What the changes say
- New risks emphasize reliance on a dominant cloud provider, possible service outages, and limits in disaster recovery and system-change controls.
- AI growth creates new exposure to constrained data-center capacity, power, computing resources, and internal governance failures.
- Removed risks focused on financial-market effects on clients, sales cycles, and demand for FactSet information; tax risk is consolidated into a broader risk.
- Rewording adds activism and litigation around ESG, while international staffing rises from 80% to 81% and guidance language is simplified.
What changed since the prior 10-K
New
- NewCybersecurity, Technology and Data Security Risks
We currently use multiple providers of cloud services; however, one supplier provides the majority of our cloud computing support. We have limited control over its performance, and a disruption or loss of service from this provider could impair our system's operation and our ability to operate for a period of time
A dominant cloud provider, data-center disruptions, inadequate disaster recovery, or faulty system changes could interrupt FactSet services and harm clients.
- NewCybersecurity, Technology and Data Security Risks
We may be unable to secure data center capacity, power and computing resources on acceptable terms to meet our future needs
AI-driven industry demand may constrain FactSet’s access to data-center capacity, power, and computing resources, raising costs or delaying products and growth.
- NewCybersecurity, Technology and Data Security Risks
Inadequate or inconsistent governance of our internal use of AI could expose us to security, operational, legal and reputational risks
Decentralized or inadequately controlled use of generative and agentic AI could create security vulnerabilities, regulatory exposure, litigation, and reputational harm.
- NewLegal and Regulatory Risks
Changes in tax laws and other tax-related risks could adversely affect our financial results
Tax-law changes, audits, disputes over tax interpretations, and shifts in earnings geography could increase FactSet’s tax liabilities, rate, or compliance costs.
Dropped
- DroppedStrategy and Market Demand Risks
A decline in equity and/or fixed income returns may impact the buying power of investment management clients
- DroppedStrategy and Market Demand Risks
Uncertainty or downturns in the global economy and consolidation in the financial services industry may cause us to lose clients and users
- DroppedStrategy and Market Demand Risks
Volatility or downturns in the financial markets may delay the spending pattern of clients and reduce future ASV growth
- DroppedOperational Risks
Increased accessibility to free or relatively inexpensive information sources may reduce demand for our products and services
- DroppedLegal and Regulatory Risks
Additional cost due to tax assessments resulting from ongoing and future audits by tax authorities as well as changes in tax laws
Investment clients’ lower assets under management, redemptions, and profitability could reduce spending on FactSet products.
Reworded
- 93% rewrittenStrategy and Market Demand Risks
The continued shift from active to passive investing could negatively impact user count growth and revenues
The text now links passive-investing outflows to reduced demand for active managers’ services and, consequently, FactSet products; it replaces the prior explanation of active and passive strategies.
- 88% rewrittenLegal and Regulatory Risks
Adverse resolution of litigation or governmental investigations
The risk now covers potential future proceedings and government or regulatory inquiries; it removes the prior statement that some lawsuits may lack insurance coverage.
- 55% rewrittenCybersecurity, Technology and Data Security Risks
Our use of AI technologies may not be successful and may present business, compliance, and reputational risks
The heading now highlights business, compliance, and reputational risks, but the risk discussion itself is unchanged.
- 55% rewrittenStrategy and Market Demand Risks
Increased scrutiny with respect to environmental, social and governance matters
The text adds activism and litigation by both supporters and opponents of ESG and sustainability initiatives.
Was: Increased scrutiny with respect to sustainability matters
- 51% rewrittenStrategy and Market Demand Risks
Competition in our industry may cause price reductions or loss of market share, or limit our growth or profitability
The heading now expressly mentions price reductions, market-share loss, and limits on growth or profitability; the discussion is unchanged.
- 33% rewrittenOperational Risks
If we fail to maintain proper and effective internal control and remediate any future control deficiencies, our ability or perceived ability to produce accurate and timely financial statements or reporting could be impaired, which could harm our business
No substantive change: the internal-control discussion is unchanged.
