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FDS Stock Jumps 29.1% in 3 Months: Here's What You Should Know
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Key Takeaways
FactSet shares rose 29.1% in three months, beating the industry's 0.3% decline and the S&P 500's 5.1% gain.
More than 20% of FDS' top 100 clients pay for MCP data, while AI SKUs drove more than 10% of Q3 ASV growth.
FDS generated $254 million in Q3 free cash flow and returned $243.4 million to shareholders in the quarter.
FactSet (FDS - Free Report) stock has gained 29.1% over the past three months against the industry’s 0.3% decline. The Zacks S&P 500 Composite has appreciated 5.1% during the same period.
Three-Month Share Price Performance
Image Source: Zacks Investment Research
Let us delve deeper into the factors that have contributed to the company’s outperformance.
AI Adoption Expands Monetization & Wallet Share
FactSet is benefiting from rising demand for artificial intelligence (AI)-ready financial data while extending AI across data delivery and client workflows. More than 20% of its top 100 clients already use model context protocol (MCP) data on a paid basis, while more than 10% of third-quarter fiscal 2026 Annual Subscription Value growth came directly from AI Stock Keeping Units. MCP adoption is driving higher usage of existing workstations, Application Programming Interfaces and data feeds, creating a multiplier effect across the broader product portfolio. This expanding AI engagement can deepen existing client relationships and support additional wallet-share gains as customers increase data consumption and adopt new AI-enabled workflows.
Financial Flexibility Supports Client Expansion
FDS generated $284.5 million in net cash from operating activities during the third quarter of fiscal 2026, up 12.1% year over year, while free cash flow increased 11.1% to $254 million. The company maintained a conservative balance sheet, with gross debt leverage of 1.5X and net debt leverage of 1.2X. This financial flexibility gives FactSet room to fund product development, deepen client relationships and pursue selective growth opportunities. Recent expanded mandates with a sovereign wealth fund, global bank, outsourced chief investment officer and investment manager further highlight the opportunity to increase wallet share within its established customer base.
Capital Returns Generate Shareholder Value
FactSet returned $628.7 million to shareholders during the first nine months of fiscal 2026, including $243.4 million in the third quarter. Third-quarter returns comprised $203.1 million of share repurchases and $40.3 million of dividends. The company increased its quarterly dividend by 6 cents to $1.16 per share, marking its 27th consecutive year of dividend growth. This consistent capital-return program highlights FactSet’s durable cash-generation profile and disciplined capital allocation. Continued buybacks and dividend growth can support per-share value creation while allowing the company to maintain investment in strategic growth initiatives.
View the Zacks #1 Rank List
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FDS Stock Jumps 29.1% in 3 Months: Here's What You Should Know
Key Takeaways
FactSet (FDS - Free Report) stock has gained 29.1% over the past three months against the industry’s 0.3% decline. The Zacks S&P 500 Composite has appreciated 5.1% during the same period.
Three-Month Share Price Performance
Image Source: Zacks Investment Research
Let us delve deeper into the factors that have contributed to the company’s outperformance.
AI Adoption Expands Monetization & Wallet Share
FactSet is benefiting from rising demand for artificial intelligence (AI)-ready financial data while extending AI across data delivery and client workflows. More than 20% of its top 100 clients already use model context protocol (MCP) data on a paid basis, while more than 10% of third-quarter fiscal 2026 Annual Subscription Value growth came directly from AI Stock Keeping Units. MCP adoption is driving higher usage of existing workstations, Application Programming Interfaces and data feeds, creating a multiplier effect across the broader product portfolio. This expanding AI engagement can deepen existing client relationships and support additional wallet-share gains as customers increase data consumption and adopt new AI-enabled workflows.
Financial Flexibility Supports Client Expansion
FDS generated $284.5 million in net cash from operating activities during the third quarter of fiscal 2026, up 12.1% year over year, while free cash flow increased 11.1% to $254 million. The company maintained a conservative balance sheet, with gross debt leverage of 1.5X and net debt leverage of 1.2X. This financial flexibility gives FactSet room to fund product development, deepen client relationships and pursue selective growth opportunities. Recent expanded mandates with a sovereign wealth fund, global bank, outsourced chief investment officer and investment manager further highlight the opportunity to increase wallet share within its established customer base.
Capital Returns Generate Shareholder Value
FactSet returned $628.7 million to shareholders during the first nine months of fiscal 2026, including $243.4 million in the third quarter. Third-quarter returns comprised $203.1 million of share repurchases and $40.3 million of dividends. The company increased its quarterly dividend by 6 cents to $1.16 per share, marking its 27th consecutive year of dividend growth. This consistent capital-return program highlights FactSet’s durable cash-generation profile and disciplined capital allocation. Continued buybacks and dividend growth can support per-share value creation while allowing the company to maintain investment in strategic growth initiatives.
FDS’ Zacks Rank & Stocks to Consider
FactSet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A couple of better-ranked stocks in the broader Business Services sector are CBIZ, Inc. (CBZ - Free Report) and TrueBlue, Inc. (TBI - Free Report) .
CBIZ holds a Zacks Rank of 2 (Buy) at present. It has a long-term earnings growth expectation of 10%.
CBZ beat earnings estimates in three of the last four quarters and missed once, with an average earnings surprise of 8.9%.
TrueBlue also carries a Zacks Rank #2 at present. It has a long-term earnings growth expectation of 14%.
TBI beat earnings estimates in three of the last four reported quarters and missed once, with an average earnings surprise of 22.4%.