Here's Why You Should Retain FactSet Stock in Your Portfolio Now

FactSet Research Systems FDS stock has risen 4% in the past three months against the industry’s 8.4% decline. In the same time frame, the Zacks S&P 500 Composite has risen 3.4%.Image Source: Zacks Investment ResearchThe company’s earnings for fiscal 2026 are expected to increase 2.8% year over year, and revenues are expected to rise 5.3% year over year.Factors That Augur Well for FDSFactSet strengthens its leadership in AI-ready financial data by launching a production-grade MCP server that meets growing enterprise demand as firms move from experimentation to scaled AI deployment. The platform enables AI systems to access trusted FactSet intelligence directly without intermediaries, warehouses or custom integrations, cutting friction, preserving data integrity and speeding time to value for agentic and enterprise workflows. Strong adoption during the Explorer beta and the broad range of datasets available at launch highlight clear market demand and reinforce FactSet’s competitive advantage over warehouse-dependent or demo-level MCP offerings.Moreover, FactSet expands its cloud-first, AI-ready strategy by delivering its trusted market intelligence through Amazon (AMZN) Quick Research, enabling enterprises to connect existing FactSet subscriptions directly to their Amazon Web Services (“AWS”) environments. The integration eliminates manual data uploads, streamlines research workflows and accelerates AI deployment at scale, reinforcing FactSet’s position as a key enabler for organizations pursuing cloud-native, AI-driven research and analytics.FDS’s commitment to rewarding its shareholders through dividends and share repurchases is commendable. In fiscal 2025, 2024 and 2023, the company repurchased shares worth $300.5 million, $235 million and $177 million, respectively. It paid out $160 million, $151 million and $139 million in dividends in 2025, 2024 and 2023, respectively. In the first quarter of fiscal 2026, it paid a quarterly dividend of $41 million or $1.10 per share.FactSet also demonstrates a strong, science-backed commitment to sustainability through its validation by the Science Based Targets initiative, reinforcing its strategic focus on reducing greenhouse gas emissions and addressing the global climate challenge. The company commits to cutting scope one and scope two emissions by 45% and scope three emissions by 25% by fiscal 2030, setting clear, measurable targets aligned with global climate goals. FactSet strengthens this effort by aligning with the United Nations Global Compact and the Principles for Responsible Investment, while an executive-sponsored Sustainability Committee actively drives progress toward a net-zero future.FDS: Key Risks to WatchFactSet faces growing cost pressures as operating expenses continue to trend upward, weighing on margins and near-term earnings growth. The company increased total operating costs by 6.4% in 2023, 3% in 2024 and 4.8% in 2025, and it accelerated that trend with 10% year-over-year jump in the first quarter of fiscal 2026. This underscores the need for stronger cost control to prevent expense growth from outpacing revenues and eroding profitability.FDS’s Zacks Rank FDS currently carries a Zacks Rank #3 (Hold).Stocks to ConsiderSome better-ranked stocks for investors’ consideration are Byrna Technologies BYRN and Veralto Corporation VLTO.Byrna Technologies currently carries a Zacks Rank of 2 (Buy). BYRN has an expected earnings growth rate of 25.8% and 33.3% for 2025 and 2026, respectively.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.BYRN has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in the trailing four quarters, delivering an average earnings surprise of 167.5%.Veralto carries a Zacks Rank of 2. VLTO has an expected earnings growth rate of 8.5% and 9.2% for 2025 and 2026, respectively. The company has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in the trailing four quarters, delivering an average earnings surprise of 6.5%.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FactSet Research Systems Inc. (FDS): Free Stock Analysis Report Byrna Technologies Inc. (BYRN): Free Stock Analysis Report Veralto Corporation (VLTO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks