FDS: F3Q26 First Look: Solid Organic ASV Beat

研报英文原文证据摘录

FDS: F3Q26 First Look: Solid Organic ASV Beat

Business & Information Services Equity Research

Investment Thesis, Valuation and Risks

FactSet Research Systems Inc. (FDS)

Investment Thesis

We rate FactSet Underweight. FDS' 40 years of connected, organized, and concorded data are a differentiator, and its Wealth business is

well-positioned to capitalize on growing demand. However, we still see ASV (and valuation) as influenced by financial services sector trends,

where we are cautious on FDS' increasingly 2H-weighted guidance. We are concerned on the recent impact to capital markets activity from

elevated market volatility, and the subsequent impact to buy-side budgets in FY26.

Target Price Valuation for FDS

• Our $200 price target is based on ~10x our FY27E EPS, reflecting a multiple at the low end of FDS's historical relative valuation to the

market

• Longer-term, we see risk that GenAI could create more competition in an already competitive market

• FDS has diversified its strategy beyond workstation, but growth is still linked to the financial services industry, where we are concerned

on the recent impact to capital markets activity from market volatility, and subsequent impact to buy-side budgets

Risks to Our Price Target and Rating for FDS

• Deregulation under the Trump administration leading to resurgence in capital markets activity

• Better-than-expected incoming investment banking analyst class

• Contribution from GenAI-enabled product launches

• Improvement in active manager performance, flows, and fees

Companies Mentioned in Report

Company Name Ticker Last Price

(06/30/26)

FactSet Research Systems Inc. FDS $230.08

Source: Wells Fargo Securities LLC Estimates, FactSet

2 | Equity Research