FactSet Research Systems (FDS) fiscal Q4 average sales value growth is expected to benefit from strong demand in middle-office solutions, wealth management, data services, and partnerships involving generative AI, RBC Capital Markets said in a note Thursday.

The firm may need to increase investments under its new CEO, similar to what was done in fiscal year 2020, when margins dropped but growth improved in the following years, the investment firm said.

For fiscal 2026, analysts project ASV growth of $100 million to $150 million, or 4% to 6% year over year, with revenue growth of about 5% to 6%, though margins are expected to fall, according to the note.

Fiscal Q4 revenue is expected to grow 5.7% year over year to $594 million, in line with consensus, with adjusted EPS slightly above estimates at $4.17, RBC said.

Strong client retention and account expansion are driving ASV growth, especially in buy-side, wealth, and dealmaking segments, RBC analysts noted.

Wealth management continues to show double-digit ASV growth, supported by upselling data feeds and digital tools to existing desktop clients., according to RBC.

January price increases helped revenue growth in Q3, especially in corporate and hedge fund segments, though inflation and tariffs may affect future price steps, the investment firm noted.

RBC maintained a sector perform rating for FactSet with a $395 price target.

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