- 32% rewrittenFinancial Market Risks
Business performance may not be sufficient to meet financial guidance or publicly disclosed long-term targets
The text drops specific guidance assumptions about Organic ASV, expenses, tax rate, and profitability targets, while retaining the risk of missing or revising guidance.
- 31% rewrittenOperational Risks
Operations outside the U.S. involve additional requirements and burdens that we may not be able to control or manage successfully
The stated share of employees outside the U.S. rises from approximately 80% to 81%; non-U.S. revenue remains approximately 39%.
- 24% rewrittenStrategy and Market Demand Risks
Failure to maintain reputation
- 23% rewrittenStrategy and Market Demand Risks
Failure to identify, integrate, or realize anticipated benefits of acquisitions and strains on resources as a result of growth
- 23% rewrittenOperational Risks
Failure to enter into, renew or comply with contracts supplying new and existing content sets or products on competitive terms
- 21% rewrittenRisks Relating to Our Debt
Our indebtedness may impair our financial condition and operations and restrict our activities or our ability to satisfy our obligations
All 24 risk factors
Headings as the filing states them, in filing order.
Cybersecurity, Technology and Data Security Risks
- 01We currently use multiple providers of cloud services; however, one supplier provides the majority of our cloud computing support. We have limited control over its performance, and a disruption or loss of service from this provider could impair our system's operation and our ability to operate for a period of timeNew
- 02We may be unable to secure data center capacity, power and computing resources on acceptable terms to meet our future needsNew
- 03Transition to new and emerging technologies, applications and processes could expose us to unanticipated disruptions or impacts
- 04Our use of AI technologies may not be successful and may present business, compliance, and reputational risks55% rewritten
- 05Inadequate or inconsistent governance of our internal use of AI could expose us to security, operational, legal and reputational risksNew
Strategy and Market Demand Risks
- 06Competition in our industry may cause price reductions or loss of market share, or limit our growth or profitability51% rewritten
- 07The continued shift from active to passive investing could negatively impact user count growth and revenues93% rewritten
- 08Clients are seeking additional contractual protections that may create additional liabilities for us
- 09Failure to identify, integrate, or realize anticipated benefits of acquisitions and strains on resources as a result of growth23% rewritten
- 10Failure to maintain reputation24% rewritten
- 11Increased scrutiny with respect to environmental, social and governance matters55% rewritten
Operational Risks
- 12Operations outside the U.S. involve additional requirements and burdens that we may not be able to control or manage successfully31% rewritten
- 13Failure to enter into, renew or comply with contracts supplying new and existing content sets or products on competitive terms23% rewritten
- 14Inability to hire and retain key qualified personnel or navigate key management transitions
- 15If we fail to maintain proper and effective internal control and remediate any future control deficiencies, our ability or perceived ability to produce accurate and timely financial statements or reporting could be impaired, which could harm our business33% rewritten
Legal and Regulatory Risks
- 16Legislative and regulatory changes in the environments in which we and our clients operate
- 17Adverse resolution of litigation or governmental investigations88% rewritten
- 18Third parties may claim we infringe upon their intellectual property rights or they may infringe upon our intellectual property rights
- 19Compliance with global data privacy laws which are constantly evolving
- 20Changes in tax laws and other tax-related risks could adversely affect our financial resultsNew
Financial Market Risks
- 21Exposure to fluctuations in currency exchange rates and the failure of hedging arrangements
- 22Business performance may not be sufficient to meet financial guidance or publicly disclosed long-term targets32% rewritten
- 23Economic, political and other forces beyond our control could adversely affect our business
Risks Relating to Our Debt
- 24Our indebtedness may impair our financial condition and operations and restrict our activities or our ability to satisfy our obligations21% rewritten
Other Factset Research Systems 10-Ks
- FY2025 10-K risk factors25 risks5 new6 dropped13 reworded
Added focus on internal control weaknesses impacting financial reporting.
Filed Oct 22, 2025 - FY2024 10-K risk factors26 risks
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.
Filed Oct 29, 2024
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.