FactSet Research Systems sees AI adoption accelerate subscription value growth to 7.1%

FactSet Research Systems: Rising AI Adoption Bodes Well for Subscription Value Growth, Says Analyst - Fac

* FactSet Research Systems stock is moving in positive territory. What's pushing FDS stock higher? The FactSet Research Systems Analyst: Analyst Ashish Sabadra reiterated a Sector Perform rating and price target of $240. The FactSet Research Systems Thesis: The company's third-quarter organic ASV grew $35.4 million sequentially, exceeding consensus of $30 million, with the growth rate accelerating to 7.1% year-over-year, from 6.7% in the previous quarter, Sabadra said in the note. Check out other analyst stock ratings. The company delivered strong beats on revenues and earnings, while margins missed estimates, he added. The company has entered the "early innings: in AI monetization, highlighting that around 10% of its ASV growth in the third quarter came "directly from discrete AI SKUs, compared to almost no contribution from last year," the analyst wrote. He noted that: * Around 90% of FactSet Research Systems' top 50 clients are using four or more AI products. * These clients are witnessing 50% faster ASV growth than the broader base. Regarding the company's MCP (Model Context Protocol, which allows AI models and LLMs to directly connect to external tools and data systems) clients, the analyst stated that: * There were around 450 MCP clients under contract or trial at quarter-end, which grew to over 550 post-quarter. * About 20 of the top 100 are using MCP on a paid basis. * Around 25% of MCP users adopted full Workstation contracts to better leverage the company's full analytics and technology stack environment. Sabadra further said that management's 2026 guidance implies fourth-quarter performance of: * Sequential ASV growth of around $50-$80 million * Total revenue growth of around 2%-5% year-on-year to $608-$628 million * Total adjusted operating margin of 30.7%-36.8% * Adjusted earnings of $3.75-$4.25 per share FDS Price Action: Shares of FactSet Research Systems had risen by 1.69% to $249.69 at the time of publication on Thursday. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

BMO Capital raises FactSet stock price target on AI progress By Investing.com

Investing.com - BMO Capital raised its price target on FactSet Research Systems Inc. (NYSE:FDS) to $275 from $257 while maintaining a Market Perform rating on Wednesday. The stock currently trades at $251.42, up sharply from its previous close of $230.08, reflecting a strong one-week gain of 17.6%. The firm cited the company's third-quarter fiscal 2026 results, which exceeded expectations on share count but fell short on margins due to investment-driven pressure. Growth was balanced across client segments, with strength in wealth and dealmakers. The company posted revenue growth of 6.6% with a market capitalization of $9.16 billion and a P/E ratio of 16.35. BMO Capital noted that early artificial intelligence initiatives at FactSet continue to show positive traction. The AI progress is supporting faster growth within the installed base and accelerating the shift toward larger enterprise agreements. The company reaffirmed its guidance across all metrics, now trending toward the high end of its ranges. FactSet reported the mixed quarter with upside partially offset by margin pressure from investments. BMO Capital raised most of its estimates for FactSet following the quarterly results. The firm described the AI initiatives as still being in the early stages. According to InvestingPro analysis, FactSet appears undervalued at current levels and has raised its dividend for 27 consecutive years, demonstrating long-term shareholder commitment. Investors seeking deeper insights can access the comprehensive Pro Research Report, available for FactSet and 1,400+ other US equities. In other recent news, FactSet Research Systems reported adjusted earnings of $4.53 per share for the fiscal third-quarter 2026, surpassing Wall Street's expectations of $4.45 per share. The company also reported revenue of $622.9 million, exceeding the anticipated $617.3 million. FactSet's organic annual subscription value increased by 7.1% to $2.48 billion, marking the fifth consecutive quarter of growth acceleration. UBS has lowered its price target for FactSet to $340 from $380, maintaining a Buy rating, citing the company's performance and growth prospects. Wells Fargo raised its price target to $210 from $200, despite maintaining an Underweight rating, noting the strong quarterly results. Wolfe Research increased its price target to $240 from $225, while keeping an Underperform rating, highlighting the company's revenue strength and anticipated guidance adjustments. These developments underscore FactSet's continued momentum in subscription growth and AI adoption. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.