FactSet (FDS) · Q3 2026 results and valuation

At 8.0% growth a year (3-year revenue growth), the model's fair value is $323.72 a share — the stock trades 3% above it. Today's price assumes 8.4% growth a year.

1. Key theme

   FY27 revenue growth is expected to be 5% to 6% on a reported basis and 100 basis points higher on a like-for-like basis due to business exits and FX rates.

   Source quote

   “Our revenue growth for FY27 is expected to be 5% to 6% on a reported basis and approximately 100 basis points higher on a like-for-like basis, reflecting a combination of factors, such as our exit from the ESG signals attribution business, FX rates, and other one-time items.”

2. Guidance

   FDS expects EPS growth to improve to the high single digits in FY27 despite two non-operating headwinds of a higher tax rate and interest expense totaling a 2% headwind.

3. Guidance

   Organic ASV grew by 7%, or $168 million, to $2.56 billion for the year, exceeding the high end of the company's guidance.

4. Figure

   Average contract length increased by roughly 30% in Q4 because most renewed ASV was secured as enterprise agreements or in contracts with terms of three years or longer.

   Source quote

   “In Q4, the majority of renewed ASV was secured as enterprise agreements or in contracts with terms of three years or longer, increasing average contract length by roughly 30% while broadly preserving pricing.”

5. Figure

   The company returned over $800 million to shareholders through dividends and repurchases in fiscal 2026, representing an annual increase of over 75%.

   Source quote

   “In total, we returned over $800 million to shareholders in fiscal 2026 through dividends and repurchases, representing an annual increase of over 75%.”

2 more

1. Figure

   Adoption grew by 40 percent in terms of number of clients this quarter.

   Source quote

   “Just this quarter, our adoption grew by 40 percent in terms of number of clients an.”

2. Figure

   Margins compressed during FY26 due to structural investments in infrastructure and cybersecurity alongside the output of accelerating ASV to record levels.

   Source quote

   “FactSet's margins compress during FY26 for two primary reasons. A series of structural investments previously discussed, including modernizing our infrastructure and strengthening cybersecurity and resilience, and the output of accelerating ASV to record levels.”

Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 91% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.

Sentences that drove the tone

“For the year, organic ASV grew at 7%, or $168 million, to $2.56 billion, exceeding the high end of our guidance, with robust growth across all regions and client types.”

“We reorganized around a unified product organization, strengthened our leadership bench, and sharpened commercial execution to accelerate top-line growth, while boosting workforce productivity with the help of AI to improve...”

“The impact of our commercial excellence initiative is clear with strong new business growth, continued ASV retention of over 95%, and strong expansion.”