Focus on AI usage upside; questions around margins

Research evidence excerpt

Focus on AI usage upside; questions around margins

Deutsche Bank

Research

Rating Company Date

Hold FactSet 1 July 2026

Results

North America

United States

Reuters Bloomberg Exchange Ticker Price at 1 Jul 2026 (USD) 245.55

FDS.N FDS US NYS FDS

Price Target 280.00

Industrials

446.50 -

Business & Industrial Services 52-week range 189.15

Focus on AI usage upside; questions

Valuation & Risks around margins

Faiza Alwy

Key takeaways from fiscal 3Q26 results Research Analyst

FDS stock was up nearly 7% which we attribute to the large technical unwind of the +1-212-250-7611

AI narrative in the backdrop. Results were mixed, in our view, and the range of

Avi Sharma

outcomes for 4Q ASV (therefore FY27 revenues) appear to be reasonably wide. Research Associate

Tactically, we see upside to FY27 estimates driven by higher usage, easy comps on +1-212-250-7226

margins and operating leverage and further focus on the optimization of the

Sophie Sheng

balance sheet. The long-term narrative and terminal value considerations are likely

Research Associate

to remain challenging, especially if driven by higher data usage which the company

+1-212-250-9954

will need to demonstrate are sustainable.

Key changes

Specifically on results, revenues beat the Street on the top-line with organic ASV

275.00 to

growth of +7.1%, +80 bps above Street estimates (DBe 6.7%), reflecting a $35m TP 280.00 ↑ 1.8%

QoQ increase. Margins, however, missed the Street by ~90 bps noting a 60 bps EPS (USD) 17.66 to 17.75 ↑ 0.5%

margin drag from one-time FX hedging. The company maintained its FY26 guide

Revenue (USDm) 2,460 to 2,470 ↑ 0.4%

across all metrics, with revenue and EPS tracking towards the high-end based on

Source: Deutsche Bank

current business trajectory. Management noted that June bookings were ahead of