LSEG reported full year revenue, excluding recoveries, of £9.0bn (£9.0bn expected), reflecting organic growth of 7.1%, with performance driven by broad based momentum across all divisions. Subscription led recurring revenue growth of 5.9% points to an acceleration over the second half.
Underlying operating profit rose 14.3% to £3.5bn, supported by topline growth and continued margin expansion.
Free cash flow increased to £2.4bn from £2.2bn, while net debt, including leases, stood at £7.6bn at year end.
2026 organic revenue is forecast to grow 6.5–7.5% (6.7% expected), and free cash flow is expected to exceed £2.7bn.
A final dividend of 103p was announced, giving a total of 150p for the year, up 15.4% - alongside plans for a new £3bn share buyback programme.
The shares rose 3.8% in early trading.
Our view
LSEG has delivered a steady set of results, with revenue and profits broadly in line with expectations, but the key positive sits firmly in the outlook. The 2026 revenue growth guide of 6.5–7.5% edges ahead of prior consensus and suggests modest upgrades are likely, reinforcing confidence in the durability of the growth profile.
The more important debate for investors centres on AI, where LSEG has been caught up in the recent sell‑off amid fears that generative models disrupt data and software businesses. Management has very deliberately put AI front and centre in today’s release, positioning LSEG as an enabler of AI adoption rather than a casualty of it, with trusted, licensed data becoming more valuable as usage scales.
That framing makes sense to us: LSEG owns scarce, regulated datasets and critical market infrastructure that AI models need but cannot easily replicate. We were impressed with the tone of the results call and the suite of new metrics to help break down revenue growth. Increased transparency is typically a sign of optimism.
We were pleased to see recurring revenue growth accelerate in the second half of 2025, and the outlook for 2026 is more encouraging than it has been for some time. But this remains a key area to monitor, along with shifting pricing dynamics as AI interfaces and agents become more widely used.
LSEG is more than just a stock exchange. It’s a global leader in financial data and technology. After buying Refinitiv in 2021, a major data and analytics business, LSEG now earns most of its revenue from providing tools and services that financial professionals rely on daily.
The company also benefits from its diversified operations. In addition to data and analytics, LSEG generates revenue from services like clearing and settlement, which help ensure that financial transactions are completed smoothly. This variety of income streams makes LSEG’s business more resilient during market ups and downs.
There’s been a push of late to boost profitability, and the results are starting to bear fruit. Margins are expanding, helping top-line growth flow through to the profit line. This is a high-quality business with earnings backed by strong cash flows. The balance sheet is in decent shape, too, supporting increased shareholder returns, though nothing is guaranteed.
In our view, LSEG has the potential to be an AI winner, with its data assets and infrastructure well-positioned as AI adoption accelerates. The current valuation looks attractive and offers upside in our view without requiring a return to previous highs. However, we do not expect sentiment to shift overnight and anticipate a prolonged overhang, reflecting the reality of the AI threat.
LSEG 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.