We came across a bullish thesis on FactSet Research Systems Inc. on Ocular Capital’s Substack. In this article, we will summarize the bulls’ thesis on FDS. FactSet Research Systems Inc.’s share was trading at $201.49 as of February 24th. FDS’s trailing and forward P/E were 18.13 and 15.95, respectively according to Yahoo Finance.
FactSet (FDS) stands out as a highly resilient player in the financial data and analytics space, offering an integrated workstation that has become indispensable for analysts and portfolio managers worldwide. In an environment overwhelmed by raw financial data, FactSet organizes and streamlines information, creating a platform that professionals rely on daily. Its subscription-based model fosters a high-switching-cost ecosystem, as moving to a competitor would require retraining entire teams and rebuilding intricate workflows, making client relationships exceptionally sticky.
This dynamic, akin to what Paychex has achieved in its own sector, ensures predictable and recurring revenue streams with strong retention rates. FactSet’s business is margin-rich, benefiting from the scalability of its cloud-enabled analytics, and the premium clients are willing to pay for seamless, reliable access to critical financial insights.
The company’s entrenched position at the center of global finance provides both stability and growth potential, making it well-positioned to benefit from increasing demand for sophisticated analytics tools in an era of growing data complexity.
With its combination of pricing power, high client loyalty, and consistent cash generation, FactSet offers investors a compelling opportunity for steady, long-term returns, especially as the market continues to recognize the intrinsic value of indispensable, mission-critical platforms. In short, FactSet is a business where operational resilience, high retention, and strategic positioning converge, creating a strong foundation for a potential market outperformance in 2026.
Previously, we covered a bullish thesis on FactSet Research Systems Inc. (FDS) by Francesco Ferrari in March 2025, which highlighted its high recurring revenue, strong margins, and consistent growth with an 11.1% three-year revenue CAGR. FDS’s stock price has depreciated by approximately 54.50% since our coverage due to AI disruptions. Ocular Capital shares a similar view but emphasizes the platform’s high-switching-cost ecosystem, client stickiness, and central role in global finance, reinforcing its resilience and long-term value.
FactSet Research Systems Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held FDS at the end of the third quarter which was 36 in the previous quarter. While we acknowledge the risk and potential of FDS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FDS and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
