VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
PRICE: 0 CENTS
Wednesday, December 31, 2025
FactSet Research Systems Inc.
FDS · New York Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
Request update
Spot something outdated? Send a quick note and source so we can refresh this profile.
Overview
FactSet provides subscription-based financial data, analytics, and workflow tools through its Hosted Platform, serving investment professionals globally. The business exhibits high retention (annual ASV retention above 95%) consistent with workflow integration and switching-cost moats. FactSet also operates CUSIP Global Services (CGS), offering an Identifier Platform that assigns and distributes CUSIP-based identifiers, an infrastructure-like standards registry with de facto standard advantages. Key risks include competitive pressure from large platforms and dependency on third-party data and cloud providers.
Primary segment
Hosted Platform (Workstations & Analytics)
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
2 segments · 7 tags
Updated 2025-12-30
Segments
Hosted Platform (Workstations & Analytics)
Financial data and analytics platforms for investment professionals
Revenue
—
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Identifier Platform (CUSIP Global Services)
CUSIP security identifiers and reference data (US and Canada)
Revenue
—
Structure
Quasi-Monopoly
Pricing
strong
Share
95%-100% (reported)
Peers
Moat Claims
Hosted Platform (Workstations & Analytics)
Financial data and analytics platforms for investment professionals
FactSet reports operating segments by geography and states it is impracticable to disclose revenue by product or service; this segment is defined using the company's Hosted Platform revenue recognition description.
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Core product is a subscription Hosted Platform delivering connected datasets and analytics across the investment workflow (research to portfolio to trading to reporting) via desktop, feeds, cloud solutions and APIs.
Erosion risks
- Clients multi-home across data providers and terminals
- Open data standards and API-first data stacks reduce proprietary workflow advantage
- GenAI copilots may shift user interface value away from vendor workstations
Leading indicators
- Annual ASV retention rate
- Net user count growth
- Attach rate of add-on datasets and analytics per client
Counterarguments
- Bloomberg remains the default on many desks, limiting switching and pricing leverage
- Large clients can invest in internal data lakes and open-source analytics to reduce vendor dependence
Switching Costs General
Demand
Switching Costs General
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 3 evidence
High subscription retention suggests sticky deployments and meaningful switching friction (data entitlements, integrations, user training, workflow standardization).
Erosion risks
- Budget scrutiny and vendor consolidation can increase cancellations or seat reductions
- Competitors bundling data and execution can raise switching incentives
- Material third-party data cost inflation can pressure price and value perception
Leading indicators
- ASV retention percent
- Annual retention percent (clients)
- Net seat adds vs reductions at large clients
Counterarguments
- High retention can reflect long evaluation cycles and contract inertia rather than superior value
- Industry consolidation can drive churn independent of product quality
Suite Bundling
Demand
Suite Bundling
Strength: 3/5 · Durability: durable · Confidence: 3/5 · 1 evidence
FactSet sells access to combinations of products (workstations, analytics, enterprise solutions), which supports cross-sell and raises the cost of switching to point solutions.
Erosion risks
- Best-of-breed point solutions can displace bundled components
- Clients increasingly buy data separately and build workflows in-house
Leading indicators
- Number of products per client (attach rate)
- Net revenue retention and organic ASV expansion
- Adoption of enterprise and API delivery vs workstation-only
Counterarguments
- Bundling is weaker if clients can source comparable data and analytics modularly
- Large firms can negotiate unbundled pricing and maintain multi-vendor stacks
Identifier Platform (CUSIP Global Services)
CUSIP security identifiers and reference data (US and Canada)
FactSet describes CGS as an Identifier Platform providing universally recognized security identifiers and related descriptive data; this segment is defined using that platform description.
Standards Registry
Network
Standards Registry
Strength: 5/5 · Durability: durable · Confidence: 5/5 · 3 evidence
CGS assigns and maintains the CUSIP identifier registry used across front-, middle- and back-office security master workflows, creating a registry and standards moat.
Erosion risks
- Regulatory or governance changes to identifier standards (ABA and industry) could alter economics or control
- Increased adoption of alternative identifiers (e.g., FIGI, ISIN, or LEI) for certain workflows
- Technology shifts (tokenization and digital assets) could introduce new identifier regimes
Leading indicators
- Renewal and extension of CGS management arrangements
- Growth in identifiers issued for new asset classes
- Adoption metrics of alternative identifiers in major workflows
Counterarguments
- Some workflows can map across identifiers, reducing dependence on a single scheme
- Global markets often rely on multiple identifier standards, limiting total addressable monopoly power
De Facto Standard
Network
De Facto Standard
Strength: 5/5 · Durability: durable · Confidence: 4/5 · 1 evidence
CUSIP is widely treated as a standard identifier in U.S. and Canadian securities processing; standard status increases network value as more systems adopt it.
Erosion risks
- Standard dilution if market participants shift to alternative identifiers for interoperability
- Pricing or regulatory scrutiny given infrastructure-like role
Leading indicators
- Mentions of CUSIP in new regulations and industry standards
- Adoption of CGS APIs and web services by major vendors
Counterarguments
- CUSIP can be one of several identifiers used simultaneously; mapping services can commoditize uniqueness
- International standards (ISIN or LEI) may be preferred in cross-border contexts
Concession License
Legal
Concession License
Strength: 4/5 · Durability: durable · Confidence: 3/5 · 1 evidence
Operational control of the CUSIP assignment function is delegated via industry governance (ABA), which behaves like a concession or mandate. The moat depends on continued governance arrangements.
Erosion risks
- Non-renewal or renegotiation of governance and management arrangements
- Policy-driven push toward open standards for identifiers
Leading indicators
- Public announcements about ABA and CGS governance changes
- Contract renewals or disputes related to CUSIP management
Counterarguments
- If governance can be re-tendered, the concession advantage may be contestable over time
Evidence
The Hosted Platform is a subscription-based service that provides client access to various combinations of products and services including workstations, portfolio analytics and enterprise solutions.
Supports the platform scope and cross-workflow integration underpinning workflow and data lock-in.
Our solutions span the investment lifecycle. We provide a configurable desktop and mobile platform, data feeds, cloud-based digital solutions, and APIs.
Breadth of workflow coverage and delivery channels increases embedded usage and integration depth.
For the year ended August 31, 2025, annual ASV retention was greater than 95% and annual retention was 91%.
Retention metrics are consistent with high switching costs and workflow entrenchment.
Annual ASV retention was greater than 95% as of November 30, 2025.
Reinforces that retention remained above 95% through the most recent quarter.
price increases to existing clients
10-K attributes part of organic ASV growth to price increases, consistent with some pricing power supported by switching costs.
Showing 5 of 10 sources.
Risks & Indicators
Erosion risks
- Clients multi-home across data providers and terminals
- Open data standards and API-first data stacks reduce proprietary workflow advantage
- GenAI copilots may shift user interface value away from vendor workstations
- Budget scrutiny and vendor consolidation can increase cancellations or seat reductions
- Competitors bundling data and execution can raise switching incentives
- Material third-party data cost inflation can pressure price and value perception
Leading indicators
- Annual ASV retention rate
- Net user count growth
- Attach rate of add-on datasets and analytics per client
- Organic ASV growth rate (workstations vs data solutions)
- ASV retention percent
- Annual retention percent (clients)
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.