FactSet Research (FDS): 45 Years of Growth Culminate in $2.3 Billion Revenue

Pelican Bay Capital Management (PBCM), an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. PBCM Concentrated Value Strategy returned 8.5% in the quarter, compared to a 3.8% return for the Russell 1000 Value Index. The robust performance of AI-related stocks and commodities exposure drove the Strategy’s performance in the quarter. For the full year, the Strategy returned 20.6% compared to 15.9% for the Index. The firm seeks to invest in high-quality companies with a strong balance sheet. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, PBCM highlighted FactSet Research Systems Inc. (NYSE:FDS) as a new addition. FactSet Research Systems Inc. (NYSE:FDS) is a financial data company that provides integrated financial information and analytical applications for the investment community. The one-month return of FactSet Research Systems Inc. (NYSE:FDS) was -30.18%, and its shares lost 55.00% of their value over the last 52 weeks. On February 6, 2026, FactSet Research Systems Inc. (NYSE:FDS) stock closed at $207.32 per share, with a market capitalization of $7.758 billion.

PBCM stated the following regarding FactSet Research Systems Inc. (NYSE:FDS) in its fourth quarter 2025 investor letter:

"Factset Research Systems Inc. (NYSE:FDS) is a leading financial data provider serving buy-side, sell-side, and wealth management clients. The company boasts over 45 years of consecutive top-line growth, reaching $2.3 billion in revenue for fiscal year 2025. As a classic "compounder," FDS maintains a sticky business model with retention rates exceeding 95%. Its operations consistently deliver high-teens returns on invested capital (ROIC) and stable cash flows, bolstered by a market leading performance reporting suite.

FDS holds a number two position in the industry behind Bloomberg and operates a monopoly over the CUSIP system for U.S. financial markets. While banking and hedge funds remain core markets, FDS is making meaningful expansions in their customer base by delivering data solutions through APIs and an irreplaceable dataset. Management has also proven to be adept allocators of capital with recent strategic acquisitions such as Portware, LiquidityBook, and CUSIP have strengthened its competitive moat…” (Click here to read the full text)

FFactset Research Systems Inc. (NYSE:FDS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 37 hedge fund portfolios held Factset Research Systems Inc. (NYSE:FDS) at the end of the third quarter, up from 36 in the previous quarter. First quarter of fiscal 2026 results show Factset Research Systems Inc. (NYSE:FDS) generated $608 million in revenue, representing 6.9% growth year over year. While we acknowledge the potential of Factset Research Systems Inc. (NYSE:FDS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered FactSet Research Systems Inc. (NYSE:FDS) and shared Baron Focused Growth Fund's views on the company last quarter. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.