Core Thesis - FactSet Research Systems Inc. (FDS) is positioned as a resilient player in the financial data and analytics sector, with a strong subscription-based model that creates high client retention and switching costs [2][5]. Group 1: Business Model and Market Position - FactSet offers an integrated workstation that is essential for analysts and portfolio managers, streamlining vast amounts of financial data into a reliable platform [2]. - The company's subscription model fosters a high-switching-cost ecosystem, making it difficult for clients to transition to competitors without significant retraining and workflow adjustments [2][3]. - FactSet's entrenched position in global finance provides stability and growth potential, particularly as demand for sophisticated analytics tools increases [4]. Group 2: Financial Performance and Growth Potential - The business model is margin-rich, benefiting from the scalability of cloud-enabled analytics, which allows for consistent cash generation [3]. - FactSet has demonstrated strong retention rates and predictable revenue streams, similar to the dynamics seen in other successful companies like Paychex [3]. - The company has a three-year revenue CAGR of 11.1%, indicating consistent growth despite recent stock price depreciation due to AI disruptions [6]. Group 3: Investment Opportunity - With pricing power, high client loyalty, and a strong foundation for operational resilience, FactSet presents a compelling opportunity for long-term returns [5]. - The market is expected to increasingly recognize the intrinsic value of FactSet's mission-critical platform, positioning it for potential outperformance in 2026 [5].