Core Insights - FactSet has launched AI Doc Ingest for Cobalt, an AI-powered solution aimed at improving portfolio company data collection for private capital managers, eliminating the need for client-side model training [1][2] Group 1: Product Features and Benefits - The AI Doc Ingest solution automates data extraction and ingestion, allowing clients to upload raw source files and extract structured data efficiently, regardless of file format [2][4] - Early beta users, including multinational private equity firms and venture capital managers, have reported significant improvements in efficiency, reducing multi-day document processes to just minutes [5][6] - The solution enhances data accuracy and transparency by minimizing human error and providing audit trails for all extracted data, ensuring seamless validation [6] Group 2: Market Position and Future Plans - FactSet's AI Doc Ingest distinguishes itself from competitors by not requiring model training and adapting to evolving document formats, thus reducing onboarding time and hidden costs [2][4] - The beta version is currently available to select clients in North America, with a general release planned for March 2026 and a rollout in Europe expected in late spring 2026 [7]

Core Insights - The financial sector has identified oversold stocks, presenting potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - The Relative Strength Index (RSI) is a momentum indicator that helps assess stock performance, with an RSI below 30 indicating an oversold condition [1] - A list of major oversold stocks in the financial sector includes companies with an RSI near or below 30 [2] Group 2: FactSet Research Systems Inc - FactSet Research Systems Inc (NYSE:FDS) has an RSI value of 29.4, indicating it is oversold [4] - The stock price of FactSet Research fell approximately 11% over the past five days, reaching a 52-week low of $249.68 [4] - Wells Fargo analyst Jason Haas maintained an Underweight rating for FactSet and raised the price target from $260 to $265, with shares closing at $254.36 after a 0.6% increase [4]

Core Insights - The U.S. is entering a significant era of domestic business spending and investment, particularly in Private Nonresidential Fixed Investment (PNFI), which reached $8.8 trillion by September 2025, indicating a substantial increase from previous years [1] - Factors driving this increase include tariff tensions prompting companies to rethink supply chains, favorable federal policies, and ongoing rate cuts from the Federal Reserve, alongside a surge in artificial intelligence (AI) adoption [1] - The Alger AI Enablers & Adopters ETF (ALAI) aims to provide investors access to companies involved in AI infrastructure and adoption, attracting over $245 million in net flows in 2025 [1] Group 1: Investment Trends - PNFI represents business spending on productive assets such as structures, intellectual property, and equipment, showing a significant rise in announced spending [1] - The increase in PNFI spending is expected to create opportunities for investors to capitalize on the growth in AI infrastructure and related sectors [1] Group 2: AI Adoption and Investment - The ongoing AI adoption is driving demand for infrastructure, which includes power needs, part fabrication, and R&D funding [1] - ALAI focuses on companies that are either developing AI infrastructure or successfully integrating AI technologies to enhance their operations [1]

Company Overview - FactSet Research Systems Inc. is a leading provider of integrated financial information and analytical applications for the global investment community, offering services to various investment professionals [11] - The company supports the workflow of both buy-side and sell-side clients by integrating datasets and analytics across asset classes with client data [11] Financial Metrics - FactSet has a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating a solid position in the market [12] - The company has a Value Style Score of B, supported by a forward P/E ratio of 15.39, which is attractive for value investors [12] - For fiscal 2026, the Zacks Consensus Estimate for earnings has increased by $0.15 to $17.45 per share, with six analysts revising their earnings estimates upwards in the last 60 days [12] - FactSet boasts an average earnings surprise of +0.4%, indicating a positive trend in earnings performance [12] Investment Considerations - With a solid Zacks Rank and top-tier Value and VGM Style Scores, FactSet should be considered by investors looking for potential investment opportunities [13]

Core Insights - Barclays has entered a multiyear partnership with FactSet to enhance its market data strategy, leveraging FactSet's advanced analytics and technology to provide improved data-driven solutions for its clients [1][2] Group 1: Partnership Details - The collaboration aims to transform market data consumption, shifting clients from mere consumers to co-creators of capabilities for competitive insights [2] - FactSet will supply Barclays with a comprehensive suite of products, data, and solutions, ensuring optimal delivery for customers [2] - Barclays has been invited to join FactSet's Client Advisory Board, facilitating close collaboration on future data and technology solutions [3] Group 2: Company Backgrounds - Barclays aims to be a UK-centered leader in global finance, operating across various sectors including consumer, corporate, and investment banking [4] - FactSet provides enterprise data and information solutions, integrating proprietary financial data and third-party sources to enhance decision-making for over 9,000 global clients [5]

