Exploring FactSet Research Systems Inc. (FDS) Investor Profile: Who’s Buying and Why?

You're looking at FactSet Research Systems Inc. (FDS) and wondering who's been driving the bus on its stock, especially after a volatile 2025. The short answer is: the giants are still in, but the mix is changing. Institutional investors-the big mutual funds and pensions-dominate, holding a staggering 91.24% of the company's stock, with Vanguard Group Inc. and BlackRock, Inc. being the two largest holders, collectively controlling over 7.1 million shares as of the most recent filings. This strong institutional conviction exists even as the company reported full fiscal year 2025 GAAP revenues of $2.32 billion, a solid 5.4% increase, but with the stock price closing near $273.05 in November 2025, reflecting a sharp year-to-date decline of 42.71%; that's a real head-scratcher.

So, does the institutional buying-like PFG Advisors boosting their stake by 4,209.8% in Q2 2025-signal a deep-value play, or are the sellers, like Citadel Advisors LLC removing over 228,000 shares, seeing near-term margin pressure on that $16.98 adjusted diluted EPS? We need to look past the headline numbers to see if the growth in Annual Subscription Value (ASV) of 5.7% is enough to offset the market's current skepticism. It's a data company, but the real data we need to analyze is the why behind the massive capital flows.

Who Invests in FactSet Research Systems Inc. (FDS) and Why?

You're looking at FactSet Research Systems Inc. (FDS) because you know the financial data and analytics space is a high-margin, sticky business. The direct takeaway is that FactSet is a deeply institutional stock, with over 90% of its shares held by major asset managers who are primarily motivated by its predictable, subscription-based revenue model and its impressive, long-term dividend record.

As a seasoned analyst, I can tell you that FactSet's investor profile is not typical of a high-flying tech stock; it's a bedrock holding. As of late 2024 and mid-2025 filings, institutional investors owned a significant 94.34% of the company's shares. This concentration of ownership by large, long-horizon firms like Vanguard Group Inc. and BlackRock Inc. signals a strong belief in the company's stability and consistent cash flow generation.

Retail investors, by contrast, hold a much smaller piece of the pie, typically less than 10%. This heavy institutional backing means the stock tends to be less volatile than those dominated by short-term retail trading. It's a classic defensive growth play within the financial technology (FinTech) sector.

• Institutional Investors: 94.34% ownership (as of December 2024).
• Retail Investors: Approximately 7.6% ownership (as of Q4 2023).

The Institutional Giants: Who's Buying and Holding

The investor list for FactSet Research Systems Inc. reads like a who's who of global asset management. These aren't traders; they are index funds, pension funds, and large mutual funds that are mandated to hold stable, quality businesses for decades. Vanguard Group Inc. and BlackRock Inc., for instance, are the two largest holders, collectively owning over 20% of the company's shares as of September 2025.

Here's the quick math on the top institutional positions as of mid-2025, which underscores the scale of their commitment:

What this table hides is the passive versus active split. Many of these top holders, like Vanguard and BlackRock, hold the stock through index funds (passive investing), which means they are locked in. This creates a stable floor for the stock price, defintely a plus for long-term investors.

Investment Motivations: Predictable Growth and Capital Return

Investors are drawn to FactSet Research Systems Inc. for three core reasons: its recurring revenue, its reliable dividend, and its targeted growth in key areas like wealth management and Artificial Intelligence (AI). The company's business model, which relies on Annual Subscription Value (ASV) from financial professionals, is incredibly sticky.

The fiscal 2025 numbers speak for themselves. The company reported full-year GAAP revenues of $2.32 billion and an adjusted diluted Earnings Per Share (EPS) of $16.98. This consistent performance allows for robust capital return to shareholders. FactSet returned $460 million to shareholders in fiscal 2025 through dividends and share repurchases, and they initiated a new $400 million buyback program.

