarding Forward-Looking Statements This report contains forward-looking statements that express management's current views concerning expectations, estimates, trends, forecasts and projections about future events and circumstances, industries in which FactSet operates and the beliefs and assumptions of management. These statements may include projections of our future financial performance and anticipated trends in our business. In some cases, you can identify these statements by words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "intends," "projects," "indicates," "predicts," "potential," or "continue," and similar expressions. Statements concerning our financial position, business strategy and plans or objectives for future operations are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied in forward-looking statements include, among others, the factors discussed under Part I, Item 1A. , Risk Factors, that should be specifically considered. FactSet cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the dates on which they are made. FactSet undertakes no obligations to update or revise any forward-looking statement to reflect results, revised expectations, events or circumstances arising after the date on which it is made, except as required by applicable law. We intend that all forward-looking statements we make will be subject to safe harbor protection of the federal securities laws as found in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 4 Table of Contents Part I

BUSINESS

ITEM 1. BUSINESS Corporate History FactSet Research Systems Inc. and its wholly-owned subsidiaries ("we," "our," "us," the "Company" or "FactSet") was founded in 1978 and has been publicly traded since June 1996. We are dual-listed on the New York Stock Exchange ("NYSE") and the NASDAQ Stock Market ("NASDAQ") under the symbol "FDS". FactSet has been a member of the S&P 500 since December 2021. Business Overview FactSet is a global financial digital platform and enterprise solutions provider with open and flexible technologies that deliver financial intelligence to investment professionals worldwide. Our platform delivers expansive data, sophisticated analytics, and flexible, artificial intelligence ("AI")-powered technologies used by global financial professionals to power their critical investment workflows. As of August 31, 2025, we had approximately 9,000 clients comprised of over 237,000 investment professionals, including institutional asset managers, bankers, wealth managers, asset owners, partners, hedge funds, corporate users, and private equity and venture capital professionals. Our revenues are primarily derived from subscriptions to our multi-asset class data and solutions powered by our connected data and technology platform. Our products and services include workstations, portfolio analytics and enterprise data solutions. We also offer managed services that operate as an extension of our clients' internal teams to support data, performance, risk and reporting workflows. We drive our business based on a detailed understanding of our clients' workflows, which helps us to solve their most complex challenges. We provide financial data and market intelligence on securities, companies, industries and people to enable our clients to research investment ideas and analyze, monitor and manage their portfolios. Our solutions span the investment lifecycle of investment research, portfolio construction and analysis, trade execution, performance measurement, ri

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