Here’s Why FactSet Research Systems (FDS) Declined in Q3

Core Insights - Baron Focused Growth Fund reported a 4.83% appreciation in Q3 2025, underperforming the Russell 2500 Growth Index's 10.73% gain due to economic growth slowdown concerns affecting Consumer Discretionary stocks [1] - Competitive pressures have negatively impacted the valuations of some holdings within the fund [1] Company Analysis: FactSet Research Systems Inc. (NYSE:FDS) - FactSet Research Systems Inc. experienced a one-month return of -6.00% and a 52-week loss of 44.70%, closing at $264.58 with a market cap of $9.901 billion on November 4, 2025 [2] - The company faced stock price declines due to industry-wide AI concerns, CEO transition uncertainties, and cautious commentary from peers, despite reporting strong fiscal Q4 2025 earnings and record new sales [3] - FactSet's revenues increased by 6.2% year-over-year in Q4 2025, reaching $597 million, but it is not among the top 30 most popular stocks among hedge funds, with 36 hedge fund portfolios holding it at the end of Q2 2025 [4]