• Growth Prospects: Organic ASV was $2.37 billion at the end of fiscal 2025, up 5.7% year-over-year, driven by institutional buy-side and wealth clients.
• Dividends: The company has an impressive track record of 26 consecutive years of dividend growth as of June 2025, making it a reliable income play. The quarterly dividend is currently $1.10 per share.
• Market Position: FactSet's push into AI is a major catalyst; approximately 35% of Q4 2025 client renewals cited AI as a key selection factor, showing its competitive edge is sharp. You can learn more about its long-term vision here: Mission Statement, Vision, & Core Values of FactSet Research Systems Inc. (FDS).

Investment Strategies: Long-Term Compounding and AI-Driven Growth

The dominant strategy among FactSet Research Systems Inc. investors is long-term holding, or what we call compounding. This is a stock you buy and tuck away for years, letting the steady subscription revenue and dividend growth work for you. The dividend yield, while modest at around 0.9% (January 2025 data), is highly reliable and grows consistently.

However, newer strategies are also emerging, focused on the company's transformation. Growth investors are now looking at FactSet's investment phase, where it's increasing spending on Artificial Intelligence, data, and cybersecurity. This is a bet that these investments will widen the moat against competitors and accelerate growth in the coming years. For example, the wealth segment is expected to grow at double-digit rates, displacing competitors with its enhanced offerings.

Value investors also see an opportunity. Despite the stock's stability, some analysts in late 2025 see the stock trading at a discount to their fair value estimates, suggesting a potential price rise of around 23% based on consensus targets. The key action here is to monitor the execution of their AI strategy and the subsequent impact on Annual Subscription Value (ASV) growth. Finance: track organic ASV growth against the $2.37 billion fiscal 2025 baseline over the next two quarters.

Institutional Ownership and Major Shareholders of FactSet Research Systems Inc. (FDS)

You need to know who truly holds the reins at FactSet Research Systems Inc. (FDS), and the answer is clear: institutional investors. As of the most recent filings, FactSet's ownership structure is heavily weighted toward these large funds, which means their investment decisions are the primary driver of the stock's volume and short-term price action. Institutional investors and hedge funds own a significant portion, roughly 91.24%, of the company's stock.

This high concentration of institutional ownership is a double-edged sword. It provides a strong foundation of capital and stability, but it also means the stock can move sharply on large block trades or shifts in sector sentiment. The key takeaway for you is that FDS is defintely a stock where you must track the movements of the top asset managers.

Top Institutional Investors: Who's Buying FactSet?

The largest shareholders in FactSet Research Systems Inc. are the usual suspects-the massive index and asset managers who dominate the US equity market. Their holdings are not just large; they represent a significant percentage of the company's total shares outstanding. This is a clear signal that FactSet is a core holding for many broad-market and technology-focused funds.

Here's a look at the top institutional holders, with data primarily from the fiscal year 2025 third quarter (Q3 2025) and most recent filings:

Note that Vanguard and BlackRock alone control over 22% of the company, a concentration that gives them immense influence.

Recent Shifts: Have the Big Funds Increased or Decreased Stakes?

Tracking the quarterly changes in institutional ownership gives you a real-time sense of whether the smart money is accumulating or distributing shares. For FactSet Research Systems Inc., the movement has been mixed, but generally shows continued, albeit cautious, accumulation over the last few quarters of fiscal year 2025.

The total institutional shares (long positions) increased by about 2.85% in the most recent quarter reported, which suggests a net accumulation trend. Here's the quick math on some key players:

• Vanguard Group Inc. lifted its position by 3.0% in the first quarter of 2025, adding 137,874 shares.
• BlackRock, Inc., however, trimmed its position by 4.34% (a reduction of 152,506 shares) as of June 30, 2025.
• Invesco Ltd. showed strong confidence, increasing its stake by 7.6% in the first quarter of 2025, acquiring 34,549 additional shares.

What this estimate hides is the difference between passive index funds (like Vanguard's ETFs) that must buy FDS to match an index, and active managers (like Invesco) making a deliberate, conviction-based decision to increase their stake. The fact that multiple active managers are still adding shares suggests they see a strong near-term value proposition in the company's financial data and analytics platform. For a deeper dive into the company's history and business model, you can check out FactSet Research Systems Inc. (FDS): History, Ownership, Mission, How It Works & Makes Money.

