Factset Research Systems (FDS) risk factors, FY2024 10-K

Factset Research Systems's FY2024 10-K, filed Oct 29, 2024, lists 26 risk factors in 5 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

Open FDS in Gloom →
Factset Research Systems' chart, financials and news, free in your browser.Open FDS in Gloom →
Risk factors listed
265 groups
Section length
8k wordsItem 1A

Factset Research Systems's biggest risks in the FY2024 10-K

  • Technology evolution and artificial intelligence integration dominate the risk profile alongside cybersecurity and third-party data dependencies.
  • Market shifts from active to passive investing and financial sector consolidation threaten core asset management clients.
  • International operations span multiple jurisdictions with significant non-U.S. revenue and employee concentration.

The risks most specific to Factset Research Systems

  • Technology and Data Security Risks

    Successful access to prohibited data and other cyber-attacks and the failure of cyber-security systems and procedures

    We rely on internal IT and third-party service providers to deliver digital products, exposing us to cyber-attacks and system failures.

  • Technology and Data Security Risks

    Transition to new technologies, applications and processes could expose us to unanticipated disruptions

    Adapting to new technologies and AI is critical for scaling, but transition failures or disruptions could harm competitiveness.

  • Technology and Data Security Risks

    Our use of artificial intelligence technologies may not be successful and may present business, compliance, and reputational risks

    Expanding our use of AI and machine learning requires heavy investments and introduces business, compliance, and reputational risks.

  • Technology and Data Security Risks

    The continued shift from active to passive investing could negatively impact user count growth and revenues

    The ongoing shift from active to passive investing could negatively impact user count growth and revenues.

  • Technology and Data Security Risks

    A decline in equity and/or fixed income returns may impact the buying power of investment management clients

    Declines in equity or fixed income returns reduce the buying power and assets under management of our investment management clients.

  • Technology and Data Security Risks

    Failure to identify, integrate, or realize anticipated benefits of acquisitions and strains on resources as a result of growth

    We face risks in identifying, integrating, and realizing benefits from acquisitions, including our fiscal 2022 purchase of CGS.

  • Operational Risks

    Operations outside the United States involve additional requirements and burdens that we may not be able to control or manage successfully

    Non-U.S. operations generated approximately 39% of revenues and account for 81% of employees, exposing us to international risks.

  • Operational Risks

    Failure to enter into, renew or comply with contracts supplying new and existing data sets or products on competitive terms

    We depend on third-party suppliers, news sources, and exchanges for data sets, and failing to renew these contracts on competitive terms harms us.

  • Financial Market Risks

    Exposure to fluctuations in currency exchange rates and the failure of hedging arrangements

    Our international operations expose us to currency fluctuations involving the British Pound Sterling, Euro, Indian Rupee, and Philippine Peso.

  • Risks Relating to Our Debt

    The restrictive covenants in our debt may affect our ability to operate our business successfully

    Restrictive covenants in our 2022 Credit Agreement limit our ability to incur debt, make acquisitions, and operate our business freely.

All 26 risk factors

Headings as the filing states them, in filing order.

Technology and Data Security Risks

  1. 01Loss, corruption and misappropriation of data and information relating to clients and others
  2. 02Successful access to prohibited data and other cyber-attacks and the failure of cyber-security systems and procedures
  3. 03Transition to new technologies, applications and processes could expose us to unanticipated disruptions
  4. 04Our use of artificial intelligence technologies may not be successful and may present business, compliance, and reputational risks
  5. 05Competition in our industry may cause price reductions or loss of market share
  6. 06The continued shift from active to passive investing could negatively impact user count growth and revenues
  7. 07A decline in equity and/or fixed income returns may impact the buying power of investment management clients
  8. 08Uncertainty or downturns in the global economy and consolidation in the financial services industry may cause us to lose clients and users
  9. 09Volatility or downturns in the financial markets may delay the spending pattern of clients and reduce future ASV growth
  10. 10revenues required to provide the desired results. Our failure or inability to anticipate and respond to changes in the marketplace, including competitor and supplier developments, may also adversely affect our business, operations and growth
  11. 11Failure to identify, integrate, or realize anticipated benefits of acquisitions and strains on resources as a result of growth
  12. 12Failure to maintain reputation

Operational Risks

  1. 13Operations outside the United States involve additional requirements and burdens that we may not be able to control or manage successfully
  2. 14Failure to enter into, renew or comply with contracts supplying new and existing data sets or products on competitive terms
  3. 15Increased accessibility to free or relatively inexpensive information sources may reduce demand for our products and services
  4. 16Inability to hire and retain key qualified personnel

Legal and Regulatory Risks

  1. 17Legislative and regulatory changes in the environments in which we and our clients operate
  2. 18Adverse resolution of litigation or governmental investigations
  3. 19Third parties may claim we infringe upon their intellectual property rights or they may infringe upon our intellectual property rights
  4. 20Additional cost due to tax assessments resulting from ongoing and future audits by tax authorities as well as changes in tax laws

Financial Market Risks

  1. 21Exposure to fluctuations in currency exchange rates and the failure of hedging arrangements
  2. 22Business performance may not be sufficient to meet financial guidance or publicly disclosed long-term targets
  3. 23Economic, political and market forces beyond our control could adversely affect our business

Risks Relating to Our Debt

  1. 24e.placing us at a competitive disadvantage compared with those of our competitors that have less debt; and
  2. 25f.exposing us to risks inherent in interest rate fluctuations because some of our borrowings are at variable rates of interest, which could result in higher interest expense in the event of increases in market interest rates
  3. 26The restrictive covenants in our debt may affect our ability to operate our business successfully

Other Factset Research Systems 10-Ks

  • FY2026 10-K risk factors
    24 risks4 new5 dropped12 reworded

    New risks emphasize reliance on a dominant cloud provider, possible service outages, and limits in disaster recovery and system-change controls.

    Filed Oct 20, 2026
  • FY2025 10-K risk factors
    25 risks5 new6 dropped13 reworded

    Added focus on internal control weaknesses impacting financial reporting.

    Filed Oct 22, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.