Factset

FDS

Market cap $9.33B

FactSet Research Systems remains undervalued, trading at a 44% discount to a fair value estimate of $445 per share. FDS's AI-enhanced products are driving organic ASV growth (+7% in Q3 2026), with clients using AI solutions growing ASV 50% faster than non-AI clients. FDS delivers a 1.8% dividend yield with a payout ratio in the mid-20% range, supporting 6%–8% annual dividend growth and a 26-year Dividend Aristocrat streak.

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FDS' recurring revenues, AI adoption and recent client wins fuel subscription growth. Its rising costs and competition remain key risks.

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FactSet Research Systems remains a buy as ASV growth accelerates, AI adoption strengthens, and valuation stays attractive at a low-teens forward P/E. Q3 2026 delivered 7.1% organic ASV growth, robust client wins, and >95% ASV retention, supporting recurring revenue and cross-workflow expansion. AI is driving deeper client integration, with >90% of top clients using multiple FDS AI products and AI client ASV growth outpacing the rest by over 50%.

FactSet Research Systems Inc. (NYSE:FDS) on Wednesday posted third-quarter earnings and revenue that topped Wall Street estimates.

While FactSet Research Systems Inc (NYSE:FDS) reported strong ASV (annual subscription value) growth for the third quarter, driven to some extent by AI products, management indicated a "meaningful" margin recovery in the fourth quarter, according to RBC Capital Markets.