{"id":98495,"date":"2026-08-06T11:24:11","date_gmt":"2026-08-06T11:24:11","guid":{"rendered":"https:\/\/www.europesays.com\/britain\/98495\/"},"modified":"2026-08-06T11:24:11","modified_gmt":"2026-08-06T11:24:11","slug":"lsegs-markets-arm-is-doing-the-heavy-lifting-while-investors-argue-about-ai-3","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/britain\/98495\/","title":{"rendered":"LSEG’s markets arm is doing the heavy lifting while investors argue about AI"},"content":{"rendered":"

\"LSEG's<\/a> LSEG’s markets arm is doing the heavy lifting while investors argue about AI Proactive uses images sourced from Shutterstock <\/p>\n

The debate over London Stock Exchange Group PLC (LSE:LSEG)<\/a> has fixated on whether artificial intelligence will erode its data subscriptions, and in the process has missed where the growth is actually coming from. <\/p>\n

That is the argument in a new ‘buy note ‘, which sees scope for the company to beat its own revenue and margin guidance this year. <\/p>\n

The subscription business, the source of most of the AI anxiety, is performing broadly as management said it would, with 6.5% organic constant currency revenue growth expected in 2026. <\/p>\n

Within that, Workflows growth of 2.8% has slowed by 0.3 percentage points, while Data and feeds has accelerated by 0.9 points to 7.5%. <\/p>\n

Neither figure suggests the disruption bears have priced in. <\/p>\n

The overlooked engine is the Markets division, which the broker says has outperformed and is driving upgrades to consensus forecasts. <\/p>\n

That matters for the valuation because these are not cheap businesses in their own right. <\/p>\n

Tradeweb, in which LSEG holds a majority stake, trades on 22 times consensus earnings for 2027, while listed peers of the post-trade operation change hands at 19 times. <\/p>\n

The note models 8.1% organic growth for 2026, above both the 7% to 7.5% company guidance and the 7.8% consensus that preceded the results. <\/p>\n

On margins, it estimates a 50 basis point tailwind to earnings before interest, tax, depreciation and amortisation. <\/p>\n

That would take LSEG past its 51.5% target for this year even if it brings investment forward, and past the 50 basis points of expansion guided for 2027. <\/p>\n

The broker expects revenue guidance to be raised at the third-quarter results. <\/p>\n

One gap to fill before publication: the source material does not identify which house wrote the note, and house style requires the broker named on first reference. <\/p>\n","protected":false},"excerpt":{"rendered":"LSEG’s markets arm is doing the heavy lifting while investors argue about AI Proactive uses images sourced from…\n","protected":false},"author":2,"featured_media":98496,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[21266],"tags":[41617,2096,41618,9581,11151,21495,1854,39778],"class_list":["post-98495","post","type-post","status-publish","format-standard","has-post-thumbnail","category-london-stock-exchange-group","tag-ai-proactive","tag-artificial-intelligence","tag-company-guidance","tag-london-stock-exchange-group","tag-lseg","tag-organic-growth","tag-revenue-growth","tag-revenue-guidance"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/117048316013062322","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/98495","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=98495"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/98495\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/98496"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=98495"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=98495"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=98495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}