London Stock Exchange’s (LSEG) interim results presentation looked at “five myths about AI and our business”, covering investor concerns about topics like AI models recreating the group’s data and automation-driven financial services headcount reductions damaging its revenues.

This highlighted the pressure LSEG has been under from the narrative about AI disruption, as well as from activist investor Elliott which has built up a stake. The shares have been weak year to date, and while they moved into positive territory ahead of these results, they are now (slightly) in the red again after the group’s latest earnings guidance underwhelmed market hopes for faster growth.

Management said in April that it expected total income growth this year at the “upper half” of its 6.5–7.5 per cent guidance range. It formally raised its FY2026 expectation to 7–7.5 per cent alongside these results. Consensus was pricing in 7.8 per cent growth, according to Citi analyst Andrew Lowe.

LSEG:LSE

London Stock Exchange Group PLC

20 days

LSEG’s strongest income growth came from its markets unit, where the top line was up 12 per cent to £1.9bn. The data and analytics business, where sales rose 5 per cent to £2.1bn, remained the biggest revenue generator.

Adjusted earnings climbed 14 per cent to £2.53bn. Guidance for annual margin expansion was raised to 100 basis points.

Equity free cash flow surged 29 per cent to £1.2bn, and management has pencilled in at least £2.7bn of cash flow for the full year. That performance is funding an increased return of capital, which is what Elliott wants. LSEG completed a £2.1bn buyback in the first half and a further £1.4bn programme was announced. The interim dividend was up 17 per cent.

The shares trade on 16 times forward consensus earnings for FY2027. Given the free cash flow outlook, we still see value. Buy.

Last IC view: Buy, 8,591p, 27 Feb 2026

LONDON STOCK EXCHANGE (LSEG)  ORD PRICE:8,850pMARKET VALUE:£ 43bnTOUCH:8,848-8,854p12-MONTH HIGH:10,290pLOW: 6,684pDIVIDEND YIELD:1.8%PE RATIO:32NET ASSET VALUE:3,830p*NET DEBT: 45%Half-year to 30 JunTotal income (£bn)Pre-tax profit (£bn)Earnings per share (p)Dividend per share (p)20254.540.991234720264.991.2816455% change+10+29+33+17Ex-div:13 AugPayment:16 Sep *Includes intangible assets of £31bn, or 6,341p a share