RELX has reported a good start to the year across all four divisions, driven by strong underlying revenue growth, new sales and increasing demand for AI tools.
Full-year guidance was re-affirmed, with the group expecting another year of “strong” underlying growth in revenue and operating profit.
The shares were down 3.0% in early trading.
Our view
In our view, RELX delivered a typically strong first-quarter update. Growth remains strong across the business, supported by solid demand for AI-enabled tools. Crucially, there’s no sign that AI disruption is denting performance, with management still positioning it as a clear tailwind. We put the muted market reaction down to sentiment having rallied heading into the print, from February's lows.
RELX provides mission-critical data analytics services to insurers, law firms and academic institutions. Its competitive moat remains substantial, built on proprietary, hard-to-replicate datasets and sophisticated analytics that deliver real value to customers. Fully digital products remain the core driver of the business, accounting for the vast majority of group revenue, and this is where long-term growth is concentrated.
The Legal division is the area where recent disruption fears centre, but strong renewals and new business reflect growing adoption of AI-enabled tools. While investors would still welcome more concrete evidence of AI’s revenue impact, commentary is encouraging. This is not a company rushing to bolt AI onto its products, but one embedding it into workflows where it genuinely enhances productivity.
Data analytics also remains relatively defensive. Much of RELX’s offering is essential rather than discretionary, and a large proportion of revenue is recurring through subscription models. This provides good visibility and stability, even as economic conditions fluctuate.
We continue to view the Exhibitions business positively. While still a smaller part of the group, it has evolved into a more streamlined, increasingly digital operation. Margins have improved, and the blend of physical events and digital tools strengthens the division's longer-term profile.
Cash generation remains a key strength, with operating profit translating cleanly into cash flow. This has allowed RELX to balance ongoing investment with shareholder returns. Management’s decision to step up buybacks, taking advantage of recent share price weakness, underlines confidence in the outlook – though nothing is guaranteed.
RELX features on our Five Shares to Watch list for 2026 because we believe it is a proven, high-quality business, and despite some recovery in recent months, the valuation has room to normalise further if execution remains on point. In our view, RELX still appears far more like an AI winner than a casualty.
That said, the threat of new AI-first entrants into the data arena puts RELX in a position it hasn't faced for quite some time. We don’t think sentiment will turn around overnight, so investors will need to take a long-term view.
Environmental, social and governance (ESG) risk
The commercial services industry is low/medium risk in terms of ESG. Social and governance risks are the most acute - like product governance, data privacy & security, and labour relations - as exposure to environmental risks is minimal. Companies operating within facilities maintenance are also exposed to community relations and emissions risks.
According to Sustainalytics, RELX’s overall management of material ESG issues is strong.
In 2022, RELX’s board reviewed the company’s progress on sustainability and social responsibility goals, with regular updates from the global head of ESG. The CEO and CFO’s annual incentives are now tied to non-financial targets like carbon reduction and responsible sourcing. Employees receive training on data privacy, security, and business ethics, with a global mentorship programme and regular employee surveys to support human capital management.
The author holds shares in RELX.
RELX key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.