FactSet Research Systems Inc. (FDS) Stock Analysis

FactSet’s primary competitive advantage lies in its deeply integrated, proprietary data platform, built over four decades. The company manages over 1,300 terabytes of curated, concorded financial data, which is difficult for competitors to replicate. This “data moat” underpins high client retention rates—over 95% ASV retention in FY25—and supports FactSet’s ability to embed itself in client workflows, particularly for institutional asset managers and wealth advisors.

FactSet’s open architecture and API-first approach allow clients to integrate proprietary and third-party data, a flexibility that differentiates it from more closed systems like Bloomberg. The company’s cloud-native infrastructure and rapid AI adoption further enhance its value proposition, enabling clients to automate and modernize workflows. Recent investments in real-time data, private markets, and AI-powered analytics have accelerated organic ASV growth to 5.7% in FY25, outpacing S&P Global’s Market Intelligence division and LSEG’s Refinitiv in certain segments.

FactSet’s customer-centric culture is a notable asset. The company’s consultants are consistently cited as trusted partners, contributing to a 91% client retention rate and a 10% year-over-year increase in user count. While Bloomberg remains dominant in trading and news, and S&P and LSEG have scale, FactSet’s nimbleness, high-touch service, and breadth of connected data position it as the preferred enterprise partner for clients seeking workflow integration and innovation.