Impact of Institutional Investors on FDS's Strategy and Stock

These large investors play a critical role that goes beyond simply trading shares; they influence FactSet Research Systems Inc.'s strategic direction and stock volatility. When over 90% of the stock is held by institutions, their collective action dictates the trading price.

The high level of ownership provides a governance check. Large holders often engage in private dialogue with management on capital allocation (like share buybacks or dividends) and environmental, social, and governance (ESG) issues. For FDS, this means the push for consistent, high-margin subscription revenue and prudent use of cash flow is reinforced by shareholders like BlackRock, Inc., who prioritize long-term, sustainable growth metrics.

The risk is liquidity. If a major holder, especially an active one, decides to exit, the large volume of shares can create significant downward pressure on the stock price in a very short period. This is why you see FDS's stock sometimes move sharply on no news-it's often a single large fund rebalancing its portfolio. Your action here is to monitor the 13F filings for any major, non-index-driven selling, particularly from the top five holders. That's your early warning system.

Key Investors and Their Impact on FactSet Research Systems Inc. (FDS)

If you're looking at FactSet Research Systems Inc. (FDS), the first thing to understand is that it's an institutional stock; the people buying and selling it are primarily professional money managers. Institutional investors-think mutual funds, pension funds, and major asset managers-own a staggering 91.24% of the company's stock, making their collective sentiment the primary driver of the share price.

This high ownership percentage means FactSet Research Systems Inc. operates with a shareholder base that generally favors stability, consistent growth, and predictable capital returns. They aren't looking for a quick flip. You need to look at the top holders to understand the long-term investment thesis here.

The Giants: Vanguard, BlackRock, and Passive Influence

The investor profile for FactSet Research Systems Inc. is dominated by the world's largest index fund and asset managers. These aren't activist hedge funds looking to break up the company; they are mostly passive investors holding the stock because it's a component of major market indices like the S&P 500.

As of late 2025, the top two institutional holders are exactly who you'd expect to see in a stable, profitable financial data provider:

• Vanguard Group Inc.: Holding approximately 4.93 million shares, representing about 13.17% of the company.
• BlackRock, Inc.: Holding roughly 3.40 million shares, equating to about 9.09% of the total shares outstanding.

This massive, passive ownership acts as a bedrock for the stock. It provides a constant, underlying demand, but it also means there's less pressure for radical strategic shifts. The influence of these giants is subtle but defintely powerful: they reward consistent execution and clear communication, which is why FactSet Research Systems Inc.'s focus on organic Annual Subscription Value (ASV) growth is so crucial.

For the fiscal year 2025, the company's full-year GAAP revenues hit $2.3217 billion, and they returned $460 million to shareholders through dividends and buybacks. That's the language this investor class understands: steady growth and strong capital returns.

Recent Investor Moves and Shifting Sentiment

While the top holders are largely passive, the second tier of institutional money shows where sentiment is moving. The latest 13F filings reveal a mixed but active landscape, which is typical as the market digests the company's investments in artificial intelligence (AI) and its recent CEO succession announcement in October 2025.

Here's the quick math on some notable Q2 2025 activity:

You see a clear split here: major firms like Morgan Stanley are increasing their position, signaling confidence in the long-term strategy, including the move into AI-driven solutions. But then you have significant divestitures from quantitative funds like Citadel Advisors LLC and Amundi, which suggests a rotation out of the stock, perhaps due to short-term margin pressures FactSet Research Systems Inc. faced from higher technology expenses.

The most important recent move is the internal conviction shown by executives. In November 2025, EVP Goran Skoko bought 500 shares for a total transaction value of $126,465.00. Insider buying, even in smaller amounts, is a strong signal that the people closest to the business believe the stock is undervalued or that future performance will improve.

To be fair, the market is currently weighing the company's core strength-demonstrated by full-year 2025 organic ASV growth of $127 million-against the execution risk of its new investment phase. This is why FactSet Research Systems Inc. is so focused on articulating its Mission Statement, Vision, & Core Values of FactSet Research Systems Inc. (FDS). right now.

