Key Highlights

  • FactSet Research Systems finished as the sixth-worst performer in the S&P 500 on Friday, with no new company-specific news found, extending a slump that began with late-September fiscal 2026 guidance.
  • Analysts cut price targets after the guidance, including Wells Fargo, amid investor debate over whether AI tools could erode Demand for FactSet's subscription data and analytics products.
  • FactSet's own research team projected strong double-digit S&P 500 Earnings growth for the third quarter, noting 72 of 116 guiding companies issued positive outlooks and the forward P/E stood at 19.0, below historical averages.
  • Financials finished roughly flat on the day while chipmakers rallied on a weak jobs report, with fellow laggards Nasdaq Inc., Gartner and Accenture also among Friday's weaker names.

FactSet Research Systems (NYSE:FDS) sells the data terminals and analytics software that fund managers, bankers and analysts use every day to track companies and markets. On Friday, its own stock kept heading the wrong way. Shares slid and finished as the sixth-worst performer in the S&P 500. No new company-specific news was found for the day. The decline continued a slump that started when FactSet reported its fiscal 2026 results in late September.

How the Slide Started

FactSet's annual results came with guidance that disappointed investors. After the report, analysts cut their price targets, including Wells Fargo, which lowered its target on the stock.

Behind those cuts is a bigger worry: artificial intelligence. Investors have been debating whether AI tools could make it easier for clients to gather and analyse financial data on their own, or for new competitors to offer cheaper alternatives. For a company that charges subscription fees for data and analytics, that is a direct question about pricing power.

The stock has slumped this year as those concerns have built.

A Quiet Irony

The day had a twist. While its stock fell, FactSet's research team was busy setting the tone for the coming earnings season. FactSet's John Butters published a preview on Friday saying he expects S&P 500 companies to report strong double-digit earnings growth for the third quarter, the third straight quarter of very strong growth.

FactSet also noted that analysts raised their third-quarter estimates during the quarter, unlike the usual pattern of cuts, and that 72 of 116 companies issuing guidance gave a positive outlook. The S&P 500's forward price-to-earnings ratio stood at 19.0, below its five-year average of 19.8 and its ten-year average of 19.1.

In other words, FactSet's data paints a healthy picture for corporate America, even as its own shares struggle.

A Market That Left FactSet Behind

The broader market rose on Friday. The September jobs report showed the US added just 29,000 jobs, far below expectations of about 84,000. Traders sharply cut the odds that the Federal Reserve would raise rates again in October.

That lifted chipmakers and AI hardware companies. Teradyne topped the S&P 500, Nvidia hit a record high during the session, and the Nasdaq-100 closed at a record 30,807.93. The S&P 500 gained 56.27 points to 7,722.72.

Financials, the sector where many data and exchange companies sit, ended roughly flat. Nasdaq Inc., the exchange operator, fell, with no company-specific news found. Gartner, another research and advisory firm, also declined, as did consultant Accenture after its big Thursday rally.

The pattern hints at a wider theme: investors are rewarding companies seen as selling the tools for AI, while marking down some businesses seen as potentially exposed to it.

Bank Earnings Will Test FactSet's Client Base

The coming earnings season will be a test for FactSet's clients, especially banks and asset managers. JPMorgan, Wells Fargo, Citigroup and Goldman Sachs report on October 13, followed by Bank of America and Morgan Stanley on October 14. Their comments on spending, including on data and technology, could matter for FactSet.

The Federal Reserve meets on October 27-28. Treasury yields fell after the jobs report but reversed to close higher, with the 10-year near its highest level since 2002.

Investors will also watch for any further analyst target changes and for signs that FactSet's own AI products can address concerns about disruption.