FactSet Research Systems Inc. (FDS): BCG Matrix [Dec-2025 Updated]

You're looking at FactSet Research Systems Inc.'s strategic map as of late 2025, and honestly, it's a textbook case of balancing proven winners with necessary future bets. We see clear Stars driving growth, like Wealth Management with 10% ASV growth, supported by Cash Cows that anchor the business with a $2.37 billion recurring base and a 36.3% operating margin. The real action, though, is in the Question Marks-the heavy investment in the new AI platform and acquisitions like LiquidityBook-which will determine the next phase of growth, while the company smartly sheds legacy Dogs. Keep reading to see the precise breakdown of where FactSet is putting its capital to work right now.

Background of FactSet Research Systems Inc. (FDS)

You're looking at FactSet Research Systems Inc. (FDS), which is a key player in the financial data and software space, providing integrated financial information and analytical applications to the global investment community. Honestly, the company has been around a while, having been founded way back in 1978.

For the fiscal year ending August 31, 2025, FactSet Research Systems delivered solid top-line results, reporting GAAP revenues of $2,321.7 million, which was a 5.4% increase over the prior year. The organic revenue growth component, which strips out the impact of acquisitions, came in at 4.4% for the full fiscal year 2025. Just to give you a sense of the recent pace, the fourth quarter of fiscal 2025 saw GAAP revenues hit $596.9 million, marking a 6.2% jump year-over-year.

The subscription model remains the core engine here, reflected in the Annual Subscription Value (ASV) as of August 31, 2025, which stood at $2,405.6 million. More specifically, the organic ASV grew by 5.7% to reach $2,370.9 million by that date. This recurring revenue base supports a growing user base; as of the end of fiscal 2025, FactSet served 8,996 clients, a 9.5% increase, with the total user count climbing to 237,324, up 9.7% from the year prior.

On the profitability front, things looked strong for fiscal 2025. Net Income increased by 11.2% to $597.0 million, and GAAP diluted Earnings Per Share (EPS) rose 11.8% to $15.55. This translated to a net profit margin of 25.7%, which is actually up from 24.4% the previous year, showing management is driving efficiency. Plus, the company continued its shareholder-friendly history by increasing its quarterly cash dividend by 6% to $1.10 per share in May 2025, marking the 26th consecutive year of dividend increases on a stock split-adjusted basis.

Geographically, the business is heavily weighted toward the Americas, which accounted for 65% of total revenues in fiscal 2025, seeing a healthy 6.1% revenue increase. The EMEA segment contributed 25% of revenues, though its growth was more modest at 3.0%. The Asia Pacific region made up the remaining 10%, but it actually posted the strongest growth rate at 7.0%. The total employee headcount as of August 31, 2025, stood at 12,800 people.

FactSet Research Systems Inc. (FDS) - BCG Matrix: Stars

Stars are the business units or offerings that FactSet Research Systems Inc. currently leads in a high-growth market, demanding significant investment to maintain that leadership position. These areas are critical for future transition into Cash Cows when market growth inevitably slows.

The performance of these high-potential areas in fiscal year 2025 demonstrates where FactSet Research Systems Inc. is currently focusing its growth capital. The overall organic Annual Subscription Value (ASV) growth for the full fiscal year 2025 was 5.7%, adding $127.3 million in organic ASV to reach $2,370.9 million as of August 31, 2025. The fourth quarter (Q4) of fiscal 2025 was a record period, delivering an organic ASV increase of $81.8 million.

The key components identified as Stars, based on high growth and market leadership indicators, are detailed below:

• Wealth Management segment, which saw the strongest ASV growth at 10% in FY2025.
• Data Solutions offerings, underpinning the strong Q4 2025 organic ASV of $81.8 million.
• The Analytics Suite, a key product driver for the record Q4 2025 performance.
• Asia Pacific region, which led regional ASV growth at 7% in FY2025.

You can see the regional growth context that supports the Star positioning of Asia Pacific:

The Wealth Management segment is clearly a high-growth area for FactSet Research Systems Inc., showing the highest growth rate among firm types. This segment's performance is a primary driver of the overall growth narrative. The 10% ASV growth in this segment for FY2025 places it firmly in the high-growth category, requiring continued investment to fend off competitors.

Data Solutions offerings are seeing increasing demand, which directly contributed to the overall quarterly strength. The record Q4 organic ASV of $81.8 million is a direct reflection of the success in these high-demand areas, including Data Solutions and the Analytics Suite. The Analytics Suite, specifically, is cited as a key product driver for the record Q4 2025 performance, indicating high market share within a growing analytics segment.

