Is FDS (FactSet Research Systems Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, FDS is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 1 of 4 compliance screens. FactSet Research Systems Inc.'s core business activity was found to be non-compliant.

FactSet Research Systems Inc. is a leading provider of financial data, analytics, and workflow solutions for the global investment community. The company delivers essential market insights and trading software to portfolio managers, investment banks, and wealth advisors across the Americas, EMEA, and Asia Pacific. For Muslim investors relying on AAOIFI standards, FactSet is classified as Not Halal (Haram). While the company passes all financial ratio screens, it fails the core business activity screen because its primary products directly support and facilitate the operations of conventional, interest-based financial institutions. Practically, this means the stock cannot be held in a shariah-compliant portfolio. From a strictly financial perspective, FactSet demonstrates conservative balance sheet management, carrying a permissible debt-to-market cap ratio of just 18.6%. Furthermore, its cash and securities sit comfortably at 4.2% of its market cap, and interest income accounts for a negligible 0.28% of total revenue. While some scholars debate the permissibility of providing pure data to conventional banks, the AAOIFI consensus generally restricts companies whose primary revenue relies on servicing the conventional financial sector. Muslim investors should look toward data providers operating outside the conventional banking workflow for compliant alternatives. FactSet Research Systems Inc. operates in the Financial Services sector under the Financial - Data & Stock Exchanges industry and is headquartered in Norwalk, CT, US. The company is led by CEO Sanoke Viswanathan and employs approximately 12,598 people.

FDS was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. FDS passed 3 of these 4 screens.

FDS was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.