Let’s dig into the relative performance of FactSet (NYSE: FDS) and its peers as we unravel the now-completed Q3 financial exchanges & data earnings season.

Financial exchanges and data providers operate trading platforms and sell market information. They enjoy relatively stable revenue from trading fees and subscriptions, increasing demand for data analytics, and expansion opportunities in emerging markets. Challenges include regulatory oversight of market structure, competition from alternative trading venues, and substantial technology investments needed to maintain low-latency trading infrastructure and data security.

The 10 financial exchanges & data stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.9%.

While some financial exchanges & data stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1% since the latest earnings results.

Weakest Q3: FactSet (NYSE: FDS)

Founded in 1978 when financial data was still primarily delivered through paper reports, FactSet (NYSE: FDS) provides financial data, analytics, and technology solutions that investment professionals use to research, analyze, and manage their portfolios.

FactSet reported revenues of $596.9 million, up 6.2% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a slower quarter for the company with full-year EPS guidance meeting analysts’ expectations and a significant miss of analysts’ EPS estimates.

“FactSet’s strong fourth quarter performance reflects the power of our differentiated data, open platform, and client-centric culture,” said Sanoke Viswanathan, CEO of FactSet.

Unsurprisingly, the stock is down 19.1% since reporting and currently trades at $272.

Read our full report on FactSet here, it’s free for active Edge members.

Best Q3: Moody's (NYSE: MCO)

Founded in 1900 during America's railroad boom when investors needed reliable information on bond risks, Moody's (NYSE: MCO) provides credit ratings, risk assessment tools, and analytical solutions that help organizations evaluate financial risks and make informed investment decisions.

Moody's reported revenues of $2.01 billion, up 10.7% year on year, outperforming analysts’ expectations by 2.4%. The business had a very strong quarter with an impressive beat of analysts’ Investor Services segment estimates and a solid beat of analysts’ EBITDA estimates.

Moody's scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.3% since reporting. It currently trades at $478.53.

Is now the time to buy Moody's? Access our full analysis of the earnings results here, it’s free for active Edge members.

Tradeweb Markets (NASDAQ: TW)

Founded in 1996 as one of the pioneers in electronic bond trading, Tradeweb Markets (NASDAQ: TW) builds and operates electronic marketplaces that connect financial institutions for trading across rates, credit, equities, and money markets.

Tradeweb Markets reported revenues of $508.6 million, up 13.3% year on year, exceeding analysts’ expectations by 1%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates and transaction volumes in line with analysts’ estimates.

The stock is flat since the results and currently trades at $105.12.

Read our full analysis of Tradeweb Markets’s results here.

S&P Global (NYSE: SPGI)

Tracing its roots back to 1860 when it published the first railroad industry manual, S&P Global (NYSE: SPGI) provides credit ratings, market intelligence, commodity data, automotive analytics, and financial indices that help investors and businesses make decisions.

S&P Global reported revenues of $3.89 billion, up 8.8% year on year. This print surpassed analysts’ expectations by 1.1%. It was a strong quarter as it also produced an impressive beat of analysts’ Ratings segment estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 3.9% since reporting and currently trades at $491.47.

Read our full, actionable report on S&P Global here, it’s free for active Edge members.

MarketAxess (NASDAQ: MKTX)

Pioneering the shift from phone-based to electronic bond trading since 2000, MarketAxess (NASDAQ: MKTX) operates electronic trading platforms that enable institutional investors and broker-dealers to efficiently trade fixed-income securities like corporate and government bonds.

MarketAxess reported revenues of $208.8 million, up 1% year on year. This number topped analysts’ expectations by 0.7%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

The stock is down 2.4% since reporting and currently trades at $161.83.

Read our full, actionable report on MarketAxess here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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