The Asia Pacific region is leading geographically, with its organic ASV growth at 7% for FY2025, reaching $242.7 million in organic ASV for the full year. This high regional growth rate, coupled with the need to capture and defend market share, classifies it as a Star. Stars need heavy investment to maintain this trajectory; if FactSet Research Systems Inc. can sustain this market share as the regional market matures, this geography will become a significant Cash Cow.

To maintain the Star status, FactSet Research Systems Inc. is actively investing, as evidenced by the overall client growth and strategic focus. The total client count as of August 31, 2025, was 8,996, a net increase of 185 clients in the last three months, largely driven by corporate and wealth management clients. This investment is necessary to keep the momentum going.

Here is a summary of the key financial metrics related to the growth environment:

• Total ASV at August 31, 2025: $2,405.6 million.
• Total Organic ASV growth for FY2025: $127.3 million.
• Q4 2025 Organic ASV: $81.8 million (largest quarter in company history).
• FY2025 Adjusted EPS: $16.98.
• FY2025 GAAP Revenues: $2,321.7 million.

FactSet Research Systems Inc. (FDS) - BCG Matrix: Cash Cows

You're looking at the core engine of FactSet Research Systems Inc., the segment that reliably funds the rest of the operation. These Cash Cows operate in mature spaces but command high market share, meaning they generate more cash than they consume. For FactSet Research Systems Inc., this is where the stability comes from.

The foundation of this stability is the core Annual Subscription Value (ASV) base. As of August 31, 2025, the organic ASV stood at $2,370.9 million. This recurring revenue stream is the definition of a high-market-share asset in a mature environment. To put that in perspective, the total ASV at that date was $2,405.6 million, showing the overwhelming majority of the forward-looking revenue base is locked in.

Consider the Institutional Buy-Side client segment. This area represents a mature market where FactSet Research Systems Inc. has achieved significant penetration. While the prompt suggests a 4% growth, the data from earlier in the fiscal year shows the buy-side organic ASV annual growth rate was 4.3% as of November 30, 2024, indicating stable, modest expansion in this core area. Growth in both GAAP and Organic revenues for the third quarter of fiscal 2025 was specifically driven by wealth and institutional buy-side clients.

The efficiency of these operations is clear in the profitability metrics. For the full fiscal year 2025, the overall financial platform delivered a strong adjusted operating margin of 36.3%. This high margin is what allows FactSet Research Systems Inc. to generate the necessary cash flow. For context, here is a look at the full-year 2025 financial performance:

This strong cash generation supports the consistent dividend program, a key way FactSet Research Systems Inc. returns value to shareholders. You saw the latest increase in May 2025, when the company raised its quarterly cash dividend by 6% to $1.10 per share. This marks the 26th consecutive year of dividend increases on a stock split-adjusted basis. The commitment to shareholders is evident in the capital returns:

• Quarterly cash dividend paid in May 2025: $1.10 per share.
• Quarterly dividend paid in March 2025: $1.04 per share.
• Total cash returned to stockholders (dividends and repurchases) in fiscal 2025: $460.4 million.
• Total cash returned to stockholders over the last 12 months (as of Q2 2025): $392 million (combining dividends and repurchases).

The focus for these Cash Cow units is maintaining the current level of productivity, not massive new investment, which is why promotion and placement investments are kept low. Investments here are better spent on infrastructure to improve efficiency, which directly boosts cash flow. The company is defintely 'milking' these gains passively while funding growth elsewhere.

FactSet Research Systems Inc. (FDS) - BCG Matrix: Dogs

The Dog quadrant represents business units or products characterized by low market share in low-growth markets. For FactSet Research Systems Inc., these areas often involve non-core activities or segments facing secular headwinds where significant investment is unlikely to yield substantial returns.

Divested or de-emphasized non-core assets, like the RMS Partners business, to streamline focus.

FactSet Research Systems Inc. completed the divestiture of the RMS Partners business on August 29, 2025. This action was explicitly taken to enhance the focus, efficiency, and growth of the remaining Dealmakers product offering. The divestiture itself signals the removal of a unit deemed non-core or underperforming relative to strategic priorities.

Legacy, project-based Professional Services, as the company shifts focus to recurring ASV.

The operational reporting structure itself points to a de-emphasis on project-based work. Beginning in fiscal 2025, FactSet Research Systems Inc. shifted to reporting Organic Annual Subscription Value (ASV), excluding Professional Services, to emphasize the recurring revenue base. This change underscores the strategic move away from less predictable, project-based revenue streams toward the more stable ASV model. The company's focus is clearly on the recurring revenue component, making the legacy project work a candidate for minimization.

• Focus on recurring revenue streams.
• De-emphasized project-based revenue recognition.
• ASV growth was 5.7% for FY2025.

