Oversold but Not Overlooked: Why FactSet (FDS) Deserves a Second Look

FactSet Research Systems Inc. (NYSE:FDS) is included among the 10 Oversold Dividend Stocks to Buy According to Hedge Funds.

Oversold but Not Overlooked: Why FactSet (FDS) Deserves a Second Look

An investment banker consulting with a customer on their portfolio in a professional setting.

The company’s third-quarter earnings demonstrated the successful implementation of its enterprise solution strategy. With a strong pipeline and growing momentum, it appeared well-positioned to close the fiscal year on a solid note.

FactSet Research Systems Inc. (NYSE:FDS) reported revenue of $585.5 million in fiscal Q3 2025, up 6% from the same period last year. The revenue also beat analysts’ estimates by $4.62 million. As of May 31, 2025, the company’s Annual Subscription Value (ASV) reached $2.33 billion, an increase from $2.2 billion recorded on the same date in 2024. On an organic basis, ASV stood at $2.3 billion, reflecting a year-over-year growth of 4.5%, or $98.5 million.

FactSet Research Systems Inc. (NYSE:FDS)’s cash position also remained strong. The company reported an operating cash flow of $253.8 million and its free cash flow was $228.6 million, both up by 6.5% and 5.4%, respectively. In addition, it returned $41.6 million to shareholders through dividends, which showed the commitment toward its investors.

FactSet Research Systems Inc. (NYSE:FDS) currently offers a quarterly dividend of $1.10 per share, having raised it by 6% in May 2025. This was the company’s 26th consecutive year of dividend growth. The stock has a dividend yield of 1.05%, as of July 25.

While we acknowledge the potential of FDS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FDS and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 14 Stocks That Paid Special Dividends in 2025 and Dividend Champions vs Aristocrats: 12 Under-the-Radar Stocks to Buy

Disclosure: None.