London, June 12, 2026, 16:13 BST
- London Stock Exchange Group shares traded 1.04% higher at 8,942p, clawing back some ground after falling 1.82% on Thursday.
- LSEG said customers are taking up its AI-ready data tools, pushing investors to reconsider the risks from AI disruption.
- FCA’s call on a UK equities consolidated tape in July is one of the main things on tap, along with LSEG’s interim results set for July 30.
London Stock Exchange Group plc shares edged up on Friday, lifted by gains in the wider UK market and continuing debate over AI’s impact on the company. LSEG was last quoted at 8,942p, up 1.04%, after an open at 8,844p and trade as high as 8,944p, per Google Finance at 16:11 BST. That bounced back from Thursday’s drop, when AJ Bell data showed shares fell 1.82% even as the FTSE 100 posted gains.
LSEG stock has jumped after the company spent much of this year trying to convince investors that AI won’t eat into its data business. Reuters said on Thursday LSEG shares have gained 27% since Elliott Management’s stake was announced, but the stock is still below last year’s high. Stocks tend to rise if the market sees better future cash flows or capital returns, or less risk. They lose ground if earnings, trust or valuation expectations drop. The question for LSEG now is if AI helps to sell its data to more customers or pushes clients to pay less for terminals and feeds.
Turning AI into more than a defense, LSEG now pitches it as a way to get data to clients. The company said in April that Q1 total income, excluding recoveries, climbed 9.8% on an organic constant-currency basis. That figure strips out both currency shifts and portfolio tweaks. LSEG said over 150 customers were connected or onboarding to its Model Context Protocol server, which delivers AI-ready data to licensees. Buybacks totaled £1.1 billion in Q1. CEO David Schwimmer called it “a great start to 2026.” LSEG still sees 2026 revenue growth in the upper half of its 6.5% to 7.5% target range. LSEG
LSEG is starting to shake off some of the negative sentiment around its AI risk, with analysts a bit less cautious, but optimism on AI execution is still patchy. “There is still a ‘show me’ story (for AI). It’s one thing to have usage, it’s another to start charging people,” UBS analyst Michael Werner told Reuters. Deutsche Bank’s Benjamin Goy pointed to value, saying LSEG looks “pretty cheap compared to other data companies.” Reuters wrote that LSEG trades at about 18 times forward earnings, lower than Moody’s and MSCI. Around 90% of analysts have it at buy or strong buy, none with a sell. Reuters
LSEG still has to deal with regulatory and market-structure risk, say bears. A consolidated tape—a single real-time feed that shows prices and trades from all venues—could hit parts of the data market, especially if it covers pre-trade data like bids and offers. Julia Hoggett, the CEO of the London Stock Exchange, said this week a post-trade tape is “the more prudent and pragmatic place to start.” Reuters said the Financial Conduct Authority is likely to lock in its plan in July. LSEG
London faces more listing worries. Flutter Entertainment said Friday it plans to leave the London Stock Exchange in August, blaming thin trading and high regulatory costs. The move signals London is still struggling to keep big names. While this doesn’t change the investment case for LSEG, which now does data, indices, trading, and clearing, it hangs over the London Stock Exchange venue inside the group.
Capital returns are still a cushion. LSEG said it snapped up 387,287 ordinary shares via Goldman Sachs on June 8 and June 9 as part of its share buyback, with plans to cancel them. Buybacks cut the share count and can push up earnings per share. LSEG has reiterated its plan to return £3 billion through buybacks by February 2027. Investors are watching if buybacks, AI products and subscription numbers are enough to absorb any hit from tighter rules or softer terminal demand.
LSEG is seen as selectively attractive at current levels, not risk-free. Shares trade at a discount, analysts are supportive, buybacks are in place and Q1 growth gives bulls reasons to stay in. Risks are still there—AI monetization, the FCA tape outcome and London’s listings outlook remain in focus. Next big date is LSEG’s interim results on July 30, covering the first half. Investors want to see if AI is showing up in revenue and whether EBITDA margin is on track toward the targeted 80–100 basis-point improvement.