Midsize Asset Managers and Asset Owners in EMEA, facing secular headwinds and slower growth.

The EMEA region consistently demonstrated lower growth rates compared to the company-wide average for fiscal 2025, suggesting this geography or specific client segments within it are operating in a lower-growth environment relative to FactSet Research Systems Inc.'s overall trajectory. The organic ASV growth for EMEA in Q4 Fiscal 2025 was 4.2%, while Q3 Fiscal 2025 organic revenue growth in the region was only 2.3%. This contrasts sharply with the overall organic ASV growth for the full fiscal year 2025, which reached 5.7%.

Here's a quick look at the regional ASV growth comparison for Q4 Fiscal 2025:

The EMEA organic quarterly revenue growth of 1.7% in Q4 2025 is a clear indicator of a low-growth market segment for FactSet Research Systems Inc. at that time.

Certain Dealmakers products, which are being re-focused following the divestiture.

The strategic realignment within the Dealmakers segment further supports the Dog classification for certain components. During fiscal year 2025, client reclassifications resulted in approximately $20 million of ASV shifting out of the Dealmakers segment (and Institutional Buy-Side) into the Wealth segment. This shift, combined with the divestiture of RMS Partners, indicates a deliberate pruning and re-focusing effort on the remaining, higher-potential Dealmakers products.

• $20 million ASV reclassified out of Dealmakers in FY2025.
• RMS Partners divestiture completed on August 29, 2025.
• Focus enhanced for the remaining Dealmakers offering.

FactSet Research Systems Inc. (FDS) - BCG Matrix: Question Marks

You're looking at the areas within FactSet Research Systems Inc. that are consuming cash for future potential, fitting the Question Mark profile: high growth markets but currently holding a low market share, meaning they don't yet generate stellar returns.

The New AI-Powered Financial Intelligence Platform

This initiative represents a major cash draw, essential for securing future market leadership in an evolving landscape. FactSet Research Systems Inc.'s research and development expenses peaked in August 2025 at $300.7 million for the trailing twelve months, up 13.4% from the prior year. This is above the five-year average R&D expense of $268.1 million. The new CEO emphasized the focus on 'AI and data-driven innovation' to become the leading AI-powered financial intelligence platform. Management indicated that R&D spending is expected to remain at about 5.5% of sales going forward.

Recent Acquisitions: LiquidityBook and Irwin

Integrating recent acquisitions requires heavy investment, which can create short-term margin drag, a classic Question Mark characteristic. FactSet Research Systems Inc. acquired LiquidityBook for a gross purchase price of $246.5 million in cash, closing on February 7, 2025. The acquisition of Irwin was also completed during fiscal 2025. These deals contributed to an employee headcount of 12,598 as of February 28, 2025, an increase primarily in sales and technology groups. The company noted that the fiscal 2025 GAAP operating margin decreased to 32.5% in the second quarter compared to 33.3% the prior year, mainly due to an increase in acquisition-related professional fees and technology-related expenses. These transactions were expected to have a modestly dilutive effect on fiscal 2025 GAAP and adjusted diluted Earnings Per Share (EPS).

Here's a look at the financial impact markers:

The Open Platform Strategy

This strategy involves significant capital deployment to build an ecosystem, which consumes cash before market share gains are fully realized. The expansion of the open platform was highlighted as a key progress area alongside the AI roadmap. This initiative is part of the broader goal to maximize the value of the data and technology ecosystem. The company's total addressable market is estimated at over $40 billion, suggesting the open platform is targeting a high-growth space where FactSet Research Systems Inc. still needs to rapidly gain share against competitors.

• Focus on integrating third-party and client data.
• Aims to enhance flexibility and connectivity for clients.
• Requires continued investment to build out the ecosystem.
• The company has an open marketplace with over 1,000+ third-party apps.

Growth in the Asia Pacific Region

The Asia Pacific region shows strong growth, indicating a high-growth market, but the mention of pricing pressures suggests low immediate returns relative to investment, fitting the Question Mark profile. The region led in Annual Subscription Value (ASV) growth in Q3 2025 at 7%. For the first quarter of fiscal 2025, the quarterly organic revenues growth rate was 6.2%. In the second quarter of fiscal 2025, the growth rate was 6.8%. However, management acknowledged pricing pressures in some markets.

You can see the regional growth dynamics:

• Q3 2025 ASV in Asia Pacific: $236 million.
• Q4 2025 Asia Pacific revenues: $60.8 million.
• Q4 2025 Asia Pacific organic revenue growth: 5.9%.
• Americas ASV (for comparison): $1,486 million in Q3 2025.

If these growth prospects don't translate into greater market share dominance quickly, these units risk becoming Dogs.