FactSet Research Systems Inc. (FDS): Mixed F4Q as AI momentum builds but organic ASV growth set to moderate

FactSet delivered mixed F4Q results, with revenue and EPS above consensus offset by F2027 EPS guidance below the Street. We believe organic ASV growth will moderate from its recent 7% level as MCP competition increases, enterprise deal timing creates greater variability and early AI leadership becomes less differentiated. AI offerings generated 10%+ of new organic ASV in F4Q, but FDS did not disclose MCP's paid mix, conversion rate or standalone economics given that it is frequently bundled with other products. Bloomberg, private data providers and frontier models are expanding AI-enabled data access, which we expect to reduce switching costs and weaken FDS' control over workflows, distribution and the customer relationship. This risk is amplified by FDS' limited proprietary data differentiation relative to several Info Services peers. F2027 guidance calls for organic ASV growth of 5-6.5% despite a robust pipeline and no contract pull-forward into F2026, implying moderation from 7.0% i