FactSet Research Systems Inc. (FDS) Stock Analysis

FactSet’s primary competitive advantages stem from its deeply integrated, proprietary data ecosystem, high client switching costs, and workflow-embedded analytics. The company curates and standardizes over 200 databases, combining proprietary and third-party content, which is trusted by institutional asset managers and wealth advisors managing over $30 trillion in assets on the platform. This breadth and quality of data, coupled with advanced concordance and entity resolution, are not easily replicated—rivals such as Bloomberg, S&P Global, and LSEG (Refinitiv) often rely on FactSet for certain data feeds.

FactSet’s platform is embedded in client workflows, supporting research, portfolio analytics, and risk management. This integration creates operational friction for clients considering alternatives, resulting in annual subscription value (ASV) retention rates above 95% and client retention of 91%. The company’s open architecture—offering APIs, cloud connectors, and customizable feeds—contrasts with Bloomberg’s more closed system, appealing to clients seeking flexibility.

FactSet’s culture emphasizes client service and continuous innovation, evidenced by rapid AI product rollouts and a 9.5% increase in client count in FY25. However, the company faces threats from free or low-cost data sources and the rapid evolution of AI, which could erode its data moat if not managed proactively. Nonetheless, FactSet’s scale, integration, and reputation for reliability provide a durable edge in a consolidating industry.