London, February 26, 2026, 09:10 GMT — Regular session
- LSEG shares surged early in London after the group announced another £3 billion buyback.
- The group bumped up its dividend and is projecting another year of income growth in the mid-single digits.
- Margins remain in focus, with Elliott’s pressure and worries over AI disruption also weighing on data subscriptions.
London Stock Exchange Group shares jumped up to 4.7% at the open in London on Thursday, following news of a new £3 billion ($4.1 billion) share buyback. (Reuters)
LSEG shares are climbing, though the group is still working to reassure investors about the future of its data business as artificial intelligence tools evolve quickly. Elliott Management, the activist hedge fund, is meanwhile stepping up demands for changes at the company. “The management team needs to demonstrate that they have the credibility to take LSEG to the next stage,” said Stephen Yiu, chief investment officer at Blue Whale growth fund, which holds LSEG shares. (Reuters)
Elliott has assured the UK government it won’t seek to break up LSEG or shift the group’s listing to New York, according to a Financial Times report, following its sizable stake in the exchange operator. LSEG shares finished Wednesday 1.5% higher at 77.94 pounds. (Reuters)
LSEG posted a pre-tax profit of £1.97 billion for 2025, a jump of 56.5%. Total income including recoveries climbed 5.5% to £9.35 billion. The group lifted its dividend by 15.4% to 150.0 pence a share. Share buybacks totaled £2.1 billion in 2025, and LSEG says it expects to repurchase another £3 billion by February 2027. (LSEG)
The company is projecting total income growth for 2026, organic and at constant currency, in the 6.5% to 7.5% range, not factoring in “recoveries”. Management is also pointing to an 80 to 100 basis point bump in EBITDA margin. For reference, a basis point equals one-hundredth of a percentage point.
Annualised subscription value (ASV) — a key measure for investors — was up 5.9% in December. ASV captures subscription revenue trends from core units including Data & Analytics, FTSE Russell and Risk Intelligence. Investors look to this figure for clues about the reliability of recurring income.
Schwimmer’s pitch: AI isn’t a threat, it’s a catalyst for demand. LSEG said on Thursday it’s been signing “trusted, AI-ready data” deals with the likes of Anthropic and OpenAI, doubling down on its case for proprietary data.
The activist push remains in play. Elliott continues to press LSEG on margins, calling for a portfolio review. Investors are divided—some see large disposals as the answer, others think that just reduces the company’s scope. “Instant gratification isn’t a way of creating long-term value,” said Ben Needham, portfolio manager at Ninety One, cautioning against sweeping asset sales.
Bulls face a clear risk: buybacks won’t resolve the underlying argument. Should subscription growth slip again, or if Microsoft’s impact doesn’t show up clearly in the figures, Thursday’s rebound could prove fleeting in the eyes of the market.
Traders are keeping an eye on the extent of AI-related concerns moving through the exchange and market-data sector. S&P Global, MSCI, and Deutsche Boerse are among the peers facing the same questions—will these new tools end up commoditising data and workflows, or do they risk tightening the grip on their customer base?
Management’s webcast and conference call on the results is set for 10:00 a.m. UK time; investors will want specifics on buyback speed, margins, and the company’s AI plans. Next up: LSEG’s Q1 trading statement and annual general meeting, both scheduled for April 23. (LSEG)
