FactSet is the third major pillar of the global financial data and analytics industry, sandwiched between Bloomberg's private scale and S&P Global's broader information footprint. The company sells a connected workstation and data platform to roughly 9,130 clients, predominantly large buy-side institutions, generating $622.9 million in fiscal third quarter revenue and $2,485.6 million of Organic ASV at quarter-end. Organic ASV growth accelerated to 7.1% year-over-year in the most recent quarter, with all three segments expanding, and fiscal 2026 has so far delivered 6.8% revenue growth through nine months. The market, however, is no longer paying a premium for the model: shares trade at $294.49 against a 52-week high of $384.33, with a trailing P/E of 19.4x and an EV/EBITDA in the mid-teens, well below the levels FactSet commanded in prior years.
The bull case rests on the durability of subscription revenue, the leverage of the centers of excellence cost base, and a credible push into AI-embedded workflows. The bear case is more immediate. Operating margin in the third quarter collapsed to 26.7% from 33.2% a year earlier, EPS fell 9.6%, and free cash flow growth is being held back by elevated compensation costs. The company is no longer a margin-expansion story; it is a margin-defense story.
The variable that matters most is whether fiscal fourth quarter expense pressure is one-time in nature, tied to a new CEO employment agreement and a restructuring charge, or whether it represents a structural reset of the cost base as FactSet leans into AI investment. That question will determine whether the current multiple is a buying opportunity or a fair reflection of slower growth and lower returns on incremental capital.