I posted a FactSet (FDS) thesis [here](https://www.reddit.com/r/ValueInvesting/comments/1r12asf/factset_a_steady_compounder_trading_at_a_deep/) a few months back. It’s a steady compounder, beaten down by AI fears, with \~95% client retention. I argued the market was overreacting. They reported Q3 this morning, so here’s how my thesis is holding up.
**The Good**
**Growth re-accelerated:** GAAP revenue +6.4% YoY. Organic ASV growth hit 7.1%, and it’s the fourth straight quarter of acceleration (it bottomed at around 4% in early FY25). The “slowing growth” bear case is getting harder to make.
**Retention held:** ASV retention remains above 95%, and enterprise renewals in the quarter have been extended by \~30%. The stickiness thesis is intact.
**Aggressive buybacks at a discount:** Repurchased 2%+ of shares in a single quarter at an average of \~$219, which is below where it trades now. Management leaned in more as the price fell ($203M this quarter vs. $163M last). 27th straight dividend increase. $243M total returned in the last three months.
**The Mixed**
**GAAP EPS fell 9.6%**, but that’s largely due to one-time costs (restructuring/severance). Adjusted EPS rose 6.1% and beat consensus. Adjusted operating margin compressed by \~280 bps due to higher tech and comp spend.
**What I’m Watching**
Management restructured some engineering teams, framing it as AI-driven efficiency (The Company cited 27% of code in adopting teams is now AI-authored). I’m skeptical of cutting product engineers while claiming the opportunity is expanding, and of a company with record FCF and 1.2x net leverage needing to lower employee comp expense. Either the productivity gains show up as more product and sustained ASV acceleration, or it was margin optimization pretending to be “AI productivity”.
**Verdict:** Quarter cleared my hurdles, and I’m still accumulating under $340.
Can post my full \~1k-word write-up if anyone wants me to.