Group 1 - The article emphasizes the growing interest in small-cap value stocks as the market broadens beyond mega-cap tech stocks, which have dominated investment flows in recent years [2][21] - In Q4, the Russell 2000® Value Index returned 3.26%, outperforming the S&P 500's 2.66% gains, indicating a significant relative performance improvement for small stocks [3] - Small companies are projected to experience profit growth that will surpass large caps for the first time in 13 quarters, supported by favorable economic conditions such as lower interest rates and improved regulatory environments [4] Group 2 - Valuations of small stocks are becoming more attractive, with recent private acquisitions indicating increased investor interest; four holdings were taken private in the last quarter, raising the total to 14 for the year [5] - Despite the concentration of market capitalization, where just 10% of companies account for over 75% of the market, there is a belief that the small-cap rebound is still in its early stages [6] - The Heartland Value Fund gained 2.61% in Q4, slightly underperforming the Russell 2000® Value Index, but has outpaced it over longer time frames [9] Group 3 - Integer Holdings Corporation faced a significant stock decline of over 30% after lowering its growth outlook, but management remains optimistic about future growth and margin expansion [11] - Columbus McKinnon Corporation's stock dropped more than 40% following a $2.7 billion acquisition announcement, despite management's plans to improve growth and margin profiles post-acquisition [13][14] - Alexander & Baldwin's stock was down over 14% due to concerns about tourism, but the company was taken private at a 40% premium, indicating renewed investor interest in undervalued companies [20]

Core Viewpoint - The investment outlook for FactSet Research Systems (FDS) is positive, with a previous buy rating due to attractive valuation and visible growth pipeline supported by multi-year renewals [1] Group 1: Investment Strategy - The investment approach focuses on long-term investments while also incorporating short-term shorts to identify alpha opportunities [1] - The analysis is based on bottom-up evaluation, assessing the fundamental strengths and weaknesses of individual companies [1] - The investment duration is medium to long-term, targeting companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Financial Performance - Revenues for the first quarter of fiscal 2026 were $607.6 million, a 6.9% increase from the prior year period, driven by a 6.0% increase in organic revenues [158]. - Net income for the first quarter was $152.6 million, a 1.7% increase from the prior year, with diluted earnings per share (EPS) at $4.06, up 4.4% [163]. - Operating margin decreased to 31.6% from 33.6% in the prior year, primarily due to higher amortization of intangible assets and employee compensation costs [160]. - Consolidated revenues for the three months ended November 30, 2025, were $607.6 million, a 6.9% increase from $568.7 million in the same period of 2024 [179]. - Operating income for the three months ended November 30, 2025, was $192.1 million, a slight increase of 0.4% compared to $191.3 million in the prior year [192]. - Net income for the three months ended November 30, 2025, was $152.6 million, a 1.7% increase from $150.0 million in the same period of 2024 [204]. - Adjusted operating income rose to $220.1 million, reflecting a 3.0% increase from $213.8 million in the previous year [209]. - EBITDA for the quarter was $247.6 million, representing a 7.7% increase from $229.9 million in 2024 [209]. Client and User Growth - The client count increased to 9,003, a 9.1% rise from the previous year, while user count grew to 239,863, a 9.9% increase [173]. - Annual ASV retention was over 95% as of November 30, 2025, with client retention at 91% [174]. Revenue Segmentation - ASV from the Americas represented 65% of total ASV at $1,575.8 million, a 7.6% increase from the previous year [168]. - ASV from EMEA was $591.0 million, a 3.7% increase, while Asia Pacific ASV reached $244.3 million, an 8.4% increase [169][170]. - Americas segment revenues increased by 7.9% to $396.2 million, driven by a 6.5% increase in organic revenues and a 1.4% increase from acquisitions [180]. - EMEA segment revenues grew by 4.0% to $149.5 million, with organic revenues contributing 4.0% and a 0.6% increase from foreign currency fluctuations [181]. - Asia Pacific segment revenues rose by 7.3% to $61.9 million, primarily due to an 8.3% increase in organic revenues [182]. Expenses and Operating Costs - Total operating expenses increased by 10.1% to $415.6 million, with cost of services rising by 11.3% to $287.9 million and SG&A increasing by 7.7% to $127.6 million [187]. - The operating margin decreased to 31.6% from 33.6% year-over-year, primarily due to higher employee compensation costs and technology-related expenses [193]. Cash Flow and Shareholder Returns - Cash and cash equivalents decreased to $275.4 million from $337.7 million as of August 31, 2025 [210]. - The company returned $181.3 million to shareholders through share repurchases and dividends during the three months ended November 30, 2025 [233]. - The company repurchased 478,100 shares for $139.9 million during the same period, compared to 104,475 shares for $48.8 million in 2024 [234]. - Dividends paid during the three months ended November 30, 2025, totaled $41.4 million, compared to $39.2 million for the same period in 2024 [237]. - Free cash flow for the three months ended November 30, 2025, was $90.4 million, an increase of $29.9 million from $60.5 million in 2024 [255]. Acquisitions - The acquisition of LiquidityBook was completed for a purchase price of $243.2 million, net of cash acquired [240]. - The acquisition of Irwin was completed for a purchase price of $120.2 million, net of cash acquired [242]. Financing and Debt - The 2025 Term Facility has an outstanding balance of $375.0 million, with no repayments made during the three months ended November 30, 2025 [216]. - The company entered into a $500.0 million senior unsecured term loan credit facility under the 2025 Credit Agreement, maturing on April 8, 2028 [213]. - The company has a total leverage ratio requirement of no greater than 3.75 to 1.00 under the 2025 Credit Agreement, and it was in compliance as of November 30, 2025 [222]. Cash Flow Activities - Net cash provided by operating activities was $121.3 million for the three months ended November 30, 2025, up from $86.4 million in 2024 [246]. - Net cash used in financing activities for the three months ended November 30, 2025, was $190.5 million, compared to $70.1 million in the same period of 2024, reflecting increased share repurchases [252]. - The cash provided by investing activities for the three months ended November 30, 2025, was $4.3 million, a significant recovery from $(145.1) million in the same period of 2024 [250]. Tax and Compliance - The effective tax rate increased to 19.7% for the three months ended November 30, 2025, up from 16.5% in the prior year, primarily due to a stock-based compensation tax shortfall [202]. Capital Expenditures - Capital expenditures increased by 19.2% to $30.8 million for the three months ended November 30, 2025, compared to $25.9 million a year ago [238].

Core Insights - FactSet Research Systems Inc. reported first-quarter sales of $607.6 million, exceeding analyst expectations of $600.5 million, marking a 6.9% year-over-year increase [1] - The company achieved adjusted earnings per share of $4.51, surpassing the consensus estimate of $4.37 [1] Financial Performance - The company reaffirmed its fiscal 2026 guidance, projecting adjusted EPS between $16.90 and $17.60, compared to the consensus of $17.38 [2] - Sales guidance for fiscal 2026 is set at $2.423 billion to $2.448 billion, slightly above the consensus of $2.442 billion [2] - FactSet anticipates organic ASV growth of $100 million to $150 million and an adjusted operating margin of 34.0% to 35.5% [2] Market Reaction - Following the earnings announcement, FactSet Research shares increased by 4.6% to $286.00 [3] - Analysts adjusted their price targets for FactSet Research, with Stifel maintaining a Hold rating and lowering the target from $372 to $295, while Goldman Sachs maintained a Sell rating and reduced the target from $282 to $253 [4]

Core Insights - FactSet Research Systems Inc. reported first-quarter sales of $607.6 million, exceeding analyst expectations of $600.5 million, marking a 6.9% year-over-year increase [1] - The company achieved adjusted earnings per share of $4.51, surpassing the consensus estimate of $4.37 [1] Financial Performance - The fiscal 2026 guidance includes projected adjusted EPS of $16.90–$17.60, compared to the consensus of $17.38, and sales expectations of $2.423 billion–$2.448 billion, against a consensus of $2.442 billion [2] - FactSet anticipates organic ASV growth of $100 million-$150 million and an adjusted operating margin of 34.0% to 35.5% [2] Market Reaction - Following the earnings announcement, FactSet Research shares increased by 4.6% to $286.00 [3] - Analysts adjusted their price targets for FactSet Research, with Stifel maintaining a Hold rating and lowering the target from $372 to $295, while Goldman Sachs maintained a Sell rating and reduced the target from $282 to $253 [4]