Next Step: Review the Q4 2025 earnings call transcript to see how management directly addressed the margin impact of the new AI and technology investments. That's where the rubber meets the road for these major institutional holders.

Market Impact and Investor Sentiment

The investor profile for FactSet Research Systems Inc. (FDS) is currently defined by a high concentration of institutional money mixed with cautious, even bearish, near-term sentiment following recent financial results. You need to understand that while the big players hold the stock, their recent actions signal a pause, not a full retreat.

Institutional investors and hedge funds own a commanding 91.24% of the company's stock, a typical structure for a mature, high-quality financial data provider. This high ownership level suggests long-term confidence in the business model, which you can explore further by reviewing the Mission Statement, Vision, & Core Values of FactSet Research Systems Inc. (FDS). Still, the stock's performance in 2025 tells a different story: the share price is down a considerable 44.5% year-to-date through November 2025, reflecting a significant shift in market perception. Honestly, that kind of drop is a major correction, not just a blip.

The largest shareholders, led by The Vanguard Group, Inc. and BlackRock, Inc., maintain their top positions, but their recent trading activity is mixed. Vanguard Group Inc. is the largest institutional holder with 4,932,382 shares, valued at approximately $1.35 billion as of mid-November 2025. BlackRock, Inc. follows with 3,402,953 shares, valued at about $932.05 million. For a quick look at how the biggest holders are moving their capital:

• Vanguard Group Inc.: Lifted its position by 3.0% in the first quarter of 2025.
• Morgan Stanley: Increased its holdings significantly by 21.86% in the second quarter of 2025.
• BlackRock, Inc.: Trimmed its position by 4.34% in the second quarter of 2025.

This mixed activity-some accumulating, others trimming-shows that while the core investment thesis holds for many, others are taking profits or reallocating capital due to near-term risks. That's the definition of a nuanced market.

Recent Market Reactions and Insider Moves

The most significant market reaction this year came in September 2025 following the fiscal fourth-quarter earnings report. FactSet Research Systems Inc. reported an adjusted earnings per share (EPS) of $4.05, which narrowly missed the analyst forecast of $4.13. Despite a revenue beat-Q4 revenue was $597 million, surpassing the $592.79 million projection-the EPS shortfall rattled investor confidence, causing the stock to fall by 6.62% post-announcement. That's a clear signal: in this market, a miss on the bottom line is punished, even with top-line growth.

The overall sentiment is also reflected in the short interest, which sits at 6.85% of the float, a higher percentage than most of its peers, suggesting a notable number of traders are betting on further price declines. Still, internal conviction remains, with insider buying slightly outpacing selling over the last twelve months. For example, EVP Goran Skoko bought 500 shares on November 6, 2025, for $126,465.00, and EVP Helen L. Shan bought 370 shares on October 6, 2025, for $101,927.60. Insider buying, even in small amounts, is defintely a bullish sign when the stock is down.

Analyst Perspectives and Future Outlook

Wall Street's consensus rating on FactSet Research Systems Inc. is currently a cautious 'Reduce,' reflecting the recent earnings disappointment and margin pressures. Of the fourteen research firms covering the stock, five recommend a 'sell' and eight recommend a 'hold.' This is a tough crowd.

Following the Q4 miss, several major firms slashed their price targets. Morgan Stanley, for instance, cut its target from $393.00 to $293.00, and Barclays moved from $390.00 to $300.00. Here's the quick math on the company's 2025 fiscal year performance:

The core issue is valuation. FactSet Research Systems Inc.'s Price-to-Earnings (P/E) ratio is currently around 16.60x, which is well below the Capital Markets industry average of 24.25x. This discount suggests the market is pricing in lower growth or elevated risk. The opportunity, if you're a long-term investor, is that the stock is trading at a discount while the company is aggressively investing in Generative AI (GenAI) offerings like Pitch Creator to drive future Annual Subscription Value (ASV) growth. The short-term pain is real, but the long-term investment in product innovation is what the smart money is watching.